Zappa 0 Posted February 7, 2011 Share Posted February 7, 2011 As well as the assets that are beng purchased, liabilities will also be taken on. So, what do you think would be a rough breakdown of specific assets and liabilities? I'd have thought that Murray Park alone was worth more than �£6m given what it reportedly cost. I'm trying to get some perspective on this because it just doesn't seem right at all. The new stand at Easter Road reportedly cost roughly what we're being led to believe Rangers Football Club in it's entirety might be sold for. Ok, so we've got some debt, but if the club is run properly and lives within it's means, that debt should theoretically keep coming down. The risk of making losses in future years may also be factored in. I don't see why it should be factored in when the club has clearly set about a business plan to reduce wage costs and live within it's means. 0 Quote Link to post Share on other sites More sharing options...
Bluedell 5,344 Posted February 7, 2011 Share Posted February 7, 2011 So, what do you think would be a rough breakdown of specific assets and liabilities? I'd have thought that Murray Park alone was worth more than �£6m given what it reportedly cost. I'm trying to get some perspective on this because it just doesn't seem right at all. The new stand at Easter Road reportedly cost roughly what we're being led to believe Rangers Football Club in it's entirety might be sold for. Ok, so we've got some debt, but if the club is run properly and lives within it's means, that debt should theoretically keep coming down. Net assets in last year's accounts were around �£70m, which included a valuation of Ibrox and Murray Park of �£112m. You would need to discount that valuation to come up with a more realistic valuation. I'm not a property expert, but if you were selling both, what would you expect to realise? �£50-�£60m? I've no idea if that is realistic but let's say it is, then the assets of the club are between �£8m-�£18m, so not a million miles away from the �£6m. There are other ways to value businesses, and the above calculation is a bit simplistic, but net assets is a reasonable indicator of value in this situation given the history of losses. I don't see why it should be factored in when the club has clearly set about a business plan to reduce wage costs and live within it's means. We don't know what the business plan shows. What level of expenditure on players does it show if we don't qualify for the CL for the next 5 years? We are not in a position to break even if we suffer anotehr Kaunus. 0 Quote Link to post Share on other sites More sharing options...
Guest TheWorthyEd Posted February 10, 2011 Share Posted February 10, 2011 Something is only worth as much as someone else is willing to pay for it...... dependent upon the motivations (or otherwise) of the seller.... Apparently there were council owned (that's 'taxpayers' to you and me) streets in and around the Stade Del Gadd that were worth a mere �£1 - when purchased by Nonce FC some years ago, so truly, something is only worth as much as a Celtic-minded council is prepared to ask certain football clubs to pay for it. 0 Quote Link to post Share on other sites More sharing options...
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