Charles Watts last night tweeted that Anton is looking to remortgage the stadium, rumoured to pay for his takeover? Charles seemed shocked and confused as he belived Anton has the option of extending the deadline of his 100% takeover.
Thoughts?
Remortgage the stadium!?
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westongeezer
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If there's any back bone to this then, Orly another stripping of asset's shock horror story, because non of us saw this coming, with ALL the money TSI has thrown into the club.....................
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kwik-silva
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Pretty sure he was replying to speculation about this and saying it was bollocks
Be honest i did have a quick glance still thought worth being put on here as it is a rumour, Maybe be bollocks either way something doesnt seem to be right. Fans and pundits of the club has seen this and we all are questioning and worrying about antons tenure in the club after only 18 months.
Anton backlash thread TSI promises thread-
SPARTA
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Rfc1987 Charles Watts last night tweeted that Anton is looking to remortgage the stadium, rumoured to pay for his takeover? Charles seemed shocked and confused as he belived Anton has the option of extending the deadline of his 100% takeover.
Thoughts?
No he didn't, go and re-read his tweet. He dismissed the rumour!
How would you mortgage a stadium ?
It has zero value, if someone defaulted on the mortgage what would be the point in repossessing it as there is hardly a market for 24,000 seater stadia in the Berkshire area.
It has zero value, if someone defaulted on the mortgage what would be the point in repossessing it as there is hardly a market for 24,000 seater stadia in the Berkshire area.
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LightwaterRoyal
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Nameless How would you mortgage a stadium ?
It has zero value, if someone defaulted on the mortgage what would be the point in repossessing it as there is hardly a market for 24,000 seater stadia in the Berkshire area.
Well, this actually makes sense to me. Well done whatever your name is.
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RoyalBlue
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Nameless How would you mortgage a stadium ?
It has zero value, if someone defaulted on the mortgage what would be the point in repossessing it as there is hardly a market for 24,000 seater stadia in the Berkshire area.
Dur! Clueless?!
Is the stadium built within the infamous blackhole? Does it float in the air defying gravity? Even if it has no value (questionnable) the land it stands and which surrounds it is worth a fortune. The mortgage would be taken out against that value.
However, at this moment in time, the original story is complete b*llocks and Charles Watts reported nothing of the sort. Quite the contrary in fact.
Even if this were for real, wouldn't SJM get 49% of the remortgage value anyway?
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Royal Lady
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UpThePrem Even if this were for real, wouldn't SJM get 49% of the remortgage value anyway?
Just made a similar point myself! AZ can't remortgage the stadium on his own, as he doesn't own 100% of it yet.....
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Norfolk Royal
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Surely the club could remortgage it with a decision at board level backed by SJM then AZ divvies him up?
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Victor Meldrew
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Norfolk Royal Surely the club could remortgage it with a decision at board level backed by SJM then AZ divvies him up?
Yes,it is simply a commercial loan.
Other clubs have done similar stuff.
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MouldyRoyal
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Exactly, if the club owns the stadium (and I am fairly sure it does) then the board (ie AZ) can approve the remortgaging of the stadium. Club receives cash, then probably would loan the money to AZ who would use it to buy out the share of the club held by SJM. Then either repay the loan from the club over several years or write it off as a deemed dividend.
It's possible, but I doubt it will happen. Wait and see what the accounts say I guess.
It's possible, but I doubt it will happen. Wait and see what the accounts say I guess.
Isn't that just a variation of a leveraged takeover that - post Glazier - is now not allowed?
MouldyRoyal Exactly, if the club owns the stadium (and I am fairly sure it does) then the board (ie AZ) can approve the remortgaging of the stadium. Club receives cash, then probably would loan the money to AZ who would use it to buy out the share of the club held by SJM. Then either repay the loan from the club over several years or write it off as a deemed dividend.
It's possible, but I doubt it will happen. Wait and see what the accounts say I guess.
he doesnt need to though
he can simply fund the full purchase with the profits we took from the prem money and parachutes cant he?
