SUFC: The Future SUFC up for sale

[Boreham Blue]

I get that FF and RH are the stumbling block but not sure what the deal looks like for Ron. He's not a builder so surely he just sells the land to the builders? Are Kimura not just wanting to buy the land from Ron pre-stadium and will get it built and rent RH under the terms Ron mentioned?

I'd have thought that would give Ron a nice hefty cash receipt while he is around to spend it and free him to sell the rest of the land to build houses on?

It can't be that simple but I don't understand how else it would work.

 

[dusterman]

Negativity seems to have ramped another level today.

Even the most positive people seem to think it’s done.

We’ve been tricked in plain sight. Club appears to be on it’s very last legs.

 

[Crowstone Crevette]

I don't know if it's relevant or not but I live within spitting distance of the West Stand entrance. About an hour or so ago I heard them testing the P.A. System in the ground.

Is it the Safety Certificate check being carried out?

If so why bother if it's all over?

 

[fredheim_holm]

I don't know if it's relevant or not but I live within spitting distance of the West Stand entrance. About an hour or so ago I heard them testing the P.A. System in the ground.

Is it the Safety Certificate check being carried out?

If so why bother if it's all over?

Nobody is giving up, I really don’t see the club going boom immediately, but how long the NL give and what they need by then who knows.

 

[Beefy]

And that my friend represents everything that's wrong with football in the modern age. Plastic fans, inflated prices, overpaid and overrated players, pony rule changes, non-contact sport, proper supporters being priced out of the live match experience etc.

This isn't a wider football problem. This is a Southend United problem and more specifically a Ron Martin problem.

Smaller clubs than us aren't facing these problems and we're not owed a living by the teams at the top.

 

[NG_Shrimp]

I get that FF and RH are the stumbling block but not sure what the deal looks like for Ron. He's not a builder so surely he just sells the land to the builders? Are Kimura not just wanting to buy the land from Ron pre-stadium and will get it built and rent RH under the terms Ron mentioned?

I'd have thought that would give Ron a nice hefty cash receipt while he is around to spend it and free him to sell the rest of the land to build houses on?

It can't be that simple but I don't understand how else it would work.

Ron is a developer. He buys land, appoints builders/contractors to build the assets (houses, flats, shops, stadiums -as if!) and then is free to either sell or rent them or lease them what ever he likes to generate a revenue stream.
He doesn't want to give up those revenue streams they are worth millions to him. The deal he wants to strike keeps him 100% in control of that but the club is worth nothing to anyone else without a big slice of that.
He is saying he would wipe the debt the club owe to him and sell for £1, but clearly only if he can keep the cash from the land development.
Its a property deal and our club is stuck in the middle of it.

 

[kentblues]

To see the players training today, has given me a breath of fresh air today. Yes was not many of them, but was a couple of faces I didn’t recognise.

My understanding is KIMURA are using third party funding for this, does anyone know if this is true and it’s not there own money?

Also, does anyone know if the football regulation of NOT being able to own a football agency whilst owning a club at the same time XL considering KIMURA own a % of the agency ISM would effect the deal going through?

Kimura Performance owns just over 1% of the shares in ISM. So very unlikely a problem and no-where near a controlling stake. And it wouldn't be IMS owning the club. Doesn't even have to be Kimura Performance Management. Could be another Group company or even a separate company created as a vehicle for the acquisition? So far from anything to worry about.

 

[C'mon you Shrimpers]

Ron is a developer.
Its a property deal and our club is stuck in the middle of it.

And 100% the reason why the Trust in all its early names was formed got to be over 20 years ago. The inherent conflict between making money out of a football club's assets and running a loss making football club.

 

[Shrimperjohn]

I’ve decided to stop logging on to SZ for 2 weeks being not because I don’t value everyone’s input but it’s just no good news currently . Hopefully there will be more encouraging news around the end of July.. UTB

 

[Sudbury_Shrimpers]

I feel 29.4% of Southend Utd shareholders, can form together and put pressure on RM to sell the club.

