If true, who brought this meeting forward and why ? (1 Viewer)

[les_miserables]

If it's correct that this Hoffman/SISU meeting has been brought forward to today, surely it could only have been SISU who have brought it forward and surely then there must be a pressing reason for doing so, we can hope. I just wonder who is holding all the cards. This threat of administration rumour seems to be getting stronger by the day. I don't suppose we will hear anything significent if at all and will be fed rumour after rumour but i do have hope of things coming to a head soon.

 

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[covcity4life]

lets hope

i doubt well get any news on it till monday

 

[Otis]

BBC Midlands tv news has just mentioned about the consortium meeting Sisu today.

 

[Astute]

Maybe Bernie Ecclestone and Flavio Briatore will be looking for a new club to make money from after selling QPR. Does Hoffman know them? Sale has just about gone through so meeting brought forward?

Wouldn't have thought so though

 

[Scott 79]

i imagine a public announcemeent will come when Brodys back is better and he is able to fly again - poor Orville

 

[bishbosh]

Maybe Bernie Ecclestone and Flavio Briatore will be looking for a new club to make money from after selling QPR. Does Hoffman know them? Sale has just about gone through so meeting brought forward?

Wouldn't have thought so though

Well, if we're holding out on hopes and dreams, perhaps Bill Gates is a secret Cov fan for some mad reason - surely he could play with some of his $54 billion(Forbes.com)

 

[oldskyblue58]

I will believe something is happening when I actually see it.......

But a couple of thoughts.

The new directors have been brought in to find new investment or perhaps sell the club. It is entirely consistent with that to speak to GH and his backers as soon as possible. That way they either progress it or put it to bed. It doesnt necessarily mean that GH has a proposal that interests let alone tempts the SISU investment funds. Certainly it would need to be significantly better than previously reported.

They could be looking simply for additional investment to acquire the 50% of ACL and secure that investment on that purchase.

The professor on the radio CWR made a big thing about the meeting but to be honest the directors have a duty to the club to meet and discuss any realistic interest in investment or purchase - it would be the same for any business. Also made a big thing about SISU funding the business to end of season - any owner would have to make that undertaking because the alternative is administration

A lot being spouted about administration - but i think you have to look at who is saying this, certainly would not benefit SISU investors. As for Keys insight on it - how would he know no one connected to the GH bid has access to the figures and its unlikely SISU would allow such information or the management figures outside of the board room. We might of course go into admin but anyone spouting off about it now is guessing -(including me)

Any deal will not happen before 31/08 so wont affect our ability to buy players. Perhaps will allow us to bring in loans in September but again the deal may take that long or longer - in the meantime our squad is what it is.

Any new owner will still have the clubs biggest problem to deal with ....... the fact it spends more than it brings in...... and may have to make the same decisions SISU would have in terms of new players or player sales. Bringing in new or loan players adds to the costs and increases the losses or cashflow deficit - part will be mitigated by better crowds (but for how long?) but that will still leave a deficit to be funded. Right now the SISU loans cost us nothing so taking them out even for £1 will not increase profitability. GH & co might have £30m for debts players and 50% ACL but what about on going costs that need to be covered - the problem remains

SISU will have put in some very tight and good (in terms of their purpose - not talking about whether right for squad) cost controls that any prudent new owner or director would find it hard to argue against without running risk of negligence if it all went wrong (because it could go wrong for any new owner just as much as SISU) so they wont change that too much.

So all in all I am cautious (a) that this meeting today is anything more than exploratory and (b) that any new owner will actually be able to change a lot of the things if they take over. The biggest thing that could change is having funds for transfer but that has costs that affect other things aswell as perhaps increasing crowd revenue. Will it all balance - believe it when i see it

People query if there is a transfer embargo .... Clouting says there isnt (not sure how much to believe in that) but any contracts signed (extensions or not) are new contracts and covered in rule 4 from football league - you cant sign while under embargo except with special permission from the league.

As always nothing is ever simple or transparent at CCFC !

PUSB - please beat Watford!!!!!

 

[Moff]

Old sky blue.

I like what you have written, and it makes a lot of sense.

The one bit i would question though is regarding new owners and covering ongoing costs.
You are spot on that we are still losing money, and the everyday running costs of the club need to be covered, but one element seems to be being overlooked here, and that is making money from success, or at least trying to be successfull.

Yes we are losing money, but we will continue to do so, whilst we play with a paper thin squad, whcih SISU seem happy to strip of every asset, and see us struggle or tread water around 17th place each season. This year sees us even worse.

This does not excite the fans, nor bring the floating supporter through the turnstiles, thus meaning no extra revenue for the club, through ticket sales, and match day revenue.

We need to invest in the team, and we need to see positive attacking football with some hope, any hope, for the fans to come back and increase revenue for the club.

