When things are bad people ask questions

[hibeerealist]

When the deal was announced that Ron was replacing STF and of course, RP, I waited to hear the detail and wondered how it would impact on my beloved club.

We cannot question just what STF did for HFC when he saved us from the FTB and oblivion. Many of us questioned the wisdom of selling the family silver and this was “justified” by infrastructure requirements which was accepted by the supporters as we did see a new stadium reaching completion.

Things went OK but we always looked for more investment on the pitch which is only natural from a support pretty much starved of success since the Tornados, the “message” was always investment in the team will come once we complete the stadium. Well it is complete, the HTC is bought and paid for (OK a full size indoor pitch is planned at some £4-5 million) and we have 13,000 ST with average home gates of over 18,000 so where has the money gone?

PH told us pretty much at the start of this season, the budget has been spent and I need to put the fringe players (the young team) out on loan in order to get anyone else in!! That really raised my attention and it built up from there.

Ron came in and took control of a club with a value of approx £30 million (ER, HTC etc) and from what I can see he has paid out;

1. £3 million to wipe our debt (6 years left at £500 K per year due to STF).
2. £2-3 million to buy out STF and RP shareholding.
3. Seven figure sum to club that can be spent as they choose (is that £1 million - £2 million - £3 million, who knows).

Hibs had money in the bank when sale took place, we have two thirds of the J McGinn transfer fee to come, the add on for Villa’s promotion suggested at some £1 million.

Has Ron bought the club cheaply or has additional funds gone to STF and RP?

IF STF and RP have only received what has been reported then why is there no money to add to the squad?

What did Ron’s seven figure sum amount to, £1 million does not really hack it for me it MUST be more than that surely?

IF Ron has put in say another £3 million with us to “pony up” the balance for the indoor pitch at HTC - which I doubt as I feel sure that would have been included in all the fanfare when Ron came in - then I would still think he has got himself a result (when compared to valuation).

When times are bad people start to look at things a bit more closely, especially when we have an underperforming manager, team and sadly, CEO in LD. The AGM may well fill in the blanks in terms of money but I have to say I remain unconvinced as things stand.

[Baldy Foghorn]

He got us on the cheap, at a time STF wanted out.

[The 90+2]

He got us on the cheap, at a time STF wanted out.

Cheap or not, there must be some reason he wanted to buy the club?

We’ve certainly not got a pro active owner looking to invest loads of his hard earned that’s for sure. We’re in the hands of some American boy that none of us have a clue why he’s bought us.

[hibeerealist]

He got us on the cheap, at a time STF wanted out.

It would appear so, very cheap!!

[Baldy Foghorn]

Cheap or not, there must be some reason he wanted to buy the club?

We’ve certainly not got a pro active owner looking to invest loads of his hard earned that’s for sure. We’re in the hands of some American boy that none of us have a clue why he’s bought us.

We weren't even his first choice....Galling

[ancient hibee]

It would appear so, very cheap!!


How much should he have paid?

[Tyler Durden]

Football stadia aren’t really taken into consideration when valuing a club. Banks would discount the value to zero as the reality is that Easter Road is not going to be sold.

Hibs aren’t worth £30m

[The 90+2]

We weren't even his first choice....Galling

Yeah, has it ever been revealed why Dundee Utd said no thanks?

[Scotty Leither]

Yeah, has it ever been revealed why Dundee Utd said no thanks?

Maybe they wanted him to actually be at Tannadice once in a blue moon?

[Fife-Hibee]

You know when a kid buys a toy at the store, takes it home, but ultimately never bothers playing with it?

I can't help feeling that this is what has happened here. Just with some rich american boy. The silence has been deafening since the day he took ownership.

[tamig]

Football stadia aren’t really taken into consideration when valuing a club. Banks would discount the value to zero as the reality is that Easter Road is not going to be sold.

Hibs aren’t worth £30m

Indeed. A huge misconception.

Returning to the OP and investment on the pitch. We have spent a lot since 2014. The current manager just appears to have misused his budget this summer.

[Crab apple]

Indeed. A huge misconception.

Returning to the OP and investment on the pitch. We have spent a lot since 2014. The current manager just appears to have misused his budget this summer.

And for that reason alone he should be emptied.

[Pretty Boy]

Football stadia aren’t really taken into consideration when valuing a club. Banks would discount the value to zero as the reality is that Easter Road is not going to be sold.

Hibs aren’t worth £30m

People always seem to add additional value to stadia based on how well developed they are as well which is nonsense.

Unless someone is looking to buy a functioning 21000 seater stadium, the land at ER is worth the same in it's current state as it would be if it was still terracing and a ramshackle main stand.

