21 Jul 2017 15:34:38
So I have been doing some digging, about the new owners and what's been said in the papers today. Supposedly KL is stalling as she wants more than the £180 million that has been quoted. she's looking at nearer £210 million and that Gao Jisheng has speaking publicly to put pressure on KL to sell as he is had enough of negotiations and just wants the deal done. Make of that what you will this isn't from any kind of source it's just through some digging that I have done

I'm not sure if it's a good thing or not but if true it's interesting.

1.) 22 Jul 2017
22 Jul 2017 11:00:59
I can't quite understand how a football club is valued. Any Ed or someone else make any sense of it.
Fixed assets, debtors and creditors etc are the easy part. It's the players that I can't work out.
For instance would VVD be down as an asset and included in the valuation? (Obviously all players but using him as an example as his value/ profit is high)

{Ed002's Note - Players are not fixed but intangible assets.}

2.) 22 Jul 2017
22 Jul 2017 18:19:12
Vardy, slimani and Musa are better competition than gabbiadini and Austin. It can be argued.

3.) 22 Jul 2017
22 Jul 2017 18:29:47
Players aren't assets at all. Nor are they intangible assets. Intangible means you can't physically touch it. The only intangible asset on a balance sheet is the goodwill when a business has a "brand" which has been purchased, or when someone has gone from a sole trader or partnership to a limited company. Intangible assets amortise over time to a nil balance. Players are staff, simple as that. They only become an asset when they are realised, for example sold.

{Ed002's Note - Players are dealt with as intangible assets as they are indeed amortised on the books over the length of their contract - or indeed in one go if the club wishes to account like that (but it is one or the other and not a mix). Sorry.}

4.) 23 Jul 2017
23 Jul 2017 09:01:29
They only show as intangible assets when they are purchased, therefore the "value" of the player on the open market isn't on a balance sheet, VVD was signed for a fee significantly lower than his current value. When the club bought him, THAT amount of money would be logged on the balance sheet and will have come down since. JWP will be worth zero on a balance sheet because we didn't buy him.

{Ed002's Note - You need to drop this James - the players are listed in the accounts as Intangible Assets. You need to move on - this is clearly something you don't understand.}

5.) 23 Jul 2017
23 Jul 2017 10:14:44
So would the takeover deal be impacting any sale or purchase of players?
If VVD was initially down in the books at his purchase price and depreciating as per his contract length then clearly it would make more sense for any purchaser that he is still on the books when any deal is done?

{Ed002's Note - No, you don'tstand. Move on from the money please. This is really embarrassing.}

6.) 23 Jul 2017
23 Jul 2017 12:47:53
Hilarious! The funniest part is the idea that an asset doesn't have a value just because you created it!

James, what Ed says is pretty standard accounting practice across the board. The accounts are freely available for checking (advisable before having an argument with someone on the know! ), and i'm looking at them now. (Downloadable in pdf. ) The accounts for 2015/ 16 detail £85M as intangible assets, by far the highest entry. Section 1.6 on page 16 details the accounting policies as far as player values are concerned.

Ed, my understanding is that the Lander deal has been difficult because Chinese rules are that people can't be treated as assets and that affects their financing. Do you know if there's any truth in that?

{Ed002's Note - They don't count as part of the valuation of the business. That is not the reason why it has not gone through. The delay is that advisers to Ms Liebherr and the club has suggested that the value of the club is higher than that discussed with Lander.}

7.) 23 Jul 2017
23 Jul 2017 20:51:23
yes ed, you're right. I have absolutely no idea what I'm talking about. (If only you knew) but yes, I will drop it.

{Ed002's Note - I have no idea what "if you only knew" means but you know little of the account of players as intangible assets - I cannot help that. You really need to move on or find somewhere else to have such discussions.}