SUFC: The Future SUFC up for sale

[Sherif H]

My understanding of the web of lies and deceit is as below (and those with a better understanding of this mess, please step in!!):

Southend United Football Club is majority controlled/owned by South Eastern Leisure Ltd.
Ron Martin is the only active Director of SEL Ltd, however, SEL (Ron) has chosen not to list a person with significant overall control of this company.
If you are buying the 'football club' as it were, you are buying SEL's shares, but this doesn't include any rights to Roots Hall - what you are in fact buying (I presume) is the right to use the football club's name/history/branding etc.

Roots Hall Limited owns Roots Hall - Elounda LLP being the person/company with overall control. Elounda LLP is controlled by Julie, Jack and Tom Martin - another classic piece of liability shifting/asset protection from Ron.

Roots Hall Limited currently has 2 pending charges - both to CBRE. So, my interpretation of this is that RHL has secured bridging finance via CBRE in exchange for security against a number of parcels of land - primarily Roots Hall and the land around it. See below for the full list:



So in essence, I think Roots Hall needs to be treated as a separate purchase (hence the terms of Ron's offer), because it would, presumably be Southend United/SEL which would be threatened with administration.
Ron being chased individually also now has no impact on Roots Hall as a retained asset, because he has no claim to this company.

One other thing to be aware of (which may or may not become relevant in due course) is that should RHL be threatened with insolvency, the Directors (namely Julie, Jack and Tom) could hurry through a sale via a pre-pack administration. This would then provide the perfect opportunity for somebody to cash in on Roots Hall at the aforementioned knock-down price. How we get to that position I would love to know, as that would appear to be the only realistic chance of purchasing the stadium at a low value. Can't see this happening for obvious reasons, and just highlights why Ron has now distanced himself from this side of the Club.

 

[kentblues]

My understanding of the web of lies and deceit is as below (and those with a better understanding of this mess, please step in!!):

Southend United Football Club is majority controlled/owned by South Eastern Leisure Ltd.
Ron Martin is the only active Director of SEL Ltd, however, SEL (Ron) has chosen not to list a person with significant overall control of this company.
If you are buying the 'football club' as it were, you are buying SEL's shares, but this doesn't include any rights to Roots Hall - what you are in fact buying (I presume) is the right to use the football club's name/history/branding etc.

Roots Hall Limited owns Roots Hall - Elounda LLP being the person/company with overall control. Elounda LLP is controlled by Julie, Jack and Tom Martin - another classic piece of liability shifting/asset protection from Ron.

Roots Hall Limited currently has 2 pending charges - both to CBRE. So, my interpretation of this is that RHL has secured bridging finance via CBRE in exchange for security against a number of parcels of land - primarily Roots Hall and the land around it. See below for the full list:

View attachment 27778

So in essence, I think Roots Hall needs to be treated as a separate purchase (hence the terms of Ron's offer), because it would, presumably be Southend United/SEL which would be threatened with administration.
Ron being chased individually also now has no impact on Roots Hall as a retained asset, because he has no claim to this company.

Correct. It would be a separate property sale. And if you had any sense as a buyer you wouldn't just want EX121122 you would want what makes up the RH development site. Or should if you are seriously looking at the purchase.

The extent to which the charges via CBRE set a floor on what he can sell for we don't know.

 

[number11]

My understanding of the web of lies and deceit is as below (and those with a better understanding of this mess, please step in!!):

Southend United Football Club is majority controlled/owned by South Eastern Leisure Ltd.
Ron Martin is the only active Director of SEL Ltd, however, SEL (Ron) has chosen not to list a person with significant overall control of this company.
If you are buying the 'football club' as it were, you are buying SEL's shares, but this doesn't include any rights to Roots Hall - what you are in fact buying (I presume) is the right to use the football club's name/history/branding etc.

Roots Hall Limited owns Roots Hall - Elounda LLP being the person/company with overall control. Elounda LLP is controlled by Julie, Jack and Tom Martin - another classic piece of liability shifting/asset protection from Ron.

Roots Hall Limited currently has 2 pending charges - both to CBRE. So, my interpretation of this is that RHL has secured bridging finance via CBRE in exchange for security against a number of parcels of land - primarily Roots Hall and the land around it. See below for the full list:

View attachment 27778

So in essence, I think Roots Hall needs to be treated as a separate purchase (hence the terms of Ron's offer), because it would, presumably be Southend United/SEL which would be threatened with administration.
Ron being chased individually also now has no impact on Roots Hall as a retained asset, because he has no claim to this company.

That’s my understanding too.

One of our problems is that these were separated and the loss making football club has no assets (in the tangible sense).
Could we as fans, with govt help etc - ever come up with £4.5mil to bring roots hall in to safe hands and secure a future with a football club in the town?

