Councils Dream I suppose ! (1 Viewer)

Ashdown · May 13, 2015

http://www.coventrytelegraph.net/news/wasps-rfc-pay-134million-ricoh-9248558

Despite the possible impact on CRFC and certain impact on CCFC, Lucas will point to this payment in full as a monkey off the councils back. If SISU had stopped fucking about and done something along these lines then they may now be the proud owners of the Ricoh Arena and CCFC would have had some added value !

SkyBlueScottie · May 13, 2015

It takes 2 to tango....

torchomatic · May 13, 2015

Apparently not in the straight-down-the-middle, back and white world of the average SBT user.

SkyBlueScottie said:
It takes 2 to tango....

Terry Gibson's perm · May 13, 2015

Yep they borrowed more money off other people to pay off the first loan, sounds to me just like switching credit cards.

Ashdown · May 13, 2015

Terry Gibson's perm said:
Yep they borrowed more money off other people to pay off the first loan, sounds to me just like switching credit cards.

That's true but surely the risk of the business failure is now also with the bond holders whilst Coventry Council have got their money tightly in the bank with interest.

Ashdown · May 13, 2015

torchomatic said:
Apparently not in the straight-down-the-middle, back and white world of the average SBT user.

I've listened and read all the arguments, SISU did have a chance to pull off a similar purchase but I doubt they ever did after they started throwing their weight around, that's when the barriers went up, so either way they still fucked it up for themselves and the football club !

chiefdave · May 13, 2015

Based on the details in this article the early repayment has meant the council miss out on approx £15m. Be nice to see CCC pushed a little on this as they gave the interest being received as a major factor in making the loan in the first place, as opposed to bailing out ACL.

Interesting to see it is now being said the repayment will "free up millions of pounds in the short term which could be reinvested in other areas such as retaining services or supporting other businesses looking to invest in the area", when CCC were questioned previously about having millions tied up in this loan while cuts were being made they stated it was a non issue as even if they called in the loan the money was ringfenced and could not be used for general spending. So either the CT have jumped to an incorrect conclusion or its another example of mistruths from the council to justify their actions.

torchomatic · May 13, 2015

I'm not sure if that bullshit is from Simon or the Council. Matters not, it's bullshit either way.

chiefdave said:
Interesting to see it is now being said the repayment will "free up millions of pounds in the short term which could be reinvested in other areas such as retaining services or supporting other businesses looking to invest in the area",

Nick · May 13, 2015

Before I click the link, what are the comments like?

Terry Gibson's perm · May 13, 2015

Ashdown said:
That's true but surely the risk of the business failure is now also with the bond holders whilst Coventry Council have got their money tightly in the bank with interest.

But not as much interest as they expected. I didn't want Sisu to get it either I thought it's position within the council was about right but I am not a Coventry resident.

Grendel · May 13, 2015

Nick said:
Before I click the link, what are the comments like?

Usual tripe;

What's the saying - "better the bird in the hand than the bird in the bush" - good work CCC in getting the taxpayers money back by selling to good businessmen. SISU DO ONE

Terry Gibson's perm · May 13, 2015

Grendel said:
Usual tripe;

What's the saying - "better the bird in the hand than the bird in the bush" - good work CCC in getting the taxpayers money back by selling to good businessmen. SISU DO ONE

It is not even worth looking at the comments any more and I sometimes wonder if a few of them in there are plants.

lordsummerisle · May 13, 2015

Terry Gibson's perm said:
It is not even worth looking at the comments any more and I sometimes wonder if a few of them in there are plants.

If not plants, certainly vegetables.

Nick · May 13, 2015

Ah I clicked.

Moaning at SISU for ripping off the tax payer still while getting a wide on for Wasps. Like it!

lordsummerisle · May 13, 2015

Nick said:
Ah I clicked.

Moaning at SISU for ripping off the tax payer still while getting a wide on for Wasps. Like it!

Well they get their news from The Coventry Telegraph.