[hibeerealist]

People always seem to add additional value to stadia based on how well developed they are as well which is nonsense.

Unless someone is looking to buy a functioning 21000 seater stadium, the land at ER is worth the same in it's current state as it would be if it was still terracing and a ramshackle main stand.

The land has value whether new stands sit on it, old terracing or nothing at all.

[hibeerealist]

Indeed. A huge misconception.

Returning to the OP and investment on the pitch. We have spent a lot since 2014. The current manager just appears to have misused his budget this summer.

Ye we have spent more than we used to spend however the income has gone up and the spending (on infrastructure) has reduced considerably.

[matty_f]

The accounts should reveal a fair amount this year, will be interesting to see how they look.

I think Hibs have bright in a lot of money and I think we have spent a lot of money, certainly more than some people would have us believe.

Heckingbottom's claim that he needed to move players out before bringing others in wasn't a sign of a low budget, just that whatever budget there was had been used.

He made nine signings I think, that won't have been cheap.


Clearly it doesn't look at all like that money has been well spent as things stand, but he can have no arguments or excuses about not having been backed by the board.

[hibeerealist]

Football stadia aren’t really taken into consideration when valuing a club. Banks would discount the value to zero as the reality is that Easter Road is not going to be sold.

Hibs aren’t worth £30m


That was was not my valuation it was reported somewhere that taking account of all assets it was £30 -35 million. I never said anywhere that is what you would get for the club.

Banks would not discount the value to zero that is complete nonsense, that sounds like the “Pishy Breeks” statement to the Lithuanians.

The land at ER HAS value as does the land and buildings at HTC, Ron does not appear to have paid anything close to a reduced value ie land only.

[Tyler Durden]

That was was not my valuation it was reported somewhere that taking account of all assets it was £30 -35 million. I never said anywhere that is what you would get for the club.

Banks would not discount the value to zero that is complete nonsense, that sounds like the “Pishy Breeks” statement to the Lithuanians.

The land at ER HAS value as does the land and buildings at HTC, Ron does not appear to have paid anything close to a reduced value ie land only.

To clarify, when Hibs and other clubs had bank lending secured against the stadium and other assets, the stadium would be discounted to zero for the reasons I mentioned. This is part of the reason that Hibs managed to buy their debt (agree a write off) at such favourable terms.

I’m not suggesting that ER and HTC have no value but someone looking to buy a football club wouldn’t consider the book value of the stadium. They’d look at the revenue and the debt position, along with realisable assets like the playing squad.

[DarlingtonHibee]

He got us on the cheap, at a time STF wanted out.

Wow, what a post....

I must have missed the tens of people wanting to buy the club.

STF and Rod did their due diligence.

[Baldy Foghorn]

Wow, what a post....

I must have missed the tens of people wanting to buy the club.

STF and Rod did their due diligence.

Due diligence? What if they were duped?

[Tyler Durden]

Due diligence? What if they were duped?

I think there’s enough to worry about on the park without inventing conspiracy theories on the owner.

The most plausible reasons as to why RG bought Hibs, are the ones he’s provided straight from the horses mouth.

[Baldy Foghorn]

I think there’s enough to worry about on the park without inventing conspiracy theories on the owner.

The most plausible reasons as to why RG bought Hibs, are the ones he’s provided straight from the horses mouth.

Not inventing a conspiracy theory, merely asking a question

[DarlingtonHibee]

Due diligence? What if they were duped?

Dear oh dear.......

You're making a mess of this.

[Baldy Foghorn]

Dear oh dear.......

You're making a mess of this.

Am I indeed?

[DarlingtonHibee]

Am I indeed?

Yes you are, you have absolutely no idea what happened when stf sold the club

[Speedway]

Due diligence? What if they were duped?

Aye STF has form for being duped in M&A activity right enough.

[Baldy Foghorn]

Yes you are, you have absolutely no idea what happened when stf sold the club

Do you?

[DarlingtonHibee]

Do you?

I trust that stf did the right thing, Ron Gordon and stf got rid of the debt and invested in the club.

The team is struggling but I have seen a lot worse after fifty years.

[The 90+2]

I trust that stf did the right thing, Ron Gordon and stf got rid of the debt and invested in the club.

The team is struggling but I have seen a lot worse after fifty years.

That’s a lot of trust based on just hopes tbh.

Stf may have or may have not done the right thing but the timing of it with Petrie getting the top job he always wanted and Sir Toms own interests leans me to think 10 years ago I don’t think Sir Tom and Petrie sell their shares to Gordon.