News Just In, Days Away From Being Sold To the Gordon Family

[Old Timer]

But if we expect it to be run as a professional business, no new business owner ever ever pays out the debts of the old owners.

They pay goodwill plus stock, fixtures and fittings, and for any freehold property if that is part of the deal.

Why should a new owner pay for old debts, never happens in business.

Not looking for an argument here but you are not quite correct in your assertion.
Many companies (corporate raiders) often buy companies to inherit the tax write offs due to the accumulated losses.
If a long term investor can see light at the end of the tunnel a $6m debt is absolute peanuts to him however there are many things that such investors need to consider and the vagaries of how the NRL, ARL are run and also having to do with councils for things such as a long term lease for KJO & redevelopment applications for it & the TAJ would be a bit daunting.
In fact if our BOD & CEO have any credibility at all they should already have DA's and long term tenancy agreements in hand and they should be highlighted as incentives within the sale documents.
Without them I suggest you will only get the bottom of the barrel speculators interested.

 

[MilanDragon]

But if we expect it to be run as a professional business, no new business owner ever ever pays out the debts of the old owners.

They pay goodwill plus stock, fixtures and fittings, and for any freehold property if that is part of the deal.

Why should a new owner pay for old debts, never happens in business.

I think it’s common practice that they do one way or the other.

So essentially a business gets valued at 20 million, they might have 10 mil of debt. The new owner pays 20 mil and inherits that companies debt.. it’d be part of the agreement and value in their negotiations.

Don’t forget a company is an entity in its own right so the debt belongs to that entity not necessarily to the individual.

 

[Gareth67]

One can only hope that there is some good news not too far away about this debacle .
There must be other interested parties out there somewhere who have the nounce to make a success of their investment for all concerned .

 

[Frank Facer]

Not looking for an argument here but you are not quite correct in your assertion.
Many companies (corporate raiders) often by companies to inherit the tax write offs due to the accumulated losses.
If a long term investor can see light at the end of the tunnel a $6m debt is absolute peanuts to him however there are many things that such investors need to consider and the vagaries of how the NRL, ARL are run and also having to do with councils for things such as a long term lease for KJO & redevelopment applications for it & the TAJ would be a bit daunting.
In fact if our BOD & CEO have any credibility at all they should already have DA's and long term tenancy agreements in hand and they should be highlighted as incentives within the sale documents.
Without them I suggest you will only get the bottom of the barrel speculators interested.

Liverpool FC has or had a 143 million pound debt in an article I just researched. I thought it was a lot more over 10 years ago.

Man United has/had a 465 million pound debt in the same article.

 

[Frank Facer]

One can only hope that there is some good news not too far away about this debacle .
There must be other interested parties out there somewhere who have the nounce to make a success of their investment for all concerned .

If I bought us or any other sporting team, I would not be expecting to make a profit.

 

[Gareth67]

If I bought us or any other sporting team, I would not be expecting to make a profit.

Perhaps not in that sense Frank , more so in the developing and building of a new Dragons leagues club . Getting more members to sign up and getting them into the club itself to spend their hard earned cash .

And also a centre of excellence where the players could train and the juniors could do also - getting a true understanding of the Dragons setup .

That was what I was referring to in making the most out of their investment . A win - win situation for all involved .

 

[O'Sullivan]

My brother is a Newcastle fan. I know, but he moved there. He keeps telling me to be careful what we wish for. The Tinkler debacle almost lost the Hunter its footy team. On the other hand I would love to see a deal allow us to become debt free from the NRL and shut Rothfield up.

 

[Gareth67]

My brother is a Newcastle fan. I know, but he moved there. He keeps telling me to be careful what we wish for. The Tinkler debacle almost lost the Hunter its footy team. On the other hand I would love to see a deal allow us to become debt free from the NRL and shut Rothfield up.

Yes , Dill Rothchilde never gives up on that does he ? Forever mentioning how the Dragons owe money to the NRL , it must be like having a morning coffee for him - self satisfied mug . Ever so conveniently forgets how the Sharks went into receivership a number of years back - as I said a self satisfied mug .

 

[Frank Facer]

Perhaps not in that sense Frank , more so in the developing and building of a new Dragons leagues club . Getting more members to sign up and getting them into the club itself to spend their hard earned cash .

And also a centre of excellence where the players could train and the juniors could do also - getting a true understanding of the Dragons setup .

That was what I was referring to in making the most out of their investment . A win - win situation for all involved .

I agree with everything you said Gareth.