UK FRS 102 RPTs- Sale and leaseback of Football Grounds

[AnAspiringAccountant]

This subject interests me somewhat, I am looking at perhaps getting into Accountancy- and it is a varied and wide industry.

Working in Football Accountancy would be of interest I feel.

I am sure Accountants will find some of these Transactions pretty interesting, especially given that the English Football League are now investigating by dint of independent valuations a number of clubs. Premier League also investigating the Villa Park sale and leaseback.

One that intrigues me is £81.1m for Pride Park. Revaluation Reserve...that could be the difference between the value being broadly legit and vastly overstated. Add on to Net Book value and additions-depreciations or already included in it?

Oh yeah, bit of context.

In 2017/18, Derby County and Reading most definitely sold and leased back their grounds to Related Parties. Sheffield Wednesday seemingly did but there's a lot of questions I feel about this one as to how it was in 2017/18 and Aston Villa did it season just gone. Two if not all 4 surely did it to avoid the risk of FFP sanctions, maybe all 4.

I doubt Hillsborough worth £60m eg! Villa Park had a big Impairment of nearly £45m in 2015/16, Pride Park harder to call but nearly double Net Book Value at time of sale (FWIW) and Madejski Stadium Reading sold for £26.5m, just under £20m on Net Book Value- that sounds realistic.

Sale price of Villa Park was £56.7m.

 

[AnAspiringAccountant]

What do we think then- are these all on point do we think, these valuations?

To edit and update my first post, Sheffield Wednesday one was for £60m- which sounds reasonable maybe but then again in 2014 it was revalued at drc. £22.25m, as of 31st May 2017 ie their Reporting Period until then the Revaluation Reserve was £6,421,000- so I cannot quite see how it was £60m given the above.

Derby is hard to say, so too is Aston Villa- wouldn't the impairment have impacted upon future value in the case of Villa Park? Presumably an impairment gain will appear in their 2018/19 accounts- that would be about £28m.