[Archived] Rovers Might Have Been Sold?

[Earlydoors]

I think we're all still looking for a reason for takeover.

If Rovers annually receive £50m turnover.

They annually spend £45m wages.

They pay tax of £22.5m.

If Ahasan Ali Syed loans £300m to Rovers then that is tax deductable.

Tax deductions: This is a huge attraction for debt financing. In most cases, the principal and interest payments on a business loan are classified as business expenses, and thus can be deducted from your business income taxes. It helps to think of the government as a partner in your business, with a 30 percent ownership stake (or whatever your business tax rate is). If you can cut the government out of the equation, then its beneficial to your business.

50p in the pound, anyone ?

EDIT : No that's b*ll*ks, isn't it - cos its the players that paye.

Oh well, must be good then

[BPF]

I think we're all still looking for a reason for takeover.

If Rovers annually receive £50m turnover.

They annually spend £45m wages.

They pay tax of £22.5m.

If Ahasan Ali Syed loans £300m to Rovers then that is tax deductable.

Tax deductions: This is a huge attraction for debt financing. In most cases, the principal and interest payments on a business loan are classified as business expenses, and thus can be deducted from your business income taxes. It helps to think of the government as a “partner” in your business, with a 30 percent ownership stake (or whatever your business tax rate is). If you can cut the government out of the equation, then it’s beneficial to your business.

50p in the pound, anyone ?

A huge amount of fame and free advertising comes your way when you buy a Premiership Football Club.

He is the hugely successful man, not us. Therefore, if he thinks that he can develop the club, I'll believe him.

[RevidgeBlue]

I think we're all still looking for a reason for takeover.

If Rovers annually receive £50m turnover.

They annually spend £45m wages.

They pay tax of £22.5m.

If Ahasan Ali Syed loans £300m to Rovers then that is tax deductable.

Tax deductions: This is a huge attraction for debt financing. In most cases, the principal and interest payments on a business loan are classified as business expenses, and thus can be deducted from your business income taxes. It helps to think of the government as a “partner” in your business, with a 30 percent ownership stake (or whatever your business tax rate is). If you can cut the government out of the equation, then it’s beneficial to your business.

50p in the pound, anyone ?

eh?

[Mr. E]

Are BBC pulling this out of their *****? Surely this can not be? We can not possibly be 20m in debt? After selling an endless amount of superstar players, buying almost no one in return, we are still in debt? After all the TV money, sponsorship deals, I mean what? No way in any possible reality can this be true.

[LeChuck]

If Ahasan Ali Syed loans £300m to Rovers then that is tax deductable.

The new ownership rules state that owners cannot give money to clubs in the form of loans.

I have no idea whether those rules are in effect yet though.

[rog of the rovers]

An easy way to get some money back at Ewood would be to end the "gravy train" mentality.

Worked briefly for the club and the middle management types were utterly useless!

I cant see Mr Ali adopting a "jobs for the boys" regime.

[67splitscreen]

Our annual A/C say they are correct, give or take a mill or so.

The new ownership rules state that owners cannot give money to clubs in the form of loans.

I have no idea whether those rules are in effect yet though.

Not just yet, but nothing to stop him sponsoring us for the next ten years at say 30m per year.

Hope he has a nice logo sorted for the shirts, no black patches please!.

[Balwer]

I think we're all still looking for a reason for takeover.

If Rovers annually receive £50m turnover.

They annually spend £45m wages.

They pay tax of £22.5m.

Who pays tax on revenue? Think you will find it's paid on profit....

[Grez]

Are BBC pulling this out of their *****? Surely this can not be? We can not possibly be 20m in debt? After selling an endless amount of superstar players, buying almost no one in return, we are still in debt? After all the TV money, sponsorship deals, I mean what? No way in any possible reality can this be true.

The 2009 accounts showed us in that ball park of debt. The 2010 year end finished end of June. Usually only key stake holders see that - the rest of us get the companies house copy in January. I would be intrigued to see the bottom line this time around as we had a £20 million trading surplus last summer. To not see a benefit, we must have had a monumental operating loss.

Phillip would have a better idea on these things.

[RevidgeBlue]

Are BBC pulling this out of their *****? Surely this can not be? We can not possibly be 20m in debt? After selling an endless amount of superstar players, buying almost no one in return, we are still in debt? After all the TV money, sponsorship deals, I mean what? No way in any possible reality can this be true.

Apparently we still are.

I think the reason given for this was that any surplus of transfers etc was swallowed up by the shortfall caused by our excessive wage budget. Now we're o.k. for a bit due to the increased TV deal.

Quite right too. Surely no-one expects Diouf to scrape by on less than at least 3 chrome plated station wagons or Mercs, and everyone knows a squad needs 4 senior right backs!

[rovgers]

Sorry to be the bearer of bad news but after seeing this on carrots mad, there's no way the takeover will happen!

A copy of a letter, he says he's sent to Ahasan Ali's office!

