Council to meet SISU on Thursday (1 Viewer)

[Sub]

http://www.coventrycity-mad.co.uk/news/tmnw/council_to_meet_sisu_next_thursday_742937/index.shtml

Next meeting announced Coventry City Council representatives John Mutton and George Duggins are to meet Joy Seppala from SISU next Thursday. They met on Tuesday and will meet again to talk about a possible rent reduction which Cllr Mutton said was only 5% of the club's monthly outgoings. Speaking to BBC Coventry & Warwickshire's Clive Eakin, Cllr Mutton said that the council were prepared to consider schemes to use the Ricoh Arena more to capacity and if SISU can find the money, then there is the possibility of them being able to put hotels on the Ricoh Arena site to help with the shortfall in hotel beds in the City. "We will look to provide assistance where we can," John Mutton said.

 

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[torchomatic]

Well, he's changed his tune. Elections over.

 

[Brighton Sky Blue]

5% of monthly outgoings suggests we spend £2 million a month.

 

[mattylad]

it just shows no one wants to invest in us but sisu believe they can still get people to invest in the ricoh. the difference is previously we were just a vehicle to invest through and now were being circumnavigated.

 

[Astute]

If this sounds to be true then SISU are with us for the long haul.

Hotels on the site? Not even hotel. Maybe the plan was to take us over, get the ground then build on the site. If the story is true they are now after a rent reduction and building on a site they don't own at the moment. This would all bring new investors and new money into the arena and surrounding area. There could be truth in it.

It all sounds good, but they would not need a football team doing well for these plans to work. It could end up being a big moneyspinner for them without having to invest in us.

 

[Johnrambo]

If this sounds to be true then SISU are with us for the long haul.

Hotels on the site? Not even hotel. Maybe the plan was to take us over, get the ground then build on the site. If the story is true they are now after a rent reduction and building on a site they don't own at the moment. This would all bring new investors and new money into the arena and surrounding area. There could be truth in it.

It all sounds good, but they would not need a football team doing well for these plans to work. It could end up being a big moneyspinner for them without having to invest in us.

If SISU was with us/the club why in the hell didnt they do something in the last years? SISU will not change just because we are in League1, and they wont if we are going down again.

Instead of building hotels, circus, and what els they want, SISI should use the money to get more ppl at football, get the tickets prices down or make some kind of deal. Or maybe just and this is a big JUST buying players..

 

[valiant15]

And people think sisu are broke lol. They've got money,they just don't want to spend it on ccfc.

 

[Astute]

If SISU was with us/the club why in the hell didnt they do something in the last years? SISU will not change just because we are in League1, and they wont if we are going down again.

Instead of building hotels, circus, and what els they want, SISI should use the money to get more ppl at football, get the tickets prices down or make some kind of deal. Or maybe just and this is a big JUST buying players..

Who said they want a football team? Taking over our football team might have been a way to get their hands on the Ricoh so they could develop the site. They would want to spend their money on developing the site and not on our team.

They say they have been looking for investors. No mention of what they wanted them to invest in though. We know they have all been after the Ricoh. The more you think about it the more sense it makes. Football teams will rarely make you money. Getting planning permission on real estate in prime locations will. A big hotel or two next to the football ground and just off the M6 can make serious money.

Maybe they will let our club go once they have got what they wanted. Just hope they don't get their hands on the Ricoh. We would be priced out of it as they would want too much for it's use. They want money. They want profit. They seem to care about nothing else.

 

[skybluealan]

Can you imagine the Hotels, bring your own bed and camping stove. Discounts if you are a tradesman so you can help to finish off the hotel

 

[sky_blue_up_north]

The area around the Ricoh is a prime position for hotels and other investment. Perfect road transport etc. IF SISU can exploit this and provide investment it can only be good for Coventry and hopefully the football club as well. It is true SISU only want profit, that is the name of their game, why else would they bother. That is what all businesses try to do, no profit, failure, you go bust. We have to get real with this. SISU invested in the football club to make money, not because they love Coventry City.

 

[Chipfat]

Have SISU failed of what they have tried to do with this club????... For me when they realized it was failing as a business they have succeeded in all that they have tried .... The are now in a position where they can go to the council demand a rent decrease and start demanding more money from the stadium itself because without it the club will die!!!!!...

