Jump to content

The Partick Thistle thread


Recommended Posts

1 hour ago, kerly said:

How much would this second tax bill be for transfer of land and would it be club or 3bc who pay

The recipient of land pays the tax in a land transfer. If the Club is having to pay for the land there’s a good chance most of that is being taxed at 5% (a small proportion at 1% and a small proportion tax free).

So if, for example, the Club stood to receive about £900k or so from PropCo (for the land having been sold to 3BC) and 3BC therefore charged about that for the subsequent transfer back to the Club, you could be looking at a LBTT charge of (if I understand it right) about £35k.

Which would be over and above a charge levied on 3BC who would have paid about £90k to buy the whole of PropCo’s land.

This is why the way they’ve made that transaction seems a bit weird. They could have bought out the PropCo investors’ shares in PropCo for about a million quid, leaving Beattie et al to just pay capital gains tax on what (if any) profit they made on their investment from 10 years ago (which is almost nothing). They’d have also paid about £5k in Stamp Duty on the shares (0.05% of the value of the transaction).

3BC could have then gifted the PropCo shares to the Club, for a similarly low Stamp Duty cost. The value of the transactions being lower, and the difference of tax treatment for shares vs land transactions would (unless I’m massively missing something) have been about £80k less expensive for 3BC and about £30k cheaper for the Club than the approach adopted.

This is weird. Either there’s something more to why the transaction was structured this way, or 3BC (and possibly the Club) have been sub-optimally advised as to their tax liabilities.

I should caveat this with I could have got something completely wrong about the tax arrangements, but it says a lot that the Club are now citing tax reasons for the delay.

Link to comment
Share on other sites

see if you are a Third Party wanting to buy a football club. how long would it take you and your team to put together a business case and proposal?

 

realistically. 

 

is 4 months really not long enough???

Link to comment
Share on other sites

31 minutes ago, dave.j said:

see if you are a Third Party wanting to buy a football club. how long would it take you and your team to put together a business case and proposal?

 

realistically. 

 

is 4 months really not long enough???

I suppose that depends in part on whether you did some informal thinking based on known working assumptions right from the outset or whether you were thrown suddenly into a different position and you have to satisfy someone else’s terms about your future governance arrangements rather than just “here is my money I’ll run it how I want k thnx bai”

Link to comment
Share on other sites

1 hour ago, Ad Lib said:

The recipient of land pays the tax in a land transfer. If the Club is having to pay for the land there’s a good chance most of that is being taxed at 5% (a small proportion at 1% and a small proportion tax free).

So if, for example, the Club stood to receive about £900k or so from PropCo (for the land having been sold to 3BC) and 3BC therefore charged about that for the subsequent transfer back to the Club, you could be looking at a LBTT charge of (if I understand it right) about £35k.

Which would be over and above a charge levied on 3BC who would have paid about £90k to buy the whole of PropCo’s land.

This is why the way they’ve made that transaction seems a bit weird. They could have bought out the PropCo investors’ shares in PropCo for about a million quid, leaving Beattie et al to just pay capital gains tax on what (if any) profit they made on their investment from 10 years ago (which is almost nothing). They’d have also paid about £5k in Stamp Duty on the shares (0.05% of the value of the transaction).

3BC could have then gifted the PropCo shares to the Club, for a similarly low Stamp Duty cost. The value of the transactions being lower, and the difference of tax treatment for shares vs land transactions would (unless I’m massively missing something) have been about £80k less expensive for 3BC and about £30k cheaper for the Club than the approach adopted.

This is weird. Either there’s something more to why the transaction was structured this way, or 3BC (and possibly the Club) have been sub-optimally advised as to their tax liabilities.

I should caveat this with I could have got something completely wrong about the tax arrangements, but it says a lot that the Club are now citing tax reasons for the delay.

3bc in conjunction with propco have had this  land for ten years with the intention of improving it with nothing to show 3bc then buy and gift it to a group that does not exist  and more importantly has a lack of support   Seems incompetent, give me a money making consortium anyday

Link to comment
Share on other sites

4 minutes ago, kerly said:

3bc in conjunction with propco have had this  land for ten years with the intention of improving it with nothing to show 3bc then buy and gift it to a group that does not exist  and more importantly has a lack of support   Seems incompetent, give me a money making consortium anyday

PropCo itself relieved the club of about £30kpa of debt interest because of the capital injection it brought about to the Club. There’s a good case to be made that it made the assembling of the promotion team possible as it got us within spitting distance of break even and kept HMRC off our backs when we had cashflow issues.

The subsequent transactions have less obvious a benefit to the Club unless the land literally makes its way back into our name.

Link to comment
Share on other sites

2 hours ago, dave.j said:

see if you are a Third Party wanting to buy a football club. how long would it take you and your team to put together a business case and proposal?

 

realistically. 

 

is 4 months really not long enough???

Depends if the seller (or gifter) really has any intention of selling or continually moves the goal posts

Link to comment
Share on other sites

2 hours ago, Ad Lib said:

I suppose that depends in part on whether you did some informal thinking based on known working assumptions right from the outset or whether you were thrown suddenly into a different position and you have to satisfy someone else’s terms about your future governance arrangements rather than just “here is my money I’ll run it how I want k thnx bai”

Why do the fans need to run it the way 3BC dictate? 

Why not just ask 3BC what would good look like... Write a proposal matching that, submit it and transfer the Shares next week.

Link to comment
Share on other sites

What a fantastic days Spin that was, at Firhill.

 

Woke up shouting where's the fucking land. Give us the land. Go to bed blaming the Working Groups lack of communication for putting a delay on fan ownership. 

 

Did someone throw a dead cat on the table? 

 

And folk say former Tory Spin Doctor Jacqui Low is shite at PR? Playing a blinder from what I can see. Rag dolling and outflanking the Working Group at every turn. 

Link to comment
Share on other sites

36 minutes ago, DiegoDiego said:

A fucking Jack Storer goal is going to be our fondest memory of this season, isn't it?

Last season*

But the way things are being run fond memories may all we'll be left with in the next couple of years. 

Link to comment
Share on other sites

TFE or more specifically Paul Goodwin carries the can for this shambles.

He decided we needed fan ownership 

He decided that when no one signed up that courting Weir and Low was the way to get it.

High time he made a statement 

Link to comment
Share on other sites

1 hour ago, thenolly said:

TFE or more specifically Paul Goodwin carries the can for this shambles.

He decided we needed fan ownership 

He decided that when no one signed up that courting Weir and Low was the way to get it.

High time he made a statement 

Not just Paul, there was a Group of them, with a few hanging around it, shouting really loud that Fan Ownership was the way to go.

Its incredible, but not surprising, that they have all disappeared into the Woodwork. Their lack of scrutiny since TfE became dormant it embarrassing.

 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
×
×
  • Create New...