Sky sports news state that Bournemouth a set to bid 15m for out of favour Liverpools Jordon Ibe. Hopefully this will give us a few £ or does it all go to Hayes Debt?
As I understand it we have a 20 per cent sell on on any profit made. I believe we have already received around £1 million for Ibe. Steve Hayes is currently owed approximately £1.3 million. Therefore if Bournemouth's £15 million bid goes through, we would receive £2.8 million (£1.5 million after payment to Hayes).
Ibe is at a real turning point in his career if these rumours are true. Fingers crossed for him but I do fear he'll be in a relegation fight if he joins Bournemouth
Presume this is his agent trying to drum up any latent interest before decision on club is made. Key for the lad on what will be a downward move is to choose a club whose playing style matches his own rather than just the best salary.
As for WWFC, presumably only a matter of hours now before we sell out our add-on for £2.50 and a cornetto.
hopefully if this deal goes through and we have money left over we can look at clearing all other debts/loans (seem to remember a brewery loan mentioned at the AGM) plus monies owed to Beeks, Howard etc and maybe even get the training ground back into club ownership
You say 'does it go to Steve Hayes debt?' as if that is a bad thing. We are repaying that around £150k of that debt every year, so paying it all off at once frees up those repayments over the next 10/15 years for other things, eg players wages or restarting the youth system.
This is potentially huge, huge news for the club if the sale goes through.
We can write off all of our debt, fast-track out of the 5 year plan, Hayes and co. can be sacked off for good, we can sign a couple more players and hopefully get out of the basement division within a couple of seasons.
Certainly would be good news, the potential sell-ons from Ibe, Hause and Ingram if they exist are the biggest assets the club owns, especially with the size of transfer fees for ordinary players at the top levels.
Don't get too excited yet, we don't know for sure if there is (or still is) and Ibe sell -on or how much or how much flexibility the club has financially even with this money. Remember Exeter achieved a sale of £2m ish for Matt Grimes a couple of years ago. That basically rescued Exeter from a financial hole but didn't allow them to increase team spending much or march up the divisions.
Let's not get overexcited fellas. 1) The sell-on % was never confirmed. It may be lower than 20%. 2) Even if it is 20% on a £14m profit, the club's debts exceed this currently. Assuming the income from any deal (which is not guaranteed to happen) exceeds the debt to Hayes, this would mean £100k annual reduction in cash outgoings annually. If it significantly exceeds this, it may mean a reduction in other debt financing costs, but most of the loans are low interest. So let's say ~£150k per annum savings from this deal. Great news for sure, but doesn't allow for significant belt-loosening - it's a small % of our annual cost base.
It is highly unlikely that the £15m would be paid upfront by Bournemouth and instead be paid over the length of his contract and subject to appearances, international caps etc.
it is indeed potentially massive. 15% of £15m would be roughly equivalent to total money paid by all spectators including season tickets in a year. That's massive for any organisation.
Lets wait and see before getting too excited though.
It is still too early to get excited. Liverpool may have accepted Bournemouth's offer, but the player still has to agree terms with his new club. Best to wait until the deal has been signed before start forecasting our future. I'm sorry if I beat DevC in pointing out a reason for staying calm.
@HG1 Exactly. I'm surprised Spurs, West Ham, Leicester, and a host of other more 'attractive' destinations aren't interested in muscling in at 15 million.
@Vital I've not seen exactly how the sell-on fee calculation is written in the contract, but there is an alternative calculation of the "15% of sale price minus original £500,000" that gives less money to Wycombe.
Applying the agreed mathematical standard that my children refer to by the acronym BODMAS, the calculation as written would require the multiplication part to be performed before the subtraction part:
15% of £15,000,000 less the £500,000 already paid = £2,250,000 - £500,000 = £1,750,000.
Comments
As I understand it we have a 20 per cent sell on on any profit made. I believe we have already received around £1 million for Ibe. Steve Hayes is currently owed approximately £1.3 million. Therefore if Bournemouth's £15 million bid goes through, we would receive £2.8 million (£1.5 million after payment to Hayes).
Ibe is at a real turning point in his career if these rumours are true. Fingers crossed for him but I do fear he'll be in a relegation fight if he joins Bournemouth
Presume this is his agent trying to drum up any latent interest before decision on club is made. Key for the lad on what will be a downward move is to choose a club whose playing style matches his own rather than just the best salary.
As for WWFC, presumably only a matter of hours now before we sell out our add-on for £2.50 and a cornetto.
hopefully if this deal goes through and we have money left over we can look at clearing all other debts/loans (seem to remember a brewery loan mentioned at the AGM) plus monies owed to Beeks, Howard etc and maybe even get the training ground back into club ownership
Ainsworth will still play the 'small club with no money' card next season no matter what money we get through sell ons and player sales!
