Post
by audigex » Sat Jan 11, 2014 7:22 pm
You can fully own a ground while being liable for debts secured on it.
If we wound the club up right now, we'd probably have to sell the ground to meet the debts - but while we're running and making repayments, we own that ground. We just happen to owe money which is secured against it. The Furness Building Society Stadium no more belongs to the Furness Building Society than my next house will belong to Barclays (or whoever I get a mortgage from). Despite the name.
As soon as payments stop, all bets are off with regards to ownership of the ground... but if we're running as a club, the ground is still an asset and the debts are still debts. The two are no more linked than anyone else with a mortgage, and the value of the club is still essentially the assets (which for us is basically just the ground+fittings), minus the debts/liabilities, plus/minus any potential profits or losses.
The same as with any business, there is an aspect of the value which is subjective: the value of the name, recognisability, branding, potential profit making etc... I saw an interesting problem at work recently where a profitable company with a turnover of several million pounds per year and intellectual property probably worth millions more, was valued at about the price of about a dozen laptops, a server and a coffee machine... because they were the only fungible assets. Anyone with any sense would realise the company was worth far more than that, but that's all it could be officially valued at.
"I'm aware of the rules of Association Football, I merely choose to suspend them when my own team is involved" - Steve Herbert, 2011