Any signing would be good at the moment but SISu wont even fund that, so how will they bring back the fans????

I knowe this is a simple analogy to our situation, but when I heard Paul Clouting talking about 'the buisness' repeatedly in the Fans Forum I had to laugh, as surely SISU are not that inept that they dont know that for any buisness to survive it needs customers, and in that case what are they doing to attract the fans/customers to the club at present.
NOTHING.

We are a disaster waiting to happen, that is now happening.

 

[Jack Griffin]

If SISU put the club in admin do they walk away having trousered any money? I know they are supposed to be holding ~£30M debt, but they won't be paying it back in that situation will they, the administrator will sell off assets & offer something like 10p in the pound to creditors. I don't think the directors of SISU will have to cover it as they are setup as an independant entity. But I know nothing about company law, so I can only speculate.

I'm also suspicious about the role of these new advisors, are they taking a fee & moies out of the club, I doubt if anyone can find out.

There are a lot of nasty smells eminating from the club at the moment.

 

[CCFC123]

The only way CCFC will turn over as a profitable business is to purchase the Ricoh. Without that no matter who buys the club we will be in the same mess 3 years down the road when the money runs out.

SISU's problem was they never followed the original plan of making a young, successful side. They cashed in.

 

[Sterling Archer]

Old Sky Blue is a voice of reason on these boards. Top posting everytime I've read his stuff.

 

[Otis]

Maybe Old Sky Blue is John Sillett!! :thinking about:

 

[oldskyblue58]

fair points Moff

I did reference but didnt emphasise the point "part will be mitigated by better crowds (but for how long?)"

I guess the reason I didnt emphasise the point is because of the historical reluctance to consistently support the team by our fans (other than the hard core). I could see new owners come in and give the crowds a boost but if results dont improve how long will it continue. There are all sorts of variables arent there - it could go great and crowds jump to season average 22k and happy days or it all go pear shape and drop to 12k season average or everything inbetween. Guess i concentrated on what is known but you are right in what you say

As for SISU attitude to even a couple of modest signings on loan then I just dont get it. They could boost the spirits of the supporters but more importantly the spirits and chances of the team by doing so. That would boost income and pay for the loans - seems simple to me and many many others.

As for Clouting referring to the business then i dont have a problem with that - it is one and has to stand on its own two feet. Just because football clubs have been considered something special or other in the past doesnt make it right - infact that old attitude i believe is why football is in the financial mess today. Even CCFC sells £9m a year - that is a significant business and i would find it hard to describe it as anything else. Bottom line though is the description isnt important survival on and off the pitch is. SISU must understand that the club needs the fans but the financial ethic they come from is business recovery not business expansion. The first thing they look at is cutting costs and outgoings - its a blinkered attitude of mind i think because a little investment in the right place (the squad) could reap substantial rewards.

PUSB

 

[oldskyblue58]

Maybe Old Sky Blue is John Sillett!! :thinking about:

my nose isnt big enough Otis !

 

[LeeCovFox]

Hi all

I'm a Leicester fan (here in peace!) who lives in Coventry. I also have friends and relatives who support Coventry and I find what is happening to your club very sad. Cleary I won't have a knowledge as detailed as you lot as to what is going on at your own club, but is there not an argument that going into administration could be a positive thing for the football club (if not local businesses)? It would at least give you an opportunity to start again. Of course the ten points deduction would be a massive headache, but it may be worth the short term hit.

A lot about Coventry City has the same feel about it as the season we went down. I've noticed an awful lot of pessimism on here. A lot of you seem resigned to relegation already. Although we didn't feel that way quite so early in our relegation season, the mood here does remind me of our own experience. I'm afraid that this season I have to agree. It doesn't look good. Then again it is very early in the season, so who knows what will happen? In any case, relegation did us no harm in the end.

One thing I would say about any takeover is not to allow yourselves to be taken in by any new owner promising cash and promotion. It doesn't work quite like that. Is there not an organised supporters group which can stake a claim in the club? Swansea City fans have a 22% (I think) stake in their football club and Exeter City are entirely owned by their fans. Both clubs have enjoyed great success relative to their stature in recent years, so the evidence is that the fan ownership model works. I would certainly prefer to have such a model in place at Leicester, rather than the current ownership which will almost certainly (in my opinion, of course) see us back in financial strife, if not administration, in years to come.

Good luck. Whatever rivalry may exist between some of our supporters (I'm a Forest and Derby 'hater' myself, but many choose you as their main rival, as you know) I do not wish to see a club like Coventry City go under.