The offer has apparently been accepted by Liverpool
A priority should be to reset up the youth team. Let Sharkey wait for his money unless the club can negotiate a reduction for early payment.
Sell on fee for Ibe goes direct to Hayes I think (unless it exceeds what we owe him).
Which it sounds like it will....
You say 'does it go to Steve Hayes debt?' as if that is a bad thing. We are repaying that around £150k of that debt every year, so paying it all off at once frees up those repayments over the next 10/15 years for other things, eg players wages or restarting the youth system.
This is potentially huge, huge news for the club if the sale goes through.
We can write off all of our debt, fast-track out of the 5 year plan, Hayes and co. can be sacked off for good, we can sign a couple more players and hopefully get out of the basement division within a couple of seasons.
Certainly would be good news, the potential sell-ons from Ibe, Hause and Ingram if they exist are the biggest assets the club owns, especially with the size of transfer fees for ordinary players at the top levels.
Don't get too excited yet, we don't know for sure if there is (or still is) and Ibe sell -on or how much or how much flexibility the club has financially even with this money. Remember Exeter achieved a sale of £2m ish for Matt Grimes a couple of years ago. That basically rescued Exeter from a financial hole but didn't allow them to increase team spending much or march up the divisions.
According to SSN Liverpool have accepted bid.
Let's not get overexcited fellas. 1) The sell-on % was never confirmed. It may be lower than 20%. 2) Even if it is 20% on a £14m profit, the club's debts exceed this currently. Assuming the income from any deal (which is not guaranteed to happen) exceeds the debt to Hayes, this would mean £100k annual reduction in cash outgoings annually. If it significantly exceeds this, it may mean a reduction in other debt financing costs, but most of the loans are low interest. So let's say ~£150k per annum savings from this deal. Great news for sure, but doesn't allow for significant belt-loosening - it's a small % of our annual cost base.
Dev, we do know that there is a sell-on fee for Ibe. It was confirmed by the trust at a members meeting in 2013
They did not confirm the details but it has been fairly widely reported as being 15% of any transfer fee
It is highly unlikely that the £15m would be paid upfront by Bournemouth and instead be paid over the length of his contract and subject to appearances, international caps etc.
it is indeed potentially massive. 15% of £15m would be roughly equivalent to total money paid by all spectators including season tickets in a year. That's massive for any organisation.
Lets wait and see before getting too excited though.
I'm sure you'll stop us getting too excited.
It is still too early to get excited. Liverpool may have accepted Bournemouth's offer, but the player still has to agree terms with his new club. Best to wait until the deal has been signed before start forecasting our future. I'm sorry if I beat DevC in pointing out a reason for staying calm.
Original fee we received is widely reported to be £500,000
"The fee is believed to be around £500,000"
http://www.dailymail.co.uk/sport/football/article-2073477/Jordan-Ibe-signs-Liverpool-Wycombe.html
Sell-on fee widely reported to be 15% of sale price minus original £500,000
"Due to a sell-on clause, it is understood Wycombe would receive 15 percent of any fee the Reds receive for Ibe."
http://www.dailymail.co.uk/sport/football/article-3678711/Bournemouth-talks-Liverpool-15m-deal-Jordon-Ibe.html
Bournemouth and Liverpool agree £15,000,000 fee
http://www.bbc.co.uk/sport/football/36736430
15% of 14,500,000 = £2,175,000
Enough to repay our two biggest debts to Steve Hayes and Chairboys Funders and still have nearly half a million to allocate wherever they choose best.
I think it's time to collectively cross our fingers (and pray if you're that way inclined).
New carpets?
Replacement flat screens for 4HD, it's a must!
On a related note, was a sell-on fee for Kortney Hause ever disclosed.
I'm sure sell ons are a given in those kid of transfers.
what this does of course do, is say to Jordan that Liverpool do not rate you. So if it is not Bournemouth I suspect he will still move on.
@HG1 Exactly. I'm surprised Spurs, West Ham, Leicester, and a host of other more 'attractive' destinations aren't interested in muscling in at 15 million.
clear our debts then can at least match the top teams in league two for wages etc
@Vital I've not seen exactly how the sell-on fee calculation is written in the contract, but there is an alternative calculation of the "15% of sale price minus original £500,000" that gives less money to Wycombe.
Applying the agreed mathematical standard that my children refer to by the acronym BODMAS, the calculation as written would require the multiplication part to be performed before the subtraction part:
15% of £15,000,000 less the £500,000 already paid = £2,250,000 - £500,000 = £1,750,000.
no i don't think so its 500k plus 15 or 20 percent of the next transfer
Trev's got the contract in his back pocket.