How are we still losing £0.5 million a month ? (1 Viewer)

[ccfcway]

Coventry City Interim CEO Tim Fisher has admitted that the Caymen Islands based Arvo Master Fund is putting money into Coventry City FC every month.

Speaking to the CT's Les Reid, Mr Fisher said: “Every month, money is going into the football club.

"The money is put in from the Sisu hedge fund which is Arvo. Arvo put it in as debt. “As a consequence it uses the assets of the company as security. “It does not put in the money as equity. Why would you?”

Mr Fisher added: “There is nothing dark or sinister about this. “There is a funding gap every month. That funding gap is bridged every month by Sisu. "The funding gap last month was north of £0.5million. They’ ve put in £40million.”

 

---

[italiahorse]

No income for May and
100k stadium
100k players
50k staff
Ummmm ................

 

[SkyBlue_Bear83]

When Ranson was here he said we were losing 4-5 million a year. About 400-500k per month then, I can't see how we are losing that still. Either Ranson was lying then or Fischer is lying now.

EDIT - forgot there was no income at the moment, also we are still paying Eastwood and Clingans wages until they expire in the summer

 

[ccfcway]

No income for May and
100k stadium
100k players
50k staff
Ummmm ................

we must have some income from TV money, surely it is budgeted in months not once a year

also merchandise is income, as is season tickets

even in the summer we shouldnt be losing 500k a month

trouble at mill !

 

[Spagbol]

JUST DOESN'T STACK UP:thinking about:

 

[flammablepiss]

Maybe they have averaged it or something? Statistics can be twisted easily.

 

[Paxman II]

I think you will find it is an average over the 12 months. TF is referring to the figure everyone was talking about at one point but we all know that has been tackled down quite a bit since then and widely reported. He should have known better and a slip of the tongue is not good when you are in his position.

 

[stupot07]

Average attendance was 15,119, say average ticket price £15, which is roughly £5.2m, plus ~ £3.5m tv, PL money, sponsorship, plus £500k+ Merchandising so that's at least £9m income. Wages are reportedly around £5m and rent £1.2m, obviously got other wages, tax, etc so lets add another £2m (total outgoings £8.2m) but to still be losing £500k per months then where is the other £7m going?

 

[torchomatic]

Well, there's no new kit yet so o income there. Fans are also holding off buying their season tickets too, so its not too difficult to see why. Add to that the wage bill, etc.

we must have some income from TV money, surely it is budgeted in months not once a year

also merchandise is income, as is season tickets

even in the summer we shouldnt be losing 500k a month

trouble at mill !

 

[oldskyblue58]

say that income last year was 7m (net of VAT) ...... the implication recently from TF is that the club requires around 6m or 500k pm from its "investors" that would tend in basic simple terms to mean that costs are something like 13m. We are not talking financial accounts figures thats the cashflow deficit

That after cutting costs, apparently ............... it doesnt stack up certainly ........... there are still things to come out of the woodwork

If you take Mr guilfoyles comment as true that there is a cashflow requirement in close season of 3m then that implies thats the normal monthly costs because there is little income to be had.............. that implies total costs of 12m a year which is higher than in the 2010 accounts!

 

[ccfcway]

so, if we are losing 500k a month now, and we get FREE rent (whci isnt gonna happen) then we are only losing £400k a month

Why are SISU here, clearly its not going to work for them

JOG ON

 

[Brighton Sky Blue]

The one thing we are truly in the dark over OSB is how much all the various directors who've come and gone over the years have been paid. So many board members in so little time-is the answer (or part of it) in there?

 

[oldskyblue58]

well we could check the accounts BSB .................. oh wait no we cant!

I agree with you they must have added other costs to our club for their statements to stack up

 

[skyblue_rich]

I know that Tim Fisher is an "expert" in turning failing businesses around, and Is some that sisu have used before on previous investments. As such, he is now probably one of the best paid people at the club, (assuming you count fat Fred, clingan and cranie not on wage bill)

 

[wingy]

OR worse still but that letter from Mutton to the MEP suggesting the rent was only 5% of their expenditure,just cannot be accurate

 

[Brighton Sky Blue]

well we could check the accounts BSB .................. oh wait no we cant!

I agree with you they must have added other costs to our club for their statements to stack up

I'd also like to know whether Brody still holds his small stake-as he seems to have vanished off the face of the Earth in the past 8-10 months. So many questions I want answering! Les Reid knows what he's doing though, so my fears are at ease...

 

[wingy]

Questions Questions everywhere .Prefer Lou REED myself .

 

[Brighton Sky Blue]

Amen to that Wingy

 

[Sky Blues]

Have we added in the cost of paying off all these managers we've sacked in the last few years? (a serious query & not an invite to restart Thorn in/out debate again)

 

[Brighton Sky Blue]

If I'm right, we're still paying off Boothroyd for sure-couldn't say anything for Coleman though.

 

[stupot07]

And don't forget the next income from transfers - in Dunn (~£100k), Cody (£450k) = £550k; out turner (£750k), juke (£1.5m), Gunnar (£400k?), dann (£400k?) = £3.05m, which is an estimated transfer income of £2.5m less tax, agents fees, etc. obviously not all this comes in one go, but the point is we'd have had a net income from transfers last season.

