How much did Delia pay for hee 42% stake? £700,000

[Citizen Journalist Foghorn 0]

THE TIMES

December 23, 1997

DELIA SMITH BUYS A SLICE OF NORWICH CITY

BYLINE: PHILIP DELVES BROUGHTON

LENGTH: 429 words

WHILE the rest of the country turns to her Christmas recipes, Delia

Smith has given herself a non-culinary treat: a plump shareholding in

Norwich City Football Club.

She and her husband, Michael Wynn Jones, a publisher, have bought 42

per cent of the shares in the club, reckoned to have cost about Pounds

700,000. No more queueing for season tickets for them.

The couple, who live near Stowmarket in Suffolk, became directors of

Norwich City in November 1996 after they lent the club Pounds 1

million, the interest on which was to be used for special club

projects.

Since then, Ms Smith, whose cookery books and various offshoots have

made her one of the wealthiest women in the country, has introduced the

players to high-carbohydrate and low-fat breakfasts before training and

more of the same afterwards.

She has also provided them with recipes for baked tomato risotto, Irish

tea bread, and carrot cake to make and eat at home. Her own diet

surrounding matches is not so virtuous: fish and chips on Saturdays,

McDonald''s midweek.

''It is extremely exciting and gives us an awful lot of pleasure,'' said

Ms Smith yesterday of her buy. ''We are supporters and season

ticket-holders and in the past year we have had a chance to see what

happens behind the scenes. If you showed me a profit and balance sheet,

I wouldn''t now which way up to hold it - but I have other gifts.''

It was Mr Wynn Jones, the editor of Sainsbury''s Magazine and a

supporter of the Canaries from the age of 11, who introduced Mrs Smith

to Norwich City. Her football fever began with England''s 1966 World Cup

win, but support for Norwich gave her a more day-to-day focus. The

couple have been regular visitors to Norwich games, both home and away

for nearly 26 years. They bought their shares from Geoffrey Watling,

84, but have no interest in ousting the present chairman, Barry

Lockwood. ''We are not going to go in with all guns blazing, and nothing

like that is on the agenda,'' Mr Wynn Jones said. The plan is to boost

the club''s annual revenues by Pounds 1 million through catering,

sponsorship and commercial activities.

On the footballing side, there is delight. Mike Walker, the club

manager, said: ''It is a very pleasant surprise and stabilises the club.

They have been successful in business and if they want to bring that

success to the football club, it''s got to be brilliant.''

For Ms Smith, the purchase is more than a financial transaction.'' I

think everyone wants to give the talents they have,'' she says. ''It is

very nice when you reach middle age and you can go in another

direction.''

[Match Day Pie 0]

And your point is?

[blahblahblah 2]

If I''ve read Waghorns'' story correctly, she was offering 61.2 % of the club to Towergate for a penny !

[Citizen Journalist Foghorn 0]

she expects 9 million back for what, 4 or 5 million put in?  A nice little earner.

[The Walking Man 13]

I think this is an interesting article,

(i) The couple have been regular visitors to Norwich games, both home and away for nearly 26 years.  That rubbishes rumours of them being binners.

(ii) The plan is to boost the club''s annual revenues by Pounds 1 million through catering, sponsorship and commercial activities. It appears nobody was complaining about boosting offthe field revenue back then...

(iii) Take into account inflation and the amount of unpaid hours the pair of them have put into the football club I think they would both expect slightly more than £700k for their shares now...

[KeelansGlove 0]

This is very interesting. is there any way to verify these figures ?

For me this could change everything from thinking poor old Delia was hard done by for people suggesting she should take a hit on her personal investment it would make me think she was blatantly profiteering whilst suggesting she has the best interests of the club at heart. Not good at all.

If she paid such a nominal amount for her initial shareholding there should be no reason she could not sell a percentage of her shareholding to Cullum for a tidy profit whilst remaining a significant shareholder and allowing cullum to invest and become the majority shareholder.

If she is acting in the best interests of the club.

Or maybe she was the one that bought the club on the cheap and is holding out for a huge profit.

Even that is probablt fair enough if she can fund having a decent team.

if not its time to cash in your chips

[The ghost of Michael Theoklitos 0]

So if you bought a house for £40,000 in 1985, did up the garden and the bathroom, put on a conservatory, you''d be happy to sell it now to someone else for nothing when the same house next door is going for £240,000?

I struggle to see what your point is....

[The Walking Man 13]

[quote user="NorfolkChance"]

So if you bought a house for £40,000 in 1985, did up the garden and the bathroom, put on a conservatory, you''d be happy to sell it now to someone else for nothing when the same house next door is going for £240,000?