NOW if i was even slightly comfortable with SISU, i would say ok they are putting the club first and tying to compete in the league we are now in.... But i dont trust SISU or there motives, they want the stadium and they want the land and want to drive the selling cost up and in turn pressure someone else into paying them the high rent and the cash stream from the stadium...Jo 'Bullshit' Seppala has came out after 4 years, 1 game and stated she cares,, well im afraid she doesnt, she is making it clear that she wants all her way own way and stamping her feet to get it... This is a very bad position for the club and in my opinion will be bad if SISU win any little battle they have to stay at the helm of this club..

This situation now has been the SISU plan since KD walked in the door, he will be sitting in Portugal now thinking about the super job he done for Sisu and the plan is slowly coming together. The only way of stopping them would be if they dont get the lower rent which puts them in a very bad situation in regards to funding next year they need lower rent to fund next year...But dont worry SISU lovers like good business people ARVO is waiting in the wings if this meeting fails to gain what SISU want.....

Maybe its crap but something doesnt ring true with SISU and this next week will tell us all about what direction they are going in.

 

[procdoc]

If the council had any sense they'd tell joy to fuck off. Why let sisu profit from hotels etc when they could do that if they wanted?

 

[Sub]

http://www.footballeconomy.com/content/sky-blue

We used the opportunity of the BBC Coventry and Warwickshire election night coverage to quiz various politicians about the situation of the Sky Blues and the rent they pay on the Ricoh. Given that we were in the Ricoh, it was particularly appropriate.


I wasn't able to take detailed notes, but I think it is fair to say that a general (and reasonable) view was that the fault for Coventry City's relegation lay primarily with Sisu. The City Council wanted a viable football club in Coventry, but the main responsibility lay elsewhere. It was also pointed out that ACL actually run the stadium.


I did take some rough notes when the council leader spoke. He did agree that the meeting with Sisu had been constructive and they had been more open than in previous discussions. However, he noted that the rent was only 5 per cent of the club's totalcosts. Even if it was halved, it would not cope with one month's losses.


What he seemed to be suggesting was that the way forward was to get better use of the Ricoh. Its use as a conference venue was limited by a lack of hotels. If Sisu was, for example, able to help fund a hotel development, some of the money could then come back to them. This doesn't sound too promising from a Sky Blue perspective, but one can't give away one's negotiating position on air.


Local MP Geoffrey Robinson said that he would be coming to the Ricoh for the rest of his life, but he wouldn't be putting any more money in the club. However, he thought that there were people out there who would. Let's hope he's right

 

[Nonleagueherewecome]

5 per cent, wow, that puts a bit of a different light on matters. Why don't we refuse to pay some of the other 95%, then? :thinking about:

 

[stupot07]

I'm sorry but there is no way I believe that the rent is only 5% of the clubs outgoing.

If 5% is £1.2m then 100% is £24m.

The telegraph suggested that our wage bill is ~£5m so let's stick another £1m for good measure so let's say it's £6m, so that make wages and rent is £7.2m.

So where's the other £16.8m going?
Other staff?
Utilities?
Mortgage repayments?
Agent fees?
Policing?
Tax?

I'm sorry but I cannot believe that the extra's add up to £16.8m.

 

[Sub]

looks like SISU have been fudging the figures!! :thinking about::thinking about:

 

[stupot07]

Or mutton is BSing.

 

[Chipfat]

Well whatever SISU are doing they are going to have to come clean if they want Council help.....Because even if Mutton is BS the council and ACL hold the key to SISU funding next year.....

 

[stupot07]

Almost definitely BS, turnover is about £8m. If rent is 5% then we spend £24m per annum, which means we would be losing £1.25m per month.

 

[torchomatic]

I've got to say I agree. I think Mutton must have his figures wrong there. I would say our biggest outlays are rent and wages and with our squad there is no way on earth that our wages are as big a percentage as what's left over or anywhere near it.

I'm sorry but there is no way I believe that the rent is only 5% of the clubs outgoing.

If 5% is £1.2m then 100% is £24m.

The telegraph suggested that our wage bill is ~£5m so let's stick another £1m for good measure so let's say it's £6m, so that make wages and rent is £7.2m.

So where's the other £16.8m going?
Other staff?
Utilities?
Mortgage repayments?
Agent fees?
Policing?
Tax?

I'm sorry but I cannot believe that the extra's add up to £16.8m.

 

[italiahorse]

http://www.coventrycity-mad.co.uk/news/tmnw/council_to_meet_sisu_next_thursday_742937/index.shtml

Next meeting announced Coventry City Council representatives John Mutton and George Duggins are to meet Joy Seppala from SISU next Thursday. They met on Tuesday and will meet again to talk about a possible rent reduction which Cllr Mutton said was only 5% of the club's monthly outgoings. Speaking to BBC Coventry & Warwickshire's Clive Eakin, Cllr Mutton said that the council were prepared to consider schemes to use the Ricoh Arena more to capacity and if SISU can find the money, then there is the possibility of them being able to put hotels on the Ricoh Arena site to help with the shortfall in hotel beds in the City. "We will look to provide assistance where we can," John Mutton said.

