West Ham's "Compensation" money..

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puppet said:
mccabe has suggested and built on two corners of the bramall lane end in the name of sheffield united and now owns both, despite them being painted as money-spinners for team building.
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But his overall involvement in United is causing him a massive loss. It's a truism but history will only judge McCabe once he's gone.
 

puppet said:
mccabe has suggested and built on two corners of the bramall lane end in the name of sheffield united and now owns both, despite them being painted as money-spinners for team building.
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Spot on - it really is as simple as that.
 
Balham Blade said:
I don't know the answer to the first part but I think it was c£20m. It would have been paid for by Sheffield United plc using funds borrowed from a bank (likely to be HBOS).

The hotel was transferred to Scarborough in 2009 for £1 plus all outstanding debt (around £15m, I think).



It's worth less than we thought but as it's on Scarborough's books I'm not sure what the actual value is. We had to revalue it when it was sold as its value on the books was higher than the sale price. As we accountants like everything to balance out, the £10m difference had to be charged to United.



We don't, so we can't. As I've noted above, when we did sell it, its market price was significantly lower than the book value so it inhibited our ability to buy players. There's no reason this wouldn't be exactly the same scenario today if we had kept hold of it.



I think they are the tenant company; quite how much control they have I don't know. They will have paid nothing towards the building but will be paying a rent/management fee to Scarborough. Their contribution is their knowledge and expertise in running hotels.
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So from Sheffield United’s point of view. Sheffield United owned some valuable land. Sheffield United borrowed £20M and built a 4-Star luxury hotel on the land.

We then sold the valuable land and the 4-star luxury hotel to a different company for effectively £15M (thereby losing £5M + the land). Is that right?
 
Sothall_Blade said:
How much does it cost to build a 4-star luxury hotel?
How much does it cost to buy a Chinese football club?
How much does it cost to buy an Hungarian football club and their land?
How much does it cost to buy a fitness club in Staines, Essex?

None of them are cheap I wouldn't have thought. Whose money bought them?
Sheffield United's money or Kevin McCabe's money? Or are they the same thing?
Who owns them now? Can't they be sold to recoup some (if not all) of the investment?
If they were sold, who would get the money? Sheffield United, Kevin McCabe or are they the same thing?
It's all so confusing to a non-accountant but money was spent on land and property, bricks and mortar.
The land and buildings are still there so why do they seemingly have no value?
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Top, top posting.
 
Sothall_Blade said:
So from Sheffield United’s point of view. Sheffield United owned some valuable land. Sheffield United borrowed £20M and built a 4-Star luxury hotel on the land.

We then sold the valuable land and the 4-star luxury hotel to a different company for effectively £15M (thereby losing £5M + the land). Is that right?
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I thought mccabe took it for £1?
 
ah right... but why would someone buy £15m debt for £1 when the rental rates of £500k pa means its a 30 year repayment plan. just does not add up for me, sorry
 
If it cost "us" ie SUFC £20m to build it, are we saying it had lost £15m in it's short lifetime - ie nett cost £35m??
 
raul said:
If it cost "us" ie SUFC £20m to build it, are we saying it had lost £15m in it's short lifetime - ie nett cost £35m??
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My understanding was that we borrowed £20M to pay for the building of the hotel.
By the time it was sold there was only £15M of the money we borrowed left to pay.
I suppose that means that "we" had already paid off £5M of the debt.

Scarborough took the hotel for £1 and they will have to pay the outstanding £15M back not us.

Therefore, I make our loss the £5M already paid off the debt + the value of the land the hotel is built on.

Again, I'm not an accountant so I stand to be corrected if that's wrong.
 
mpjacko said:
I see that WH have made another 10m bid for a 4m rated player instead of paying us off

http://www.bbc.co.uk/sport/0/football/19342136
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Keep up to speed fella, McCabe took out a loan from Santander secured on the money owing from West Ham. When they make a payment to us it now goes straight to Santander to pay off McCabes loan. In effect we have had the West Ham money and pissed it up the wall.
 
Sothall_Blade said:
My understanding was that we borrowed £20M to pay for the building of the hotel.
By the time it was sold there was only £15M of the money we borrowed left to pay.
I suppose that means that "we" had already paid off £5M of the debt.

Scarborough took the hotel for £1 and they will have to pay the outstanding £15M back not us.

Therefore, I make our loss the £5M already paid off the debt + the value of the land the hotel is built on.

Again, I'm not an accountant so I stand to be corrected if that's wrong.
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hes taken the land, the plot for £15,000,001, in lieu of screwing us into the ground. it gets worse every time you try and rationalise it
 

BusheyBlade said:
Whatever you do, please do not try to compare the two. We're rather refined here in Bushey, not like them lot from South of the river.

Sorry Balham Blade :oops:
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I'm mortified. Richmond is very refined...except when the chavs come in from Twickenham, Isleworth and Hounslow on a Friday night.

Just to clarify: when Scarborough took the hotel they took the debt too, we owe nothing more for the hotel.
 
I will get lambasted as usual but my take on it is that yes he took the debt as well but the debt had been dramatically redcued via player sales, the cash of which was used to reduce the hotel debt so that when Scarborough took the hotel it was not in negative equity. That is what stinks for me - ie sell walker and Naughton with the cash going to pay off property debt - perfectly valid etc as I keep saying but no good to me as a loyal Blade. Only speculation but this is not fantasy stuff.
 
TarquinDelouche said:
He has taken the land that he owns?
How dare he! The scoundrel!
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If he owned the land and the hotel anyway, why did he need to take it off Sheffield United and give it to his own company?
That's what I am trying to understand.

"Scarborough" could have paid a fair price for the land and then developed it.
Or Sheffield United could have kept the land and the hotel and reaped any future profits from it.
How did we end up in a situation where we lost £5m and the land and "Scarborough" will benefit in the future not the football club?
 
Sothall_Blade said:
If he owned the land and the hotel anyway, why did he need to take it off Sheffield United and give it to his own company?
That's what I am trying to understand.

"Scarborough" could have paid a fair price for the land and then developed it.
Or Sheffield United could have kept the land and the hotel and reaped any future profits from it.
How did we end up in a situation where we lost £5m and the land and "Scarborough" will benefit in the future not the football club?
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Good question, we could ask the same about the Enterprise Centre and no doubt we will be asking the same over the yuppie flats. McCabe keeps nibbling away at the land at Bramall lane taking a little bit here and a little bit there and making it of no use to the football club.
I do wonder if the penny will ever drop for some of our supporters :tumbleweed::tumbleweed:
 
metalblade said:
Good question, we could ask the same about the Enterprise Centre and no doubt we will be asking the same over the yuppie flats. McCabe keeps nibbling away at the land at Bramall lane taking a little bit here and a little bit there and making it of no use to the football club.
I do wonder if the penny will ever drop for some of our supporters :tumbleweed::tumbleweed:
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You're wasting your time Metal, only you and a few others recognise Agent McSue for what he really is, the rest of us will just have to bow to your foresight when we end up in admin or the conference.
 
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