James Smith
Well-Known Member
Do hope Young Timothy isn't doing his sums on a Wrongulator http://boingboing.net/2011/07/28/wrongulator-a-gag-calculator-that-gives-the-wrong-outcome.html it might explain a few things though.
However if I was the director of a company that had managed to blow £30-60m of my investors' funds, alienated the vast majority of my remaining customers, have no prospect of returning to profit in the short to medium term, and had people using words like 'fraud' in parliament, then I'd be genuinely nervous.
Tim said this about FFPIn which case the council has nothing to worry about and SISU will fold.
We'll see.
Meh. The deal has been agreed.
I'll bet on SISU's accountants figuring out a way around that.
This is where I have to talk about Financial Fair Play and the Salary Cap.
I understand it may not be on the top of the list of priorities for a lot of supporters but it is real and it is happening.
In a nutshell, you are now only permitted to have a total first team playing squad cost (in terms of salaries and fees) which corresponds to a certain percentage of your revenue. So it is vital that we need to increase our revenue to put quality on the pitch, it’s as simple as that. It hasn’t hit us as hard this year as some of our current players fall outside the actual squad costs due to the date they signed their contracts with us. However, next season will be a completely different story as every penny we spend on players will be counted by the Football League and if we exceed our Salary Cap under the rules of Financial Fair Play, we will be immediately be placed under transfer embargo, it’s as simple as that.
So, as I say, we feel we are very close to an agreement on rent but we have to be able to access those matchday revenues. If we don’t, the playing squad will suffer and we will be placed into a downward spiral. People may say food and beverage revenues are not very significant but in the final year at Highfield Road, they amounted to more than £1million.
I think that is to continually underestimate SISU. They didn't come to Coventry with a reputation for niceness, and obviously they have enough investors who keep putting money in for some reason ...
How is it a loan.
The offer is to play for free, and returns money to SISU. If they can afford it then why don't they pay?
About as redundant as your 'who's the most pissed off' measure.
I don't think they're doing it on their terms at all. They were pushed into admin, and seemingly have failed to distress ACL into a fire sale of the arena.
They've managed to avoid handing the club over for now, certainly, but if you can see any way they're making money in the next five years then you're doing better than me. I am nervous about what they are capable of, but not respectful. In every measurable way, their running of this club has been a disaster for both them and us. They clearly are not that clever.
Made the point here already, ultimately the mortgage is tied to the property, and the property has value with or without the club. The taxpayer has a better chance of getting their money back with council control of the asset, than it would had it ended up in SISU's hands for bugger all.
I take your point, but don't mistake nasty for smart.
I think their well started to run dry some time ago, around the time of the Fox & Dann sales, and ever since then they've been dribbling the bare minimum into the club, leaving us where we are now.
I assume they are smart because they have strong academic qualifications and a business that attracts wealthy investors.
There would be no point in their move if the kitty was empty. Whether it's buying half of the Ricoh, or building a new stadium in Coventry, or building a new stadium elsewhere, they require money.
"I'm offering to pay the rent, and sharing half of that ticket money with Otium. We would just take the rent money back and the rest could be invested in the academy."
"The people who put the money up with me would take a return to cover financing and other costs. But kept to a reasonable sum."
They want the stadium. ACL stopped negotiating with them. Perhaps as a result of that they prepared other plans which they are moving full steam ahead with.
Defensive (and another redundant) comment.
Pushed into putting the club into admin? They seemed remarkably well-prepared if that was the case ...
Clever enough to have thoroughly outfoxed ACL.
Sounds good on paper. But how big a chunk will it take out of the council's budget each month with more local cuts coming?
So we'll certainly be accessing those Matchday revenues at NTFC just a shame that they'll be nothing like the ones that the cross invoicing from the Ricoh could have produced. Downward spiral here we come, and that's not to say that the team or manager won't be giving 100% just that the manager will be serioiusly lacking in financial firepower.
I was also told Northampton Town people or wobbling big time, this is going to get very, very interesting
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