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littlejohnnyoster
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Heard rumours about this a couple of weeks back. Didn't know how to respond really. Does Madeijski even have a mortgage to re? How was the stadium funded? What would a mortgage process look like? How much cash involved?
It just seems a very strange move if made and a slightly worrying one if this is seen as a financial priority for Anton.
It just seems a very strange move if made and a slightly worrying one if this is seen as a financial priority for Anton.
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MouldyRoyal
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melonheadMouldyRoyal Exactly, if the club owns the stadium (and I am fairly sure it does) then the board (ie AZ) can approve the remortgaging of the stadium. Club receives cash, then probably would loan the money to AZ who would use it to buy out the share of the club held by SJM. Then either repay the loan from the club over several years or write it off as a deemed dividend.
It's possible, but I doubt it will happen. Wait and see what the accounts say I guess.
he doesnt need to though
he can simply fund the full purchase with the profits we took from the prem money and parachutes cant he?
Of course yes, if the club has the liquid assets to do that, then yes.
@PieEater: Dunno m8, could be. Not looked into it.
Actually having just checked, the original LBO rules were part of FFP which subsequently got watered down so that all that was left was a break even requirement.
So it looks like there is nothing preventing another LBO under the current rules.
So it looks like there is nothing preventing another LBO under the current rules.
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andrew1957
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There is nothing wrong with buying and building a business with borrowed money. That is how most millionaires start out.
The Glazers for example reputedly borrowed all the money to buy Man Unt but they are good businessmen and have built the brand massively since they bought the club. For example if they borrow 600M to buy the club, run it in such a way as the internet is always paid out of turnover and then sell it for 1000M - they walk away with a 400M profit and it has never cost them a penny. There are all sorts of arguments that the interest repayments could be reinvested instead to improve the club and this is true, but there are not many sugar daddies around who have 600M and need no interest on that money. And if the club were paying interest to the owner this is no different than paying it to a bank.
However, the problems with the above are tow fold. First what happens when things go wrong? And second are you good at building a business brand?
If things go wrong with the heavy bank debt issue, then unless the owner can fund the losses from his own pocket, you become Pompey and the club goes bust. So the question is does Anton have any money at all or is he just using borrowed money - I guess none of us know. And the second issue is "how good a businessman is he and can he build the brand" - again we have absolutely no idea and he has no prior experience of running a football club which is a very particular type of business due to the importance of keeping the customers (fans) onside.
So I think it is fair that we are concerned as fans because none of us want to be Portsmouth, but it would be nice if there was some proof that the owner did have some money - or is he instead just using loans/parachute payments to effectively buy the club for nothing at all and has Sir John been duped. As with all these thing only time will tell.
But the sound of silence from the club will keep fuelling the conspiracy theories until they issue a clear statement as to what is going on re the buy out and funding etc.
The Glazers for example reputedly borrowed all the money to buy Man Unt but they are good businessmen and have built the brand massively since they bought the club. For example if they borrow 600M to buy the club, run it in such a way as the internet is always paid out of turnover and then sell it for 1000M - they walk away with a 400M profit and it has never cost them a penny. There are all sorts of arguments that the interest repayments could be reinvested instead to improve the club and this is true, but there are not many sugar daddies around who have 600M and need no interest on that money. And if the club were paying interest to the owner this is no different than paying it to a bank.
However, the problems with the above are tow fold. First what happens when things go wrong? And second are you good at building a business brand?
If things go wrong with the heavy bank debt issue, then unless the owner can fund the losses from his own pocket, you become Pompey and the club goes bust. So the question is does Anton have any money at all or is he just using borrowed money - I guess none of us know. And the second issue is "how good a businessman is he and can he build the brand" - again we have absolutely no idea and he has no prior experience of running a football club which is a very particular type of business due to the importance of keeping the customers (fans) onside.
So I think it is fair that we are concerned as fans because none of us want to be Portsmouth, but it would be nice if there was some proof that the owner did have some money - or is he instead just using loans/parachute payments to effectively buy the club for nothing at all and has Sir John been duped. As with all these thing only time will tell.
But the sound of silence from the club will keep fuelling the conspiracy theories until they issue a clear statement as to what is going on re the buy out and funding etc.
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