Summary of Questions Received - "Ask the Chairman"

[piglinbland]

Absolutely huge kudos to you, nonaenever, for proposing a positive initiative and following it up the way you have.

[Guest nonaenever]

Well done, unfortunately £2.5 million wouldn't last long, maybe a couple of seasons, so what happens then?

 

The article below suggests it needs around £20 million to run a Division One club. I can't see how fans can raise that.

 

https://www.quora.com/How-much-money-would-it-cost-to-take-over-an-english-football-club

 

Hi BP - the devil is in the detail and probably serves no purpose to debate it on a website. You would come up with a business plan, look at the budget, income streams etc. It can be done - it's not easy! - but it certainly puts the control truly in the hands of the fans. If nothing else, the proposition at least throws light on the club's "valuation" to dispel a lot of myths.

[GlossopLatic]

Well below what you'd want for a £7m investment.

It is but would this go up if/when the top floor offices and supporters bar were built?

[Guest nonaenever]

So the live videoed interview has been cut off at the pass?

 

Absolutely not - the Chairman is actually willing to go with whatever we decide - he'd just love for his actual original offer to be taken up, that's all.

[opinions4u]

It is but would this go up if/when the top floor offices and supporters bar were built?

You'd expect so.

 

If. Or when.

[Guest nonaenever]

The £2.5m wouldn't be held within the business.

 

It'd be in Corney's bank account.

 

Well below what you'd want for a £7m investment.

 

opinions - only my view but it serves no purpose debating the figures. Clearly there are additional income streams other than just the North Stand money (season ticket income, pay on the gate, transfer income, cup income, bars, league payments etc.) as well as a host of outgoings, of course. I just think it helps to clarify that figures like £24M are way wide of the mark, that's all.

[palmer1]

opinions - only my view but it serves no purpose debating the figures. Clearly there are additional income streams other than just the North Stand money (season ticket income, pay on the gate, transfer income, cup income, bars, league payments etc.) as well as a host of outgoings, of course. I just think it helps to clarify that figures like £24M are way wide of the mark, that's all.

What? Are you saying what's posted on OWTBs isn't always based on fact!?

 

Good work sir! Keep it up, it's appreciated by many.

Edited November 30, 2016 by palmer1

[BP1960]

The £2.5m wouldn't be held within the business.

 

It'd be in Corney's bank account.

 

 

How could that be if he would only own 25%?

[Guest nonaenever]

 

How could that be if he would only own 25%?

 

Because the fans would be paying £2.5M to buy the 75% of the shares - and then start from scratch with a business plan for the club. The previous investors writing off millions of pounds in losses, BP

[jorvik_latic]

 

How could that be if he would only own 25%?

Because he'd be giving over 75% of the current 100% he owns???

[BP1960]

 

Because the fans would be paying £2.5M to buy the 75% of the shares - and then start from scratch with a busibutness plan for the club. The previous investors writing off millions of pounds in losses, BPan invester be sought

 

I know what you mean, but how much money would it need to actually run the club from scratch is another question, who finances that? would a major investor still have to be sought and what happens if there are no takers?

Edited November 30, 2016 by BP1960

[opinions4u]

opinions - only my view but it serves no purpose debating the figures. Clearly there are additional income streams other than just the North Stand money (season ticket income, pay on the gate, transfer income, cup income, bars, league payments etc.) as well as a host of outgoings, of course. I just think it helps to clarify that figures like £24M are way wide of the mark, that's all.

Alas, I will always instinctively want to discuss the figures.

 

And if that's a serious offer from the owner perhaps he should issue some sort of draft prospectus.

 

Fan share 75% value £2.50m

Corney / Trust share 25% value £0.83m

Nil debt (doubt it)

Fixed asset value (new stand) £7m

 

Seems optimistic.

 

I know what you mean, but how much money would it need to actually run the club from scratch is another question, who finances that? would a major investor still have to be sought and what happens if there are no takers?

You!d start from the low base of the existing working capital, income and expenditure model. Ideally any buyers would introduce additional capital. Edited November 30, 2016 by opinions4u

[jsslatic]

£2.5m for a loss making business with no assets sounds like a great deal to me.

[Guest nonaenever]

Absolutely huge kudos to you, nonaenever, for proposing a positive initiative and following it up the way you have.

 

Thank you piglin - appreciated but as I`ve said before, it's not about me - just want to try and help IF I can in any way. It's important we stay focussed and don't debate detail on here I think. Just to put it into context though, if Latics don't have a decent cup run this year, the club will lose around £1M. That indicates the imbalance between income and expenditure at present. That's what "the fans" would effectively be taking on via a majority shareholding (obviously wrapped up via a limited company). "The club" has backed the manager to the hilt regarding wages for players etc. - we have to find a way to get more people through the gate initially - simple as that (or draw one of the biggies in the 3rd round cup away).

