SUFC as a business ?

[BushBlade]

Ten million cash. Into the account not to KMc.
McCabes ten million quids worth of shares relates to part of a debt write off, the balance, some twenty five million or so charged to a share premium account. The 2014 accounts show this.

I'm not very good with accounts so where does it show the investment? I can find the transfer of debt but I can't see the investment.
Also, any ideas what the administrative expenses of around £5.5m are about?

 

[Sean Thornton]

I'm not very good with accounts so where does it show the investment? I can find the transfer of debt but I can't see the investment.
Also, any ideas what the administrative expenses of around £5.5m are about?

BL accounts page 13 , called up share capital £20 million (note 18).

General running costs, rates light heat etc etc.

 

[BushBlade]

BL accounts page 13 , called up share capital £20 million (note 18).

General running costs, rates light heat etc etc.

Thanks. The negative sum in liabilities (double negative) confused me.
Why aren't general running costs included in cost of sales?

 

[Snowman]

All equity btw or it wouldn't qualify for SCMP.

I believe there's another £2 million gone in.

Nice Avatar for us old uns

 

[BushBlade]

Thanks. The negative sum in liabilities (double negative) confused me.
Why aren't general running costs included in cost of sales?

Actually, looking at it again, it doesn't say £20m. Am I looking at the wrong accounts? The SUFC Ltd 2014 accounts?

Edit: yes because BL means Blades Leisure. FFS

 

[Grappler]

If Kevin McCabe wants to get his investment back AND a profit, all at once, he will need to wait until we are in the Premiership.

Let's face it, what would it take to buy the club, the ground,etc., in other words "everything", £60 million? £70 million?

Then you would need to assemble a squad that gets you out of League 1 at the first go, so let's say (just for arguments sake), that you buy a new starting 11 and keep the best of the rest on the bench, etc. Would that be 11 players at £1M each? or £500k each? (probably a mix, as we are looking to get out in one season), let's say it splits 50/50, so say 6 players at £500k and 5 at £1M, so £8m in total.

That is potentially £78 million that someone will have to spend to get hold of SUFC in total, and get out in one attempt.

Even if it just takes 11 players at £250k each (the figure online today for Sam Morsy), that is £2.75 million, so £72.5M (or £62.5M or £52.5M depending on the cost of the club).

Once in the Championship, you need to be spending more to get a team to keep you in the top half, and then more to get to the Premiership.

The big "catch 22" as far as I see it, is that we are a very big club in our League, in fact the biggest. We are a "sleeping giant", to use that old phrase, and one with potential, but to maximise the potential you have to be in the Premiership, and that takes money and back to square one.

Maybe I am over complicating/over simplifying or just missing certain points, but that is pretty much what I (if I was the investor) would be looking at.

 

[Barney]

 

[BushBlade]

If Kevin McCabe wants to get his investment back AND a profit, all at once, he will need to wait until we are in the Premiership.

Let's face it, what would it take to buy the club, the ground,etc., in other words "everything", £60 million? £70 million?

Then you would need to assemble a squad that gets you out of League 1 at the first go, so let's say (just for arguments sake), that you buy a new starting 11 and keep the best of the rest on the bench, etc. Would that be 11 players at £1M each? or £500k each? (probably a mix, as we are looking to get out in one season), let's say it splits 50/50, so say 6 players at £500k and 5 at £1M, so £8m in total.

That is potentially £78 million that someone will have to spend to get hold of SUFC in total, and get out in one attempt.

Even if it just takes 11 players at £250k each (the figure online today for Sam Morsy), that is £2.75 million, so £72.5M (or £62.5M or £52.5M depending on the cost of the club).

Once in the Championship, you need to be spending more to get a team to keep you in the top half, and then more to get to the Premiership.

The big "catch 22" as far as I see it, is that we are a very big club in our League, in fact the biggest. We are a "sleeping giant", to use that old phrase, and one with potential, but to maximise the potential you have to be in the Premiership, and that takes money and back to square one.

Maybe I am over complicating/over simplifying or just missing certain points, but that is pretty much what I (if I was the investor) would be looking at.

No, that's more or less how I see it.
In simple terms, I think you can get a championship club of a similar size to us for around £50m.
You wouldn't want to pay much over £35m for us, probably not even that and KM won't sell at that price. Even at £40m he'd only see £20m and the accounts do seem to confirm he's written off around £35m. I think he'd want close to that before he considered walking.