The Northampton PwC Report (4 Viewers)

[shy_tall_knight]

PwC have just issued a report following the investigation into the loan given by the council to the Cobblers. Makes very interesting reading especially on the workings of a local council who can grant a loan with virtually no due diligence and even less monitoring of the construction project

The problem as I see it for Coventry is that this may be considered as demonstrable evidence as to why the council should not support a football club, the previous Northampton regime were very suspicious of the club due to their financial position, a change of regime at the council and the loan was approved, which has been concluded as reckless in the report.

IMO the council were extremely suspicious of SISU and weren't prepared to work with them or give anything yet seemed to bend over backwards for WASPS. Both were owned by hedge funds both were incurring heavy losses. Can't help but think that SISU played it all wrong with the CCC

 

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[SkyBlueZack]

Can't help but think the council shouldn't have sold it's two sporting teams down the river. Can't help but think what if we didn't have a hypocritical council. Can't help but think companies shouldn't have to play with a local council. Otherwise you would end up with situations where officials are given free tickets etc. This undermines the credibility of the council? It would then appear who offers the most money or incentive. Oh wait..........

 

[shy_tall_knight]

Not sure I was right to mention this PwC report on Cobblers and try to draw any parallels with Cov & Ricoh - just amazed me that despite Northampton Council having procedures that this loan ever happened and how ineffectual the project management was.

 

[SkyBlueZack]

Does it not beg the question, are councils fit for selling assets and loaning money? The parallels are that the councils did what suited them. Not all knowledge was disclosed. Not all knowledge was gathered. They are the parallels.

 

[Deleted member 5849]

Not sure I was right to mention this PwC report on Cobblers and try to draw any parallels with Cov & Ricoh - just amazed me that despite Northampton Council having procedures that this loan ever happened and how ineffectual the project management was.

I know I could Google but hell, it's Sunday so give me a treat and share the link to the report?

 

[SkyBlueZack]

http://www.bbc.co.uk/news/uk-england-northamptonshire-38090662

 

[shy_tall_knight]

http://www.northampton.gov.uk/news/article/2458/council-apologises-for-loan-failings

Agree councils are not set up to issue loans nor run multi functional stadiums. I always thought that CCC cabinet & senior management saw the Ricoh project as an escape from Social /education/ roads etc.. and a chance to deal in something far more interesting.

 

[wingy]

http://www.northampton.gov.uk/news/article/2458/council-apologises-for-loan-failings

Agree councils are not set up to issue loans nor run multi functional stadiums. I always thought that CCC cabinet & senior management saw the Ricoh project as an escape from Social /education/ roads etc.. and a chance to deal in something far more interesting.

Economy growth and Job creation.

 

[Deleted member 5849]

Economy growth and Job creation.

Indeed.

tbf I have no problem with councils doing that. The main problem, to me, is that national policy restricts them from investing on a purely social level, things have to see an economic return too.

So we get mildly mental loans and commercial 'partnerships' that either contradict one another, or no risk capital is allowed to try and make them work - there's no acknowledgement that such projects can fail dismally as well as succeed.

But I'd blame national government for that, for forcing local government to act like a commercial business. *That* will never work.

 

[chiefdave]

The problem as I see it for Coventry is that this may be considered as demonstrable evidence as to why the council should not support a football club

In which case wouldn't the same apply to rugby clubs?

 

[shy_tall_knight]

In which case wouldn't the same apply to rugby clubs?

I should have said sports clubs in general rather than just football clubs, football clubs have a longer record of financial failure, WASPS being one of the few non-football clubs that I know have which have made regular losses.

 

[Hobo]

Coventry City Football Club and Coventry Rugby Club are businesses. They chose to represent the city, the council didn't choose them.. Yes the council should be supportive, like they should support any business that opporates within its boundaries.. But they shouldn't bend over backwards for them over anyone else.

The two clubs above should bend over backwards for the people of Coventry though, because Coventry and its people is core to their business model.