oldskyblue58
CCFC Finance Director
I have listed some of the questions I would like answered by the club. Yes I know a number of them are probably asking too much or will be dodged. Yes I know that they do not have to answer me or the Trust or the fans representatives. Yes I know some are simplistic but I would like CCFC/SISU's answers for themselves, not the opinions of people who do not make the decisions
It is not an exercise in going over the history - that has been done to death and can not be changed or influenced. It is not an exercise in finding out about Wasps I do not support them and never will - it is about CCFC. I would like to know in some detail how CCFC go forward from where we are now
Please keep it focussed on CCFC, on what CCFC are doing now and the way forward from here
1) New Stadium Where is the site for the new stadium? Is it inside the City boundaries? Specifically what is holding up the purchase and announcement? It has been nearly two years since the prospect of a new ground was raised with ACL and it seems little progress made, the lack of clarity is damaging to the club and its fans. What is the need for confidentiality now that the Ricoh is clearly out of reach in terms of ownership? How can you claim viability for the plan to build when you have not even tied it down to one site, only a preferred one? No two sites are the same in terms of build cost and operationally location will affect viability. What is the build timeline? Will the emphasis on community/charity services etc put forward in the offer to the Higgs Charity be retained and how will that affect incomes?
2) Stadium Finance. Exactly how is the new stadium cost, to be financed? If you do not have a site only a preferred one how can you know its viability and therefore the finance structure? What are the elements to the scheme of finance and what is the budgeted cost of the build? Will the build be in one phase or several? Will the academy and SBITC be based there and which element will move in first (CCFC, Academy or SBITC). What will happen to the Ryton property, will it be used to fund the project?
3) “Cash flow positive” Please explain clearly and in detail how this has been achieved, the time period you are referring to when making the claim and how long this is projected to last. Surely with the sale of Wilson & Christie, the Cup run monies and the amounts paid in advance by nearly 5000 season ticket holders this is to be expected? Especially when a reduced amount has so far been paid out on staff/player wages and other overheads or costs? Cash flow has been front loaded hasn’t it and can be expected to diminish from now till the end of the season? Has cash flow positive been attained by rolling up the interest charge and adding it to debt?
4) Liabilities. Have the amounts owed to ARVO Master Fund and SISU investors increased since 31/05/13 if so by how much? Have any of the liabilities to either of those two parties reduced since 31/05/13? How much of the ARVO Master fund loans have been converted to shares/equity since 31/05/13? What is the purpose in doing that conversion? Would ARVO expect to have a charge over any proposed new stadium? Would such a charge restrict finance options or are ARVO expected to be funding the project? How will the liability due for payment to ARVO December 2014 be paid (disclosed in 2013 SBS&L accounts)? Is that liability due December 2014 2.8m or 5.9m?
5) Funding. Are SISU still willing to provide additional working capital to CCFC to cover day to day trading and annual losses or have they through their investors and associates ARVO reached their limit? If no further funding available what are the implications for the team particularly for the next 4 years? Are there any new investors in Otium or SBS&L. If SISU are unwilling how will any losses during a new stadium build period be covered? How long will it take the new stadium to be cash flow positive once it is operational and so negate the need for further funding?
6) Interest. At 31/05/13 the club operated by Otium Entertainment Group Ltd owed £1.8m in interest on loans due to ARVO and SBS&L. Has that interest been now paid? What charge to interest has been incurred since and has it been paid in full? If the interest has been rolled up by ARVO as stated as a possibility by Mr Fisher then explain what is meant by that – does it mean it has been charged but not collected and therefore added to the clubs debt.
7) Additional Incomes. What are the additional incomes that will be obtained from a 15,000/18,000 seat stadium that the club do not receive now? A brief check on a number of other similar clubs that own their own stadium indicates these additional incomes account for less than 20% of total turnover and contribute less than 5% to the League 1 Salary Cap Management Protocol why would a CCFC stadium be different? What would make the conference facilities, function rooms stand out in a very competitive market? What are the costs structures to achieve that income? Would stadium naming rights be significant (eg more than £1m) for a League 1 club? Will those incomes be affected by the location if so how.
8) SCMP. Please explain the apparent contradiction between “the manager will get 60p in every £ that the club earns” and the Football League rules that state direct costs must be deducted from the turnovers before the 60% is applied in League 1. What part in percentage terms does the F&B income play in the overall SCMP budget? What is the approximate direct cost element in relation to F&B, Bar sales and hospitality? Is the club in a position to cope financially with a promotion to the Championship which although bringing additional income also brings additional costs in wages etc?