 

[chiefdave]

One thing I would say about any takeover is not to allow yourselves to be taken in by any new owner promising cash and promotion. It doesn't work quite like that. Is there not an organised supporters group which can stake a claim in the club? Swansea City fans have a 22% (I think) stake in their football club and Exeter City are entirely owned by their fans. Both clubs have enjoyed great success relative to their stature in recent years, so the evidence is that the fan ownership model works. I would certainly prefer to have such a model in place at Leicester, rather than the current ownership which will almost certainly (in my opinion, of course) see us back in financial strife, if not administration, in years to come.

speaking on which what's happened to the Sky Blue Trust, does it even exisit anymore? If it does surely they should be doing something!

 

[oldskyblue58]

here is the link to their website chiefdave

http://www.skybluetrust.co.uk/

Doesnt seem very active or even up to date. Would have thought the current situation was perfect to expand its activities

 

[bamalamafizzfazz]

Going slightly off topic of the thread content and back on the subject?

Why are people suggesting this meeting has been brought forward? I thought suntan Joe said on Talksport that the meeting was taking place on Friday which correct me if I'm wrong (but I know i am not) today IS Friday, yes?

A trivial question in the circumstances I know but everyone seems to be suggesting this is a new development that only occurred today.

 

[oldskyblue58]

We knew on here it was going to happen ages ago..... think the excitement is more to do with selling papers and getting listeners. We dont actually know how important the meeting is and some big assumptions are being made about timing and content

 

[chiefdave]

here is the link to their website chiefdave

http://www.skybluetrust.co.uk/

Doesnt seem very active or even up to date. Would have thought the current situation was perfect to expand its activities

given that people such as JE seem to be suggesting protests are doing more harm than good it would be a great idea for the trust to get together a group of 4 or 5 people who are good with business / finance and request meetings with someone from the board / SISU who can give straight answers and also possibly meet with the Hoff to see if any details of his intentions can be found out.

for all we know at the moment the protests could work and force SISU out and the Hoff bid might not materialise. would be good if someone, and the trust would seem the ideal people, could get some dialogue going with both parties.

 

[Jack Griffin]

It was last week when Coventry city Mad posted the date of the meeting as today, I thought they got it from the telegraph site, but I can't find anything there.
http://www.coventrycity-mad.co.uk/news/tmnw/friday_for_hoffman_meeting_693664/index.shtml

 

[Godiva]

given that people such as JE seem to be suggesting protests are doing more harm than good it would be a great idea for the trust to get together a group of 4 or 5 people who are good with business / finance and request meetings with someone from the board / SISU who can give straight answers and also possibly meet with the Hoff to see if any details of his intentions can be found out.

for all we know at the moment the protests could work and force SISU out and the Hoff bid might not materialise. would be good if someone, and the trust would seem the ideal people, could get some dialogue going with both parties.

I don't think there's even a remote chance of getting a fans/board meeting and frankly I don't see the point. The board would in any case be in no position to reveal anything we don't already know - or anticipate.

Hoffman was probably chuffed winning the fans over in round 1, but a full scale protest at this point would most certainly drive away his backers. They do not want to invest in a company where they cannot control there exit strategy.

 

[wingy]

OLD SKY BLUE , imay be being a bit simplistic here, but if we are generating £9,000,000. then losing £6,000,000. this business is costing £15,000,000. a year to run .So is there any way through subtrofuge that sisu could pass on the costs of the £30,000,000. debt ,as it just seems ludicrous to loose so much on that turnover?

 

[covsteve]

Hi all have not posted for a long time, cannot really see SISU putting us into administration or the takeover talks running smoothly (have a feeling SISU will dig their heels in) could go on for a long time in which by that time we could be well on our way to league 1 :-( . Let's hope I'm wrong and SISU do the honourable thing and accept Hoffs bid. PUSB

 

[andyboy81]

http://www.ccfc.co.uk/page/NewsDetail/0,,10269~2426009,00.html

 

[oldskyblue58]

OLD SKY BLUE , imay be being a bit simplistic here, but if we are generating £9,000,000. then losing £6,000,000. this business is costing £15,000,000. a year to run .So is there any way through subtrofuge that sisu could pass on the costs of the £30,000,000. debt ,as it just seems ludicrous to loose so much on that turnover?

last couple of years the wages alone have exceeded turnover, in 2010 they ran at 112% of turnover and thats before rent, utilities and any other costs. You can look at it two ways either turnover isnt big enough (it isnt) or that wage costs are too great (given the under- achievement over the last 10 years not too hard to argue) Both need to be rectified for the club to survive.

Could they write off the loan through Profit and loss yes but that would improve things not worsen. Are there things being done underhand to benefit SISU well I would hope the independent auditors would spot that. I cant spot anything from accounts that indicates SISU are creaming anything off or that costs have increased because of them.

This is nothing new for CCFC or because of SISU - there is a long history of the club paying out more than it can afford wingy

 

[oldskyblue58]

doesnt look like the meeting went well then

http://www.ccfc.co.uk/page/NewsDetail/0,,10269~2426009,00.html