 

[Grayson]

I feel 29.4% of Southend Utd shareholders, can form together and put pressure on RM to sell the club.

Even the dead ones?

 

[Napster]

Even the dead ones?

Especially the dead ones

 

[SuperBlue]

Ron is a developer. He buys land, appoints builders/contractors to build the assets (houses, flats, shops, stadiums -as if!) and then is free to either sell or rent them or lease them what ever he likes to generate a revenue stream.
He doesn't want to give up those revenue streams they are worth millions to him. The deal he wants to strike keeps him 100% in control of that but the club is worth nothing to anyone else without a big slice of that.
He is saying he would wipe the debt the club owe to him and sell for £1, but clearly only if he can keep the cash from the land development.
Its a property deal and our club is stuck in the middle of it.

I wouldn’t begrudge him his development, but good people would gift the stadium back to the club. Look at Brentford for example. Moved to a lovely new stadium owned by…the club! After making money on the development around the stadium and the old stadium. Making so much money the cost of the stadium pales into insignifance.

The FF site development is worth hundreds of millions. The stadium might cost £20m.

Though I’m asking for an honourable thing from an non honourable person

 

[united we stand]

I get that FF and RH are the stumbling block but not sure what the deal looks like for Ron. He's not a builder so surely he just sells the land to the builders? Are Kimura not just wanting to buy the land from Ron pre-stadium and will get it built and rent RH under the terms Ron mentioned?

I'd have thought that would give Ron a nice hefty cash receipt while he is around to spend it and free him to sell the rest of the land to build houses on?

It can't be that simple but I don't understand how else it would work.

I see two major issues here:
Planning permission and costs.

Planning permission is phased. 3 sides of the stadium needs to be built before the flats and before roots hall can be knocked down and flats built ( happy to be corrected by those with a better understanding).
If Ron sells the stadium land he looses control on the timing of the stadium build and therefore the timing of the flats being built and therefore his pit of gold.
Legal penalties could cover off on this but it makes it more complicated.

He has already stated that the stadium would be sold at less than the build costs ( he dressed it up that he was doing SUFC a massive favour). The reality is that he needs the stadium built to enable him to make his money on the housing. Therefore he is ‘happy’ to sell the stadium as a loss leader in order to achieve his overall goals.
If a purchaser bought the land they would be paying the full costs for the build which would be madness.

Again happy to be corrected if I have misunderstood

 

[NZamba Legend]

Especially the dead ones

They can be pretty stubborn

 

[CRATE]

Over the next few hours, I am going to be recording 9 set questions with as many fans as I can over zoom. These questions will be used in an interview I am going to be doing tomorrow so they really understand how people feel.

If anyone is free, and has 10-15 minutes, your questions will be published on YouTube. Then please drop me a DM, questions are very basic. Be good to cover a wide demographic of fans.

Got 4 confirmed, so any more willing to get involved, just drop me a WhatsApp +447932921008

 

[shrimperjon]

Over the next few hours, I am going to be recording 9 set questions with as many fans as I can over zoom. These questions will be used in an interview I am going to be doing tomorrow so they really understand how people feel.

If anyone is free, and has 10-15 minutes, your questions will be published on YouTube. Then please drop me a DM, questions are very basic. Be good to cover a wide demographic of fans.

Got 4 confirmed, so any more willing to get involved, just drop me a WhatsApp +447932921008

Can i ask who the person is please?

 

[Yorkshire Blue]

I believe it’s actually 90%

The 75% threshold is more to do with the vote required to pass a special resolution but that’s not the shareholding required it’s the % of votes cast. With 30ish % of the votes in other shareholders hands I would guess if push came to shove at least 15% of the total shares are either inactive ( shareholder no longer with us) or wouldn’t be used in any vote . So in effect 75%of the 85% equates to less than % of shares RM controls

I am not a shareholder but what would be interesting is if 10% of the shareholders were able to work together to call what always used be known as an EGM to pass a resolution to remove the directors alongside other resolutions which could well force RMs hand

They could call an EGM but with 70% of the shares Ron is going to win any vote.

