Dispelling the myth of last summers transfers

[Jules88]

“we still have supporters denying that the club operates in a specific way”

And we have ONE, in particular, that says there is a particular way. Just ONE.

[Young_Nudger]

“we still have supporters denying that the club operates in a specific way”

And we have ONE, in particular, that says there is a particular way. Just ONE.

I suppose you can only be called a liar so many times.

So let’s stop this ungenuine silly little game right now.

[SBRed48]

As Jules has said Parekh's statement of "fitting the Barnsley mould" means trying to identify young, under the radar players generally from lower leagues (the continental experiment seems to be fading) that are cheap or free agents and then seek to develop the potential they may have in order to sell for profit in around three years. These young players are bolstered/ held together by two or three loan players and maybe one "wild card" such as Norwood.
If one in four recruits come off then the system and club is financially sustainable. That is the club's business model. Reduced income following relegation to the Third Division means phased income from player sales such as Andersen and Kitching is used to cover player wages. Over the last year even that is not enough and repeated Share Issues have kept the club afloat. Share Issues cannot keep being used as there is little value left in the club to back up further Share Issues. You can't have a Share of nothing. Cash reserves at zero, loans owed, the club yet to be purchased, income not covering costs, maybe an EFL financial fine on its way, little value left on which to issue shares.

In the absence of direct donations, even loans (the Patrick Cryne strategy) the clubs main assets are its players. They have to be regularly sold. Fans know this. Lee and Conway will be selling their remaining shares soon with the only buyer in town being Parekh. It will be hailed as great news but he already has control and all it will mean is an even greater majority of the financial burden will fall on Parekh as Lee and Conway did buy their Rights Issue Shares, which they will now sell.

[Jules88]

What would you estimate the club to be actually worth ? Should it be sold in its entirety? Would it turn a profit for any of them currently? I think not.

[SBRed48]

What would you estimate the club to be actually worth ? Should it be sold in its entirety? Would it turn a profit for any of them currently? I think not.

We are in the realms of speculation and undisclosed amounts here Jules.

Oakwell Stadium itself is owned by Oakwell Holdings, 50% Crynes and 50% Barnsley Council, not by the club "Barnsley Investments Ltd" so it can be taken out of the assets owned by the club. I last saw it valued in Accounts at £5.5 million and is leased by Oakwell Holdings to the club.

Apart from smaller things like merchandise stock the main three assets of the club are--

1) The players, valued by Transfermarkt at Euros 12.15 million or £10.5 to £11 million

2) The land surrounding Oakwell Stadium--training pitches/ indoor centre / outbuidings/ car parks etc. I have no idea of the retail/ land value involved here. My guestimate £20 million ?

3) Income to come from phased sales, mainly Kitching and Andersen, due over coming years --£6mill ?

There is also Annual Income from TV, Tickets, Sponsorship, Merchandising/ Commercial which varies year to year

So Chein Lee and PMG owe their share of the purchase price and then would benefit from whatever share price and other offers were made for their initial shares and Share Rights Issue share volumes.

Patrick Cryne's final selling price for the debt free club is a very cheap £3.5 million to secure ownership of the assets. The Crynes have only received one instalment of this--£750 K-- which was shamelessly taken from Club Accounts as a Directors Bonus. Arrangements for the remaining £2.75 million (now nearly £3mill with ensuing interest) has been ring fenced in the club accounts financed by a proportion of the recent Share Rights issues.

[Jules88]

Once they get the ground, the whole lot is a big package. Thats when the sale begins.