New owner confirmed…

Polishing biscuits? You have dirty thoughts Ernie!

 

Soggy biscuits?

 

So you don't believe that the Allams would hike the price(hedged their bets) to reflect the drop in sterling exchange value should May's plan be rejected ?

 

Not if they really want to sell and have signed a sale agreement.

 

If they really want to sell and have signed a sales agreement there would be a conditional clause in the agreement that reflects potential currency exchange rate changes. That's assuming both vendor and purchaser know what they want and are willing to agree, or if the vendor is a stupid businessman you may have a point !

 

If the Allams get all the benefit from a fall in the pound the buyers may be waiting for the pound to bounce back after the vote. If the purchaser gets all the benefit of a falling pound, or its split between the two, they'll buy when they think the pound is close to the floor. Either way this week and next is not a good time to be converting foreign currency into pounds.

 

In other words, no time is a good time to buy/or sell if the funds used are of different currency denominations UNLESS a selling agreement incorporates conditional clauses that reflect those potential shifts in exchange rates to satisfy vendor/purchasor wishes.
That was my point. Someone (purchaser, vendor or both) would be stupid to have already signed without such clauses.

 

My point is if the clause exists it depends what it says and who benefits from the currency fluctuation.

There is an historic vote in parliament which could have a very significant effect on the value of the pound. Not your normal now isn't really a good time to be converting currency. Only an idiot would ignore that when looking at spending £40 or £50 million.

 

I know exactly what this historic vote may/may not mean. The impact on sterling may/may not be significant.
Your original response to Driff_Tiger's 10th December milestone post suggests the potential purchaser may have offered a price that already incorporated an expected currency exchange impact of the Dec 11th vote outcome.
My suggestion that conditional clauses in the sale agreement would be designed to cover such eventualities, and that both vendor/purchaser would have an "escape clause" if that exchange rate fluctuation was above a certain threshhold ( in either direction) which the two parties could agree to prior to the event (the Brexit vote and exchange of ownership date).
I believe we are saying essentially the same thing, but I didn't read in your original post to Driff a sense of security for both parties. A non-refundable deposit may also be used as a buffer to protect the vendor too of course.

 

A hitman for the current owners....?

 

A BOGOF?

 

I don't mind paying full price TBF

 

Now you are starting to sound like Ehab justifying why the sale of the club fell through (real bottom of the barrel excuses) There are way and means to overcome situations like this, international deals are done every day no matter what the exchange rate is. In recent years the pound has been worth upto 1.5 Euro and as low as 1 to 1. The media talk up a fluctuation of as little as 0.5% as a crash and a crisis.

 

If the sale falls through it will be because the buyers don't have the money. It will have nothing to do with the exchange rate.

 

Who knows if there ever were any serious buyers , I can imagine anybody enquiring about the club just laughing
when the Allams told them it was £40 million plus

 

Or maybe the Allams are asking way too much for a club in free fall? There's no 'Maybe' about it. They're prepared to sell, but only if someone offers way above what we're actually worth.

If they can't get that silly offer, then they'd rather see us go into administration.

 

Currency fluctuation won't impact any deal

And the markets have already factored in the vote against HMG next week anyway.

Now a Black Swan event that causes a currency or asset class crash (like the price of oil tumbling $20 a barrel overnight)
- that might impact any sale of the club - depending where the wealth originates.

 

There is no deal doing.

So currency speculation is premature, and academic.

Same old, same old, 2019.

 

At the end of the day. The club is not worth more than 20 million. If the owners want upwards of 40 million, it's a no deal

 

I wonder what gates we'll get in the national league north.the more I think about it the more fun it will be. Like burton away last season every match. Come on enob, do your worst