Sunday, 11 April 2010

Pinch of salt anyone?

So news today that Hicks and Gillette have engaged with a new bank to service their debt and start the ball rolling with the process to sell the club.

That sounds like a great way to start a Sunday. But hang on a minute. Let's just disect the news for a minute. H&G seem to have been able to refinance their loan. That could mean that they are under less pressure to sell a stake in the club than they would be under the RBS terms.

OK so it seems that the refinancing is with a view to finding a buyer. Point one, H&G have valued the club at &600 million. They are still very much at making a profit out of the club, by hook or by crook. The Rhone Group offer has been ignored (not rejected) because it ended up giving H&G less of a share in the club and no cash to take out whatsoever.

Point two. Do we believe a word that H&G say any way. Was there a spade in the ground for our new stadium in the first 60 days of them taking ownership? Is there no debt on the club? So once they have secured a refinancing package, do you believe they will then look to sell the club? Only if they can get the profit they want and with this seasons performances on the pitch, I am not sure that prospective buyers will meet the valuation.

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