 

At the risk of repeating myself, at least we have a starter for 10 to dispel one of the big myths concerning "unrealistic valuations placed on the club" - it's simply not true and I hope it goes to bed now.

 

Whether enough fans consider the proposition - and cough up! - I`m not really holding my breath but anything is possible with the right approach, management, disciplines and structure. Me, over and out for now - I`ll catch up in a couple of days and concentrate on the issue at hand re. "Questions for the Chairman"

 

Thanks to all.

[jsslatic]

The club is worth nothing without the land/stand. Has he said what he's asking for that?

[underdog]

Can I clarify that he said, the chairman that is, puts the money in himself?

[real]

It is but would this go up if/when the top floor offices and supporters bar were built?

If the £200-300K includes ticket sales then it's overstated. Those sales are not a result of the new investment, they are simply diverted from other stands.

This sort of statement needs to be clear and precise if it's going to be made, otherwise it could mean pretty much anything.

[GlossopLatic]

if Latics don't have a decent cup run this year, the club will lose around £1M.

 

That sentence is quite disturbing what is causing that and is it likely to change in the future?

 

Because if it doesn't I doubt things will be getting any better on the pitch either.

Edited November 30, 2016 by GlossopLatic

[BP1960]

 

Thank you piglin - appreciated but as I`ve said before, it's not about me - just want to try and help IF I can in any way. It's important we stay focussed and don't debate detail on here I think. Just to put it into context though, if Latics don't have a decent cup run this year, the club will lose around £1M. That indicates the imbalance between income and expenditure at present. That's what "the fans" would effectively be taking on via a majority shareholding (obviously wrapped up via a limited company). "The club" has backed the manager to the hilt regarding wages for players etc. - we have to find a way to get more people through the gate initially - simple as that (or draw one of the biggies in the 3rd round cup away).

 

At the risk of repeating myself, at least we have a starter for 10 to dispel one of the big myths concerning "unrealistic valuations placed on the club" - it's simply not true and I hope it goes to bed now.

 

Whether enough fans consider the proposition - and cough up! - I`m not really holding my breath but anything is possible with the right approach, management, disciplines and structure. Me, over and out for now - I`ll catch up in a couple of days and concentrate on the issue at hand re. "Questions for the Chairman"

 

Thanks to all.

 

It is quite possible many local business's might find £5,000, but would they be classified as 'fans' or pursuing their business interests ?

[leeslover]

Alas, I will always instinctively want to discuss the figures.

 

And if that's a serious offer from the owner perhaps he should issue some sort of draft prospectus.

 

Fan share 75% value £2.50m

Corney / Trust share 25% value £0.83m

Nil debt (doubt it)

Fixed asset value (new stand) £7m

 

Seems optimistic.

 

You!d start from the low base of the existing working capital, income and expenditure model. Ideally any buyers would introduce additional capital.

If I read it correctly it was offering the existing North Stand income, not the asset.

[mcfluff1985]

If the £200-300K includes ticket sales then it's overstated. Those sales are not a result of the new investment, they are simply diverted from other stands.

This sort of statement needs to be clear and precise if it's going to be made, otherwise it could mean pretty much anything.

Why don't you go and ask him Edited December 1, 2016 by mcfluff1985

[mcfluff1985]

 

I know what you mean, but how much money would it need to actually run the club from scratch is another question, who finances that? would a major investor still have to be sought and what happens if there are no takers?

Of course a major investor would still need to be sought.

 

If this club became fan owned tomorrow I'd hazard a guess we'd be in a 12 point hole within a year.

 

P.S. Thank you again nonaenever. Good to have someone getting accurate information and not twisting it to suit an agenda

[HarryBosch]

Could this not be "packaged" as an investment, albeit a high risk one, in some kind of deal where the club will return capital + a percentage if we get into the Championship?

[Monty Burns]

Wait, so £2.5m for basically nothing?

And 'guaranteeing NS income arrangement'?

 

I don't think you have quite understood what Simon just said to you. He pretty much confirmed it would cost around £20m to buy the club.

[yarddog73]

Yes he wants to sell the franchise as he sees it that is OAFC, whilst retaining all the infrastructure, surrounding land and any fixed assets.

 

£2.5 million seems to be a reasonable amount for someone who has a dream of owning a team but I'd still suggest the valuation to sell lock, stock and barrel with everything included is in excess of £20 million so it's not really dispelled the myth of the club's valuation.