Author Topic: Anything Birmingham City  (Read 256844 times)

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BB74

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Re: Anything Birmingham City
« Reply #825 on: February 20, 2021, 10:13:04 AM »
Apparently there’s a new billionaire wanting to purchase the blues, his name is Lee Guan  ;D

SmethDan

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Re: Anything Birmingham City
« Reply #826 on: February 20, 2021, 10:20:35 AM »
Apparently there’s a new billionaire wanting to purchase the blues, his name is Lee Guan  ;D

That's an ouch  ;D .
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If you don't know how to use them, they will never be enough.
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LiamTheBaggie

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Re: Anything Birmingham City
« Reply #827 on: February 20, 2021, 10:32:49 AM »
Apparently there’s a new billionaire wanting to purchase the blues, his name is Lee Guan  ;D

Brilliant  :D

Never had much animosity towards Blues but some of their younger fan base are a bunch of **** who live off their fans former years.

More than happy to watch them sink.
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Topman

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Re: Anything Birmingham City
« Reply #828 on: March 14, 2021, 04:50:21 PM »
Blues manager gone. If you think we are bad just take a look at these. Some articles are even saying wilder for the job, yeah right

BB74

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Re: Anything Birmingham City
« Reply #829 on: March 15, 2021, 09:56:09 PM »
Lee Bowyer resigns as Charlton Manager to take over at the blues.

SmethDan

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Re: Anything Birmingham City
« Reply #830 on: March 16, 2021, 10:09:25 AM »
Here's hoping Harper gets game time further up the pitch. Surprised Karanka had him playing as a CDM.
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Re: Anything Birmingham City
« Reply #831 on: March 16, 2021, 06:49:04 PM »
Here's hoping Harper gets game time further up the pitch. Surprised Karanka had him playing as a CDM.

Look he's just El Pulis there is only CDM's in his playbook
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AlbionFan

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Re: Anything Birmingham City
« Reply #832 on: June 07, 2021, 08:02:22 PM »
Reading that Birmingham City owners have sold St Andrews. That’s not good
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SmethDan

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Re: Anything Birmingham City
« Reply #833 on: June 07, 2021, 08:09:45 PM »
Thought that'd been decided on a couple of months back?
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Re: Anything Birmingham City
« Reply #834 on: June 07, 2021, 08:57:18 PM »
Thought that'd been decided on a couple of months back?

It had been talked about, but as of 7th June 2021 it’s now fact
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AlbionFan

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Re: Anything Birmingham City
« Reply #835 on: June 07, 2021, 09:02:08 PM »
This is the document that confirms the sale for £10.78m

BIRMINGHAM SPORTS HOLDINGS LIMITED

伯明翰體育控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2309)

DISCLOSEABLE TRANSACTIONS -

COMPLETION OF DISPOSAL OF INTERESTS IN A SUBSIDIARY

AND

EXECUTION OF THE VARIED LEASE AGREEMENT

Reference is made to the announcement of Birmingham Sports Holdings Limited (the "Company") dated 31 March 2021, in relation to, among others, the Company's disposal of interests in a subsidiary and the entering into of a varied lease agreement (the "Announcement"). Unless the context requires. otherwise, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

COMPLETION OF THE DISPOSAL

The Board is pleased to announce that all conditions precedent the Sale and Purchase Agreement have been fulfilled and Completion took place on 7 June 2021 as agreed in accordance with the terms of the Sale and Purchase Agreement. The amount of the Sale Loan as at Completion was approximately GBP10.78 million (equivalent to approximately HK$117.1 million). The Consideration for the sale I purchase of the Sale Shares was approximately GBP0.02 million (equivalent to approximately HK$0.2 million). Immediately after the Completion, BCSL ceased to be a subsidiary of the Company and the Company no longer hold any interest in the shares of BCSL.

EXECUTION OF THE VARIED LEASE AGREEMENT

On 7 June 2021, BCSL and BCFC entered into the New Deed of Variation and the Varied Lease Agreement, the principal terms of which are detailed in the Announcement.

