FORUMula1.com

[Jabberwocky]

I was looking at jumping the gun and buying a topical website (which I am sure could of been sold to the right person) when I found this http://www.astonmartinf1racing.co.uk/" onclick="window.open(this.href);return false; I thought I had missed a year of my life or something lol

[Jensonb]

The value of the Honda team to any potential investors will be reduced by all the uncertainty surrounding the sport. Particularly if other manufacturers start wobbling in their commitment, Max needs to have more certainty concerning the future of the sport.

Well at least the business has no significant debt and Honda is agreeing to absorb all the Credit

[FerrariFan63]

Well at least the business has no significant debt and Honda is agreeing to absorb all the Credit

First, what do you mean by "Credit" here?

Second, don't they have ongoing commitments? I.e. that they have to turn up and race, which costs a lot of money. And if they don't turn up and race, then they'll get fined? So even if they have no explicit debt, the ongoing commitments and contracts force them to spend money in the future, and hence are ... well ... sortof like debts.

So anyone taking them on has to have a big budget to fulfill these commitments. Is that wrong?

[Jensonb]

Well at least the business has no significant debt and Honda is agreeing to absorb all the Credit

First, what do you mean by "Credit" here?

Second, don't they have ongoing commitments? I.e. that they have to turn up and race, which costs a lot of money. And if they don't turn up and race, then they'll get fined? So even if they have no explicit debt, the ongoing commitments and contracts force them to spend money in the future, and hence are ... well ... sortof like debts.

So anyone taking them on has to have a big budget to fulfill these commitments. Is that wrong?

In this case, I mean pay off all the guaranteed upcoming costs and the deferred ones.

No, those are not debts. Those are costs.

What exactly is your point? It seems like you're trying to argue with me, but all I was saying was that the investment could be worse, not that it's "fantastic".

[FerrariFan63]

In this case, I mean pay off all the guaranteed upcoming costs and the deferred ones.

No, those are not debts. Those are costs.

What exactly is your point? It seems like you're trying to argue with me, but all I was saying was that the investment could be worse, not that it's "fantastic".

I thought I was having a reasonable discussion, not necessarily an argument.

If you mean by "credit" that Honda will pay all the guaranteed upcoming costs, then that would be quite a bit of financial support from Honda to any buyer, which should make it easier to sell the team. Has it been described exactly how much Honda will help out any potential buyer and for how long?

Yes, the commitments for the future are "costs" rather than "debts". But there are some similarities in how they affect the value of the team. In both cases, that of paying future costs and repaying debt, that's money that any purchaser is going to have to spend. So while some posters mentioned theoretical "£1" sale cost of the team, the commitments to pay future monies is where the real cost to the buyer is. The question potential buyers will ask of course is whether these costs are worth it.

[Jensonb]

In this case, I mean pay off all the guaranteed upcoming costs and the deferred ones.

No, those are not debts. Those are costs.

What exactly is your point? It seems like you're trying to argue with me, but all I was saying was that the investment could be worse, not that it's "fantastic".

I thought I was having a reasonable discussion, not necessarily an argument.

If you mean by "credit" that Honda will pay all the guaranteed upcoming costs, then that would be quite a bit of financial support from Honda to any buyer, which should make it easier to sell the team. Has it been described exactly how much Honda will help out any potential buyer and for how long?

Yes, the commitments for the future are "costs" rather than "debts". But there are some similarities in how they affect the value of the team. In both cases, that of paying future costs and repaying debt, that's money that any purchaser is going to have to spend. So while some posters mentioned theoretical "£1" sale cost of the team, the commitments to pay future monies is where the real cost to the buyer is. The question potential buyers will ask of course is whether these costs are worth it.

Well other than footing the bill until just before Oz, I don't know the details, but Honda have said they're going to pay off what the company owes (For example, for things they already have).

Even so, it's a tough sell. It's mighty expensive to run a racing team

[prozac26]

I was going to buy them, but then I checked what's on my bank account.

Buying is not the problem - you can have them for a nominal amount (£1 or so, you DO have that, don't you?). But the costs of running the team is kinda prohibitive...

Nope, not even £1.

I have my money in $.

[Jensonb]

I was going to buy them, but then I checked what's on my bank account.

Buying is not the problem - you can have them for a nominal amount (£1 or so, you DO have that, don't you?). But the costs of running the team is kinda prohibitive...

Nope, not even £1.

I have my money in $.

They'll sell it for $1 if you prefer.

[prozac26]

I was going to buy them, but then I checked what's on my bank account.

Buying is not the problem - you can have them for a nominal amount (£1 or so, you DO have that, don't you?). But the costs of running the team is kinda prohibitive...

Nope, not even £1.

I have my money in $.

They'll sell it for $1 if you prefer.

Sounds good.