Sale of Southend United to Justin Rees and his consortium

[bazzashrimper]

Reading between the lines and not being ITK, this is how I see things currently.

From what we know JR and co have made a two offers, but Ron claims he would be giving it away if he accepted them. Therefore it's likely that JR and co have offered less than the minimum Ron can accept due to taking out loans against the value of RH.

Pure conjecture, but it does seem to roughly correlate with what we've heard.

I honestly can't see Ron ever agreeing to take a deal where it's clear he's lost out, such as this case where he sells RH and also has to cough up extra cash to pay off debts. Whether it's his best move whilst backed into a corner is irrelevant, the man operates on ego not on wisdom so unless JR and co are inclined to offer what he wants/needs the deal is likely dead.

Judging by their statement it seems they agree that no deal is looking by far the likeliest outcome.

He's like a gambler at the casino who bet his life savings, lost, begged for more money, lost most of that, only to be left with a few chips left but a debt higher than what's left in his hand.

He's ****ed, but whilst he's still in the casino it's a hypothetical loss, as soon as he cashes out and enters the fresh air he's hit with the cold reality of what he's spent the past 25 years of his life doing.

Gamblers like Ron would rather stay in the casino, order another drink and make their situation incrementally worse.

Agreed. But his final chip is on housing getting built at FF and pocketing the money there.

He needs the council to agree to do this without a stadium. That’s surely his position and it turns out his final chip is actually the club - as a bargaining chip.

It seems like JR sees this, and is trying to work with the council to make this happen - but on the proviso that some of the funds to build a stadium are redirected to fix up roots hall. Hard to tell how much this would be.

 

[Somerset Ex-TTB]

Wasn’t Rat going to release a statement yesterday saying how amazing he is and how he has saved the club and the offers on the table are rubbish?

Any sign of it?

 

[West Stand]

WS what's your view on the comments I just put on the other JR thread ?

this:





Coming back to this - seems to me to be a key issue with the way things are heading - could either Londonblue or Superblue add anything further? for example who would have the right to appeal to the Court that these charges be ignored ??

I think the point about the timing of the charges is indeed a fair point and its possible that they are “ disallowed”

If they are there then you open up the question re any actions taken by someone said initially to have qualification to do so by virtue of a floating charge, such as appointing or making application to the court to appoint an administrator and would any action taken by an IPA to ignore be correct if that same IPA should not have been appointed ?

This could be a massive minefield and any challenges would be made by the administrator who will want paying and on day two or three will be looking at outcomes in terms of estimated costs and what that would mean to creditors

 

[Petejames]

Wasn’t Rat going to release a statement yesterday saying how amazing he is and how he has saved the club and the offers on the table are rubbish?

Any sign of it?

Was supposed to be within 24 hrs … so anytime this afternoon I would of thought

 

[Richard Hearn]

Wasn’t Rat going to release a statement yesterday saying how amazing he is and how he has saved the club and the offers on the table are rubbish?

Any sign of it?

I think you just saved him the trouble.

 

[Jai]

I was told a couple of years back by a family friend that the Echo would never really go after the Rat on an editorial basis as he had friends within the top management of the paper. The guy would have been in a good position to know that and is not the type to BS, so today's front page is interesting.

It's true.

 

[Medway Blue]

I think the point about the timing of the charges is indeed a fair point and its possible that they are “ disallowed”

If they are there then you open up the question re any actions taken by someone said initially to have qualification to do so by virtue of a floating charge, such as appointing or making application to the court to appoint an administrator and would any action taken by an IPA to ignore be correct if that same IPA should not have been appointed ?

This could be a massive minefield and any challenges would be made by the administrator who will want paying and on day two or three will be looking at outcomes in terms of estimated costs and what that would mean to creditors

Do you think there would be any way for, say, the Trust to challenge the charges/ask a judge to look into having them disqualified now? Or is it something that would have to wait until/if an administrator is appointed?

 

[West Stand]

Agreed. But his final chip is on housing getting built at FF and pocketing the money there.

He needs the council to agree to do this without a stadium. That’s surely his position and it turns out his final chip is actually the club - as a bargaining chip.

It seems like JR sees this, and is trying to work with the council to make this happen - but on the proviso that some of the funds to build a stadium are redirected to fix up roots hall. Hard to tell how much this would be.

Sorry but no he doesn’t.

Building a stadium on FF will is already agreed in full ( although as we know a separate application is being considered re reducing its size )

I don’t know the sums but building that stadium on FF even if there isn’t a SUFC will satisfy planning constraints on the RH site. It would then come down to the numbers

 

[CanveyCastle]

It's true.

