Stadium plans passed subject to earlier payment phasing...

[Jam_Man]

It was recently claimed that RM has put £10m into Southend United, but I've always doubted how much he has actually contributed/loaned. Sainsbury's have paid £5m of that 10 - agreed? So of the other 5m how much has actually come out of his pocket is it just another case of robbing Peter to pay Paul to pay Sir John, and moving funds from A>B>C Pi squared ? If we/he ever do profit from FF I would be fascinated to see where the money dribbles back to/who is reimbursed etc.

His companies have put a lot in since taking over Im sure, but yes Sainsbury have given him at least 5 million as well. He wouldnt have put any of his own personal money in, but I would imagine thats how it works with many chairmen.

Certainly over the last 3 years its hard to see how he has put anything in other than borrowed money though.

 

[londonblue]

Yep Roots Hall is definitely the big cash cow. Still trying to get my head round a big hotel chain coming aboard and spending tens of millions on building not only the their own hotel but also a big shiny new stand etc and then accepting that despite paying for it to be built they would have to then pay rent to RM, SUFC or A.N Other management co (delete as applicable) for the privilege of doing so.

Depends what the level of rent is. If, for example, they contribute £10m to the cost of building, but only pay 50% of the notional rent for so many years, then they may see it as a good deal. It really depends on the deal they come up with though.

Your comments still dont make sense, it is not in his interest for the club to go into administration whilst he is owed millions, and once he isnt owned millions we wouldnt have to go into administration.

It seems to me that RM would be bankrupt if Southend United go into administration. Why else wouldn't he have let it happen by now? The person who loses out the most is him as SUFC owe him a huge amount of money.

So we can't pay the rent on RH but we will be able to pay the rent on the new stadium ? Who will own the stadium, who will we be paying rent to and who will own and retain the income from the retail element ? Answer is RM,RM,RM. and I say 'fact' because I am in a position to know.

I hope I am wrong but just watch how it plays out. See what happens over the summer and if I am wrong come on here in September and shove my comments down my throat. Happy to be wrong but I am close to this and I know what is going to happen.

So, you know what is going to happen, but are still hoping to be proved wrong. If you know then how can you be proved wrong? Come on, either you know or you don't. Which is it?

 

[Jam_Man]

It seems to me that RM would be bankrupt if Southend United go into administration. Why else wouldn't he have let it happen by now? The person who loses out the most is him as SUFC owe him a huge amount of money.

SUFC owe the directors and parent company getting on for 10 million, so if we go into admin he doesnt get that. He then will still owe Sainsbury their 5 million+ and whoever else he has borrowed from.

As the plan is to pay those debts off with proceeds from the stadium then whether SUFC were in admininstration or not wouldnt matter as he still pays the debts off when Roots Hall is developed. Cant see any benefit whatsoever in administration, or he would have done so already (ie when we owed 2 million in taxes).

 

[Beefy]

Why has the club been losing 100k per week ?

Because it is a football club.

Most people would have done something to change those losses yet year upon year it's allowed to carry on,Think about it.

Become something other than a football club?

 

[united we stand]

Would it not have made sense to build the main stand first, and add the other 3 sides on later? I mean it would look pretty stupid and would only hold 8000, but surely that would be enough whilst the building is ongoing and the revenue streams from the main stand would be operational from the start.

Am I missing something?


The only problem I can see is that we probably never need all of the other 14,000 seats and there would be no motivation for Ron to complete the whole stadium.

Obviously it's too late now and I'm sure (or at least I hope) the planners have thought the staging through in more detail, because it does seem stupid that the main stand will be left until last.

We would not have got planning permisson for a stadium of this size - this was well documented at the time of the original planning permission- still having said that , at the time we would not have got planning permission for 14,000 either . Maybe of more relevance in the past much was made of the Roots Hall covenant wil not allow allow Roots Hall to be redevelped unless we have a home in the Borough of Southend of at least the same size of Roots Hall.

 

[Shrimpergonzo]

We would not have got planning permisson for a stadium of this size - this was well documented at the time of the original planning permission- still having said that , at the time we would not ahve got planning permission for 14,000 either . Maybe of more relevance in the past much was made of the Roots Hall covenant wil not allow allow Roots Hall to be redevelped unless we have a home in the Borough of Southend of at least the same size of Roots Hall.

Yes, absolutely correct - the Council would never agree to us being rehoused in anything smaller than Roots Hall. The other reason for phasing it this way is that our first partner (Sainsbury's) are funding 3-sides of the new ground and Ron will now look for another partner (hotel/casino) to fund the 4th stand.

Remember folks, this is not about the short-term revenue streams for SUFC - this is primarily about Ron getting the developer's profit from the overall scheme. Although we don't like it, the football club are only a means to an end I'm afraid.

 

[londonblue]

SUFC owe the directors and parent company getting on for 10 million, so if we go into admin he doesnt get that. He then will still owe Sainsbury their 5 million+ and whoever else he has borrowed from.

As the plan is to pay those debts off with proceeds from the stadium then whether SUFC were in admininstration or not wouldnt matter as he still pays the debts off when Roots Hall is developed. Cant see any benefit whatsoever in administration, or he would have done so already (ie when we owed 2 million in taxes).

I was talking about going into admin now...