 

[Sherif H]

Correct. It would be a separate property sale. And if you had any sense as a buyer you wouldn't just want EX121122 you would want what makes up the RH development site. Or should if you are seriously looking at the purchase.

The extent to which the charges via CBRE set a floor on what he can sell for we don't know.

One can therefore assume that whilst the majority of us see a £4.5m valuation of Roots Hall as the sale of the century, the outstanding liabilities/charges no doubt trawled through in some detail via the DD process, perhaps proved a little too much to stomach?

 

[Sherif H]

That’s my understanding too.

One of our problems is that these were separated and the loss making football club has no assets (in the tangible sense).
Could we as fans, with govt help etc - ever come up with £4.5mil to bring roots hall in to safe hands and secure a future with a football club in the town?

Which is why I have always maintained a position that a potential purchaser of the football club is buying nothing more than a name and the ability to rent a new stadium which hasn't yet been built....ergo, it was always a **** deal.

 

[Rayleigh boy]

That’s my understanding too.

One of our problems is that these were separated and the loss making football club has no assets (in the tangible sense).
Could we as fans, with govt help etc - ever come up with £4.5mil to bring roots hall in to safe hands and secure a future with a football club in the town?

a football club does have some assets ..

players and management contracts -

player sales - Henry Sandat ???

inward revenue for ticket sales -

inward revenue from sponsorship and advertising ..

membership of NL

shirts sales -

hospitality

- etc etc etc etc

 

[Sherif H]

a football club does have some assets ..

players and management contracts -

player sales - Henry Sandat ???

inward revenue for ticket sales -

inward revenue from sponsorship and advertising ..

membership of NL

shirts sales -

hospitality

- etc etc etc etc

Take a look at the balance sheet - I don't think that is going to excite many prospective purchasers...

 

[Shrimper]

a football club does have some assets ..

players and management contracts -

player sales - Henry Sandat ???

inward revenue for ticket sales -

inward revenue from sponsorship and advertising ..

membership of NL

shirts sales -

hospitality

- etc etc etc etc

Only the player contracts would be assets. Rest is just income/expenditure

 

[Sherif H]

Only the player contracts would be assets. Rest is just income/expenditure

The accounts suggest that the company is some way beyond insolvent.

 

[M_Simps]

Is there any point in emailing The FA's owners and directors test (ODT@TheFA.com)? I understand this is only for new/incoming owners and not existing ones. He's got Anna Firth, HMRC, the National League and the fans on his case. Is there anyone else we can try to get onside to add further pressure?

 

[kentblues]

One can therefore assume that whilst the majority of us see a £4.5m valuation of Roots Hall as the sale of the century, the outstanding liabilities/charges no doubt trawled through in some detail via the DD process, perhaps proved a little too much to stomach?

Well I think some see why the purchase price could be very reasonable, but there are some who do not. Normally those who see the purchase as no more than a crumbling stadium (and this may include the proposed buyers although as business people they must be alert to the wider "opportunity"?)

You are right- the football club is £1 (but with £2.5m of debts and Ron saying, allegedly, he will underwrite above that). So the club is in effect costing £2.5m.

A bidder may say "I need that £2.5m discounted off the £4.5 price of the stadium". Ron would no doubt say the price for RH is already a give away given the potential and what's more you can pay over 3 years whilst you begin to realise that potential..

The problem is if you don't have a buyer who understands the potential of the RH site you probably have the wrong buyer.

It a bit like me owning a house with a big garden at the side with planning.

The house was worth £1m but with the plot its worth £1.5m. You say I want the house and to keep garden so its worth £1m...well you can keep offering £1m but it does make it worth £1m. Do the buyers get this? No idea.

 

[kentblues]

Take a look at the balance sheet - I don't think that is going to excite many prospective purchasers...

View attachment 27782

Only (I say only) £2.5m of that debt follows the club. The rest is inter-company and being "written off".

 

[LBBlue]

Little summary I did last week. The only years we actually have made a real profit in the last 25 were 2003/4, 2005/6 and 2006/7 ….Ron wrote off £1.567m in 2006 and £6.878m in 2017/8 but half of that was owed to him any way. He has actually written off more than he has charged the club.


The club owes his companies £15.647m - I presume he will write this off and only pass on the other debts .

 

[Alexshrimper]

My understanding of the web of lies and deceit is as below (and those with a better understanding of this mess, please step in!!):

Southend United Football Club is majority controlled/owned by South Eastern Leisure Ltd.
Ron Martin is the only active Director of SEL Ltd, however, SEL (Ron) has chosen not to list a person with significant overall control of this company.
If you are buying the 'football club' as it were, you are buying SEL's shares, but this doesn't include any rights to Roots Hall - what you are in fact buying (I presume) is the right to use the football club's name/history/branding etc.

