Rumour: Hoffman and Elliot takeover negotiations (9 Viewers)

Earlsdon_Skyblue1 · Apr 21, 2017

Regardless, this now looks to be the best chance to get rid of SISU in their entire 9 year reign.

westterrace · Apr 21, 2017

chiefdave said:
The same Hoffman that was moaning yesterday about 'the club' making it known he had made a bid as it was supposed to be confidential?

Yes because club had already leaked offer to Les Reid

SkyBlue_Bear83 · Apr 21, 2017

Does Hofmann sound confident of doing a deal or is this dead already?

skybluetony176 · Apr 21, 2017

theferret said:
Just listened to the interview and to be fair it was made clear a number of times by SL that Hoffman wasn't keen to go on and that he only agreed when news of the rejected bid was leaked to Les Reid. Sounded uncomfortable and extremely unhappy with what has go on in the last 24 hours. Thought he spoke honestly, and he is obviously under no illusions that by putting his chin out he is going to get hit (his words). Ultimately this is someone willing to take flack and throw his own money down the drain in an attempt to wrestle control of a basket-case of a club away from SISU. Can't believe he is getting stick for that.

He sounded very emotional.

skybluetony176 · Apr 21, 2017

westterrace said:
Yes because club had already leaked offer to Les Reid

Yeah but but but...

AFCCOVENTRY · Apr 21, 2017

Fisher has declined to come on radio.

SkyBlue_Bear83 said:
Does Hofmann sound confident of doing a deal or is this dead already?

He was confident on the second deal and perplexed why it's been rejected. Doesn't know what will happen next.

Hoffman is pissed off with fisher Sisu and les Reid on confidential info being leaked

clint van damme · Apr 21, 2017

Earlsdon_Skyblue1 said:
Regardless, this now looks to be the best chance to get rid of SISU in their entire 9 year reign.

and their best chance to get a reasonable return in the circumstances. Hopefully they can see that and are just trying to rinse a couple of more bob out of them.

theferret · Apr 21, 2017

SkyBlue_Bear83 said:
Does Hofmann sound confident of doing a deal or is this dead already?

Hard to say. He sounded a bit annoyed and had only just learned that the second offer had been rejected. Said he hadn't even had chance to speak to the other investors. Not dead, and it does appear that communication channels between him and JS are open at least.

Brylowes · Apr 21, 2017

By the looks of him I'm not sure he'd have the strength to raise a smile

fernandopartridge · Apr 21, 2017

AFCCOVENTRY said:
Details of offer are:

Club few assets
No home
No academy home
Ruston status unclear.

£1.2m upfront for change of ownership is generous.

50% of all player sales and ryton sale for next 5 years to Sisu.

Then money based on promotions

All adds up to £10m+ for Sisu doing nothing.

We will invest into club on a sustainable basis to get all the way to championship.

None of the investors are in for financial gain. They are supporters and what club to be successful.

Under Sisu the club has been in a downward spiral.

Subject to agreement we will have long term deal at Ricoh. Shop should be back there.Confident this will be happen.

Hoffman perplexed why they're not accepting. It's a hell of a lot more my offer than what Sisu paid.

I'm going to have a glass of wine. I'm annoyed and see what we do next. I'm angry with the way this is out in the public. I have good dialogue with Seppala.
Don't understand why offer is labelled as disarory.

I need to take stock and speak with people. I haven't spoke with the investors since bid rejected. All Sisu get is upside. We need to sort out how the negotiations are being conducted.

My letter states proof of funds will be made. Investors will be identified. But the negotiations are being conducted in open so they're not happy. I'm happy to put my name as a principal investor. Investors don't want their names leaked at this stage.

It's a poor offer for the future of the club. More mortgaging of the club's assets

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robbiekeane · Apr 21, 2017

I think they will go back a third time with a take it or leave it offer then call it a day.

My prediction is that that happens and its rejected and we are stuck with them for years to come.

The thing is, publicly claiming the offers are derisory will make them look extremely silly indeed if they then turn around and accept an offer for a million or two more.

