Done nowt wrong! Only valued the ground at twice the price!
I don't normally start these sort of threads.
But this is being looked at now. So what could be the implications if they decide it was dodgy?
https://www.thetimes.co.uk/edition/s...box=1567620539
Done nowt wrong! Only valued the ground at twice the price!
Setting personal support aside for one moment, as an accountant I would probably find us guilty. Not sure how one should assess a penalty though as rules are wooly and need clarifying, but can't "clarify" retrospectively
It was valued independently, nothing to do with us, so the EFL are going to get it valued themselves, but if they come back with a figure of say 40m well who is right and who is wrong, valuations can be subjective as you haven't anything to compare as it's not everyday a football ground comes up for sale
Mel did invite Boro chairman Steve Gibson to inspect DCFC's books so I can't really see that he has anything to hide.
I don't see that the FA has anything to look at. It wouldn't be the first time that Derby had made a sale for far more than the value. When? Seth's transfer to the DYS for one. At that time Seth was definitely worth £3M and, at a push, £4M. The DYS came in and offered £7M. They were of the opinion that he was worth that to them which was why they made the offer.
Mel decided that the valuation he got was worth it at £80M.
What interests me is, what are the FA actually going to value? A football ground that hosts, including Cup ties (but forgetting any U18, U23 and Ewe Rams games) less than 30 events a year OR what Mel was looking at, upping the number of events at pride Park up to 120 or more a year. The latter would generate a much larger valuation IMO.
What really frightens me in all this is that, rounded up, we made a profit of £15M last season. That included the £80M from the sale of the ground. That leads me to believe that, had we not sold the ground, we would have made a loss of £65M. That would be a horrendous situation if my calculations are correct.
I hope one or more of you out there can explain why I am wrong in my calculations.
Surely something is worth whatever someone is willing to pay.
No doubt Morris played the game here though.
I'd hope so too. The gain on sale was not the sale price, but the excess of the sale price over the written down value at the time of sale. Assets disposed of during the year to June 2018 include property with an original cost of £ 56.2 million as well as a couple of million in fixtures fittings and construction in progress. Depreciation already charged was £ 14.5 million on property and £ 16.4 million on total assets.
Thus net book value of property sold was £ 41.4 million, and of other assets (presumably included in the stadium) was£ 1 million.
The profit on disposal of the ground was £ 39.9 million
Thus the building was sold for £ 81.3 million, or £ some £ 82 million including fixtures and fittings inside it
Basically it was sold for double its book value, but only at a premium of £ 24 million over gross cost/valuation at the time of sale. This latter figure probably includes a recent revaluation, as the original build cost was substantially less than this, but I cant be arsed to trawl back to find when that £ 56m valuation was last done.
FYI the operating loss for last year was £ 31 million, offset by the sale of PP (£ 40m) the sale of players (£ 3.7m) and the disposal of Rowett (£ 1.8 million) giving a £ 14.5 overall profit