Talk about obscure intangible assets… this one really takes the biscuit. All intangible assets are unique by their very nature, but this one was a new one, even on me!
It was a charge card for a Premiership football club that never got off the ground. The premise was that fans would put credit onto the card and get a little more to spend in club stores than they put on the card. Unfortunately, the club was relegated, and the scheme became a luxury the club couldn’t afford and no longer a priority.
I provided the client with some marketing advice as regards the intangible assets of the company and it was duly sold to a connected party.
Sales to connected parties or directors in insolvency situations get a lot of stick from the press about being a stitch up, but those of us on the inside of the profession know that not to be the case. Not these days and not for a good number of years. Incumbent management are sometimes the only buyer for assets, particularly intangible assets. They have intimate knowledge of the asset, know the provenance and that it will do what they need it to do, are effectively a special purchaser in that they have a perfect (continued) use of the asset and therefore pay the most money.