For illustration purpose only, conversion of GBP into HKS in this announcement is based on the exchange rate of GBPI to HK$10.86.

By Order of the Board

Birmingham Sports Holdings Limited

Zhao Wenging Chairman

Hong Kong, 7 June 2021

As at the date of this announcement, the Board comprises nine Directors, namely Mr. Zhao Wenging (Chairman), Mr. Huang Dongfeng (Chief Executive Officer), Mr. Yiu Chun Kong. Mr. Hsiao Chang Geng and Dr. Guo Honglin as Executive Directors; Mr. Sue Ka Lok as Non-executive Director; and Mr. Pun Chi Ping, Ms. Leung Pik Har, Christine and Mr. Yeung Chi Tat as Independent Non

executive Directors.


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WBArgo

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Re: Anything Birmingham City
« Reply #836 on: June 07, 2021, 10:49:16 PM »
I must admit I've lost track of the Birmingham City story over the last few years. Did Carson Yeung actually sell or did he just give it to a mate?

It's actually impressive that the club has (somehow) stayed in the Championship as long as they have considering the lack of investment etc. It's also really sad. I think if/when they get relegated it will be a long way back.

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Re: Anything Birmingham City
« Reply #837 on: June 08, 2021, 12:31:43 PM »
This is the document that confirms the sale for £10.78m

BIRMINGHAM SPORTS HOLDINGS LIMITED

伯明翰體育控股有限公司

(Incorporated in the Cayman Islands with limited liability)

(Stock Code: 2309)

DISCLOSEABLE TRANSACTIONS -

COMPLETION OF DISPOSAL OF INTERESTS IN A SUBSIDIARY

AND

EXECUTION OF THE VARIED LEASE AGREEMENT

Reference is made to the announcement of Birmingham Sports Holdings Limited (the "Company") dated 31 March 2021, in relation to, among others, the Company's disposal of interests in a subsidiary and the entering into of a varied lease agreement (the "Announcement"). Unless the context requires. otherwise, capitalised terms used herein shall have the same meanings as those defined in the Announcement.

COMPLETION OF THE DISPOSAL

The Board is pleased to announce that all conditions precedent the Sale and Purchase Agreement have been fulfilled and Completion took place on 7 June 2021 as agreed in accordance with the terms of the Sale and Purchase Agreement. The amount of the Sale Loan as at Completion was approximately GBP10.78 million (equivalent to approximately HK$117.1 million). The Consideration for the sale I purchase of the Sale Shares was approximately GBP0.02 million (equivalent to approximately HK$0.2 million). Immediately after the Completion, BCSL ceased to be a subsidiary of the Company and the Company no longer hold any interest in the shares of BCSL.

EXECUTION OF THE VARIED LEASE AGREEMENT

On 7 June 2021, BCSL and BCFC entered into the New Deed of Variation and the Varied Lease Agreement, the principal terms of which are detailed in the Announcement.

For illustration purpose only, conversion of GBP into HKS in this announcement is based on the exchange rate of GBPI to HK$10.86.

By Order of the Board

Birmingham Sports Holdings Limited

Zhao Wenging Chairman

Hong Kong, 7 June 2021

As at the date of this announcement, the Board comprises nine Directors, namely Mr. Zhao Wenging (Chairman), Mr. Huang Dongfeng (Chief Executive Officer), Mr. Yiu Chun Kong. Mr. Hsiao Chang Geng and Dr. Guo Honglin as Executive Directors; Mr. Sue Ka Lok as Non-executive Director; and Mr. Pun Chi Ping, Ms. Leung Pik Har, Christine and Mr. Yeung Chi Tat as Independent Non

executive Directors.

