We have in the previous two FAQ’s concentrated on giving our view on the way the club is run and explanations of some of the financial information.
To tie the knot we will turn to the vision and the strategy of our owners. This by its nature is more subjective and open to differing views.
Appropriately it goes to the music from Apocalypse Now.
Of our elaborate plans, the end ….. (The Doors)
Many have questioned if SISU even have a plan other than to make as much money as they possibly can. This is what Ranson said about the vision after he first became chairman:” We want to gain financial stability and a platform to achieve the clubs commercial and sporting aspirations, which is promotion to the Premiership followed by repurchase of a 50% share in the Ricoh Arena home”
There’s a plan in there, a step by step layout, - First we get the losses under control
then we will become strong enough to gain promotion, Finally we will buy half the stadium
Losing £6 million pa up till the 2010 accounts isn’t exactly getting the losses under control, there was certainly little success and so it seems SISU lost patience earlier this year and replaced most of the board. That was the end for Ranson, Elliott and Hoffman, but the beginning for Ken Dulieu , Len Brody &co
That switch also marked a slight change to the strategy. Balancing the books is still number one on the list, but it looks like buying into the Ricoh revenue stream is number two. As for promotion, well, it looks like the owners have resigned to the fact it won’t happen any time soon. It will come when it comes (if it comes). Promotion would certainly make everything a bit easier, but the owners won’t try to buy their way to the promised land.
Much is said of the stadium purchase but as it stands SBSL have the option to buy 50% of the issued shares in ACL. It is ACL that owns the lease of the ground and the other 50% of that company is owned by the Council (who also own the freehold). There is not a good relationship between the Council and CCFC/SISU and the council can/has and will veto any CCFC involvement until they see a viable long term business in CCFC. In addition buying 50% of ACL does not guarantee any income as it stands. The stadium income sources belong to ACL, buying 50% of ACL shares does not give CCFC 50% of income at all. Ownership of shares gives a right to dividends and ACL cannot at this stage pay out dividends, it would be illegal due to accumulated losses that company has. Acquiring the long lease of the stadium is very desirable for the club but the reality is that it will be very hard to achieve, and we should not pin short term hopes on doing it.
Can you picture what will be, so limitless and free …. (The Doors)
We all dream of having money – loads of money. And we all dream about the things we would do, the stuff we would buy, the fun we would have. The sad reality is that most of us don’t have money enough. We struggle to pay the bills, to feed the kids, to buy the new replica shirt. Our options are limited. The club has for many years been in exactly that position, but now it looks that our present owners have put the foot on the brake. We the fans don’t like it one bit and we look with envy at other clubs who seem to be able to spend at will from borrowed money. It may seem to be unfair right now, but in the long run we may just end up in much better financial condition....... but it is a very painful journey
Desperately in need, of some, stranger’s hand …. (The Doors)
We need to bring in more money. The board has signed up two specialists for the purpose. It looks odd to the average fan – the team are screaming for more players and all the club signs are two new board members. And none of them can play left back! It looks like a real insult
On the other hand, maybe there’s some sanity in strengthening the effort to bring in investors. It depends on who they bring in (if any) and what the new money is used for
There are a number of possibilities including
- To find new owners and secure SISU’s exit in an (almost) honorable fashion
- To find joint venture capital with the aim of buying half the stadium
In the recent open letter SISU rules out an exit, saying they are looking for partner capital. Anyway, new owners would have to spend millions on paying out SISU, and that money could be spend much better invested directly into the club. SISU don’t explicitly say any new capital is for the purchase of the stadium, but it would make sense as it could increase our income in the future. SISU seem unable to find much more money through their existing clients, so they are looking for others. Even considering a bid from a consortium headed by Hoffman, but it was a hostile takeover attempt and SISU would have none of it.
This is the end, my only friend, the end …. (The Doors)
FFP – Financial Fair Play will mark the end of the traditional sugar daddy era. The regulation is already in place throughout Europe and even teams in PL have to comply (Manchester City, look out). At the highest levels Clubs have till 2017 to get their books balanced and achieve break-even. Furthermore, clubs are not allowed overdue debts to other clubs, employees or HMRC. Failure to comply will mean exclusion from European tournaments. Yeah, but we are not in PL, why should we care? We have to, simply because the rules are coming to this division as well. The rules are already in for League 1 and 2 and moves are afoot to create similar rules for the championship. Clubs will have to live within their means but exactly what that means and timescales have yet to be decided. When you look at the way the board is trying to cut costs, to bring in new investors to buy the stadium for extra revenue and compare these efforts with the potential FFP regulations then you can see the path most clubs will have to take. However it is more fundamental than the new rules we simply cannot go on paying out more than we bring in – with or without the new rules this is the case.
As yet we do not know the new rules or how it will affect the game in general but it would seem we have chosen to second guess and get ahead of the game. Or is it simply coincidence – is it simply owners actually grasping the nettle and properly addressing the finances mismanaged for decades? The new rules provide something to hide behind for the owners whilst they conduct their business in a way they are used to riding rough shod over the fans opinions. The key is survival in this division and that is by no means certain because the biggest cuts have been in the playing squad costs and that could have a serious effect on where we end up next year
The (sky) blue bus is calling us …. (The Doors)
This season is all about survival. Relegation is NOT an option! This is why we – the fans – must get firmly behind the team. Forget the owners, they are doing what they think they have to and we have no control over that , they have made themselves very unpopular with their smoke and mirrors and when they have succeeded they will sell and new owners will come in. We the fans will still be here – are we really bothered who owns the club so long as it is financially stable and the team is successful? Legally SISU funds own the business morally and emotionally we own the club.
This is the end of what has been – it’s time for a new beginning
Godiva/OldSkyBlue58