I struggle to see what your point is....

[/quote]

 

But you''re forgetting that most people on this board see NCFC as a charity and not a business...

[Citizen Journalist Foghorn 0]

[quote user="Norfolk Chance"]

So if you bought a house for £40,000 in 1985, did up the garden and the bathroom, put on a conservatory, you''d be happy to sell it now to someone else for nothing when the same house next door is going for £240,000?

I struggle to see what your point is....

[/quote]Just that Delia is no benefactor, she never did throw that money on a bonfire, and Delia will make a profit on her time at NCFC.

[Zak Van Burger 0]

[quote user="Match Day Pie"]And your point is?[/quote]It ain''t rocket science!Delia bought 42% for £700,00 which valued the Club at time of purchase at just £1.67m (with a debt of £6m)She''s now claiming the Club is worth £16m (with a debt of £20m)Now I''m no Scientist but I suggest you get both your Blue and Orange Bostock and Chandlers out and start APPLYING some PURE MATHEMATICS, use a little LOGIC then understand that it is EMPIRICALLY proven that Delia is out to make a [{Ph}+At]*2 profit!

[Tickers 0]

And how does your article show that - all it shows is that back in 1997 then 42% of the club was worth £700,000.

Inflation alone from 1997 to now would turn that initial £700,000 outlay into around £1.1 million, but that assumes that the net value of Norwich City has remained static since then, which it hasn''t.

[0Amarillo<P><FONT color=#cccc00 size=4><EM> º¤ø,¸¸,ø¤º°`°º¤ø,¸ Amarillo ¸,ø¤º°`°º¤ø,¸¸,ø¤º°`°<EM><FONT><P>ddMMyyyy0Falseen-US<P><FONT color=#cccc00 size=4><EM> º¤ø,¸¸,ø¤º°`°º¤ø,¸ Amarillo ¸,ø¤º°`°º¤ø,¸¸,ø¤º°`°<EM><FONT><P>True 0]

And how much did she pay for the other 20%?

Don''t forget about the various loans that were turned into shares. These were millions...

[Tickers 0]

[quote user="Worst Wizard"]Now I''m no Scientist but I suggest you get both your Blue and Orange Bostock and Chandlers out and start APPLYING some PURE MATHEMATICS, use a little LOGIC then understand that it is EMPIRICALLY proven that Delia is out to make a [{Ph}+At]*2 profit![/quote]

Happily I am a scientist (physics to be precise) and you aren''t proving anything other than a poor understanding of both finances and the proper use of capital letters in sentences.

[Citizen Journalist Foghorn 0]

Amarillo wrote the following post at 11/07/2008 12:13 PM:

And how much did she pay for the other 20%?

Don''t forget about the various loans that were turned into shares. These were millions...

9 million?  Not even close.

[7rew 0]

[quote user="blahblahblah"]If I''ve read Waghorns'' story correctly, she was offering 61.2 % of the club to Towergate for a penny ![/quote]Isn''t it always the way, you never have the right coins in your pocket.

[Match Day Pie 0]

[quote user="Worst Wizard"][quote user="Match Day Pie"]And your point is?[/quote]

It ain''t rocket science!

Delia bought 42% for £700,00 which valued the Club at time of purchase at just £1.67m (with a debt of £6m)
She''s now claiming the Club is worth £16m (with a debt of £20m)

Now I''m no Scientist but I suggest you get both your Blue and Orange Bostock and Chandlers out and start APPLYING some PURE MATHEMATICS, use a little LOGIC then understand that it is EMPIRICALLY proven that Delia is out to make a [{Ph}+At]*2 profit!
[/quote]

Forgive me, I thought making profit is what business is about. Silly me.

[Citizen Journalist Foghorn 0]

[quote user="7rew"][quote user="blahblahblah"]If I''ve read Waghorns'' story correctly, she was offering 61.2 % of the club to Towergate for a penny ![/quote]Isn''t it always the way, you never have the right coins in your pocket.[/quote]And Doncaster has refused to say if Peter Cullum would renegotiate his position.http://www.itvlocal.com/anglia/sport/?void=210752

[Buncey 1]

Your beloved Delia said she didn''t want profit.

