Put your feet up and get a cup of Tea

[islaydarkblue]

According to The Dundee United Football Company Limited 2014 annual accounts 255 new shares were issued at a cost of £33 each.
The value of the shares in the latest set of accounts which is 30th June 2017 the current value of a share is now £28.57. Formula for calculation of the share price is adding the amount in the Called up share capital account plus the Share Premium account divided by the number of shares issued.
The latest list of shareholders as at 10th May 2017 shows Stephen Thompson owning 51,130 shares which at £28.57 equates to a value of £1,460,784.10 put I suspect that the consortium would have to pay a premium on the £28.57 share price to persuade Stephen Thompson to sell his shareholding to them.
Eventually someone will “spill the beans” on the price paid for MMJ’s shares.
One thing is certain despite what the Chairman says this money which could have been given to the club has gone to MMJ.

[BCram]

According to The Dundee United Football Company Limited 2014 annual accounts 255 new shares were issued at a cost of £33 each.
The value of the shares in the latest set of accounts which is 30th June 2017 the current value of a share is now £28.57. Formula for calculation of the share price is adding the amount in the Called up share capital account plus the Share Premium account divided by the number of shares issued.
The latest list of shareholders as at 10th May 2017 shows Stephen Thompson owning 51,130 shares which at £28.57 equates to a value of £1,460,784.10 put I suspect that the consortium would have to pay a premium on the £28.57 share price to persuade Stephen Thompson to sell his shareholding to them.
Eventually someone will “spill the beans” on the price paid for MMJ’s shares.
One thing is certain despite what the Chairman says this money which could have been given to the club has gone to MMJ.

That's the problem. buying the club is the easy bit. financing it and making it run profitably is a very different proposition. Think the cash may be less than you calculate.

[islaydarkblue]

That's the problem. buying the club is the easy bit. financing it and making it run profitably is a very different proposition. Think the cash may be less than you calculate.

I calculated the current share price using the mot recent published annual accounts. The annual accounts for the year ending 30th June 2018 will give a more accurate figure for the current share price. I still believe that the consortium will have paid a premium on the current share price to persuade MMJ to sell all his shares to them.

[Deeranged]

According to The Dundee United Football Company Limited 2014 annual accounts 255 new shares were issued at a cost of £33 each.
The value of the shares in the latest set of accounts which is 30th June 2017 the current value of a share is now £28.57. Formula for calculation of the share price is adding the amount in the Called up share capital account plus the Share Premium account divided by the number of shares issued.
The latest list of shareholders as at 10th May 2017 shows Stephen Thompson owning 51,130 shares which at £28.57 equates to a value of £1,460,784.10 put I suspect that the consortium would have to pay a premium on the £28.57 share price to persuade Stephen Thompson to sell his shareholding to them.
Eventually someone will “spill the beans” on the price paid for MMJ’s shares.
One thing is certain despite what the Chairman says this money which could have been given to the club has gone to MMJ.

Do you really think anyone would pay in excess £1.4M for a club with no tangible assets and with debt and soft loans galore? Would there be something there that would make this deal worthwhile that I maybe can't see? (I'm not a financial whizz)

Pretty sure I wouldn't touch it and I wonder what the 'real life' value of Thompson's shares would have been.

[islaydarkblue]

Do you really think anyone would pay in excess £1.4M for a club with no tangible assets and with debt and soft loans galore? Would there be something there that would make this deal worthwhile that I maybe can't see? (I'm not a financial whizz)

Pretty sure I wouldn't touch it and I wonder what the 'real life' value of Thompson's shares would have been.

Anybody with any commonsense would never purchase shares in a Scottish Professional Football Club as in my opinion they are just throwing their money away. The shareholder is unlikely to ever receive a dividend and it is more likely that the price of their shares will fall rather than rise.
However some wealthy supporters want power and the one way to guarantee that at Tannadice was to be part of consortium that purchased MMJ’s shareholding.
Whether the current chairman James Michael Martin will remain is another question as he is the director along with MMJ of a company
which was originally called Thommar Ltd. In August 2017 the name of this company was changed to FC United Ltd.
Interesting times ahead at Tannadice.

[BCram]

Do you really think anyone would pay in excess £1.4M for a club with no tangible assets and with debt and soft loans galore? Would there be something there that would make this deal worthwhile that I maybe can't see? (I'm not a financial whizz)

Pretty sure I wouldn't touch it and I wonder what the 'real life' value of Thompson's shares would have been.

There isn't really any sensible way to value a football club. They don't, at least at our level, make profits and the ability to generate capital appreciation is very hit or miss. Selling the ground and closing the club to make a capital gain must be as near to a death wish as any investor could wish. There are people who have money and can choose how they want to spend it. It won't be financial ruin for them if their club fails but it would upset a lot of people if the directors sold up and took the money. Throughout all our difficulties that is one charge that we could not levy at all our previous owners. Seems to me they tried their best and ended up losing money.

[islaydarkblue]

There isn't really any sensible way to value a football club. They don't, at least at our level, make profits and the ability to generate capital appreciation is very hit or miss. Selling the ground and closing the club to make a capital gain must be as near to a death wish as any investor could wish. There are people who have money and can choose how they want to spend it. It won't be financial ruin for them if their club fails but it would upset a lot of people if the directors sold up and took the money. Throughout all our difficulties that is one charge that we could not levy at all our previous owners. Seems to me they tried their best and ended up losing money.

I agree with what you say but if someone wants to purchase a controlling interest in a football club then they will have to pay a premium to purchase the shares.
I seem to remember when Angus Cook was buying shares in Dundee Football Club to gain his controlling interest he was paying up £6 per share for shares that had been sold in a rights issue for 50p each.
The more money that is spent by people trying to gain a controlling interest the less money that is available to bankroll the club.
I must admit that I still do not understand why FPS purchased a controlling interest in Dundee Football Club Limited when they had no assets. It was reported in August 2013 that FPS were interested in investing in Dundee Football Club Limited because we had no debts but there was a simple reason for that. Coming out of Admin2. The banks would not lend to us as we had no assets to hand over as collateral.

[BCram]

I agree with what you say but if someone wants to purchase a controlling interest in a football club then they will have to pay a premium to purchase the shares.
I seem to remember when Angus Cook was buying shares in Dundee Football Club to gain his controlling interest he was paying up £6 per share for shares that had been sold in a rights issue for 50p each.
The more money that is spent by people trying to gain a controlling interest the less money that is available to bankroll the club.
I must admit that I still do not understand why FPS purchased a controlling interest in Dundee Football Club Limited when they had no assets. It was reported in August 2013 that FPS were interested in investing in Dundee Football Club Limited because we had no debts but there was a simple reason for that. Coming out of Admin2. The banks would not lend to us as we had no assets to hand over as collateral.

They will have seen the strength of the support and the commitment from the supporters. There wasn't any debt so it would be a fairly straightforward computation. Why take on the responsibility for servicing debts that add to your operating costs if you can acquire a debt free club?

[islaydarkblue]

They will have seen the strength of the support and the commitment from the supporters. There wasn't any debt so it would be a fairly straightforward computation. Why take on the responsibility for servicing debts that add to your operating costs if you can acquire a debt free club?

Whilst that is correct they also,acquired a club that did not own its football ground