9) Player Budget. When statements are made regarding wages budgets are you referring to the total budget for wages for the company, the player’s salary budget set by the Board, the SCMP budget as it applies to certain but not all players or something other than that?
10) Player Sales. Is it a deliberate policy to increase the value of players with a view to sale? This would include bringing academy players on a fast track basis to maximise compensation payments on their sale or release. Are any potential sales timed to coincide with the need to make payments on interest liabilities? Would CCFC have had a next to no player budget 2014/15 without the sale of Callum Wilson and a return to the Ricoh? How do CCFC ensure that they retain not sell the best players
11) Arrangements at the Ricoh. What was the rationale behind the 2+2 year deal that was struck? Who put forward the 4 year limit? What income sources are part of the current rental deal and are the club interested in purchasing access to other income sources? Did the opening of all stands add to the overall cost of the original deal struck for 2+2 years and thereby put pressure on club finances? At what level of attendance does the club breakeven on a match day? Have the club ever considered promoting their own events at the Ricoh to increase Turnover and profits? Have they ever done so or would they do so? Who is involved in the contact between club and Wasps? Have Ms Seppala or Mr Fisher ever met Mr Eastwood or Mr Richardson? Who suggested or pressed for the actual date for the return to the Ricoh? Are there any circumstances, given ownership is not an option, that the club could have a long term future at the Ricoh or is the only long term option considered to be the building of a new stadium?
12) Fans representation. What do you see as the terms of reference of the SCG and the Sky Blue Trust? Are you prepared to deal with the Sky Blue Trust directly or is communication now to be through the two fans representatives taken from the SCG. If the latter why the change in policy, there has always been direct contact in the past? What particular abilities and strengths do you think the fans representatives bring? CCFC are part of the SCG, what terms of reference were set for the two representatives prior to the first directors meeting attended – were any set? What do you see as the purpose of fans representatives at directors meetings? Do you believe that such representation should come with any powers? What is the point of discussing matters that are not allowed to be passed on to the fans represented, doesn’t that weaken the whole point of such representation? Is it correct that the CCFC directors have final say on content of all minutes etc of the SCG before release?
Perhaps the Trust or the fans representatives could put these questions to the owners and directors and give a full and proper report back. Please add your own questions to put to CCFC
It is not an exercise in going over the history - that has been done to death and can not be changed or influenced. It is not an exercise in finding out about Wasps I do not support them and never will - it is about CCFC. I would like to know in some detail how CCFC go forward from where we are now
Please keep it focussed on CCFC, on what CCFC are doing now and the way forward from here
1) New Stadium Where is the site for the new stadium? Is it inside the City boundaries? Specifically what is holding up the purchase and announcement? It has been nearly two years since the prospect of a new ground was raised with ACL and it seems little progress made, the lack of clarity is damaging to the club and its fans. What is the need for confidentiality now that the Ricoh is clearly out of reach in terms of ownership? How can you claim viability for the plan to build when you have not even tied it down to one site, only a preferred one? No two sites are the same in terms of build cost and operationally location will affect viability. What is the build timeline? Will the emphasis on community/charity services etc put forward in the offer to the Higgs Charity be retained and how will that affect incomes?
2) Stadium Finance. Exactly how is the new stadium cost, to be financed? If you do not have a site only a preferred one how can you know its viability and therefore the finance structure? What are the elements to the scheme of finance and what is the budgeted cost of the build? Will the build be in one phase or several? Will the academy and SBITC be based there and which element will move in first (CCFC, Academy or SBITC). What will happen to the Ryton property, will it be used to fund the project?
3) “Cash flow positive” Please explain clearly and in detail how this has been achieved, the time period you are referring to when making the claim and how long this is projected to last. Surely with the sale of Wilson & Christie, the Cup run monies and the amounts paid in advance by nearly 5000 season ticket holders this is to be expected? Especially when a reduced amount has so far been paid out on staff/player wages and other overheads or costs? Cash flow has been front loaded hasn’t it and can be expected to diminish from now till the end of the season? Has cash flow positive been attained by rolling up the interest charge and adding it to debt?
