...that you aere a mega rich investor and SISU came to you asking whether you would be interested in investing in the club. Taking off your Sky Blue spectacles, the question surely that would be asked is "If this investment is so great, how come you (SISU) are not investing yourself instead?".
It's an obvious question and one that I very much doubt SISU can answer convincingly. Thus, I very much doubt that SISU will be able to get the investment they have been talking about.
If I won the euromillions I'd buy a half stake in the Ground and the Club. I'd want suitable investors to buy the other half so we could own it outright. If none of the other dragons would like to invest then...............I'm OUT.
"What very few people on this board seem to know is that SISU themselves or the people behind SISU may not necessary have their own money in any of the projects - the money comes from 'private investors' outside the SISU company".
The shares in the holding company (which owns CCFC) are owned by 5 private equity funds - i assume these are managed by SISU whether SISU actually have any investment in these funds is unclear.
Users may be able to pick what I've said apart but it's only a very very basic guide. - please excuse me gouldberg if i comment on a few things
Council didnt make offer to sell for £10m - The Alan Higgs Trust have given CCFC the option to buy their shares at £10m by 2013. Got a feeling the Council are looking for somewhat more, I doubt they could sell it at anything other than a profit especially as everyone is saying how successful it is - they would get hammered by the rate payers in the city . Only way to withdraw funds on the basis of share ownership is to take a dividend but cannot do that because the reserves available in ACL are negative £2.4m (to take dividend would be illegal). Also what CCFC saves in rent ACL loses so the group effect is nil. The events are limited to customers wanting them and the football timetable it isnt just a case of asking. The £3m profit at ACl was an exception not the rule and includes the rent receivable from CCFC. But perhaps better marketing and usage could increase the profits
Buying CCFC outright wouldnt wipe out the losses it just calls one debt something else. I think the profitable side of the equation is the stadium not CCFC which is why everyone wants the stadium. CCFC wont be profitable until it is in the premiership or can sell players on at a huge mark up as Newcastle did with Andy Carroll. But yes there are things that can be done to improve income
I think if I was very rich I would actually make an offer on business terms. The Ricoh Arena posted profits of £3.1m a couple of years ago. The council agreed that CCFC could buy half of the stadium for £10m
That figure changes on a daily basis, its calculated using a complex formula which takes into account changes in property value, among several other factors. The 50% share price for the Arena may have increased considerably by the time SISU are ready to approach the Council with a firm offer.
oldskyblue58,
I have read most of your posts and you seem to know about economics.
Most of what I have read in your posts are about the current situation - where we are today.
I would like your view on how we got here. Who (if any) are to blame and would you prefer SISU out with RR/Hoff back at the helm?
There was certainly more than one initial investment planned all along. The idea was to invest and build in each window. RR says that plan changed, obviously against his wishes. THAT is the bit that annoys most about SISU, as we've just gone around the block with no prospect of actually getting anywhere apart from in debt to the very guys who claim to be our saviours. Throughout that time being told how lucky we are-and never being told anything about why the initial plan changed, or what the new plan was.
A bit like now, really-any supposed attempt to be transparant has obviously gone what with the utter balderdash and piffle that was spouted at that big press conference, and by Brody on CWR!
I heard he was a fan - and so won't get involved financially because that would make it business.
I heard he was a fan - and so won't get involved financially because that would make it business.
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