I don't think they will go unless we accept that we owe them around half of the SISU loans with interest payable. And that would put us in a worse position than we are now.

skysblue · Apr 21, 2017

Thats enough for me, no season ticket now! this offer is good what are SISU up to? I urge you all do not give these scum who are using our club for reasons other than football any more of your hard earned money.

ccfc92 · Apr 21, 2017

AFCCOVENTRY said:
Details of offer are:

Club few assets
No home
No academy home
Ruston status unclear.

£1.2m upfront for change of ownership is generous.

50% of all player sales and ryton sale for next 5 years to Sisu.

Then money based on promotions

All adds up to £10m+ for Sisu doing nothing.

We will invest into club on a sustainable basis to get all the way to championship.

None of the investors are in for financial gain. They are supporters and what club to be successful.

Under Sisu the club has been in a downward spiral.

Subject to agreement we will have long term deal at Ricoh. Shop should be back there.Confident this will be happen.

Hoffman perplexed why they're not accepting. It's a hell of a lot more my offer than what Sisu paid.

I'm going to have a glass of wine. I'm annoyed and see what we do next. I'm angry with the way this is out in the public. I have good dialogue with Seppala.
Don't understand why offer is labelled as disarory.

I need to take stock and speak with people. I haven't spoke with the investors since bid rejected. All Sisu get is upside. We need to sort out how the negotiations are being conducted.

My letter states proof of funds will be made. Investors will be identified. But the negotiations are being conducted in open so they're not happy. I'm happy to put my name as a principal investor. Investors don't want their names leaked at this stage.

Did he mention the debts owed to SISU? Is the £1.2m for debt free CCFC?

All seems reasonable to me, especially the investors choosing to stay anonymous for the time being.

Sterling Archer · Apr 21, 2017

If SISU have rejected this second offer surely they need to say:
A) Why
and
B) What would be acceptable

oucho · Apr 21, 2017

I do wonder what sort of offer SISU would accept. No idea how GH's offer would stack up in reality, but on the face of it seems like one that nobody else is going to come in and improve on. Maybe they think they can get a third offer and take that, or maybe they genuinely think they can get a much mucher better deal.

SkyBlue_Bear83 · Apr 21, 2017

Sounds very negative me, doesn't look like this will lead anywhere

coop · Apr 21, 2017

Take the offer and fuck off so I can renew my season tickets.

oucho · Apr 21, 2017

robbiekeane said:
I think they will go back a third time with a take it or leave it offer then call it a day. agreed

My prediction is that that happens and its rejected and we are stuck with them for years to come. yes

The thing is, publicly claiming the offers are derisory will make them look extremely silly indeed if they then turn around and accept an offer for a million or two more. do you honestly think they care? They have no shame, and besides they will always try to muddy the waters and claim that any other offer was far better than GH's when you get into the detail.

I don't think they will go unless we accept that we owe them around half of the SISU loans with interest payable. And that would put us in a worse position than we are now
Unfortunately I think you are on the right lines here.
.

John_Silletts_Nose · Apr 21, 2017

SISU and Fisher always state that confidentially is important, with transfers, buying land for the stadium, etc yet will leak other confidential information about other people.

Once again, the unofficial CCFC Press Office (Les Reid) states that the club want to know the investors yet will not reveal the current investors:
Crucially, the second bid still contained no proof of funds, and no transparency over the identity of would-be ‘investors’.

ccfc92 · Apr 21, 2017

A SECOND bid today by Gary Hoffman to take over Coventry City offered £1.2million upfront with add-ons for promotions – and was categorically rejected around lunchtime today when we revealed ‘bids’ had been turned down.

Crucially, the second bid still contained no proof of funds, and no transparency over the identity of would-be ‘investors’.

It also once again proposed a ‘debt free’ acquisition of the club – hence, it made no direct proposal to address Sky Blues’ ‘owners’ Sisu’s investors’ liabilities – the tens of millions of pounds pumped into the club in loans.

Former club vice-chairman Mr Hoffman – who has tried and failed before to acquire the club – claimed the second bid was worth a total of around£12million, we can reveal.

But we understand that estimate was categorically dismissed by Sisu – as being based on uncertain scenarios, with other add-ons relating to a cut of any future sale of the club’s current assets – a club with few assets.