Dear Mr, Syed

After reading today's newspaper reports about your bid for Blackburn Rovers I had to contact you. I am a fan of Blackburn Rovers nearest rivals Burnley Football Club, along with Blackburn we are among the 12 founder members of the football league. I Just wanted to ask you to have a look at Burnley before you make a final desision, I realise that Rovers are a established Premiership side, but with the right investment so could Burnley. Burnley missed out of staying in the Premiership by only 5 points last season, had we had kept our manager Owen Coyle I believe we would have retained our Premiership status. Please do not decide on investing in a English club until you have had a closer look at Burnley Football club, and you would also save yourself a fortune, you would become the main share holder at Burnley for a fraction of the cost the papers are saying you have bid for Rovers.

Yours Sincerely

Karl Potts

It's not happened yet and the jealousy hs satrted!

[Anti-Dingle-Brigade]

I went to school with Karl Potts, what a bell3nd.

[BPF]

That's brilliant!!!!

[Earlydoors]

Who pays tax on revenue? Think you will find it's paid on profit....

Yes sorry, I'm talking nonsense.

What if though, WAG finance UK companies to tune of £500m, then with a £300m loss making BRFC incorporated into WAG their tax could be offset ?

[T4E]

What if though, WAG finance UK companies to tune of £500m, then with a £300m loss making BRFC incorporated into WAG their tax could be offset ?

Is that a sister company fronted by Syed's missus and her mates?

[TimmyJimmy]

The reality is that WGA is just the most public face of Ahsan Ali Syed.

That's hit the nail on the head Philip, the guy has solid personal wealth and he's not going to be trading on his own account with unlimited liability.

The rest of this doen't apply to your post Philip.

There are days when I just despair after reading some of the other stuff on this board. All this "I don't understand...", "Why...", "How would he propose to...", "He would rip us as a source of cashflow", "Stay well clear...", "High gearing ratio is a worry because...", "He has other interests...", "He's not a football person". FFS what's wrong with you people?

There are NO legitimate/sensible questions you can come up with - you're all on the OUTSIDE, you know diddly-squat, so what have you got to be worried about except for fear itself?

From what you have heard from publically available sources he has a personal fortune, he has made an interest free personal loan to his company just like the Trustees have a 20m interest free loan in our club, gearing/leverage applies as much to this as it does to Abramovic i.e. it doesn't! How much better do you want it to be?

I repeat what I have said before, Rothschild will confirm the finances and the fitness of the bidder, the Trustees will confirm the business plan/direction of the bidder and it's congruence to the aspirations of the Walker family and Jack's legacy/wishes. The Premier League will do the fit and proper tests. So if it goes ahead then HE'S A WORTHY OWNER. His and every other business plan is built on brand and TV presence, other developments, be they hotels, houses or whatever will be spin-off side shows, extra credit.

The business community seem to recognise that we are a good club and that we tick all the boxes for investment and growth hence the interest, just because others on here don't get it just goes to show why they aren't billionaire business men. All this pathetic hand wringing and gossip mongering is driving me insane.

Let the process take it's course and stop passing opinions about things you can know nothing about.

[Balwer]

Yes sorry, I'm talking nonsense.

What if though, WAG finance UK companies to tune of £500m, then with a £300m loss making BRFC incorporated into WAG their tax could be offset ?

You would have to consult a tax specialist on that one!

I am intrigued as to where the talk of the £300m came from, whether it's from the papers or Mr Syed himself. Perhaps part of an investment proposal that was included along with the alleged bid, since it's obvious that figure is far greater than what it takes to buy the club itself.

[LeChuck]

Not just yet, but nothing to stop him sponsoring us for the next ten years at say 30m per year.

Owners can still pump money into clubs, they just can't give it as loans. It's to avoid the ridiculous situation that happened at Pompey, with the likes of Gaydamak being owed tens of millions despite leaving the club in the s***.

[Sparky Marky]

Yes sorry, I'm talking nonsense.

What if though, WAG finance UK companies to tune of £500m, then with a £300m loss making BRFC incorporated into WAG their tax could be offset ?

Stop digging mate....just admit you know nothing....silly.

[Exiled in Toronto]

so what have you got to be worried about except for fear itself?

Good post TJ. Reading this thread makes me surprised that witch-burning ever died out in East Lancs

[67splitscreen]

Owners can still pump money into clubs, they just can't give it as loans. It's to avoid the ridiculous situation that happened at Pompey, with the likes of Gaydamak being owed tens of millions despite leaving the club in the s***.

Yeh read that.

[rebelmswar]

Good post JT. Reading this thread makes me surprised that witch-burning ever died out in East Lancs

It has? I thought they still burned educated women at the stake in Burnley, fearing witchcraft.

[RevidgeBlue]

Good post TJ. Reading this thread makes me surprised that witch-burning ever died out in East Lancs

I think most people by now have come round to the view we need to move on.

After all the previous false dawns though it's hardly surprising that any new kid on the block is met with a healthy dose of scepticism.

[philipl]

Might be worth bearing in mind that after this morning's scoop by Kamy, this MB and this thread in particular are being read by many people no doubt including those associated with prospective owners.

Healthy debate is one thing....

[Balwer]

Might be worth bearing in mind that after this morning's scoop by Kamy, this MB and this thread in particular are being read by many people no doubt including those associated with prospective owners.

Healthy debate is one thing....

Good point philip. Hopefully the general mood that's reflected to the greater community is one of cautious optimism. That's certainly my view.