Notts County Assets

[Melikepie]

So I was interested in  Notts' company structure and looked it up on companycheck.co.uk and noticed something rather interesting. In the assets, it has gone from ~£1.8m in 2010 to just £200k in the latest public figures, I think 2014 figures? Would anyone know how this assets malarky works in company accounts as a drop of £1.6m seems rather steep in 4-5 years when we were looking to build up for the future.

 

Can anyone shed any light on this? I'm assuming that the data is correct as the directors listed on the site seemed accurate and comprehensive.

[Tarkers]

Firstly you are allowed to write off assets (normally F&F) by a fixed amount every year (Basically it's a tax fiddle)......it used to be 15% per year....not sure now....but 4 x 15% is a 60% write-off.

Secondly.....Assets may include the "value" of players.....ie back in 2010 the value of the team was x amount.......now it may be considerably less!!

[BanoffeePie]

How much was RT asking for to sell up?!

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[Melikepie]

@tarquinbeech that makes sense i would suppose. If not all of that is asset reduction, it just shows how far we have fallen. @BanoffeePie it doesnt say, it does give a valuation of £-4m though so if Trew is after £8m he wants £12m more than the valuation

[Tarkers]

The problem with putting a "value" to a football club......is that most at our level don't have a real value.....only a "value" to the purchaser.

Most 3rd and 4th tier clubs actually make no profit....and many actually lose money trying to gain promotion.

Yeovil was the classic case a few years ago.

They were financially stable in League 1 (I think they actually showed a small profit the year before they were promoted) but spent money making a final push for promo to the Championship.

Once they got promoted, they had to pay increased wages to try to stay there...try to develop a reserve team, improve the stadium etc....then "boom", relegation with lots of sudden extra debt.....ok, "parachute" payments help for a while, but not for long.

So what is Yeovil's "value" now....unless they own their own ground....nothing........but someone might pay £5 million or £10 million in the knowledge that they might get back to the Championship again.

http://www.bbc.com/sport/football/34693161

[Tarkers]

The valuation of a club can be calculated using the formula on page 17 and 18 of this PDF download .....using this formula the following clubs were "valued".......obviously Notts is not on the list.

http://poseidon01.ssrn.com/delivery.php?ID=005106086102119069024122068095069007019038081078058007068005070000078022071098069018110037005040102030114102003006028071085080022015086030051028108093086125092122124066066084093007096079098116120094072030002104102124116087096067008099096011001113006065&EXT=pdf

 

Rank

Club

Value (£m)

1

Manchester United

1,060.4

2

Arsenal

942.9

3

Chelsea

510.5

4

Tottenham Hotspur

436.3

5

Manchester City

401.1

6

Liverpool

352.2

7

Newcastle United

275.8

8

West Br

omwich Albion

126.9

9

Sunderland

121.8

10

Everton

112.3

11

Fulham

108.7

12

West Ham United

104.3

13

Aston Villa

102.5

14

Stoke City

94.9

15

Norwich City

90.1

16

Swansea City

64.8

17

Queens Park Rangers

59.9

18

Reading

58.0

19

Southampton

57.5

2

0

Wigan Athletic

42.8

 

[DangerousSausage]

I read somewhere that the corporate and banqueting facilities are owned by a separate limited company to the football club. If this is true, and the change happened between 2010 and 2014, it may account for some of this.

I think the figure that is being negotiated for the club is more about the debts owed to Ray Trew than its actual value. If RT sold the club for a quid, it would be theoretically possible for the new owner to put the club into administration and avoid paying the vast majority. If, for instance, the parties agree on a price of 5 million, this would be in return for Mr Trew waiving the rest of the debt due to him.