The first Hoffman bid last weekend, without the necessary proof of funds, offered an upfront payment of £500,000, which he today upped to the £1.2million figure.

His second offer letter today was responded to swiftly with an outright rejection letter, which again stated his bid was ‘derisory’.

Today’s offer, as with the first, proposed £250,000 to Sisu upon promotion to League One, and £250,00 for staying there the following year.

It offers £500,000 for a promotion to the Championship within five years; and £5million for promotion to the highly lucrative Premier League within seven years, where TV revenues alone dwarf that sum.

Smaller add-ons included for any cup successes within a certain period.

As we reported earlier today, claims that Coventry City ‘takeover talks’ were ‘ongoing’ with Mr Hoffman were dismissed as false by Sisu – after we revealed yesterday his first bid had been rejected.

We published earlier today the following statement by Sisu, which stated Mr Hoffman’s ‘bids’ (plural) had been rejected.

The Sisu statement reads: “Following recent press articles discussing offers for CCFC, SISU would like to confirm and put on record that there are not (nor have there been) any talks or negotiations taking place for the sale of CCFC.

“Indeed, Mr Hoffman himself has noted publicly that the derisory bids put forward by him in recent days were immediately rejected.

“There were no talks prior to receiving the bids, nor are any expected or planned.”

The football club had yesterday released a statement to us saying: “To be clear, the owners have not received any credible offer for the football club.

“The noise and speculation around the football club is simply not helpful.”

Sisu has previously stated it wanted to acquire value for the club, and needed more commercial stadium revenues for the team to be more competitive.

Mr Fisher recently told a fans’ group Sky Blue Trust meeting that a sale of the club was not likely at the bottom of the cycle, or market – with Sisu seeking a return on its investment since taking over the club nine years ago.

The club has claimed Sisu and associated companies including Arvo Master Fund have invested at least £70million in the club, including in inter-company loans and some debts now transferred into shares. There have been some reports that the figure is now above £100million.

It follows speculation two weeks ago that Mr Hoffman and former Sky Blues chairman Joe Elliott had reached an ‘agreement in principle’ accepted by Sisu, a widely circulated rumour that was categorically dismissed as false.

Mr Elliott and Mr Hoffman – the pair who hire a corporate box for home matches at the Wasps owned Ricoh Arena – have failed with various takeover attempts since their departures from Coventry City Football Club’s board.

It is understood Mr Hoffman’s bid claims he is confident of striking agreement to remain in Coventry. Ricoh owners Wasps, £43million in debt from the last annual accounts, take nearly all the stadium revenues since Coventry City Council’s Ricoh sale on a massively extended 250-year lease in 2014, not offered to the football club on which the stadium financially depended.

More than £30million of Wasps’ debt resides in a retail bond scheme. It includes covenant pledges to bondholders that the Ricoh will be revalued every two years. The first revaluation – of the initial valuation of the 250-year lease of £48million based on assumptions of rapid business growth – was due last June, but did not take place, as we revealed.

Mr Elliott fronted a failed would-be attempt by American property investor Preston Haskell IV in 2013. In that year, several takeover attempts, some with the involvement of Coventry City Council, failed via an administration process – amid a multi-party dispute over Ricoh Arena stadium rent, revenues and ownership.

Mr Hoffman fronted another failed takeover attempt in 2011, and later tried and failed with a takeover using Chinese investment.

The club is now relegated to League Two, the fourth tier of English football – and is struggling to make ends meet amid off-field politics and being deprived of commercial revenues from a stadium.

The fans group The Sky Blue Trust and associated groups have campaigned for ‘fans’ or ‘part-fans’ ownership for five years, but have failed in that time to show a credible plan for achieving it.

fernandopartridge · Apr 21, 2017

All I can see in the offer is a commitment to sell players and Ryton yet the club to earn only see half of that income. What's the plan for the academy and training ground if the plan is to sell Ryton? How is the asset base going to be improved?

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torchomatic · Apr 21, 2017

skybluetony176 said:
So Italia said it would all happen today and it seems to. He also said it would be time to choose sides. Having just heard Gary Hofmann on the radio with details of his bid it's probably a bit hard to argue with him on that score either.

