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All Clubs are For Sale

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2 hours ago, woofers said:

Shown under Current Assets as Stocks.

No they're not.

Current assets are things which are either cash or will be quickly turned into cash.    e.g. Debtors, Stocks and WIP, Bank accounts, short term loans, and cash in hand.

If anyone were to list riders contracts as assets, they would be listed as Fixed assets and amortised over their expected useful life... but why would anyone do this when they can write the whole lot off to P&L at the time of purchase?

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No one buying a club would look at the balance sheets assets as an indication of value.

The only meanful way to value a club is to look at the last five years profit/loss, work out the average loss iver that period and then decide how much you are prepared to bankroll the club from your own pocket.

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2 hours ago, lisa-colette said:

The Poole riders are the jammy ones getting to go to the Abu Dhabi F1 GP!! :D

Yes certain club sponsors structured their 'deal' so that maximum money only became available if the team won !!;)

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11 minutes ago, Skidder1 said:

Yes certain club sponsors structured their 'deal' so that maximum money only became available if the team won !!;)

No wonder they were so determined then! :D

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24 minutes ago, MattK said:

No one buying a club would look at the balance sheets assets as an indication of value.

The only meanful way to value a club is to look at the last five years profit/loss, work out the average loss iver that period and then decide how much you are prepared to bankroll the club from your own pocket.

Bearing in mind that if a certain promotor came in most of the riders would not ride for him and go to another club or abroad.

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12 minutes ago, Argos said:

So if a Club came on the Market (like Poole) how on earth would you value it?

The value of the fixed assets, a calculation of X years profits and goodwill less any liabilities.  Goodwill can include anything but is only what the buyer is prepared to pay for. 

Edited by A ORLOV

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52 minutes ago, MattK said:

No one buying a club would look at the balance sheets assets as an indication of value.

The only meanful way to value a club is to look at the last five years profit/loss, work out the average loss iver that period and then decide how much you are prepared to bankroll the club from your own pocket.

There’s only one way to become a millionaire as a speedway club owner, and that’s to start off as a multi millionaire!!!!

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5 minutes ago, Aviator said:

There’s only one way to become a millionaire as a speedway club owner, and that’s to start off as a multi millionaire!!!!

Plenty of them in Sandbanks ;)

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1 hour ago, Argos said:

So if a Club came on the Market (like Poole) how on earth would you value it?

It is worth whatever someone is prepared to pay for it. Given that I find it hard to believe there is a club in British speedway which hasn't made a loss over the last five years, the value of every club is zero. You are effectively buying an expensive hobby.

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4 hours ago, CottonOn said:

No they're not.

 

4 hours ago, CottonOn said:

No they're not.

Current assets are things which are either cash or will be quickly turned into cash.    e.g. Debtors, Stocks and WIP, Bank accounts, short term loans, and cash in hand.

If anyone were to list riders contracts as assets, they would be listed as Fixed assets and amortised over their expected useful life... but why would anyone do this when they can write the whole lot off to P&L at the time of purchase?

Mate, please don't tell me "No they're not", go into Companies House website, get the accounts for Slade Tipton Ltd, look at the Balance Sheet for 28 February 2017 and look at note 8 for said Balance Sheet. Then come back and apologise.

I didn't say any of it was correct in it's  accounting treatment - I answered a question with facts of how IT IS being shown in UNAUDITED accounts. Like most things in Speedway, club accounts are far from uniform.

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28 minutes ago, MattK said:

It is worth whatever someone is prepared to pay for it. Given that I find it hard to believe there is a club in British speedway which hasn't made a loss over the last five years, the value of every club is zero. You are effectively buying an expensive hobby.

Dead right. If and when you can find any accounts for a Speedway Club, you will find mostly unaudited, abbreviated accounts which comprise Balance Sheets only, no P&Ls.

And in most of these the Nett Worth is declining each year, which would suggest losses year on year.

I recall Bob Dugard being asked what return an investor or buyer could expect if buying into a Speedway Club, he laughed and said it was as the other way round, you put your hand into your pocket.

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And for what it's worth (no pun intended) the Poole Accounts are very abbreviated (Micro Company Accounts) showing Capital & Reserves of :

Feb 2018 £76,881

Feb 2017 £97,815

Feb 2016 £101,625

Feb 2015 £78,160

Feb 2014 £78,701

The last time they showed any detail around assets there was a value of £24,667 for Intangible Assets in 2016.  

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18 minutes ago, woofers said:

And for what it's worth (no pun intended) the Poole Accounts are very abbreviated (Micro Company Accounts) showing Capital & Reserves of :

Feb 2018 £76,881

Feb 2017 £97,815

Feb 2016 £101,625

Feb 2015 £78,160

Feb 2014 £78,701

The last time they showed any detail around assets there was a value of £24,667 for Intangible Assets in 2016.  

Quote M Ford:

"It's a great club," he added. "It's well run and it makes a profit, which is unusual in any form of sport.

See https://www.bbc.co.uk/sport/speedway/45823480

One out the last four years ain't bad is it?

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5 hours ago, Skidder1 said:

Yes certain club sponsors structured their 'deal' so that maximum money only became available if the team won !!;)

Be interested to see any group photos from there.... 

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