KEEP IT SIMPLE

Monthly Income
10,000 fans paying an average of £10 x 23 games = £191,000 / Mth
5.000 fans spending £50 per year on CCFC items, shirts etc = £21,000 / Mth
3,000 fans buying programmes less production costs each game = £12,000 / Mth
TOTAL £224,000

Monthly Outcome
24 players averaging 3,000 per week = £312,000 Mth
Stadium rent = £100,000 / Mth
CCFC salaried staff. 25 x £20,000 = £42,000 / Mth
TOTAL £454,000

Yearly loss £2.8 M

Can't see any more Incomes other than cups etc but I can see plenty more outcomes like shop costs, training grounds, The manager, Executives, previous managers etc
Can see where 24,000 fans would break even.
Can see that reducing stadium rent by half has a small effect.

REVENUE STREAMS FROM OWNING THE STADIUM
Outs
Mortgage of £40 M over 50 years @ 3% = £125,000 /Mth
Rates ?
Services
Ins
TBC

 

[SonofErnie]

KEEP IT SIMPLE

Monthly Income
10,000 fans paying an average of £10 x 23 games = £191,000 / Mth
5.000 fans spending £50 per year on CCFC items, shirts etc = £21,000 / Mth
3,000 fans buying programmes less production costs each game = £12,000 / Mth
TOTAL £224,000

Monthly Outcome
24 players averaging 3,000 per week = £312,000 Mth
Stadium rent = £100,000 / Mth
CCFC salaried staff. 25 x £20,000 = £42,000 / Mth
TOTAL £454,000

Yearly loss £2.8 M

Can't see any more Incomes other than cups etc but I can see plenty more outcomes like shop costs, training grounds, The manager, Executives, previous managers etc
Can see where 24,000 fans would break even.
Can see that reducing stadium rent by half has a small effect.

REVENUE STREAMS FROM OWNING THE STADIUM
Outs
Mortgage of £40 M over 50 years @ 3% = £125,000 /Mth
Rates ?
Services
Ins
TBC

Using your calculations the club will have to cut it's wage bill in half to meet League 1 rules and yet they are talking about maintaining the same budget. Something doesn't add up !

 

[italiahorse]

Using your calculations the club will have to cut it's wage bill in half to meet League 1 rules and yet they are talking about maintaining the same budget. Something doesn't add up !

Exactly - SISU need further income streams from the stadium, hotels etc.

 

[italiahorse]

If the council had any sense they'd tell joy to fuck off. Why let sisu profit from hotels etc when they could do that if they wanted?

Because the public service is inefficient at running business

 

[valiant15]

A bit like shitsu then.

 

[oldskyblue58]

Mr Mutton has his figures wrong - last accounts 2010 showed CCFc turnover at 9.3m rent has always been 1.2m so thats 12.9% of turnover. Turnover has got smaller since then so rent is more like 15%

which is kind of worrying - because what facts are presented at the meetings they are having and if they dont know the right figures how can they help or come to some agreement that works

 

[stupot07]

Mr Mutton has his figures wrong - last accounts 2010 showed CCFc turnover at 9.3m rent has always been 1.2m so thats 12.9% of turnover. Turnover has got smaller since then so rent is more like 15%

which is kind of worrying - because what facts are presented at the meetings they are having and if they dont know the right figures how can they help or come to some agreement that works

Definitely. And I'd like to add with the ~£3m loss in PL sponsorship and tv rights, before the loss through reduced ticket sales, rent at £1.2m is likely to be around 25% of turnover.

 

[Wrenstreetcarpark]

Because the public service is inefficient at running business

ACL is not a public service it is a profitable private company that runs efficiently. CCFC is also a private company that runs hopelessly inefficiently which why this and all the other threads are running.
Sorry italiahorse/thatcher.

 

[davebart]

They seem to care about nothing else.

Too many words in that sentence. SISU only care about profit.

And Mr Muttons comments are entirely opposite to what he expressed previously. The council WILL do a deal with SIUSU after all - even if it is not to the benefit of CCFC - as appears to be the case here.

 

[oldskyblue58]

Because the public service is inefficient at running business

evidence that ACL is being run inefficiently ?

or better still evidence that any owner of CCFC could or would run it better ?