The figures just don't stack up lot me.

 

[Sisu_Cockroaches]

I cant see how we are loosing half a million a month. Its total bullshit. If we are loosing half a million a month it is being taken out of the club through unknown avenues increasing the debt of the club but increasing the unofficial profit of Sisu or whatever they are called. Parasites. They have no interest in the City of Coventry as a whole and the football club is fundamental to that.

They don't belong here fuck off.

 

[dongonzalos]

I think you will find it is an average over the 12 months. TF is referring to the figure everyone was talking about at one point but we all know that has been tackled down quite a bit since then and widely reported. He should have known better and a slip of the tongue is not good when you are in his position.

Just Tim making an innocent slip of the tongue mistake then?

 

[dongonzalos]

The one thing we are truly in the dark over OSB is how much all the various directors who've come and gone over the years have been paid. So many board members in so little time-is the answer (or part of it) in there?

Also who are SISUs investors and what are they worth

Council really should demand this be revealed as part of the deal. Mugabe is minted and it would be a bit embarrassing for the council if they sold half or the ricoh to him

 

[BurbageSkyBlues]

Hhmmmm...

Let's say, hypothetically of course....

Arvo put 'debt' (not equity) into ccfc.
Ccfc repay some of the 'loan' from the now 'ring-fenced
' original hedge fund.
Sisu give arvo some money, from a new or different investment fund
Arvo fund some more debt of ccfc (not equity, why would you?)
Ccfc repay some more to original sisu fund.....
And so on, each month.

Now, don't submit your accounts, because this chain of events might be spotted....not what we want when we are trying to get our hands on the stadium

Net result?

Original Sisu fund is being refilled
Ccfc debt is to arvo
Arvo have a charge over every ccfc asset, so the debt is now secured, once we own the share of the stadium.
Oh, how is the club doing in blue square north? Not very well? Still losing money?.....oh, get rid of it, we don't need it anyway. Liquidate it, our money is safe......

Hypothetically speaking, of course.

 

[Skybluestu]

Well, there's no new kit yet so o income there. Fans are also holding off buying their season tickets too, so its not too difficult to see why. Add to that the wage bill, etc.

Fans are holding off buying season tickets????? Season ticket sales are up on last year!!!!!

 

[Sisu_Cockroaches]

None of this "money here "money there" bullshit makes any difference, they don't belong here full stop. We can go around in circles trying to make sense of it but the only thing that makes sense is them leaving the club alone even if we take a huge steps backwards we will always get back no matter how long it takes. We have a whole closed season to dwell on and people are going to get wound up about this up about this and i can guarantee Sisu will feel the full force of an unhappy support next season they have seen nothing yet.

 

[Sisu_Cockroaches]

Fans are holding off buying season tickets????? Season ticket sales are up on last year!!!!!

No there not , i don't know one person who has bought one yet and i have counted 16 season ticket holders from last year i know personally.

The average crowd next season will be about 13000.

 

[CCFC123]

Were not losing £500k a month. Last year it was stated we were losing £350k a month and more assets have been sold along with wages dropping. It's simply a bare faced lie. Nobody believes it and it's part of the game being played by SISU with the council.

Give a break regarding the season tickets everyone I know has held off so how have they sold more? They haven't.

SISU natural reaction is to lie when asked a question. Pathological liars.

 

[Brighton Sky Blue]

We'll only know for sure as and when they file the accounts-which are pushing on for 3 months late. Rules, regulations, contractual agreements all seem to be optional extras provided they get what they want-and this debenture can only be the tip of the iceberg. The more that emerges, the more I start to think that enough is enough-getting these people out of the club is paramount; replacements or none. Call me foolhardy for saying that, but it's really getting to the point where a CCFC phoenix club looks more appealing than any long term prospects under SISU.

 

[Sky Blues]

Here's a couple of quotes from the CT on June 7 last year, after Sisu finally published the last set of accounts - which showed how CCFC's "turnover fell from 2009, as it struggled with a debt of more than £39 million in 2010." (Odd how we're supposedly losing £500,000 a month according to the latest update from Mr Fisher, but the £39m debt has barely changed)

Professor Wyn Grant from Warwick University: "The directors are saying that they want to stay in the Championship and reach the play-offs, but revenue has fallen and the problem they face is how to attract fans back.
“They say that they are trying to secure finance, but it is whether they can do that. If the club had stakes in the Ricoh Arena then the situation would look a lot more attractive to investors.”
And the 'little more optimistic' Dr John Beech, senior research fellow in sport and tourism from Coventry University: "Staying up, as the directors point out, is the key to Coventry City's success or failure – and of course this season they have, comfortably – and, if new investment can be found to enable at least a partial purchasing of the Ricoh stadium, the future for the club should be significantly brighter.”

Does anyone else think maybe we're just going around in (ever decreasing) circles? (Though admittedly Sisu does seem to be making a serious attempt to get its mitts on the Ricoh now, albeit too late for many of us here to trust them with it now).