COSU Statement - 25th June 2024

[Shrimper]

How does this differ from what is previously agreed?

I'm reading that they want to buy the roots hall site and club ownership outright.

I believe this would be completing takeover of the club so they own it and leaving the FF stuff to carry on through DD

 

[tommy tucker]

Get control of the club first and formost Yes we know that the club need the 20 million to rebuild the hall .BUT that must take a back seat for a while .Getting the club running propely is a must .

 

[Avl1983]

So what do we actually need to happen to get this deal over the line?

Is it simply Heads of Terms agreed and the deal will go ahead?

I thought it was Ron that was refusing to sell the club until he had his lease agreement signed and the stadium will follow once he has full PP.

Is anyone ITK able to break this down in simple terms for me?

 

[NZamba Legend]

Technically, yes. But we were always going to be tenants for a while anyway, as Ron wouldn't give up the RH freehold until planning from his monopoly village is granted at FF. That's probably a way off!

I'm sure it won't stop COSU carrying out cosmetic changes (toilets/bars/general site spruce up etc) but the major stuff will obviously need to wait until they have the freehold.

What worries me is that if this goes through it will take all the pressure off Ron and he will start paying hardball again with the council, restarting negotiations and making increased demands on FF. Maybe he’ll build and release the first set of houses there and then get a little greedy and change plans for the proposed stadium site. What would be his motivation to give up the freehold on RH. He can charge rent. It’s still a bargaining chip he can use to get what he wants from the council. It increases in value all the time. Since RM took control the football club has always been secondary to land and development. We’d still be locked into that

 

[Tommy2holes]

What worries me is that if this goes through it will take all the pressure off Ron and he will start paying hardball again with the council, restarting negotiations and making increased demands on FF. Maybe he’ll build and release the first set of houses there and then get a little greedy and change plans for the proposed stadium site. What would be his motivation to give up the freehold on RH. He can charge rent. It’s still a bargaining chip he can use to get what he wants from the council. It increases in value all the time. Since RM took control the football club has always been secondary to land and development.

He can play hardball but the council have his number. He wont get it.

They aren't fussed if he tries it on as they can just refuse.

How that affects the club is unknown, especially if COSU have already taken ownership.

 

[Yorkshire Blue]

Nothing overall has changed in terms of the deal, just the way in which they want it done.

By De-coupling the club ownership from the property deal, it should expedite things in terms of COSU owning the club. Then Rat & Rat Jr can iron out the property deal with SCC in the background. That side is clearly many weeks away from being "done". We don't have that time.

It is a huge risk on COSU part and also needs the Rat to play ball in terms of giving up his ownership, but like it says in the statement, it is now the only way we survive. We don't have the time to wait for the Martin's and SCC to keep going back and forward with counter offers, DD and everything that goes with it.

COSU need to take control of the club immediately, or we end up in the Essex Senior League, or die....

The issue is the club is subject to several charges and COSU won’t want to acquire the club subject to them (otherwise they take on £18m+ of debt).

Ron likely isn’t in a position to discharge them until the agreement for lease is in place. That’s why it has always been coupled with the property deal.

 

[Smiffy]

What worries me is that if this goes through it will take all the pressure off Ron and he will start paying hardball again with the council, restarting negotiations and making increased demands on FF. Maybe he’ll build and release the first set of houses there and then get a little greedy and change plans for the proposed stadium site. What would be his motivation to give up the freehold on RH. He can charge rent. It’s still a bargaining chip he can use to get what he wants from the council. It increases in value all the time. Since RM took control the football club has always been secondary to land and development. We’d still be locked into that

Yep there is of course the risk they continue to play games.

However, they need this deal to happen as much as we do. They have the wolves scratching at their doors. Plus SCC are firmly on our side and won't allow anything to proceed at FF, without the club being protected.

It's not the ideal way we wanted things to be done, but unfortunately it is the only way.

 

[Smiffy]

The issue is the club is subject to several charges and COSU won’t want to acquire the club subject to them (otherwise they take on £18m+ of debt).

