When the Cain Hoy rumour first surfaced a few months ago, I was highly dubious that ENIC would want to sell the club at that time, primarily based on their business model, which is to acquire an asset, add value over quite a long term and then dispose of the asset at the ideal time, in terms of added value v. time held.
I was unconvinced because they had added a great deal of value by obtaining planning consent several years ago, but then had continued to spend large amounts of money on the NDP, without adding further value. When Cain Hoy expressed their interest, the Archway Sheet Metal CPO dispute was still unresolved, which put a considerable dent in the value of the club and its land. Only a distressed owner would be keen to sell at that kind of moment and ENIC is plainly the oppopsite of distressed - it is capital-rich.
Now that the CPO has been resolved in the club's favour, it might be a less daft time to sell, but still, there are such fertile opportunities to add value, by actually completing the NDP, that I cannot see why ENIC would consider selling now.
In a few years, assuming the successful the completion of the NDP, their asset will have appreciated hugely. That would be an ideal time for them to sell.
Damn...I was all set to bid this summer. Oh well, just have to keep saving.
When the Cain Hoy rumour first surfaced a few months ago, I was highly dubious that ENIC would want to sell the club at that time, primarily based on their business model, which is to acquire an asset, add value over quite a long term and then dispose of the asset at the ideal time, in terms of added value v. time held.
I was unconvinced because they had added a great deal of value by obtaining planning consent several years ago, but then had continued to spend large amounts of money on the NDP, without adding further value. When Cain Hoy expressed their interest, the Archway Sheet Metal CPO dispute was still unresolved, which put a considerable dent in the value of the club and its land. Only a distressed owner would be keen to sell at that kind of moment and ENIC is plainly the oppopsite of distressed - it is capital-rich.
Now that the CPO has been resolved in the club's favour, it might be a less daft time to sell, but still, there are such fertile opportunities to add value, by actually completing the NDP, that I cannot see why ENIC would consider selling now.
Now that the stadium has a green light I wouldn't be surprised that the 'value' has increased. It sends a message to any interested parties that the club is a sound investment with a rosy future and that any bids should reflect that. Don't think ENIC have any intention of selling yet but whipping up a bit of interest won't do any harm.
In a few years, assuming the successful the completion of the NDP, their asset will have appreciated hugely. That would be an ideal time for them to sell.
Why do newspapers substitute the word "Asking price" in place of "value of"?
He's not set an asking price, at best he's valued the club as such. Telegraph, get your shit together, you're getting worse.
Why do newspapers substitute the word "Asking price" in place of "value of"?
He's not set an asking price, at best he's valued the club as such. Telegraph, get your shit together, you're getting worse.