SUFC: The Future SUFC up for sale

[Sparte]

I think he means if anything over the stated debts come to light he will reduce the asking price 4.5m of RH or whatever they stress for the baron fields with no irrigation, gym, canteen or changing rooms

That’s the way I read it…

 

[Paddypel]

I think that @CRATE could be some relation of Martins.

He seems to know everything going on.

No, he's just a fan like the rest of us but he's putting in background work on sourcing any info he can and relaying it to the fanbase in a way that the owner has never done.

 

[basilrobbie]

If I were them I wouldn’t either. I’m struggling to see how they get a return on their investment, and that is what their backers are by all accounts - investors seeking a return on their cash over and above the risk free rate that one earns by having cash in the bank.

Ron’s deal would be great for a supporter with lots of money but I struggle to see the return on investment. Maybe that’s why I work in finance but am not a banker though?

I think this is what I'm struggling with, really. You pay a hefty price (and it is hefty, in real terms) for a loss making and distressed enterprise. Then you get the "right" to manage it through a prolonged period of risk (and expense) while you either prepare for a rebuild or identify a new site (which may or may not be FF).

It could be done, with a big emotional investment and a lot of goodwill. But is it a sound business decision to take it on?

Having slept on it, the timing of this smells off to me as well. RM has either been bounced into it (by the NL's requirements, probably), or this is all a sleight of hand to distract people from the immediate problem.

I hope I'm wrong. Putting you all through this is unconscionable.

 

[Benfleet A1]

Well I'm going to the Spuds v Wet Spam game here in Perth this evening. It'll take my mind off of what's going on here for a few hours.

I'll wear my Southend shirt and take both sets of fans on.

Jab, jab, punch. Jab, jab, punch. Tried and tested

 

[rlb999]

Whilst fans on here seem to love the detail, I’m not sure how helpful yesterdays statement from Ron actually is.

Surely his phone will be ringing all morning with vultures (who have no interest in SUFC) wanting to give him £4.5m for Roots Hall.

 

[Shrimper44]

I think that @CRATE could be some relation of Martins.

He seems to know everything going on.

Well if he is...he didn't invite us all in for a BBQ on Saturday

 

[GBJ]

Our issue has always been cashflow and that isn't going to change whoever owns us. Very few football clubs run profitably and even the ones that do have to be mindful of cash.

Actually, I’d say our issue is where our cash flow goes.

Does Ron not understand budgeting? Successive relegations, wage bill cut significantly and we’re still losing the same amount we were losing back in our Lg1 days….

Make it make sense.

No. I can't because I'm not privy to that information, but given the state of the accounts, it looks like it's pretty accurate.

Can you show me that we're not?

Either way, you're missing the main point, which is that the club is losing money year on year and needs to be funded until any new development is competed. You can argue over the actual amount it you want, but that's missing the point.

I’m not denying someone would need to put their hand in their pocket & I’m not denying we lose money. Currently. Agreed, it’s a fact.

I’m suggesting that with new ownership, there’s no reason why that trend should continue indefinitely.

The reason why we lose money year after year is because we have someone in charge who has consistently mismanaged our finances.

That’s the point that you’re missing.

 

[Userorange]

Surely his phone will be ringing all morning with vultures (who have no interest in SUFC) wanting to give him £4.5m for Roots Hall.

He’s going to need a box of tissues…

 

[londonblue]

I’m not denying someone would need to put their hand in their pocket & I’m not denying we lose money. Currently. Agreed, it’s a fact.

I’m suggesting that with new ownership, there’s no reason why that trend should continue indefinitely.

The reason why we lose money year after year is because we have someone in charge who has consistently mismanaged our finances.

That’s the point that you’re missing.

Agree, but there's also no magic wand and we will continue to lose money year on year even with a new owner if we can't generate revenue other than on match days.

 

[Snowy]

Whilst fans on here seem to love the detail, I’m not sure how helpful yesterdays statement from Ron actually is.

Surely his phone will be ringing all morning with vultures (who have no interest in SUFC) wanting to give him £4.5m for Roots Hall.

I agree, and there was me thinking I could buy the club for £1. It's not that amount in reality it's a whole lot more.

 

[Cricko]

He’s going to need a box of tissues…

I don't think he will have any time for that.

God, now i made myself feel sick..

 

[Supa Shrimpa]

I agree, and there was me thinking I could buy the club for £1. It's not that amount in reality it's a whole lot more.

For £1 you inherit £19m+ of debt. Bargain !!!!!!!!!!

 

[number11]

Just asking out of curiosity….

For those that have referred to fan ownership in the past (and the fact that Roots Hall was the fans originally) at what point does this ever actually become viable for Southend?

If you took Ron’s statement at face value (I know, I know….) the club can be bought for £1 and Roots Hall for £4.5mil (possibly spread over time) which is an amount that many on here have said was a gross undervaluation when Ron bought it 20 odd years ago so seems undervalue now. There’s the debts and running costs and renovations but this was always the case? So we accept that the running costs of a club (or specifically Southend at roots hall) is too expensive for fans ownership?