Ron likely isn’t in a position to discharge them until the agreement for lease is in place. That’s why it has always been coupled with the property deal.

Yep.

But obviously they are looking at ways of addressing this. Not sure how, but they've obviously thought of something if de-coupling is even an option.

 

[Magnum PI]

It struck me yesterday that all parties are in on this together with one common enemy. I could be completely wrong but I think Ron has finally met his match.

 

[Jmayhew32]

It reads to me that they are looking to complete the sale of the club now, and Roots Hall later. Am I missing something?

"The group insist the problems are not as bad as things may seem and they will now not wait for the revised Fossetts Farm plans to be agreed before taking control of the club"

 

[sufcrocks]

If COSU do buy the club what’s to stop the rats nest from charging us to play at Roots Hall? Shame we don’t have any significant sports stadium near by to move too, thereby ending any involvement of the Rats going forward.

 

[kentblues]

The issue is the club is subject to several charges and COSU won’t want to acquire the club subject to them (otherwise they take on £18m+ of debt).

Ron likely isn’t in a position to discharge them until the agreement for lease is in place. That’s why it has always been coupled with the property deal.

The debt is inter company though and the club has no assets so the charges were really only there as protection? - maybe around an administration event?

There’s no CRBE holding a charge on bricks and mortar as with RH.

I think its more no way to discharge the charge on RH without the property deal, meaning if they are together (as the buyer would want) it can’t proceed until the property deal?

 

[kentblues]

If COSU do buy the club what’s to stop the rats nest from charging us to play at Roots Hall? Shame we don’t have any significant sports stadium near by to move too, thereby ending any involvement of the Rats going forward.

It would be part of the club sale agreement. There is a risk that as the ground will be own by a third unrelated party we would need a min 25 year lease to get promotion to EFL (remember Gateshead). But that it seems given the situation now is a way down the road and in all likelihood the property deal would be done by then. Getting a 25year agreement now would be idea as a precaution too- if it can fly..

 

[Holy Joe]

The debt is inter company though and the club has no assets so the charges were really only there as protection? - maybe around an administration event?

There’s no CRBE holding a charge on bricks and mortar as with RH.

I think its more no way to discharge the charge on RH without the property deal, meaning if they are together (as the buyer would want) it can’t proceed until the property deal?

But that intercompany debt is still an asset on another companies balance sheet, remove the debt from the club balance sheet and you need to remove the asset from another balance sheet.

 

[Holy Joe]

It would be part of the club sale agreement. There is a risk that as the ground will be own by a third unrelated party we would need a min 25 year lease to get promotion to EFL (remember Gateshead). But that it seems given the situation now is a way down the road and in all likelihood the property deal would be done by then. Getting a 25year agreement now would be idea as a precaution too- if it can fly..

Think the league require 10 years.

Previously released info said COSU would have a 25 year lease on RH whilst the sale of RH to POSU was finalised.

 

[Yorkshire Blue]

Yep.

But obviously they are looking at ways of addressing this. Not sure how, but they've obviously thought of something if de-coupling is even an option.

Let’s hope so. Because when things go south parties start taking positions in order to not look bad rather than conclude deals.

 

[Smiffy]

It reads to me that they are looking to complete the sale of the club now, and Roots Hall later. Am I missing something?

"The group insist the problems are not as bad as things may seem and they will now not wait for the revised Fossetts Farm plans to be agreed before taking control of the club"

No, you aren't. That was always going to be the case.

 

[Jmayhew32]

No, you aren't. That was always going to be the case.

So why are people fretting about 'de-coupling'? The charges are mainly to companies under the control of The Martin's - these aren't going to be paid as such. Let's just get it done.

 

[TrueBlue]

Huge respect to COSU. If this happens we need to bow before them at every match.

If this happens I'm up for sexual favours

 

[Swiss Tony]

If this happens I'm up for sexual favours

After a slap up steak meal?