West ham valued at £80 million - what is RFC worth really?

[Dirk Gently]

How do you get £10m, at last count it was £17m for the hotel and just over £8m for the football side, I am no acct, but surely that is nearer £25m, or are we saying the hotel is no longer included??? and lets be honest it and the land that the ground stand on are the two most valuable assets.

I don't - I typed in a hurry and meant to say £20M, but that's a quick estimate....

The point is it's way, way less than West Ham's debts.

[Harpers So Solid Crew]

Hmmm so anyone buying WHU would pay £80m and acquire the debts, yet anyone buying RFC it would include the debts??????? Must all be to do with accountants.

[Dirk Gently]

Hmmm so anyone buying WHU would pay £80m and acquire the debts, yet anyone buying RFC it would include the debts??????? Must all be to do with accountants.

Eh? No. You acquire both clubs' debts with a purchase of £80 (unless a deal can be done - RFC's debts are to SJM, West Ham's are external) - so the real cost is RFC = approx £105M but West Ham = approx £200M.

[Harpers So Solid Crew]

Feck paying £105m for RFC , can have it for £80 as your first price was????

[Dirk Gently]

TBH I wouldn't be surprised if SJM wrote off any debt to him, so the £80M was for a debt free sale.

[Harpers So Solid Crew]

No profit there then.......oh

[rhroyal]

Can't believe how people fail to grasp this. West Ham have £120m debt. You pay £80m, but you inherit £120m debt. In reality you pay £200m. For Reading we have £10-20m. You pay £80m, but in reality you pay closer to £100, half of what you pay for West Ham.

[Harpers So Solid Crew]

we all grasp it, however the valuations do not always include the debt, surprised that you cannot grasp that, as TBM says JM might take £80m and that might include the debt.

[zummerset]

Thanks for the interesting replies - another question... will the £120 million of WH debt potentially be written off too as it may rest with a dodgy icelandic businessman and/or his company?

I am curious about JM'S exit strategy or the likelihood of it coming off as he seems unwilling to spend to get us in the Prem gain but wants to sell ar Prem prices - so realistically I would have thought c£50m would still be too much for a modest non-profit club.

[Dirk Gently]

we all grasp it, however the valuations do not always include the debt, surprised that you cannot grasp that, as TBM says JM might take £80m and that might include the debt.

he can only do that since it's "soft debt" - debt to him. Anyone with external debt - of which I think West Ham have quite a bit - isn't in a position to do that.

[Harpers So Solid Crew]

yes the debt could be written off, but it is unlikely, tho they could accept an offer, better to get £40m than nowt, so a new owner might offer a deal to those owed money.

[RoyalBlue]

Whatever SJM says it's valued at.

Whatever potential investors are willing to pay.

It's just a shame that Madejski doesn't appear to understand that you ar right and Stranded is wrong!

[handbags_harris]

Surely it's not a question of whether the stadium is "better", it's a question of the value of the land that the stadium sits on yada yada yada

Of course it is a question of the stadium being better.
Do you think it is easy to get permission to build a new stadium? Look at Everton, they are having all sorts of problems, Liverpool as well.
West Ham would never gain permission to build a new stadium at the present location, NEVER, and they would NEVER find a suitable spot of land to do so in ANY nearby location. Hence MK Dons moving to Milton Keynes.
We do however have a reasonably new stadium, and provisions are in place to easily expand it to a reasonably high capacity.
If we expanded our stadium it would be possible to sustain a top-10 premiership team on that capacity.
West Ham do not have that option.

Same thing with training facilities. We have a good spot of land, and the facilities could also even furthermore be improved without difficulties. Not so for West Ham.

Clearly we have better infrastructure and are better set for the future than they are, particularly since they are nearly £100M in debt, and losing £35-50M on a yearly basis now with their excessive wages.

Well no, not really. West Ham's value will not be altered by the fact they may or may not be unable to find a suitable location for a new stadium. Likewise Everton. The value will still be the same. The circumstances surrounding development potential may deter potential buyers, but the value of a business is the value of a business and any sane businessman would be unwise to shed a business at a cut cost unless it was a loss-making enterprise.

[brendywendy]

Whatever SJM says it's valued at.

Whatever potential investors are willing to pay.

if JM cannot get what he asks, he will just hold on till he can

[RoyalBlue]

Whatever SJM says it's valued at.

Whatever potential investors are willing to pay.

if JM cannot get what he asks, he will just hold on till he can

In which case he is likely to leave this earth still Chairman of Reading Football Club!

Every day that he remains firmly in charge (never unilaterally taking a decision, of course!) and in full cloth cutting mode, the value of Reading FC in the real world is likely to decrease. Relatively debt free maybe but lacking in quality assets where it matters most - on the pitch! Relegation to League One will see it plummet still further.

[Hoop Blah]

as fro Ideals points, plenty of land in the area for a new ground, large area off Royal Docks Road for a start.

You seem to totally disregard that it is not only finding a slab of dirt to purchase, you also need to get permission to build a FOOTBALL STADIUM on said slab of dirt, something which is increasingly difficult to obtain permission for.
This relates to road capacity, parking, public transport, health and safety, access by emergency vehicles, etcetera.

The Boleyn already holds 35k though, so West Ham don't have to build a new ground to compete in the top 10 of the Premiership really.

The article in the link was all about the site for a new training ground (which they already own the land for).

[Terminal Boardom]

Derby valued at £30m. What value Reading FC?

[Harpers So Solid Crew]

Derby valued at £30m. What value Reading FC?

says who??

[Sun Tzu]

Derby valued at £30m. What value Reading FC?

Unless youknow how Derby's asking price has been arrived at it's an irrelevant question.

What level of debt do they have ?

What future earnings have already been mortgaged ?

What assets are included ?

What level of control is up for sale ?

How are they structured ?

And is £30 million the value or the asking price ?

[Ian Royal]

Derby valued at £30m. What value Reading FC?

Potentially plenty more given the utter shite Derby are in financially. Their league position isn't significantly safer than ours either. Although they have a bigger attending fanbase and stadium than us.