So the owner sold the ground to another of his companies for £28m but leased it back for £1.25m / yr for 25 years effectively £31.25m, (so 10% for admin costs)
Unless I am missing something this is just a vehicle to drive down the clubs debts, interest costs etc
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skyclad99

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Re: Anything Birmingham City
« Reply #838 on: June 08, 2021, 01:49:52 PM »
So the owner sold the ground to another of his companies for £28m but leased it back for £1.25m / yr for 25 years effectively £31.25m, (so 10% for admin costs)
Unless I am missing something this is just a vehicle to drive down the clubs debts, interest costs etc

I am but a simple person Albionic, but if BCFC own the club and sell it, they then rent it back for £1.25m a year, is that not a short term gain for a long term loss? and what happens after 25 years? Does it also mean that BCFC are saddled with their present ownership for at least 25 years? Sounds a bit like equity release to me.

And actually more relevant, could this happen to us?
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Re: Anything Birmingham City
« Reply #839 on: June 08, 2021, 02:05:34 PM »
I am but a simple person Albionic, but if BCFC own the club and sell it, they then rent it back for £1.25m a year, is that not a short term gain for a long term loss? and what happens after 25 years? Does it also mean that BCFC are saddled with their present ownership for at least 25 years? Sounds a bit like equity release to me.

And actually more relevant, could this happen to us?

Yes it absolutely could.
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Re: Anything Birmingham City
« Reply #840 on: June 08, 2021, 02:09:37 PM »
I am but a simple person Albionic, but if BCFC own the club and sell it, they then rent it back for £1.25m a year, is that not a short term gain for a long term loss? and what happens after 25 years? Does it also mean that BCFC are saddled with their present ownership for at least 25 years? Sounds a bit like equity release to me.

And actually more relevant, could this happen to us?

Also means the owners could sell the club but hold onto the ground
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skyclad99

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Re: Anything Birmingham City
« Reply #841 on: June 08, 2021, 02:10:23 PM »
Yes it absolutely could.

Well I thought that to be the case, I was hoping for some wise sage to tell me that it was not possible due to some legal reason etc.
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seteefeet

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Re: Anything Birmingham City
« Reply #842 on: June 08, 2021, 02:11:34 PM »
Yes it absolutely could.
Think it will forever be a risk, sadly. :'(

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Re: Anything Birmingham City
« Reply #843 on: June 08, 2021, 02:32:11 PM »
Also means the owners could sell the club but hold onto the ground
You'd hope they never got planning permission for anything like housing or offices.
Fingers crossed for the future of Birmingham City and St Andrews.
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johnny Cash

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Re: Anything Birmingham City
« Reply #844 on: June 08, 2021, 03:22:44 PM »
Well I thought that to be the case, I was hoping for some wise sage to tell me that it was not possible due to some legal reason etc.

It has never actually been done as far as I am aware and as Alex says, you'd expect a combination of the Local Authority and public pressure would not allow it.  However it wouldnt be a good move anyway.

People have made comments about the Hawthorns being sold for housing in the past and would not be a good investment. I didnt think it would be but i wondered why people often said it so i double checked the math's.   

I think i worked out you'd get around 60 average 3 beds on a football pitch not factoring gardens or roads, so lets say it is still around 60 with the extra land we have with car parks, and stands etc. At £250,000 a piece that is £15,000,000 but the houses aren't built for free.  Even if you could get a 40% margin you'd barely make £5m.  You could stick some other facilities and probably make more in rents over time but nothing worth destroying a £100m football club for.



 




« Last Edit: June 08, 2021, 03:24:31 PM by johnny Cash »

Albionic

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Re: Anything Birmingham City
« Reply #845 on: June 08, 2021, 03:59:58 PM »
I am but a simple person Albionic, but if BCFC own the club and sell it, they then rent it back for £1.25m a year, is that not a short term gain for a long term loss? and what happens after 25 years? Does it also mean that BCFC are saddled with their present ownership for at least 25 years? Sounds a bit like equity release to me.

And actually more relevant, could this happen to us?