Just a thought here but as it stands to my knowledge RM owes the Trust £40k, Ron has 70.62% of the shares of the club, would it be in the trusts interest to broker a deal for say 19.62% of the club? They'd not see their money back but who thinks they'll ever see that anyway? They'd automatically become the second largest shareholder in the club and Ron would still hold 51% of the club, a controlling share he can continue to sell to whoever he see's fit.

Ron would lose a liability in the debt he owes to the Trust and there's always the potential for the Trust to attempt to purchase some of the remaining shares of the club. They'd never on a controlling stake I know, unless the majority shareholder chose to sell a portion to them but it would be a start.

I would have been favour of such a strategy in the past but my concern at the moment would be that weakening the shares on sale would make it less attractive for any purchaser at a time where we need to attract a purchaser.

This is excellent and exactly what the trust should be mobilising the fan base to do

The Trust has been lobbying DCMS.

The Fit and Proper Person test only applies at the time of purchase.

I believe the Trust are looking into trying to make Roots Hall an asset of community value after someone suggested it. We may need to be careful with this though if it makes us less attractive to a purchaser at a time where we are desperately seeking a purchaser.

Also, does anyone know if the football regulation of NOT being able to own a football agency whilst owning a club at the same time XL considering KIMURA own a % of the agency ISM would effect the deal going through?

This is an interesting point that I don’t think has been given enough prominence. Ron seemingly made a big deal about the National League taking up to 4 weeks to approve owners. Whilst Kimura may only have a small stake in ISM Kris Tremaine is on the board of both. This may be something the NL needs to clear? It would certainly have been brave of Ron to cite the NL as the cause of the delays to the Court the day before the NL met to decide our future.

 

[TJC]

I see two major issues here:
Planning permission and costs.

Planning permission is phased. 3 sides of the stadium needs to be built before the flats and before roots hall can be knocked down and flats built ( happy to be corrected by those with a better understanding).
If Ron sells the stadium land he looses control on the timing of the stadium build and therefore the timing of the flats being built and therefore his pit of gold.
Legal penalties could cover off on this but it makes it more complicated.

He has already stated that the stadium would be sold at less than the build costs ( he dressed it up that he was doing SUFC a massive favour). The reality is that he needs the stadium built to enable him to make his money on the housing. Therefore he is ‘happy’ to sell the stadium as a loss leader in order to achieve his overall goals.
If a purchaser bought the land they would be paying the full costs for the build which would be madness.

Again happy to be corrected if I have misunderstood

If Ron keeps control, nothing will ever be bloody built! Best hand it over to someone that can get it moving.

 

[Holy Joe]

I see two major issues here:
Planning permission and costs.

Planning permission is phased. 3 sides of the stadium needs to be built before the flats and before roots hall can be knocked down and flats built ( happy to be corrected by those with a better understanding).
If Ron sells the stadium land he looses control on the timing of the stadium build and therefore the timing of the flats being built and therefore his pit of gold.
Legal penalties could cover off on this but it makes it more complicated.

He has already stated that the stadium would be sold at less than the build costs ( he dressed it up that he was doing SUFC a massive favour). The reality is that he needs the stadium built to enable him to make his money on the housing. Therefore he is ‘happy’ to sell the stadium as a loss leader in order to achieve his overall goals.
If a purchaser bought the land they would be paying the full costs for the build which would be madness.

Again happy to be corrected if I have misunderstood

Close on the planning conditions. I think it's Flats at FF can start when the club has signed a new lease on the new training ground. But no flats can be occupied until phase 1 of stadium is complete.

I too suspect one stumbling block might be RM thinks it's too risky to give up control of stadium build.