#SellBeforeWeDai Action/Inaction Group

[Clyde1998]

Was the stadium ever worth £55m?

Nope, although you have to factor in the value of the land for redevelopment, which I imagine isn't more than the value with the stadium on it once you factor in demolition and construction costs to create, presumably offices which are already two a penny next door in Green Park.

Didn't the club "sell" the stadium for £55m to the separate company at one point to try and fiddle Financial Fair Play? - ie the reason we got a points deduction? If so, the bank wouldn't be stupid enough to take a valuation based on the sale of the stadium from, effectively Dai Younge to Dai Younge would they?.... if so, maybe I could sell a dustbin to myself for £100m and then borrow £100m against it from that same bank to save Reading FC.... It does mean I may struggle to sell the bin and ultimately may see the bank take ownership of it, but I can live with that.

The bank may only be called out as incompetent if they reposes something that then turns out to be worth less than half it's value, so it may be in their interests not to do so.

I think the stadium was "sold" for £26.5m. However, it's possible the stadium was one of multiple assets used as collateral or the loan was under-collateralised in the first place.

I think the original loan was for £45m and has risen to a value of £55m due to unpaid interest.

[Mid Sussex Royal]

Was the stadium ever worth £55m?

Nope, although you have to factor in the value of the land for redevelopment, which I imagine isn't more than the value with the stadium on it once you factor in demolition and construction costs to create, presumably offices which are already two a penny next door in Green Park.

Didn't the club "sell" the stadium for £55m to the separate company at one point to try and fiddle Financial Fair Play? - ie the reason we got a points deduction? If so, the bank wouldn't be stupid enough to take a valuation based on the sale of the stadium from, effectively Dai Younge to Dai Younge would they?.... if so, maybe I could sell a dustbin to myself for £100m and then borrow £100m against it from that same bank to save Reading FC.... It does mean I may struggle to sell the bin and ultimately may see the bank take ownership of it, but I can live with that.

The bank may only be called out as incompetent if they reposes something that then turns out to be worth less than half it's value, so it may be in their interests not to do so.

I think the stadium was "sold" for £26.5m. However, it's possible the stadium was one of multiple assets used as collateral or the loan was under-collateralised in the first place.

I think the original loan was for £45m and has risen to a value of £55m due to unpaid interest.

Likely to be a parcel of securities for the loan; banks usually use a lending value of between 50 & 65% of the value of the asset for lending to commercial clients.

[Crusader Royal]

Was the stadium ever worth £55m?

Nope, although you have to factor in the value of the land for redevelopment, which I imagine isn't more than the value with the stadium on it once you factor in demolition and construction costs to create, presumably offices which are already two a penny next door in Green Park.

Didn't the club "sell" the stadium for £55m to the separate company at one point to try and fiddle Financial Fair Play? - ie the reason we got a points deduction? If so, the bank wouldn't be stupid enough to take a valuation based on the sale of the stadium from, effectively Dai Younge to Dai Younge would they?.... if so, maybe I could sell a dustbin to myself for £100m and then borrow £100m against it from that same bank to save Reading FC.... It does mean I may struggle to sell the bin and ultimately may see the bank take ownership of it, but I can live with that.

The bank may only be called out as incompetent if they reposes something that then turns out to be worth less than half it's value, so it may be in their interests not to do so.

Wasn’t it Derby who sold their ground to the owner for a clearly over inflated amount ?
IIRC we sold ours for the value it had on our balance sheet and that was based on an independent valuation whereas Derby’s was valued by someone connected to the club. Don’t think we did anything wrong did we ? It’s common practice for businesses to move assets around their books to maximise benefits.

[Lower West]

Was the stadium ever worth £55m?

Nope, although you have to factor in the value of the land for redevelopment, which I imagine isn't more than the value with the stadium on it once you factor in demolition and construction costs to create, presumably offices which are already two a penny next door in Green Park.

Didn't the club "sell" the stadium for £55m to the separate company at one point to try and fiddle Financial Fair Play? - ie the reason we got a points deduction? If so, the bank wouldn't be stupid enough to take a valuation based on the sale of the stadium from, effectively Dai Younge to Dai Younge would they?.... if so, maybe I could sell a dustbin to myself for £100m and then borrow £100m against it from that same bank to save Reading FC.... It does mean I may struggle to sell the bin and ultimately may see the bank take ownership of it, but I can live with that.

The bank may only be called out as incompetent if they reposes something that then turns out to be worth less than half it's value, so it may be in their interests not to do so.

Wasn’t it Derby who sold their ground to the owner for a clearly over inflated amount ?
IIRC we sold ours for the value it had on our balance sheet and that was based on an independent valuation whereas Derby’s was valued by someone connected to the club. Don’t think we did anything wrong did we ? It’s common practice for businesses to move assets around their books to maximise benefits.

What value an asset is sold at between connected parties and that placed on it by a bank as security for a loan are very dfferent matters. The bank may well have recourse to all of Dai's UK based assets whether they be business or personal.

[From Despair To Where?]

Was the stadium ever worth £55m?

Nope, although you have to factor in the value of the land for redevelopment, which I imagine isn't more than the value with the stadium on it once you factor in demolition and construction costs to create, presumably offices which are already two a penny next door in Green Park.

Didn't the club "sell" the stadium for £55m to the separate company at one point to try and fiddle Financial Fair Play? - ie the reason we got a points deduction? If so, the bank wouldn't be stupid enough to take a valuation based on the sale of the stadium from, effectively Dai Younge to Dai Younge would they?.... if so, maybe I could sell a dustbin to myself for £100m and then borrow £100m against it from that same bank to save Reading FC.... It does mean I may struggle to sell the bin and ultimately may see the bank take ownership of it, but I can live with that.

The bank may only be called out as incompetent if they reposes something that then turns out to be worth less than half it's value, so it may be in their interests not to do so.

Wasn’t it Derby who sold their ground to the owner for a clearly over inflated amount ?
IIRC we sold ours for the value it had on our balance sheet and that was based on an independent valuation whereas Derby’s was valued by someone connected to the club. Don’t think we did anything wrong did we ? It’s common practice for businesses to move assets around their books to maximise benefits.

Pride Park was valued at £85m in an independent valuation carried out by company owned by Mel Morris' brother.

[Forbury Lion]

Pride Park was valued at £85m in an independent valuation carried out by company owned by Mel Morris' brother.

Sound legit.
Maybe Dai Yongge's sister did a valuation of the Madejski Stadium to back-up the loan from the lending bank