The general understanding is that Roland has put in £64m in total and is prepared to write off £24m because he accepts that there is an annual cost to running the club and he has to fund those losses.
But where does his £40m valuation come from ? Apparently, it is underpinned by the physical asset value of The Valley and the Sparrows Lane Training ground together with their respective approved planning applications.
I guess we have to thank some firm of Surveyors for conjuring up this valuation for the land and ‘assets’. However, it seems nigh on impossible that planning permission would ever be granted to build on The Valley without a suitable and very costly alternative being available.
I’m not so sure with the Sparrows Lane complex, but bearing in mind it has already had a decent level of investment in new pitches and it is shared with Footscray Rugby- it is hard to believe that ripping it all up for development is either possible from a planning perspective or feasible.
So, any purchaser has to pay £40m for the right to buy 2 assets that have no development potential and will require significant annual upkeep and maintenance.
On top of that their £40m purchase price brings with it the right to lose around £10m a year in Division 3 and probably £12-£15m a year in the Championship.
Under these circumstances, it is a real struggle to understand why anyone would ever pay £40m for the club.