Takeover discussions

[boinggazmic]

Chris Lepowski former head of media has reportedly said that discussions of possible takeover have taken place. Just read this on West Brom news.soz I’m not tech enough to post link. I believe it if it happens mind. Maybe this is the “chink “ of light at the end of a bleak tunnel.

[Albionic68]

Chris Lepowski former head of media has reportedly said that discussions of possible takeover have taken place. Just read this on West Brom news.soz I’m not tech enough to post link. I believe it if it happens mind. Maybe this is the “chink “ of light at the end of a bleak tunnel.

What he's said is that two parties were interested, one has gone elsewhere but the other could yet be tempted back.

There's been a lot of speculation online about a possible takeover but this seems to have stemmed from a theory that now is Lai's last chance to sell before our value drops even further.

Personally speaking I'd be genuinely surprised to learn that Lai hasn't considered a parting of the ways (which is long overdue) as this season's playoffs were arguably his last realistic hope of a return to the Premier League under his watch.

The gamble was offering long term contracts to free agents in a s hit or bust promotion challenge, the problems being the promotion charge was entrusted to Bruce, injuries and wage budget and contractual obligations going forwards.

[boinggazmic]

What he's said is that two parties were interested, one has gone elsewhere but the other could yet be tempted back.

There's been a lot of speculation online about a possible takeover but this seems to have stemmed from a theory that now is Lai's last chance to sell before our value drops even further.

Personally speaking I'd be genuinely surprised to learn that Lai hasn't considered a parting of the ways (which is long overdue) as this season's playoffs were arguably his last realistic hope of a return to the Premier League under his watch.

The gamble was offering long term contracts to free agents in a s hit or bust promotion challenge, the problems being the promotion charge was entrusted to Bruce, injuries and wage budget and contractual obligations going forwards.

Thanks for that Albionic. Put better than I did. Bit surprised that not much more being made of this , he seems to know a bit more than others. I guess we will have to see if there’s anything in it, smoke and fire and all that. Have a good day.

[mickd1961]

I’m sceptical about these types of reports.

Our present true value for a straight sale is far less than our value if you sell the various assets off piecemeal.

I’m less clued up than a few of you on what we actually own but I presume we own the training ground as well as The Hawthorns and I believe we own a fair bit of land etc close to the ground?

Then, despite Al valuing our squad members at less than a weeks U.K. pension the truth is that we do have player assets worth millions.

Even though we’ve had our fill of them the likes of Diangana, Grant, Dike would bring in £10m to £15m collectively because there’s always someone who thinks they can get a tune out a player who’s failed after a big transfer hasn’t worked out.

If Lai wanted he could easily sell the likes of Yokuslu and Asante, probably to lower reach Premier clubs for close on £15m to £20m.

There’s far more value in the squad than many people seem to understand.

We also have big earners departing this summer and so we become cheaper to run.

TV money is getting quite a boost the season after next in the EFL as well.

I’m certainly not advocating for a long stay for our esteemed Pygmy but from the maths I’ve explained it seems clear to me that he can easily afford the repayments on the external loans and continue as owner and be milking assets.

Enjoy the rest of your day.

[Albionic68]

I'm no financial expert but the terms of the MSD loan he's taken out will presumably make it nigh on impossible for him to sell off any assets as he's using said assets as security for the loan itself. I would have thought the assets can't be sold in the event of possible default on his repayments. Well I think that's right anyway.... 😊 .

[Leicesterbaggie]

I'm no financial expert but the terms of the MSD loan he's taken out will presumably make it nigh on impossible for him to sell off any assets as he's using said assets as security for the loan itself. I would have thought the assets can't be sold in the event of possible default on his repayments. Well I think that's right anyway.... �� .

I’m no financial expert either but what you say appears perfectly logical to me.

[mickd1961]

I'm no financial expert but the terms of the MSD loan he's taken out will presumably make it nigh on impossible for him to sell off any assets as he's using said assets as security for the loan itself. I would have thought the assets can't be sold in the event of possible default on his repayments. Well I think that's right anyway.... 😊 .

Not actually the case 68.

When a “charge” is put against an asset that asset can still be sold but the charge has to be “satisfied” ie. paid off first out of the incoming money.

If the ground was worth £30m and the loan was £20m then Lai would get the £10m less any tax due.

In any sale of the whole club the new owner would either take on that charge but more likely it would require the lender to be paid from the sale proceeds and then arrange his own loan if required.

[saltnshake]

I do find it strange the season ticket prices haven't been announced yet, surely the club should be trying to get the money in now there is no match day revenue , also Fat Ron has gone very quiet.

[Albionic68]

Not actually the case 68.

When a “charge” is put against an asset that asset can still be sold but the charge has to be “satisfied” ie. paid off first out of the incoming money.

If the ground was worth £30m and the loan was £20m then Lai would get the £10m less any tax due.

In any sale of the whole club the new owner would either take on that charge but more likely it would require the lender to be paid from the sale proceeds and then arrange his own loan if required.

I'm not an estate agent either Mick. I have no idea what the land itself would be worth with or without a fit for purchase stadium.

What I do know is that the land and stadium can't be sold for a period of six months due to Sandwell council's agreement judgement re local interests.

With that in mind there's little chance of a sale going ahead on the blind side. At the same time I'd be genuinely shocked and fkd off in equal measure if a firm such as MSD weren't wise to what you suggest.