SUFC: The Future SUFC up for sale

[WestyReturns]

It is not something I truly understand.

Currently to buy the club you need £1 + £2.5M Debt + £1M HMRC, proof of funds to forward planning purchase RH & new training ground for £6.5M.

You also then need funds available for the club to sign players, pay wages, investment and more. So let’s say we lost £1.2M a season, so realistically to cover the 3 years forward planning purchase period you would need another £3.6M but realistically only £800K ish now with the ability to pull in or invest more.

So you need about £4.5M liquid cash and £6.5M proof of funds.

If administration was an option. You would need more like £1.5M liquid cash and £6.5M proof of funds and would have more available instantly to be able to invest in the club and team.

But that’s only what 2 highly knowledgeable people in the space have said. I’m trying to get the finance guy on a Twitter live space tonight.

There are very negative knock on effects for directors who put their company into administration. It just doesn't make sense to me for someone to buy the club and then do that.

 

[CRATE]

There are very negative knock on effects for directors who put their company into administration. It just doesn't make sense to me for someone to buy the club and then do that.

Again, not something I truly understand or have any knowledge or experience of!

 

[class]

Reading between the lines, my understanding is RM has a buyer waiting in the wings (that is not KIMURA)… my understand is the new terms offered on the clubs website have up until now not been communicated with interested parties by RM except the website statement. Great negotiating skills pal!

As you say, the first Kimura heard about Ron's wish list was yesterday with evetyone else!

I would however come back to this with, saying to my knowledge (as recent as phone calls this afternoon) people previously mentioned behind the KIMURA bid are very keen to get it done (I know there are contrary reports on here) but with the right assets and terms in place (standard for any purchase weather that’s sweets from a shop of a football club).

Kimura are keen, but not at all with what Ron stated yesterday.

I understand we may see a public statement in the next day or so. Which could be positive of negative news. I don’t know what it is either way. I am 99% sure many will be able to add more to this tonight or tomorrow day time.

Yes ive heard similar, more likely tomorrow now I would say.

 

[Piledriver]

Because Laurie Pinto is at the end of his tether with him.

Laurie Pinto is a highly experienced expert (a veteran, if you will) in the field of sports acquisition brokering.....and he's at the end of his tether with RM, claiming that he's never come across anybody like him before, and not in a good way.

Shows you what potential buyers have been up against.

Many people claim RM is a narcissist however I think he is schizophrenic with several personalities competing for dominance! so which which Ron is anyone dealing with , the motivated seller or any combination of spiv snake oil merchants.

 

[Smiffy]

For those on Twitter

https://twitter.com/i/spaces/1rmxPkkmWlyJN

 

[yogi bear up the cagire]

This is probably a horrible thing to say but if you're drowning in the middle of the ocean and a boat comes to your rescue you don't question his credentials (unless he's the person that dropped you there) and you accept a penalty for boarding. Having said that, I don't understand the full implications of going into adminisstraion but I do understand the desire to survive!

 

[basilrobbie]

Regarding CRATE's very interesting post :

Administration might seem an expedient option from a strictly financial perspective. However :

1) the non-football creditors who get stiffed won't see it that way

2) obviously it carries a points deduction, and given how under-cooked your players are likely to be you may be in the bottom four for quite a long part of the season. Could be a wasted season altogether, all in all

3) I would have thought the mere mention of administration would make the NL even more nervous about your viability in the short to medium term


I have to say that the lack of clear communication coming out of the club is truly astounding. If I were the NL, that alone would strongly tempt me to throw the club out. Whilst a number of people have bemoaned the fact that there is no independent regulator to confront the club owner, in a strange way it is offering the club an unlikely form of protection, because the football authorities don't have the tools to deal with behaviour of this sort, apart from the nuclear options I've referred to.

 

[CRATE]

Simon Jackson, is in the Twitter space. Come and talk mate!

 

[kentblues]

Not sure I get this. If Ron is true to his word and writes off his loans, then the debts are £2.5m.

