It is very difficult to work out how much the club is worth. This is because unlike BSHL, shares of BCFC are not traded openly and thus we cannot work out how much the club is valued at.
Any buyer who is looking to buy the club has to consider four things:
The value of the club itself
The club itself isn’t worth very much. This is because it doesn’t own it’s own stadium or training ground and it is heavily in debt. The owners might say that the club has some value in “goodwill”, which means the value because it will keep making money from fans and broadcasting, but in reality this isn’t worth much at all. A buyer might just offer £1 for this in addition to paying off the next three things.
The debt BCFC owes to BSHL and Oriental Rainbows Investments Ltd
Any buyer will have to negotiate both with BSHL and Oriental Rainbow Investments Ltd to get rid of the debt owed to each of these companies. It is very unlikely that a buyer will pay the whole amount, but they will have to pay a portion of it so that the debt is wiped out. The debt currently stands at £110M.
The value of the stadium
A buyer will undoubtedly want to buy the stadium as well as the club, as it is not valuable to a new owner to pay a lot in rent for a stadium they need to fix. The value of this will have to be negotiated with the owners, Oriental Rainbow Investments Ltd and Achiever Global Group Ltd. The stadium was originally sold for £10.8M but the value may be much lower due to the repairs needed.
The money needed to fix the stadium and to be invested into the team
Finally a buyer will need to consider how much money needs to be invested to complete repairs to the stadium so that all stands can be opened safely. They will also need to consider how much money they want to invest in the team so that it can play better and finish in a better position.
At the moment BSHL have said that they don’t want to sell, but if they change their minds then all this will have to come into consideration.