Yes, it certainly does seem reasonable. They want cash upfront. I bet if he offered £3/4M will those add ons he would have a deal. Let's hope he has a little more leeway in what his upper ceiling is.

torchomatic · Apr 21, 2017

fernandopartridge said:
All I can see in the offer is a commitment to sell players and Ryton yet the club to earn only see half of that income. What's the plan for the academy and training ground if the plan is to sell Ryton? How is the asset base going to be improved?

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Interesting that the new owners also wish to sell Ryton. Unless, of course, they have little choice as they can't raise more upfront capital. As long as we have a training base then really I'm not too bothered about Ryton.

ccfc92 · Apr 21, 2017

Liquid Gold said:
If there is a decent offer in front of them and they stay put then it will change my stance completely.

What would you say is a decent offer?

ccfc92 · Apr 21, 2017

torchomatic said:
Interesting that the new owners also wish to sell Ryton. Unless, of course, they have little choice as they can't raise more upfront capital. As long as we have a training base then really I'm not too bothered about Ryton.

It's sad, but it's where we are unfortunately

Earlsdon_Skyblue1 · Apr 21, 2017

Earlsdon_Skyblue1 said:
Decent offer by the looks of it.

Now trying to explain to the missus in the City Arms why I'm on SBT and not paying her any attention...

Breaking news: Someone's chatting her up at the bar. Looks like I don't have to log out for a while longer!

Brylowes · Apr 21, 2017

fernandopartridge said:
It's a poor offer for the future of the club. More mortgaging of the club's assets

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You think the future is safer with SISU?

torchomatic · Apr 21, 2017

ccfc92 said:
It's sad, but it's where we are unfortunately

I guess, but I'm not sad particularly. I don't have any emotional attachment to Ryton like I did to Highfield Road so as I said as long as we have a training base and the sale can help wrestle control from SISU then I'm not too bothered.

Gaz71 · Apr 21, 2017

ccfc92 · Apr 21, 2017

SkyBlue_Bear83 said:
Sounds very negative me, doesn't look like this will lead anywhere

More positive than yesterday IMO. £1.2m is a bit random, I'd say there's more that can be bid by Hoffman.

robbiekeane · Apr 21, 2017

Brylowes said:
You think the future is safer with SISU?

Where in the quote does it say that you mong

theferret · Apr 21, 2017

John_Silletts_Nose said:
SISU and Fisher always state that confidentially is important, with transfers, buying land for the stadium, etc yet will leak other confidential information about other people.

Once again, the unofficial CCFC Press Office (Les Reid) states that the club want to know the investors yet will not reveal the current investors:
Crucially, the second bid still contained no proof of funds, and no transparency over the identity of would-be ‘investors’.

...and Hoffman stated on the radio that he has said repeatedly in letters to the club that proof of funds and investor identities would be revealed in due course. Given that the club are leaking this stuff left, right and centre, his/their caution is more than justified it seems.

ccfc92 · Apr 21, 2017

torchomatic said:
I guess, but I'm not sad particularly. I don't have any emotional attachment to Ryton like I did to Highfield Road so as I said as long as we have a training base and the sale can help wrestle control from SISU then I'm not too bothered.

I just meant it's been part of the club for so long etc.

Happily swap Ryton and the Ricoh for HR.

torchomatic · Apr 21, 2017

Brylowes said:
You think the future is safer with SISU?

I know what Fernando means. It's a shame that for the next five years we will be giving half of everything we make to SISU. Be nice for them to accept a figure and walk away. Unfortunately, it seems that the consortium either don't have the kind of capital SISU would accept or are reluctant to offer it.

robbiekeane · Apr 21, 2017

Doesn't look good does it

torchomatic · Apr 21, 2017

ccfc92 said:
I just meant it's been part of the club for so long etc.

Happily swap Ryton and the Ricoh for HR.

Yeah, know what you mean, but at the end of the day it doesn't really matter if we train there or not.

Rumour: Hoffman and Elliot takeover negotiations (9 Viewers)

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