I think I'd be disappointed if a buyer bought and then we went into admin straight away

Don’t forget the NL would still expect new owners post administration to settle all outstanding football debts as a conditional of a license - so it’s not quite as beneficial as stated? And now the court would have to agree to an administration request and it would not be in the interests of the creditors in the WUP unless they got relief?

 

[Banksy]

For the sake of clarification what is Kumura's Modus Operandi ?

So Kimura are not a prospective buyer then but are acting on behalf of their client ? And are there to facilitate the finance ?

 

[West Stand]

Regarding CRATE's very interesting post :

Administration might seem an expedient option from a strictly financial perspective. However :

1) the non-football creditors who get stiffed won't see it that way

2) obviously it carries a points deduction, and given how under-cooked your players are likely to be you may be in the bottom four for quite a long part of the season. Could be a wasted season altogether, all in all

3) I would have thought the mere mention of administration would make the NL even more nervous about your viability in the short to medium term


I have to say that the lack of clear communication coming out of the club is truly astounding. If I were the NL, that alone would strongly tempt me to throw the club out. Whilst a number of people have bemoaned the fact that there is no independent regulator to confront the club owner, in a strange way it is offering the club an unlikely form of protection, because the football authorities don't have the tools to deal with behaviour of this sort, apart from the nuclear options I've referred to.

It’s pretty obvious that as things stand SUFC are trading whilst insolvent.

As with the talk of redevelopment of RH that is for the future but the problem with any type of insolvency event be it a CVA , Administration on indeed Insolvency itself the clock is ticking and the pressing issues are what we know have to be overcome namely the WUO and the requirements of the NL.

I am not sure on what planet anyone would buy a company, and in this instance a football club, with the intention of putting it into administration where the future wouldn’t be determined by any company official but an independent entity. The likelihood is that every single £ put in by new owners would be wasted


If I were advising , which I am not and someone really wanted to buy the club with the intention of wiping debts I would explore a CVA. But and here’s the big but as I say the clock is ticking.

 

[meerkat54]

There are very negative knock on effects for directors who put their company into administration. It just doesn't make sense to me for someone to buy the club and then do that.

I agree, if new buyers say paid 5mill for the club then go into administration.
They have lost the debt but also lost control of the club. The administrator may not necessarily sell the assets back to previous owner. Other potential buyers may come back on the radar and bid to buy the club out of administration.
Sounds a risky road to take.

 

[West Stand]

Don’t forget the NL would still expect new owners post administration to settle all outstanding football debts as a conditional of a license - so it’s not quite as beneficial as stated? And now the court would have to agree to an administration request and it would not be in the interests of the creditors in the WUP unless they got relief?

That’s always assuming that the NL are still involved

 

[kentblues]

That’s always assuming that the NL are still involved

Well its only league we might be playing in next year…

 

[West Stand]

I agree, if new buyers say paid 5mill for the club then go into administration.
They have lost the debt but also lost control of the club. The administrator may not necessarily sell the assets back to previous owner. Other potential buyers may come back on the radar and bid to buy the club out of administration.
Sounds a risky road to take.

For me administration would be maddness

 

[Sufc.2008]

This really is full of twists and turns isn’t it. Wouldn’t have said a few months ago I’d be sat on a Tuesday night listening to a live stream with Simon’s dad from the Inbetweeners talking about a potential takeover… but here we are!

 

[West Stand]

Well its only league we might be playing in next year…

It is and with big emphasis on the word “ might”

What is concerning is some seem too focused on matters post 5/8 what goes on between there and now presents huge challenges and will determine the clubs very existence

 

[meerkat54]

That’s always assuming that the NL are still involved

I think the NL would be royally ****ed off with us if we went into administration.
I’m really surprised we haven’t been sanctioned the way the club has been run for the past 10 months.

 

[Yorkshire Blue]

There are very negative knock on effects for directors who put their company into administration. It just doesn't make sense to me for someone to buy the club and then do that.

Would it make more sense for a buyer to perhaps establish themselves as the front runner for a failing company and dither until a company has no option but to enter administration, at which point they are magically the front runners to pick up the company from the administrators without the debts?

 

[Hadleigh-shrimper]

So we’re no closer than we was ?