4) Liabilities. Have the amounts owed to ARVO Master Fund and SISU investors increased since 31/05/13 if so by how much? Have any of the liabilities to either of those two parties reduced since 31/05/13? How much of the ARVO Master fund loans have been converted to shares/equity since 31/05/13? What is the purpose in doing that conversion? Would ARVO expect to have a charge over any proposed new stadium? Would such a charge restrict finance options or are ARVO expected to be funding the project? How will the liability due for payment to ARVO December 2014 be paid (disclosed in 2013 SBS&L accounts)? Is that liability due December 2014 2.8m or 5.9m?
5) Funding. Are SISU still willing to provide additional working capital to CCFC to cover day to day trading and annual losses or have they through their investors and associates ARVO reached their limit? If no further funding available what are the implications for the team particularly for the next 4 years? Are there any new investors in Otium or SBS&L. If SISU are unwilling how will any losses during a new stadium build period be covered? How long will it take the new stadium to be cash flow positive once it is operational and so negate the need for further funding?
6) Interest. At 31/05/13 the club operated by Otium Entertainment Group Ltd owed £1.8m in interest on loans due to ARVO and SBS&L. Has that interest been now paid? What charge to interest has been incurred since and has it been paid in full? If the interest has been rolled up by ARVO as stated as a possibility by Mr Fisher then explain what is meant by that – does it mean it has been charged but not collected and therefore added to the clubs debt.
7) Additional Incomes. What are the additional incomes that will be obtained from a 15,000/18,000 seat stadium that the club do not receive now? A brief check on a number of other similar clubs that own their own stadium indicates these additional incomes account for less than 20% of total turnover and contribute less than 5% to the League 1 Salary Cap Management Protocol why would a CCFC stadium be different? What would make the conference facilities, function rooms stand out in a very competitive market? What are the costs structures to achieve that income? Would stadium naming rights be significant (eg more than £1m) for a League 1 club? Will those incomes be affected by the location if so how.
8) SCMP. Please explain the apparent contradiction between “the manager will get 60p in every £ that the club earns” and the Football League rules that state direct costs must be deducted from the turnovers before the 60% is applied in League 1. What part in percentage terms does the F&B income play in the overall SCMP budget? What is the approximate direct cost element in relation to F&B, Bar sales and hospitality? Is the club in a position to cope financially with a promotion to the Championship which although bringing additional income also brings additional costs in wages etc?
9) Player Budget. When statements are made regarding wages budgets are you referring to the total budget for wages for the company, the player’s salary budget set by the Board, the SCMP budget as it applies to certain but not all players or something other than that?
10) Player Sales. Is it a deliberate policy to increase the value of players with a view to sale? This would include bringing academy players on a fast track basis to maximise compensation payments on their sale or release. Are any potential sales timed to coincide with the need to make payments on interest liabilities? Would CCFC have had a next to no player budget 2014/15 without the sale of Callum Wilson and a return to the Ricoh? How do CCFC ensure that they retain not sell the best players
11) Arrangements at the Ricoh. What was the rationale behind the 2+2 year deal that was struck? Who put forward the 4 year limit? What income sources are part of the current rental deal and are the club interested in purchasing access to other income sources? Did the opening of all stands add to the overall cost of the original deal struck for 2+2 years and thereby put pressure on club finances? At what level of attendance does the club breakeven on a match day? Have the club ever considered promoting their own events at the Ricoh to increase Turnover and profits? Have they ever done so or would they do so? Who is involved in the contact between club and Wasps? Have Ms Seppala or Mr Fisher ever met Mr Eastwood or Mr Richardson? Who suggested or pressed for the actual date for the return to the Ricoh? Are there any circumstances, given ownership is not an option, that the club could have a long term future at the Ricoh or is the only long term option considered to be the building of a new stadium?
12) Fans representation. What do you see as the terms of reference of the SCG and the Sky Blue Trust? Are you prepared to deal with the Sky Blue Trust directly or is communication now to be through the two fans representatives taken from the SCG. If the latter why the change in policy, there has always been direct contact in the past? What particular abilities and strengths do you think the fans representatives bring? CCFC are part of the SCG, what terms of reference were set for the two representatives prior to the first directors meeting attended – were any set? What do you see as the purpose of fans representatives at directors meetings? Do you believe that such representation should come with any powers? What is the point of discussing matters that are not allowed to be passed on to the fans represented, doesn’t that weaken the whole point of such representation? Is it correct that the CCFC directors have final say on content of all minutes etc of the SCG before release?
Perhaps the Trust or the fans representatives could put these questions to the owners and directors and give a full and proper report back. Please add your own questions to put to CCFC
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