Thursday, 12 November 2009
Selling The Club Down The River Mersey
So reports are suggesting that we have set a price for Carlton Cole. £20m. Some might argue that Liverpool are willing to meet that valuation, we should sell him; and as big a fan as I am, I can understand the logic - but only if the money was to be reinvested.
The trouble is, of course, that the cash will simply be absorbed by the debt mountain. C&B Holdings now know that nobody is going to meet their inflated valuation whilst taking on the monumental debt. Any £100m offer will be for the club without the debt - eg £50m to clear the debt and £50 for the club and all its assets. So that leaves the banks with just £50m tops for the club itself. So what would you do in their shoes, assuming you have no love for the club and don't care what happens to it after you have disposed of the "asset"?
Simples as my friend Hierros Bill would say! You sell players, use the cash to reduce the debt, and so increase the net value of the £100m offer. By selling Cole, C&B Holdings pocket £70m instead of just £50m. Sell two of Green, Behrami and Upson, and you could nearly be up to your target figure!
But that would spell certain relegation! So what, with the club sold for £50m, that would no longer be Straumer's problem. But who would then pay £100m for the club? Nobody would have to, the club would now be available at £50m, not a bad price for a London club in the Fizzy Pop with zero debts and a loyal fan base who could be guaranteed to nearly fill Upton Park every game. With the parachute payment, it might look like a tidy investment. No wonder Intermarket and Sullivan are sniffing.
There's that old East End saying: where there's muck, there's brass. Well West Ham are sure in the shit so...
Posted by Hammersfan at 18:49