SkyBlue_Bear83 · May 13, 2015

chiefdave said:
Interesting to see it is now being said the repayment will "free up millions of pounds in the short term which could be reinvested in other areas such as retaining services or supporting other businesses looking to invest in the area"

Perhaps they could use it to go into partnership with the football club on a new stadium :thinking about: Worked so well last time

Ian1779 · May 13, 2015

Now if only we knew who the bond holders were... I heard there's a little island off the coast of Cuba where some 'investors' fancy a stake in a rugby club...

Covstu · May 13, 2015

absolute idiots, short term thinking to cash in to probably cover gaping holes in the overspending.

CJ_covblaze · May 14, 2015

Is it really an issue CCC will get less interest from the loan? Doesn't it just mean they've now got the original cash injected into ACL plus some, all or none of the £1.5m profit from the interest to invest (and earn interest) in something else?

SkyBlue_Bear83 · May 14, 2015

CJ_covblaze said:
Is it really an issue CCC will get less interest from the loan? Doesn't it just mean they've now got the original cash injected into ACL plus some, all or none of the £1.5m profit from the interest to invest (and earn interest) in something else?

It wouldn't be but at the time, they made a big deal about how they would earn the same interest over half of the time (20 years). Either the council were taking bollocks again as they knew it wasn't true or Wasps hoodwinked them (as according to Wasps it was always there plan to pay off the loan early.)

chiefdave · May 14, 2015

CJ_covblaze said:
Is it really an issue CCC will get less interest from the loan? Doesn't it just mean they've now got the original cash injected into ACL plus some, all or none of the £1.5m profit from the interest to invest (and earn interest) in something else?

On the one hand it is good news that the council, and therefore the local taxpayer, is no longer exposed to risk. However there is also the issue that CCC used the income from interest over the term of the loan as justification for making the loan. There should be questions asked as to why there is no penalty for early repayment.

duffer · May 14, 2015

As a taxpayer, I'm glad that the Council are no longer at risk of Wasps going tits up. However, as chiefdave has pointed out, there are some glaring inconsistencies again in their stories about whether the loan impacted spending or not.

When they wanted to make the loan it wasn't going to impact spending, the funds were sourced from elsewhere etc. etc.

Now the loan is being paid back, the council would like to spin it as a benefit - the money can now be used elsewhere.

It's another example of how the council spin stuff to suit their argument at the time - as with ACL's profitability.

This isn't trivial, imho - we elect the council to work on our behalf, and we need to be able to trust them. How is that possible if they keep changing their story about stuff like this? What else aren't they telling us the truth about?

Ashdown · May 14, 2015

duffer said:
As a taxpayer, I'm glad that the Council are no longer at risk of Wasps going tits up. However, as chiefdave has pointed out, there are some glaring inconsitencies again in their stories about whether the loan impacted spending or not.

When they wanted to make the loan it wasn't going to impact spending, the funds were sourced from elsewhere etc. etc.

Now the loan is being paid back, the council would like to spin it as a benefit - the money can now be used elsewhere.

It's another example of how the council spin stuff to suit their argument at the time - as with ACL's profitability.

This isn't trivial, imho - we elect the council to work on our behalf, and we need to be able to trust them. How is that possible if they keep changing their story about stuff like this? What else aren't they telling us the truth about?

But all those wise old Coventrians keep re electing a trio of Labour duffers everytime.......no pun intended !

duffer · May 14, 2015

Ashdown said:
But all those wise old Coventrians keep re electing a trio of Labour duffers everytime.......no pun intended !

Any similarity between the people in the council and Westminster calling themselves Labour, and this old Labour duffer, is restricted entirely to the name. Unlike them, I'm not ashamed to be called a socialist.

Regardless, and whatever side you're on, the miminum acceptable criteria for being a politician is honesty, imho. I honestly think that most councillors try their best to do a good job, as do their officers. But the upper echelons of CCC give me genuine concern, especially given the spin and secrecy surrounding these kind of decisions.

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