Sale of Southend United to Justin Rees and his consortium

[Smiffy]

Is administration another automatic ten point penalty.......at the least?

Yep.

 

[dusterman]

another points deduction , the debts reduced / wiped off and we go again . They club could then be sold for very little , with for example, the funds which were going to have to pay the debts being either A) ploughed into rebuilding B) buying Roots Hall or C) not needed because the buyer couldn't raise the funds in the first place.

And we think if this were the case we’d have to hear about it soonish, say in next week or so as it has to be agreed?

 

[in the know]

Has made me think. If another 10 points is deducted if we go into administration (or even 2x 10 if another payday gets missed) , it would suggest demotion to national league south being a much likelier outcome. Poor quality football, less crowds, worse grounds, more plastic pitches, most players leaving.
What would I prefer..... That or getting behind a new Phoenix club with all debts gone and RM gone? It's a closer decision than I expected in my mind.

 

[Ozzer]

The only time Duddridge has ever cared remotely about Southend United is when a certain resident of #10 was given a shirt by him

Really? He was at the Bromley game, I spoke to him after the match. Some people post a lot of nonsense.

 

[hlane17]

Has made me think. If another 10 points is deducted if we go into administration (or even 2x 10 if another payday gets missed) , it would suggest demotion to national league south being a much likelier outcome. Poor quality football, less crowds, worse grounds, more plastic pitches, most players leaving.
What would I prefer..... That or getting behind a new Phoenix club with all debts gone and RM gone? It's a closer decision than I expected in my mind.

I would very narrowly rule in favour of the current SUFC continuing until one day we finally get rid of the rat.

 

[GBJ]

Is that an option at this point though?

I believe it’s been considered, so it must be an option. Ron has a debenture for a reason, afterall.

What’s more concerning to me is that any potential buyer would have to be happy/indifferent with this and the subsequent relegation it would lead to. That - on the face of it - should be a concern for all of us

 

[Ozzer]

But would you be selling your house if that meant negative equity and you would be required to part fund it going forward?

I am not defending RM, far far from it, as someone else posts is there a point below which he just can’t simply sell and the only option then is to look to reduce outstanding liabilities and if that means paying them all well and good but if that’s not an option then there’s only one other way.

But if you're asset rich (by however means), as Cricko pointed out and cash poor, then you need to liquidate some assets to break even. You can't have it all ways.

 

[Shrimper]

Really? He was at the Bromley game, I spoke to him after the match. Some people post a lot of nonsense.

Oh he's been to one game, that changes everything

 

[Blues4LifeDan]

I believe it’s been considered, so it must be an option. Ron has a debenture for a reason, afterall.

What’s more concerning to me is that any potential buyer would have to be happy/indifferent with this and the subsequent relegation it would lead to. That - on the face of it - should be a concern for all of us

It's an interesting question to ask. Would fans take a relegation if it meant selling the club and getting a new owner? I think most would take it.

Scunthorpe got a new owner last season and whilst they couldn't prevent them going down, they are at the top end of the NLN.

Of course there are no guarantees with anything and I can't believe I'm even talking about my beloved club going down to the NLN but it's the reality. Stockport did it and now look at them! Incidentally, they got relegated to league 2 the same time as us. They sunk like a stone and bounced back. I say that with caution though, as I don't like comparing clubs. Every situation is different and our club is in arguably the most complex situation in the country at the moment.

 

[Ozzer]

Oh he's been to one game, that changes everything

And you know that how? You are one of the most negative posters on this site.

 

[tommy tucker]

Has made me think. If another 10 points is deducted if we go into administration (or even 2x 10 if another payday gets missed) , it would suggest demotion to national league south being a much likelier outcome. Poor quality football, less crowds, worse grounds, more plastic pitches, most players leaving.
What would I prefer..... That or getting behind a new Phoenix club with all debts gone and RM gone? It's a closer decision than I expected in my mind.

I would never support a phoenix club .Its southend united or nothing .I live a mile away from my local club And in the 8 years i have lived hear i have only gone there once .When they played southend united under 21s managed then by non other than king kev .

 

[Smiffy]

Has made me think. If another 10 points is deducted if we go into administration (or even 2x 10 if another payday gets missed) , it would suggest demotion to national league south being a much likelier outcome. Poor quality football, less crowds, worse grounds, more plastic pitches, most players leaving.
What would I prefer..... That or getting behind a new Phoenix club with all debts gone and RM gone? It's a closer decision than I expected in my mind.

