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tnb 5:30 Fri Apr 17
Selling the club, post OS move
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Afternoon all.
This is something that has been confusing me for a while now. It may well be that I have missed something somewhere, in which case I would be more than happy to be put on the right track.
Something which gets mentioned a lot on here over recent months (it just popped up on the Steve Mclaren thread for example) is the idea/ assumption that Gold and Sullivan have half an eye on selling up to new mega-rich owners once we are installed in Stratford with all the (hopefully) increased profile, etc, that should bring. It seems particularly relevant right now, as many people are assuming it will have a bearing on their decision about a new manager/ retaining Allardyce, and presumably also on their level of investment over the next few seasons, hence it being brought up on threads about potential candidates, the prospect of a new contract for Allardyce, and so on. Most people seem to think that the board face a straight choice between showing real ambition or trying to ensure a steady passage towards the OS and a potential sale, and , it seems to be assumed, a tidy profit.
But isn't there a clause in our deal for the OS that Gold and Sullivan have to effectively 'pay back' a large proportion of any profit from selling the club after the move? I certainly thought there was. Has this been forgotten, or as I say have I missed something whereby they managed to avoid or at least water down this condition? Because if it does exist, surely that makes this perceived mercenary motive less likely (as it would be much less profitable)?
This doesn't seem to have been widely reported, but I remember it being mentioned - I think around the time of the judicial review - and I did manage to find this article making reference to it.
http://m.bbc.co.uk/sport/olympics/20603585
According to that, the clause would seem to stand for the whole of the 99 year lease, and if the details are correct then it would appear they would have to give up 50 percent of any profit.
Now, again assuming the sums in this article are roughly correct, it would seem that the board could legitimately take around 120 million between them before it counted as profit (50m for the initial purchase price, plus 70m of absorbed debt). That's none too shoddy, clearly, but it is only getting back what they have already paid out after all. Beyond that, if it is 50% which they would have to give up, we're really not talking about massive amounts in terms of football club owners are we. Bear in mind that Man City was sold for 'only' around 200 million - so even if we were to get an offer for that amount, you're talking 80 million profit, of which Gold and Sullivan between them would only be able to keep 40 million.
Its hardly 'take the money and run' style sums, is it? Especially for all the work they will have then put in for at least 4 or 5 years, plus. Does anyone else think that we may be being a little unfair on the board, if this is true?
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Replies - In Chronological Order ( Show Newest Messages First)
Eggbert Nobacon
5:33 Fri Apr 17
Re: Selling the club, post OS move
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not sure a % was ever confirmed at all
and even if it is 50%, if as has been reported the club is now worth 400m, 50% of the profit would still be 150 million quid to Gold and Sullivan
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Nicey
5:35 Fri Apr 17
Re: Selling the club, post OS move
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When we move there we are guaranteed premiership survival
Until we get there only BFS guarantees premiership survival
That's the theory but I'm still to understand why
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Willtell
5:38 Fri Apr 17
Re: Selling the club, post OS move
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I am certain that there was a clause but it was for a limited period. 10 years springs to mind but I'm not sure that is right.
I think G&S are actually looking for someone to buy around 20% of the shares. And as Gold is mid 70s I think he wouldn't have agreed unless they could pass on their shares to family without penalty.
So in short you're right to say that they aren't looking for a quick exit.
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:^)
5:39 Fri Apr 17
Re: Selling the club, post OS move
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Don't think they will or want to sell up. They just want investors.
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Nasty_Nick
5:40 Fri Apr 17
Re: Selling the club, post OS move
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Oh fuck off nicey you boring cunt.
As been mentioned no percentages were mentioned but the valuation of the club has skyrocket and they will get the lions share of that plus the money they have loaned the club at a favourable rate to them. Pretty good investment of you ask me.
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Eggbert Nobacon
5:46 Fri Apr 17
Re: Selling the club, post OS move
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nicey you seem to have posted on the wrong thread as your boring comment has fuck all to do with the discussion
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penners28
5:50 Fri Apr 17
Re: Selling the club, post OS move
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hold on, so the money G&S have given us (straight out of their kids pockets) is actually a loan and they will make money out of us
well blow me down
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Rodfarts
6:05 Fri Apr 17
Re: Selling the club, post OS move
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I reckon the % of profit they would have to pay back would go down over a period of time.
1st year 50%
2nd year 45%
Etc etc
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whufcroe
6:12 Fri Apr 17
Re: Selling the club, post OS move
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We don't know as it's confidential like the rest of the OS deal...
Still since billionaires took over Man City & Chelsea the goal posts have moved with FFP so I wouldn't hold your breath for Qatar to come in to buy the club as they wouldn't be able to complete with the UAE mob.
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Full Claret Jacket
6:16 Fri Apr 17
Re: Selling the club, post OS move
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I don't think Sullivan has any intention of selling up but he would love some investors with deep pockets for sure. David Gold is getting no younger so it's no surprise he takes more of a back seat these days.
As far as Brady goes, it's all business, there is no emotional attachment but for Gold and Sullivan I believe it is different and I can't see them walking away unless they financially cannot sustain supporting the club any longer or are too ill to continue.
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:^)
6:18 Fri Apr 17
Re: Selling the club, post OS move
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FFP won't stop the rich. Look at how Man City and PSG have gone about it already. Fines mean fuck all to them.
Man City have got around the rules with the ridiculous stadium naming rights package they effectively pay themselves, and their deal to take Lampard was dodgy as fuck too.
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whufcroe
6:19 Fri Apr 17
Re: Selling the club, post OS move
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"Man City have got around the rules with the ridiculous stadium naming rights package they effectively pay themselves"
So how would someone do that at the OS then?
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tnb
6:20 Fri Apr 17
Re: Selling the club, post OS move
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The club is worth 400m? Twice what the Arabs paid for Man City? I find that hard to believe.
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whufcroe
6:22 Fri Apr 17
Re: Selling the club, post OS move
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£400m hahaha
I don't think so
What for a club in debt still and without their own stadium?
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whufcroe
6:24 Fri Apr 17
Re: Selling the club, post OS move
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and at the end of the 2012 season we were valued at £104m and that was with a ground
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:^)
6:25 Fri Apr 17
Re: Selling the club, post OS move
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Croe - Maybe the same way Man City did, by negotiating a yearly deal to have control of the naming rights?
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Rossal
6:25 Fri Apr 17
Re: Selling the club, post OS move
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after the OS the club will be valued at around £200-250 mil
G&S will probably sell a majority stake, id be surprised if they didnt keep some stake between them
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whufcroe
6:29 Fri Apr 17
Re: Selling the club, post OS move
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:^) 6:25 Fri Apr 17
Unlikely because unlike Man City were not the only tenants. The deals been struck and I would bet it's not a massive percentage.
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Eggbert Nobacon
6:30 Fri Apr 17
Re: Selling the club, post OS move
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croe
that's why I specified reported value
http://www.claretandhugh.info/hammers-valued-at-400m/
Althogh the government assembly came up with the same figure
http://www.itv.com/news/london/2015-03-17/boris-under-pressure-over-secret-deal-to-rent-londons-olympic-stadium-to-west-ham/
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Johnson
6:30 Fri Apr 17
Re: Selling the club, post OS move
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It's threads like this that really show up how little people actually understand about the OS deal.
IT IS NOT OUR GROUND.
WE CANNOT SELL THE NAMING RIGHTS TO IT.
THE GOVERNMENT NEED THE MONEY TO PAY FOR THE LEG UP THEY ARE GIVING US SO THE LION'S SHARE IS GOING TO THEM.
CAN YOU SEE THEM GIVING THAT CASH COW UP?
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