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Sale of Southend United to Justin Rees and his consortium

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Shrimpergarry said:
I'm assuming that's exactly how it will work and why the negotiations have also included the leader of the Council.

I would imagine that there will be staged payments to maintain a community asset (i.e. Roots Hall) aligned to completion or commencement of certain stages of the revised development of Fossetts Farm.

It will be by way of a legal agreement (s.106) attached to the planning permission.

What will be interesting to understand is how the deal might also include the Shrimpers Trust or the Council taking full or part control of Roots Hall as a Community Asset.

There's going to be a whole heck of a lot of legal work to take place to tie this up, and quite lot of trust/goodwill too as the new planning application won't even be submitted by the time it's crunch time for the club, however if they pull this off there's a lot of benefits for all sides:
  • The Rat and Rat Boy get their development
  • The Council secure a professional football club in the City and potentially also safeguard the future of its ground
  • Justin Rees gets the club and significant medium term contributions towards the development of future revenue streams
  • The fans get a club to support that is properly run and has a sustainable future.
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Perhaps you should present this to the judge next week, rather than Ron suggesting publicly "can I have another adjournment please". "This time it's for some aussie chap, and a fella from the council" ...
 
Shrimp and two veg said:
Disappointed at the thought that LE RAT ends up with a fortune of readies from FF. Only because of the football club does he have this chance and i resent this opportunity, purely for the way he has treated our staff.
I'd love to see the council delay the project down the line, let him see how it feels
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I’d love for him to fall flat on his face, but not at the expense of SUFC. If Ron winning means Southend winning, so be it. The money won’t make him any less of a **** anyway miserable man won’t know how to enjoy it knowing he’s not in the news anymore 😂😂
 
Shrimp and two veg said:
Disappointed at the thought that LE RAT ends up with a fortune of readies from FF. Only because of the football club does he have this chance and i resent this opportunity, purely for the way he has treated our staff.
I'd love to see the council delay the project down the line, let him see how it feels
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Unfortunately our chance of getting the money will no doubt be tied to the success of his Fossetts Farm dream project.
 
Shrimp and two veg said:
Disappointed at the thought that LE RAT ends up with a fortune of readies from FF. Only because of the football club does he have this chance and i resent this opportunity, purely for the way he has treated our staff.
I'd love to see the council delay the project down the line, let him see how it feels
Click to expand...
I wouldn’t worry…..Is he really going to get to see / enjoy any of it? 15 yrs since permission and nothing has been built. More planning to get through and funding to find to actually get anything built, then build, then sell…..
 
Dont understand why Ron would stump up £20m for the Roots Hall redev now.

Unless they take that £20m and ringfence it, can you imagine going to him in 12 months and say "the first payment of £5m for redeveloping X is due"....
 
It appears to be overlooked that the WUP was joined by Emersons and another (PG??). Can't remember? They would need to be squared of too. And one of the most unsatisfactory elements of the WUP is that other creditors can join the petition almost on the day.

Now in reality you would hope Emersons for example would withdraw rather than running the risk of being the party who killed the deal for their local club...but nPower and some others? Hopefully other creditors are being "managed" as part of the process.

If HMRC and the other petitioning parties are paid prior and withdraw then it may be others no longer have a WUP to join? Not 100% sure how it works.

In any event leaving it chance on the day may not be entirely wise..
 
kentblues said:
It appears to be overlooked that the WUP was joined by Emersons and another (PG??). Can't remember? They would need to be squared of too. And one of the most unsatisfactory elements of the WUP is that other creditors can join the petition almost on the day.

Now in reality you would hope Emersons for example would withdraw rather than running the risk of being the party who killed the deal for their local club...but nPower and some others? Hopefully other creditors are being "managed" as part of the process.

If HMRC and the other petitioning parties are paid prior and withdraw then it may be others no longer have a WUP to join? Not 100% sure how it works.

In any event leaving it chance on the day may not be entirely wise..
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Imagine thats the "£1 to buy, but inherits debts" comes into play.
 
palexander said:
Dont understand why Ron would stump up £20m for the Roots Hall redev now.

Unless they take that £20m and ringfence it, can you imagine going to him in 12 months and say "the first payment of £5m for redeveloping X is due"....
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That's why I said above that it will be part of the legal agreement (s106) relating to the revised planning, hence why Cllr Tony Cox has been in discussions too.

I reckon the payment might be made to the Council who would channel it towards the development of Roots Hall by way of a grant.
 
palexander said:
Imagine thats the "£1 to buy, but inherits debts" comes into play.
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Quite but unless something is already negotiated with the creditors, if everything is left to the 4th they could join the WUP and much of it would have to be paid now to exit the WUP? I'm sure the scenarios are foreseen. As I say it would be wise to discharge the debts under the current WUP, plus nPower, prior to the 4th? This is not peanuts..point is its not just HMRC.
 
palexander said:
Dont understand why Ron would stump up £20m for the Roots Hall redev now.

Unless they take that £20m and ringfence it, can you imagine going to him in 12 months and say "the first payment of £5m for redeveloping X is due"....
Click to expand...
That's why it needs to be tied to the planning for FF, per @Shrimpergarry's comment earlier. It's the only place we can hit him where it hurts. He'll have incentive to pay if doing so allows him to build houses, and he can't plead poverty because it can be tied to completion of the housing developments so it'll just be paid out of his substantial returns.

It works nicely for the council too - they still get to build a bunch of houses on green belt land with the argument that doing so unlocks investment in an asset of community value elsewhere.

I can't believe I'm saying this but it actually sounds like a very well thought through plan, to the extent that even Ron seems to be struggling to say no. What a time to be alive. (Still, let's not presuppose rational decision-making on Ron's part. Rats have small brains after all.)
 
I'm sure most people aren't getting too excited. Can still see if it 'doesn't complete in time' Ron will have someone else to blame. 'I offered them a great deal but they didn't move in time and now it's out of hands' etc.
 
TrevorFitzpatrickHattrick said:
Rumour doing the rounds is that Rees will put the whole value of the HMRC debt in an escrow account so it can be cleared, repayable by RM if the takeover doesn't complete. This is a bid to stave of administration/further points deduction etc.
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How would this work?

Escrow is putting money into the hands of a third party to hold pending the fulfilment of a condition.

I’m not sure how that applies to this.

If the money is held in escrow it can’t be used to pay off HMRC.

At most it can be used a proof of funds if we’re seeking another extension.
 
palexander said:
Dont understand why Ron would stump up £20m for the Roots Hall redev now.

Unless they take that £20m and ringfence it, can you imagine going to him in 12 months and say "the first payment of £5m for redeveloping X is due"....
Click to expand...
The the £1 x 3 sale includes the Consortium inheriting SUFC's existing debt. Does this include the inter company debt which is around £26m now I believe? If it does then Ron won't physically transfer cash, he'll write off the debt or rather the majority of it in tranches.
 
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