SUFC: The Future SUFC up for sale

[* ORM *]

I owe Rayleigh Boy 10 million but my turnover is 11 million. Why can’t I pay him?

 

[Shrimper]

the great thing about the "debt" it is that it is only really exists in RMs head - plus a few supporters who he duped.

I mean my company is owed 48 million by RayLeigh boy - OR Rayleigh boy is owed 93 million by my company or some such nonsense ..

there are real creditors like HMRC and staff and probably a lot of service providers but all ths inter company nonsense would last about 10 minutes in the high court ..

AND of course RM has taken out of the club ... as have a lot of players ...

Spoken like someone who doesn't have a clue

Will you be taking £300-400k per year out?

 

[londonblue]

the great thing about the "debt" it is that it is only really exists in RMs head - plus a few supporters who he duped.

I mean my company is owed 48 million by RayLeigh boy - OR Rayleigh boy is owed 93 million by my company or some such nonsense ..

there are real creditors like HMRC and staff and probably a lot of service providers but all ths inter company nonsense would last about 10 minutes in the high court ..

AND of course RM has taken out of the club ... as have a lot of players ...

He hasn't duped anyone. You are, however, half right that the debt only really exists in RM's head. Because he has never actually made the club pay the rent and said he never will the item on the balance sheet doesn't really mean anything at the moment.

However when he sells it's a different kettle of fish as the debt is there on the balance sheet and will need to be paid by any new owner because you can rest assured that Ron will charge someone else that money even if he never intends to charge it whilst he owns the club.

Having said that, I would imagine that any new owner will argue that with Ron, and probably come to some kind of compromise, or at least I would hope so.

 

[kentblues]

the great thing about the "debt" it is that it is only really exists in RMs head - plus a few supporters who he duped.

I mean my company is owed 48 million by RayLeigh boy - OR Rayleigh boy is owed 93 million by my company or some such nonsense ..

there are real creditors like HMRC and staff and probably a lot of service providers but all ths inter company nonsense would last about 10 minutes in the high court ..

AND of course RM has taken out of the club ... as have a lot of players ...

Unfortunately the debt sits as assets in other balance sheets. And if you write debt off the other side of the transaction is a charge to the P&L (unless their has been some prior bad debt provision which I doubt). So there are real consequences not just in Ron's head. Will it send those companies under? I suspect when you strip it all away at Group level most of the net debt is covered by charges on land (including that destined for the development). And I suspect through the development there will be a significant revaluation of that land/release of funds that will take away much if not all of the debt. So the problem is timing. So in a way your kind of on the right track in that a lot of the debt will quite possibly "disappear"- but in the meantime it is real and very much not just in Ron's head.

As always no warranties implied or given.

 

[kentblues]

a national league club paying national league players wages with an average gate of 6k is totally sustainable ..

there are no major debts apart from HMRC and staff wages -

(RMs fantasy 89 million or whatever figure comes up this week can go in the re-cycling bin

;-)

There is, perhaps, some evidence to the contrary- for example Notts County a loss of £1.7m in their last accounts ye 22, and Chesterfield (CFC 2001 Limited) a loss of £2.3m in their last accounts ye 22. Average gates 7-8k...FWIW Chesterfields turnover was £4m (I doubt ours exceeds that now...)

In general to be competitive in the division takes an average loss (or owner putting in funds or both) of around £1m. Typically those in the worst position are ex-EFL clubs and best clubs who have been primarily NL historically. I guess because the ex-EFL clubs are rubbish at cutting their cloth and cost base in the belief they will be back in the EFL/need to get back into the EFL. Other clubs are used to running with a much lower cost structure.

Generalisations of course. But we aren't the only basket case.

 

[Rayleigh boy]

. So in a way your kind of on the right track in that a lot of the debt will quite possibly "disappear"-

As always no warranties implied or given.

Thank you for this little compliment from such an astute and knowledgeable post ..

 

[gpd]

I owe Rayleigh Boy 10 million but my turnover is 11 million. Why can’t I pay him?

It's out of profits that you pay him back not turnover. Turnover isnt just money coming in. It will include the cost to you of buying in goods and materials and staff wages etc. For some companies the only "spare " cash they have is profitability. Unless you factor in debt repayment within your turnover accounts then debt repayment will be made out of your profits.

 

[JD]

I owe Rayleigh Boy 10 million but my turnover is 11 million. Why can’t I pay him?

You can, you just need to build and sell those 4000 house first.

 

[* ORM *]

It's out of profits that you pay him back not turnover. Turnover isnt just money coming in. It will include the cost to you of buying in goods and materials and staff wages etc. For some companies the only "spare " cash they have is profitability. Unless you factor in debt repayment within your turnover accounts then debt repayment will be made out of your profits.

I fear this one went over your head

 

[Pak Power]

Has anyone else heard the Ray Winstone rumour? I haven’t read his name mentioned on here before.

 

[Napster]

Has anyone else heard the Ray Winstone rumour? I haven’t read his name mentioned on here before.

hahahahaha

 

[Spaceman Spiff]

Any other well known East Londoners we can link with a takeover? Jack the Ripper?

 

[stewart]

Any other well known East Londoners we can link with a takeover? Jack the Ripper?

Jack will probably rip us off also .

 

[Shrimper Brownie]

From what I understand the deals on the table it’s whether that odious cretin Martin wants to accept .. apparently it’s still in Martins court . What I do know is that the increase ins demos by this new mob and the pressure Ron is feeling by the home visits IS WORKING

Court = Basketball = Steve Nash


Here. We. Go!!!!!

 

[Thor1]

Court = Basketball = Steve Nash


Here. We. Go!!!!!

A bit tenuous, but I'll take it.

 

[Ozzer]

He hasn't duped anyone. You are, however, half right that the debt only really exists in RM's head. Because he has never actually made the club pay the rent and said he never will the item on the balance sheet doesn't really mean anything at the moment.

However when he sells it's a different kettle of fish as the debt is there on the balance sheet and will need to be paid by any new owner because you can rest assured that Ron will charge someone else that money even if he never intends to charge it whilst he owns the club.

Having said that, I would imagine that any new owner will argue that with Ron, and probably come to some kind of compromise, or at least I would hope so.

I think I can see where he's coming from. RM owns the football club, Roots Hall, B&L and everything connected with the club. It's like owning a 2nd house, spending money on an extension and redecoration and expecting a subsequent buyer to separately pay you the value of invoices at a later date.

 

[AlfaShrimper]

From what I understand the deals on the table it’s whether that odious cretin Martin wants to accept .. apparently it’s still in Martins court . What I do know is that the increase ins demos by this new mob and the pressure Ron is feeling by the home visits IS WORKING

We need to get there again then asap! We have to remember that technically we could be wound up in 50 days!

 

[danbowen]

We need to get there again then asap! We have to remember that technically we could be wound up in 50 days!

I highly doubt the protests at his house are speeding up the sale now although you could argue that they sped up him putting the club up for sale initially.

We also could be taken over and the embargo fully cleared in much less than 50 days. A business sale is never an overnight sale and will take the time it takes. It’s pleasing to hear numerous parties are interested and already going through the process so I wouldn’t be too concerned about the next court date at this moment in time.

 

[Leeboy]

Court = Basketball = Steve Nash


Here. We. Go!!!!!

more like the tennis one he has in his back garden

 

[Yer Blues]

Court = Basketball = Steve Nash


Here. We. Go!!!!!

Oh No!

Court = An Actual Court = RON MARTIN

It's all gone a bit Keyser Soze