[Zak Van Burger 0]

[quote user="Tickers"][quote user="Worst Wizard"]Now I''m no Scientist but I suggest you get both your Blue and Orange Bostock and Chandlers out and start APPLYING some PURE MATHEMATICS, use a little LOGIC then understand that it is EMPIRICALLY proven that Delia is out to make a [{Ph}+At]*2 profit![/quote]

Happily I am a scientist (physics to be precise) and you aren''t proving anything other than a poor understanding of both finances and the proper use of capital letters in sentences.[/quote]Crikey you must have been so busy studying finances in your Physics degree to bother with the mathematics, maybe maths is not deemed neccesary anyway under the new education system?Here I''ll make it a bit easier for you.Question a) 10 mins allowed.If40% of 10= xand40% of 100=yWhich of the following statements is correct?1) x=y2) x>y3) y>xQuestion b) Take s long as you need.If42% of £1,666,666 = £700,000and42% of £16,000,000= £6,720,000Which of the following statements is correct?1) £700,000= £6,720,0002) £700,000> £6,720,0003) £700,000< £6,720,000tHE cApiTALs ThINg CoMeS ANd GoES LiKE KeYboaRd ToURREtteS.

[Tickers 0]

Actually closer than you think CJF, from an article in the independent from 2002:

=====================================

The couple invested pounds 1m in 1996 to bail out Norwich and take seats on the board. Two years later, they upped their investment to about pounds 3.5m, buying 61 per cent control. "We knew we''d never see the money again, so we asked each other if there was anything we''d rather do with it. And we said no, Norwich was the greatest passion of our lives and we wanted to help."

Further loans and share conversions have since taken their spending to pounds 7m. Delia has taken over the catering, which includes her two signature restaurants, executive boxes, function rooms, supporters'' clubs and general kiosk grub, which last year made the club about pounds 700,000.

=====================================

So a £7 million investment as of 2002, a simple inflation increase would send that to the region of £8-£9 million easily enough (assuming the value of the club only rose with inflation - this is before we went up to the Premier League).

One also has to wonder about the value of her input in the catering side of things - how much would it cost to have a celebrity chef come in and oversee the catering at a business?

Now you can take issue with her statement that they would never see the money again - perhaps this is a fair accusation, or perhaps it indicated that back in 2002 she did not see herself ever stepping down from Norwich City. We should also recognise that Cullum is worth £1.7 billion, and for him to repay Delia''s investment (which is a fairly hefty fraction of her overall worth) would be incredibly easy for him to do.

[Zak Van Burger 0]

[quote user="Match Day Pie"]

[quote user="Worst Wizard"][quote user="Match Day Pie"]And your point is?[/quote]It ain''t rocket science!Delia bought 42% for £700,00 which valued the Club at time of purchase at just £1.67m (with a debt of £6m)She''s now claiming the Club is worth £16m (with a debt of £20m)Now I''m no Scientist but I suggest you get both your Blue and Orange Bostock and Chandlers out and start APPLYING some PURE MATHEMATICS, use a little LOGIC then understand that it is EMPIRICALLY proven that Delia is out to make a [{Ph}+At]*2 profit![/quote]

Forgive me, I thought making profit is what business is about. Silly me.

[/quote]Your reply says it all. Despite what Delia has always reiterated it is just a Business , a business where the profit goes to the Majority shareholder this appears to sit well with you. I on the other hand am deeply unhappy that this profit hs only been made at the expense of the football.

[The ghost of Michael Theoklitos 0]

[quote user="Worst Wizard"]
Your reply says it all. Despite what Delia has always reiterated it is just a Business , a business where the profit goes to the Majority shareholder this appears to sit well with you. I on the other hand am deeply unhappy that this profit hs only been made at the expense of the football.
[/quote]

And if you think this would change under Cullum, then you''re seriously deluded.

People with this amount of money did not make it by giving it away for free.

[Tickers 0]

[quote user="Worst Wizard"]Crikey you must have been so busy studying finances in your Physics degree to bother with the mathematics, maybe maths is not deemed neccesary anyway under the new education system?[/quote]

I''m going to go with 3) and um.... 3) again.

Thank you for the maths test, I got bored and left the exam early though. You include a lot of unnecessary information and poor use of logic. For example in part b) the ''if'' statement is not needed as you are stating a numerical fact (42% of £1.66 million).

Having sat your exam I''m happy that my comprehension of mathematics is perfectly sound but am concerned your comprehension of logic and understanding of basic facts, however may require some extra tuition.

You assume that Delia''s only investment in the club has been the £700,000 outlay. This is false.

You assume that the value of Delia''s holding should remain static, forgetting either inflation or the actual value of the club. This is also false.

You assume she holds the same stake in the club now as she did back in 1997 (42%) once more you are wrong.

Fingers crossed for my results though, and they say internet degrees don''t have to be earned!