Is Martin a Mason ?

 

[bazzashrimper]

Sorry but no he doesn’t.

Building a stadium on FF will is already agreed in full ( although as we know a separate application is being considered re reducing its size )

I don’t know the sums but building that stadium on FF even if there isn’t a SUFC will satisfy planning constraints on the RH site. It would then come down to the numbers

Ok. Fair enough - that’s the crazy man in the casino. Planning will never come for a small stadium if there is no football club.

I guess I’m saying that the council and JR are potentially offering something which could be a way out for ron. He needs to accept that FF is not viable of course, or even if not that, that there is no one with sufficient funds who thinks it is viable.

 

[West Stand]

Do you think there would be any way for, say, the Trust to challenge the charges/ask a judge to look into having them disqualified now? Or is it something that would have to wait until/if an administrator is appointed?

Shareholders could I guess initially try and convene an EGM and explore matters but that would take in effect a concert party to attain the required 10% of the overall shareholding and timings are such as any EGM almost certainly wouldn’t happen prior to 4/10

It’s possible that representation could be made to Companies House re the conduct of directors but if we are talking about the charges exclusively my guess would be that the administration would challenge these if thought appropriate.

I am probably wrong but I thought you have 21 days to register a charge

Irrespective there is a board of directors who have equal input into agreeing or otherwise such matters & I would expect that loans and charges would have to have been discussed and minuted at board meetings. If that hasn’t happened it doesn’t mean that such matters haven’t been delegated but again that would have to have been minutes and agreed

So before administration the shareholders could try and force the debate after almost certainly its down to the administrators

 

[Supershrimper]

Is Martin a Mason ?

Could explain his record when up against a judge

 

[West Stand]

Ok. Fair enough - that’s the crazy man in the casino. Planning will never come for a small stadium if there is no football club.

I guess I’m saying that the council and JR are potentially offering something which could be a way out for ron. He needs to accept that FF is not viable of course, or even if not that, that there is no one with sufficient funds who thinks it is viable.

Why won’t it ? I am not saying it would but if it were me I would argue that without SUFC the supporter base of any successor club would be less

 

[Whispering Bob]

Yep, and only shareholders with more than a 10th of the 'voting power' could call an EGM.

 

[KrustyTheKray]

In respect of the two failed bid's, did the consortium go in each time way below the asking price, or was it Ron being Ron trying to eek more money out of them?

Cant see the issue as Ron would still make money from the developing that will happen on Fossetts even if there's no stadium there should we stay at RH.

Just sell up now Ron! Do everyone a favour, if you truly love this club do the right thing!

 

[wakes123]

In respect of the two failed bid's, did the consortium go in each time way below the asking price, or was it Ron being Ron trying to eek more money out of them?

Cant see the issue as Ron would still make money from the developing that will happen on Fossetts even if there's no stadium there should we stay at RH.

Just sell up now Ron! Do everyone a favour, if you truly love this club do the right thing!

This is what we don't know, but I doubt after 10 weeks of talks, the consortium would just go in way below asking price at this stage. They must know who they are dealing with and know he's not going to accept that.

 

[tommy tucker]

We need the council to stand up and be counted It's now time for them to tell the idiot. No football club after the 4th. Then they will stop and stadium being built on Fossetts Farm. It's now time to call his bluff.

 

[SuperBlue]

Coming back to this - seems to me to be a key issue with the way things are heading - could either Londonblue or Superblue add anything further? for example who would have the right to appeal to the Court that these charges be ignored ??

It would be determined by the insolvency practitioner appointed to the administration. The deed of priority if it exists will determine who can appoint the administrator.

Ultimately the only person who can put us into administration i believe is Ron. Should he chose to do that it could end up being worse for him as their may be many more questions around the legitimacy of the information in the accounts.

 

[SuperBlue]

What happens to the players and staff in adminstration - do their contracts automatically transfer to new owner?

The adiminstrator who ever they are will take on responsibility of operating the football club and its costs.

If Ron wants to regain control after administration he would have to pay those operating costs.

 

[bazzashrimper]

Why won’t it ? I am not saying it would but if it were me I would argue that without SUFC the supporter base of any successor club would be less

I think as a minimum it would be a huge huge gamble from Ron. He’s struggled for 25 years to build a ground WITH a club, there is next to no chance of the council to agree to it if he wiped out the club.