My take is (right or more likely wrong) is that BCFC Ltd are owned by Mr X, the same Mr X also owns a company BCFC holdings (for arguments sake). He sells the ground from Ltd to holdings, so reducing debt of Ltd but inflating debt of holdings (will clearly reduce over time as Ltd pays down its debt).
As Ltd are the club required to be financially viable by footballing authorities he has "helped" that entity.
Consequences include
a) assets of Ltd diminish
b) after 25 years Ltd has to negotiate a new deal
c) if Mr X, moves on a buyer would potentially need to buy both Ltd & Holdings
d) if holdings can get cheaper finance MrX's overall debt decreases
e) Mr X can llikely liberate "dividends" from both Ltd & Holdings

I echo the sentiment that it seems to benefit Mr X and not BCFC LTD,

Are we not structured as a football club operating beneath a holding company already, so it would be interesting to know which entity owns the ground etc.
« Last Edit: June 08, 2021, 04:19:35 PM by Albionic »
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skyclad99

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Re: Anything Birmingham City
« Reply #846 on: June 08, 2021, 04:15:43 PM »
It has never actually been done as far as I am aware and as Alex says, you'd expect a combination of the Local Authority and public pressure would not allow it.  However it wouldnt be a good move anyway.

People have made comments about the Hawthorns being sold for housing in the past and would not be a good investment. I didnt think it would be but i wondered why people often said it so i double checked the math's.   

I think i worked out you'd get around 60 average 3 beds on a football pitch not factoring gardens or roads, so lets say it is still around 60 with the extra land we have with car parks, and stands etc. At £250,000 a piece that is £15,000,000 but the houses aren't built for free.  Even if you could get a 40% margin you'd barely make £5m.  You could stick some other facilities and probably make more in rents over time but nothing worth destroying a £100m football club for.

From memory JC I think they own a fair chunk of land around the ground too, so the actual footprint is larger.
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johnny Cash

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Re: Anything Birmingham City
« Reply #847 on: June 08, 2021, 04:22:04 PM »
From memory JC I think they own a fair chunk of land around the ground too, so the actual footprint is larger.

You are right, i forgot to factor that in. You may be able to add the training ground which is probably more valuable real estate purely considering post code and the potential home value.

It would take a who lot of houses though, against a backdrop of public outcry to be more valuable than the football club. I just dont think the whole asset stripping is that big a threat to us and clubs like Blues.

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Re: Anything Birmingham City
« Reply #848 on: June 08, 2021, 06:28:11 PM »
In business it’s always best policy to own the building that you undertake your business in.
The owner can then buy the property off the business and rent it back to the business.
In some cases if the business goes pear shaped the owner hasn’t lost everything.
And if the building is in a Golden share position it may be worth a lot more than he paid for it anyway.
Or of course rent it to another business altogether at a much higher rate than renting to his own business,which may have been only a peppercorn rate.
It’s interesting how one can manipulate a situation to suit.

alex1

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Re: Anything Birmingham City
« Reply #849 on: June 09, 2021, 02:49:54 PM »
It has never actually been done as far as I am aware and as Alex says, you'd expect a combination of the Local Authority and public pressure would not allow it.  However it wouldnt be a good move anyway.

People have made comments about the Hawthorns being sold for housing in the past and would not be a good investment. I didnt think it would be but i wondered why people often said it so i double checked the math's.   

I think i worked out you'd get around 60 average 3 beds on a football pitch not factoring gardens or roads, so lets say it is still around 60 with the extra land we have with car parks, and stands etc. At £250,000 a piece that is £15,000,000 but the houses aren't built for free.  Even if you could get a 40% margin you'd barely make £5m.  You could stick some other facilities and probably make more in rents over time but nothing worth destroying a £100m football club for.

Regarding planning permission, you have to remember that a Government appointed Inspector has the last word if it is taken to appeal. But a strong factor would be how the site is allocated in the Local Plan. I asssume its under the Sports facilities/recreation heading which should rule out housing, but if the alternative is that an owner lets it become "unviable",  the powers that be have to look at alternatives. Just look at some pub sites, which face a similar dillema. 

From a commercial point of view, I'm afraid that residential is usually a safe bet, as the value tends to go up rather than down.
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