Greg Edwards69 Posted November 7, 2023 Share Posted November 7, 2023 (edited) 6 minutes ago, Dad3353 said: If the PA has been regularly used over a decent period, it is no longer to be valued at the original buying price of £600 each. The leaving member must surely agree to a reasonable depreciation sum, no..? If not, it could be argued that he pay you all your £600 each, and keeps the PA himself. Nonsense, of course. Your initial investment should have been 'paid back', little by little, by the gigs you've done, until its depreciated value is reached, at which point it's basically a 'free' PA that you all own, but has no residual monetary value. These arrangements can easily be made, at any time, by mutual agreement and consent. Do it now with all the current members, in preparation for the next time someone leaves. A bit late, but I hope this helps. This is where it gets messy. Their new guy has agreed to stump up a substantial amount upon joining the band to co-own the PA (I'm not sure I would). Absolutely, it should be based upon current market value and depreciation. But if the new guy leaves in 6 months or a year, he could get back less than he put in. That would just rub salt in the wound if it were me, and could make an acrimonious split, a bitter one. This absolutely needs sorting and putting in writing now, before any money changes hands. Edited November 7, 2023 by Greg Edwards69 Quote Link to comment Share on other sites More sharing options...
TimR Posted November 7, 2023 Share Posted November 7, 2023 Told you so... Quote Link to comment Share on other sites More sharing options...
Burns-bass Posted November 7, 2023 Share Posted November 7, 2023 Last year I bought the PA for our band and we paid it back after doing lots of gigs. I happily stored it while I owned it, now it’s a communal asset we had some “lively” conversations about where it was going to be stored and who would carry it to all the gigs (not me is the answer!!!). It worked well as a model for buying it, but it’s not something I’d do again. Quote Link to comment Share on other sites More sharing options...
Burns-bass Posted November 7, 2023 Share Posted November 7, 2023 Oh, but we had a written agreement about how it would be paid for before I spent a penny. We took 10% of all gig funds off until it was paid for. 1 Quote Link to comment Share on other sites More sharing options...
Gasman Posted November 7, 2023 Author Share Posted November 7, 2023 Great idea @Burns-bass but for us that train has left the station... Quote Link to comment Share on other sites More sharing options...
jrixn1 Posted November 7, 2023 Share Posted November 7, 2023 1 hour ago, Gasman said: After an hour we got fed up with discussing it and reached a compromise, with the new guy offering to put in £300 and the rest of us subbing up another £75 each to pay the leaver off completely. The PA cost £3,000 new, but is now only worth (say 70%...) £2,100. So the leaver's 20% share is worth £420, not £600, and the five of you have overpaid. In absolute terms, the new guy is worst off, having paid £300 for something worth £210. The other four of you have paid £75 for something worth £52.50. Going forward, by my arithmetic the new guy has 10% stake in the PA, and the rest of you now have 22.5% each. Quote Link to comment Share on other sites More sharing options...
Gasman Posted November 7, 2023 Author Share Posted November 7, 2023 4 minutes ago, jrixn1 said: Going forward, by my arithmetic the new guy has 10% stake in the PA, and the rest of you now have 22.5% each. Yes, that sounds about right... Quote Link to comment Share on other sites More sharing options...
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