[KeelansGlove 0]

I''m no accountant but these numbers just dont add up

If they paid between 700K and 1 Million for the initial shareholding and the value of shares at the price they set today is only 16 Million for 100% they could surely not have paid in the region of 8 Million for the remaining 20% even given share issues. It would surely put the investment in the region of 4-5.5 Million

How do we get to 8-9 Million ?

[Match Day Pie 0]

[quote user="Worst Wizard"][quote user="Match Day Pie"]

[quote user="Worst Wizard"][quote user="Match Day Pie"]And your point is?[/quote]

It ain''t rocket science!

Delia bought 42% for £700,00 which valued the Club at time of purchase at just £1.67m (with a debt of £6m)
She''s now claiming the Club is worth £16m (with a debt of £20m)

Now I''m no Scientist but I suggest you get both your Blue and Orange Bostock and Chandlers out and start APPLYING some PURE MATHEMATICS, use a little LOGIC then understand that it is EMPIRICALLY proven that Delia is out to make a [{Ph}+At]*2 profit!
[/quote]

Forgive me, I thought making profit is what business is about. Silly me.

[/quote]
Your reply says it all. Despite what Delia has always reiterated it is just a Business , a business where the profit goes to the Majority shareholder this appears to sit well with you. I on the other hand am deeply unhappy that this profit hs only been made at the expense of the football.
[/quote]

*Yawn*

Yet another village idiot assumes a poster is siding with the Delia and the board just because he vaguely questions someone''s opinion. God this is dull.

[Zak Van Burger 0]

I''m going to go with 3) Correctand um.... 3) again.

Correct

Thank you for the maths test, I got bored and left the exam early

though. You include a lot of unnecessary information and poor use of

logic. For example in part b) the ''if'' statement is not needed as you

are stating a numerical fact (42% of £1.66 million).

Having sat your exam I''m happy that my comprehension of mathematics

is perfectly sound but am concerned your comprehension of logic and

understanding of basic facts, however may require some extra tuition.

You assume that Delia''s only investment in the club has been the £700,000 outlay. This is false.

Wrong. No such assumption is made or inferred, the questions simply relate to the initial 42% aqqusition

You assume that the value of Delia''s holding should remain static,

forgetting either inflation or the actual value of the club. This is

also false.

Wrong  This is a business not a bank account. I did not forget the actual value of the club, rather I expressed surprise that it is worth 10 times more now than it was when Delia bought in (on her first 42% shareholding obviously).She paid the standard issue price for all her other shares except those she got cheap from the Watling estate and the very last few at the new rate of £30. She now wants £30 each for every share regardless of purchase price.You assume she holds the same stake in the club now as she did back in 1997 (42%) once more you are wrong.

Wrong See above.

Fingers crossed for my results though, and they say internet degrees don''t have to be earned! 2/5 Must try harder.[;)]

[The ghost of Michael Theoklitos 0]

[quote user="Worst Wizard"]

.....

She paid the standard issue price for all her other shares except those she got cheap from the Watling estate and the very last few at the new rate of £30. She now wants £30 each for every share regardless of purchase price.
.......

[/quote]

The whole concept of shares in a busness is lost on you isn''t it?

[First Jedi 0]

You guys don''t really understand two key concepts;1) Share issues2) Exchanging loaned money for shares

[Shaun Tilly Lace 0]

[quote user="Citizen Journalist Foghorn"][quote user="Norfolk Chance"]

So if you bought a house for £40,000 in 1985, did up the garden and the bathroom, put on a conservatory, you''d be happy to sell it now to someone else for nothing when the same house next door is going for £240,000?

I struggle to see what your point is....

[/quote]
Just that Delia is no benefactor, she never did throw that money on a bonfire, and Delia will make a profit on her time at NCFC.
[/quote]

That is a good point, succinctly put, CJF. It''s high time Delia''s fan club woke up and saw the reality that should be staring them in the face.

[Faded Jaded Semi Plastic SOB 1,034]

Can I ask another question, one that to date nobody has either wanted or able to answer. When I bought shares in Norwich City FC PLC as part of the share offer that raised £3M for the club (conveniently forgotten by many of you) did I or did I not actually become a shareholder?. I get invited to the AGM every year, I get a dividend every year, I get a set of accounts every year but apparently I do not have the "power" to vote as I have the "wrong sort of shares"!! ( I am the proud, registered holder of 1 x fully paid "B" prference share and 4 x fully paid Ordinary shares). Please could somebody give me an idiots guide on what all this means (and please not from the bogus Ralph Wright)......