Are we now saying we are only attractive to someone with money to burn / lose on a club or that want to rape and pillage us for the land asset?

How 20 years of fan ownership is helping Exeter 'do it right' - BBC Sport

BBC Sport examines English football's first fan-owned club - Exeter City - two decades after supporters first took control.

www.bbc.com

 

[Boreham Blue]

For £1 you inherit £19m+ of debt. Bargain !!!!!!!!!!

Really? Who is the £19m to?

 

[Alexshrimper]

Actually, I’d say our issue is where our cash flow goes.

Does Ron not understand budgeting? Successive relegations, wage bill cut significantly and we’re still losing the same amount we were losing back in our Lg1 days….

Make it make sense.



I’m not denying someone would need to put their hand in their pocket & I’m not denying we lose money. Currently. Agreed, it’s a fact.

I’m suggesting that with new ownership, there’s no reason why that trend should continue indefinitely.

The reason why we lose money year after year is because we have someone in charge who has consistently mismanaged our finances.

That’s the point that you’re missing.

I mean we let out most valuable player walk through the door for free

Seems great business to me

Had he had the foresight to transfer list him and get a sale we might of been able to pay the players for a couple of months

Business acumen is shocking

 

[kentblues]

For £1 you inherit £19m+ of debt. Bargain !!!!!!!!!!

But its not true. More stuff just made up/repeated even though its been debunked. We really are on social media.

The £19m is being written off. Further if debt comes to light over and above stated in the offer it can be deducted from the purchase price of RH and/or training ground. See CRATE also confirming.

You can have a view of whether its a good deal or bad deal. But at least base that opinion on facts?

 

[Supa Shrimpa]

Just asking out of curiosity….

For those that have referred to fan ownership in the past (and the fact that Roots Hall was the fans originally) at what point does this ever actually become viable for Southend?

If you took Ron’s statement at face value (I know, I know….) the club can be bought for £1 and Roots Hall for £4.5mil (possibly spread over time) which is an amount that many on here have said was a gross undervaluation when Ron bought it 20 odd years ago so seems undervalue now. There’s the debts and running costs and renovations but this was always the case? So we accept that the running costs of a club (or specifically Southend at roots hall) is too expensive for fans ownership?

Are we now saying we are only attractive to someone with money to burn / lose on a club or that want to rape and pillage us for the land asset?

How 20 years of fan ownership is helping Exeter 'do it right' - BBC Sport

BBC Sport examines English football's first fan-owned club - Exeter City - two decades after supporters first took control.

www.bbc.com

Ermmmm. Yes ! Although the land asset isn't great either. If there were profits to be made building around RH i'm sure he would have done that himself. I wonder. Is it just RH, or the land it sits on, aswell ?

 

[Boreham Blue]

Really? Who is the £19m to?

I interpret the deal as:

£1 to buy the club
£2.5m debt (of which £1m immediate)
£4.5m RH
£2m training ground (that figure might be wrong)

So the whole deal is South of £10m some of which is needed up front.

This would then also require cash to cover a couple of years losses and then maybe £10m to develop RH.

 

[fredheim_holm]

Just asking out of curiosity….

For those that have referred to fan ownership in the past (and the fact that Roots Hall was the fans originally) at what point does this ever actually become viable for Southend?

If you took Ron’s statement at face value (I know, I know….) the club can be bought for £1 and Roots Hall for £4.5mil (possibly spread over time) which is an amount that many on here have said was a gross undervaluation when Ron bought it 20 odd years ago so seems undervalue now. There’s the debts and running costs and renovations but this was always the case? So we accept that the running costs of a club (or specifically Southend at roots hall) is too expensive for fans ownership?

Are we now saying we are only attractive to someone with money to burn / lose on a club or that want to rape and pillage us for the land asset?

How 20 years of fan ownership is helping Exeter 'do it right' - BBC Sport

BBC Sport examines English football's first fan-owned club - Exeter City - two decades after supporters first took control.

www.bbc.com

There’s a third way to your two here:

1. Fan owned
2. Bought by someone who wants to lose money/pillage
3. Bought by competent business people who have the financial backing to create real change at the club that we as fans couldn’t, enabling us to get to a point where we’re self sufficient whilst growing the asset in the meantime.

Wrexham fans left #1 for #3, and whilst I don’t think we’ll have a journey anywhere near as remarkable as there’s I think it’s also our best option.

 

[fredheim_holm]

I interpret the deal as:

£1 to buy the club
£2.5m debt (of which £1m immediate)
£4.5m RH
£2m training ground (that figure might be wrong)

So the whole deal is South of £10m some of which is needed up front.

This would then also require cash to cover a couple of years losses and then maybe £10m to develop RH.

I imagine it might be higher than this, the training ground work recently cost £2m, but the land wasn’t worthless before that. Ron said he’s happy to sell at cost, that may include the cost of the land he incurred?