I have been thinking similar.

If we lost another 10 points for say going into admin, but it meant Ron was gone, new owners came in, embargo removed, new players signed, fans returning and backing the boys in a big way. I'd fancy them to overturn -20 and stay up... We've already made up 10 points, we'd make up another 10 points no problem.

What doesn't sit well with me though is the number of local businesses that would be shafted in this scenario.

 

[Shrimper]

And you know that how? You are one of the most negative posters on this site.

Following Southend does that

 

[GBJ]

It's an interesting question to ask. Would fans take a relegation if it meant selling the club and getting a new owner? I think most would take it.

Scunthorpe got a new owner last season and whilst they couldn't prevent them going down, they are at the top end of the NLN.

Of course there are no guarantees with anything and I can't believe I'm even talking about my beloved club going down to the NLN but it's the reality. Stockport did it and now look at them! Incidentally, they got relegated to league 2 the same time as us. They sunk like a stone and bounced back. I say that with caution though, as I don't like comparing clubs. Every situation is different and our club is in arguably the most complex situation in the country at the moment.

Us fans might take it… as long as it meant the definitive end of Ron’s stewardship! But I can’t see why any prospect buyer would find it financially preferable/acceptable to begin in the division below?

The debts are currently circa £2.5m(?) I think. Without being privy to the figures it’s difficult to work out which one makes better financial sense.

Pay the £2.5m off and begin next season where we are now, OR drop a division, lose TV money (not that there’s much of it), less sponsorship money and lower crowds. Plus we’d almost certainly have to rebuild an entire squad (capable of competing).

I’m sure I’m oversimplifying it and there’s many more complexities to it than that.

 

[Danshrimper]

Has made me think. If another 10 points is deducted if we go into administration (or even 2x 10 if another payday gets missed) , it would suggest demotion to national league south being a much likelier outcome. Poor quality football, less crowds, worse grounds, more plastic pitches, most players leaving.
What would I prefer..... That or getting behind a new Phoenix club with all debts gone and RM gone? It's a closer decision than I expected in my mind.

The only thing with a phoenix club is where would it play? If we could get some sort of funding to secure RH for a phoenix then great.

It not, it would likely be a phoenix based outside of Southend, which I don’t think would work all that well.

I would never support a phoenix club .Its southend united or nothing .I live a mile away from my local club And in the 8 years i have lived hear i have only gone there once .When they played southend united under 21s managed then by non other than king kev .

So if AFC Southend United managed to secure funding to own Roots Hall, you would no longer support the club, playing at the same stadium and wearing the same colours? Just because the legal name would have changed from ‘Southend United Football Club Limited’ to ‘AFC Southend United Football Club Limited’.

 

[Callumturner22]

So what is it 6 months now and still we sound no closer to being bloody sold surely there reason for this ie we know Martin a **** but any one else would think okay my house been on sale for 2/3 months not much serious interest for example I would lower the price down but not Ron who probably want top dollar for it all

 

[in the know]

I have been thinking similar.

If we lost another 10 points for say going into admin, but it meant Ron was gone, new owners came in, embargo removed, new players signed, fans returning and backing the boys in a big way. I'd fancy them to overturn -20 and stay up... We've already made up 10 points, we'd make up another 10 points no problem.

What doesn't sit well with me though is the number of local businesses that would be shafted in this scenario.

Good point. Didn't include that in my thinking. I like your optimism though and its one of the better outcomes after a deal going through before the 4th, which I think is becoming less likely.

 

[Richard Hearn]

‘AFC Southend United Football Club Limited’.

That's a bit tautological.

 

[Green Wizard]

Didn't somebody say that with a Winding Up Order you can't go into administration?

 

[Jai]

Good point. Didn't include that in my thinking. I like your optimism though and its one of the better outcomes after a deal going through before the 4th, which I think is becoming less likely.

I think realistically there's no chance of a deal going through before D-day. We know Ron isn't going to pay the money.

So, we're either putting a leap of faith in a buyer paying off the debt with no guarantees that they will own anything afterwards, or we're likely to be put into administration to reduce the debts and make a sale less complex.

Have I got this right?

I think we can make up 10 points no problem, but not 20. We'd effectively be relegated, and would that really be in anyone's interests?