Roots Hall Limited owns Roots Hall - Elounda LLP being the person/company with overall control. Elounda LLP is controlled by Julie, Jack and Tom Martin - another classic piece of liability shifting/asset protection from Ron.

Roots Hall Limited currently has 2 pending charges - both to CBRE. So, my interpretation of this is that RHL has secured bridging finance via CBRE in exchange for security against a number of parcels of land - primarily Roots Hall and the land around it. See below for the full list:

View attachment 27778

So in essence, I think Roots Hall needs to be treated as a separate purchase (hence the terms of Ron's offer), because it would, presumably be Southend United/SEL which would be threatened with administration.
Ron being chased individually also now has no impact on Roots Hall as a retained asset, because he has no claim to this company.

One other thing to be aware of (which may or may not become relevant in due course) is that should RHL be threatened with insolvency, the Directors (namely Julie, Jack and Tom) could hurry through a sale via a pre-pack administration. This would then provide the perfect opportunity for somebody to cash in on Roots Hall at the aforementioned knock-down price. How we get to that position I would love to know, as that would appear to be the only realistic chance of purchasing the stadium at a low value. Can't see this happening for obvious reasons, and just highlights why Ron has now distanced himself from this side of the Club.

Does this not seem really good

Surely we should be turning the heat up on Julie, Jack and Tom as they own roots hall?

So far Ron has taken the flack but these 3 people have allowed themselves to be embroiled in this situation.

Can the press start interviewing these people as like it or not they are now involved in the club??

What can we do so they feel the heat as much as Ron. I’m sorry but there is no reason Julie Martin should be anywhere near controlling the fate of SUFC

What can we do

 

[LBBlue]

Only (I say only) £2.5m of that debt follows the club. The rest is inter-company and being "written off".

It might be inter company but somewhere there has to be some cash earned or borrowed by those companies - to be repaid for, Fossets Farm

 

[londonblue]

a football club does have some assets ..

players and management contracts -

player sales - Henry Sandat ???

inward revenue for ticket sales -

inward revenue from sponsorship and advertising ..

membership of NL

shirts sales -

hospitality

- etc etc etc etc

Just to be clear, revenue isn't an asset. That rules out:

Player sales, inward revenue (as you call it, but there's no such thing as outward revenue!) for ticket sales, sponsorship and advertising, shirt sales and hospitality.

 

[Sherif H]

Does this not seem really good

Surely we should be turning the heat up on Julie, Jack and Tom as they own roots hall?

So far Ron has taken the flack but these 3 people have allowed themselves to be embroiled in this situation.

Can the press start interviewing these people as like it or not they are now involved in the club??

What can we do so they feel the heat as much as Ron. I’m sorry but there is no reason Julie Martin should be anywhere near controlling the fate of SUFC

What can we do

It is very far from good.

Ron has positioned anything of value away from his own name/existing companies to ensure that they cannot be touched in the event that the heat is turned up on him personally.

If anything, this makes it even more difficult to envisage a scenario where the supporters are able to eventually gain part or full ownership of the stadium.

 

[Blue Yonder]

Are we saying the stadium is owned by Julie, Jack and Tom and isn't in fact legally Ron's to sell ?

 

[Blues4LifeDan]

Dad and I were just having an honest conversation about all this, ironically on the way to picking up our season cards.

We were saying that who realistically is going to want to stump up the cash? Let's all take our Southend United glasses off and ask that question. Yes, there may very well be a consortium willing to purchase the club for what they value it at, but that is most probably peanuts. I'm not knocking them for that, because why should they pay what Ron is asking? Especially when most of that is debt he has accumulated.

However, in all honesty, why should Ron accept their offer? Yes, we all want him to accept it and we all dream of a better future, but being at Roots Hall and everything being 'ok' again is just a dream at this point. No business person in their right mind is going to throw away £10m (cost for everything in the sale) for no return. They then have to spend god knows how much to redevelop Roots Hall. Again, where is the return? If there is one, it won't be for a long, long time. People had Roots Hall blue prints up on here not so long ago, dreaming of a redeveloped stadium and a few flats dotted around. How much profit is really there for those potential buyers?

I just cannot see any sound mind business group willing to throw £20m+ at us with just RH and the club in the mix. Kimura's investors clearly felt the same.

I simply can't see Ron backing down from his valuation and I don't see the consortium offering more to buy it, simply because of the lack of return. As I sit here with my season card, I sincerely hope I'm so wrong.

 

[Cricko]

Are we saying the stadium is owned by Julie, Jack and Tom and isn't in fact legally Ron's to sell ?

That to me seems factually true.