SISU's Options- Put yourself in their shoes and then decide (1 Viewer)

[BrisbaneBronco]

If you were SISU what would you do next

1. Open the purse strings and spend to get us up next season to include quality players and a new manager if necessary.

Risk is that this may fail and put them further out of pocket.

2. Put the club into administration

Risk is that an administrator will be appointed and they will decide which creditors get paid and how much. So SISU will not get their money back

3. Put the club into liquidation after they have had a fire sale of everything with a value.

Risk is that they will not get everything they have invested back because CCFC do not have assets which will cover this.
However they could raise 2-3m in player sales, then another chunk from season ticket sales. So they could raise 3-4m and cut their losses then liquidate the club which will have no assets.

4. Accept Hoffmans offer if there is one

Risk it would be considerably less than the money they could raise by liquidating the club

5. Find new investors.

Risk it would be impossible without stadium ownership and neither ACL or Council will sell to SISU.

So when you look at the options then liquidation would seem more likely than any of the others. Other than that option 1 would be a shit or bust choice which I do not think SISU would consider.

 

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[Perryccfc]

It's impossible to say because we don't know there situation. Although it is habit trying to second guess what will they will do its impossible to say. We don't know any financial info on anything to do with the club. I don't think they are keen on leaving just yet though. But that's only my opinion

 

[MatthewWallis]

If we owe money to SISU because they loaned the money to us, would they not get at least some back if we went into Administration?

 

[slyblue57]

I laughed when you suggested SiSu would get 2 - 3 million in players sales. We ve got no players worth anything like that. Our entire team would nt raise 2 million.
I hope you re not thinking Keogh is worth more than 300000 max. the only players of any worth are Clingan and Crainie and they go for free.

 

[withnail]

I’ve pondered this scenario myself continually over the last few days and come to the same conclusions as BrisbaneBronco.

My feeling is that we are just a very damaging investment to these people.
Common sense tells you they’re going to want out and will take the financially least damaging option with no regard for the fact that this is a much loved institution and not just a pile of shares in some dodgy South African diamond mine (which probably would have been a better bet).

In my opinion the stadium is our last hope. We don't own it but then if we did own it any prospective new owners would still have to buy it from us anyway so what does it matter who they are buying it from? At least buying it off the council they know they won’t turn up to find the light fittings, carpets and turf stripped out as would likely be the case with SISU.

My hope is that some very rich and financially reckless football fan is watching the Olympics, his wife's favourite colour is sky blue and he fancies owning an Olympic stadium.

I don’t trust anything I’m hearing from any of the various talking suits that are doing the rounds at the moment.

 

[chiefdave]

it would, at least in part, be down to what their initial intentions were.

my feeling is that the initial plan was to make an investment which would get us into the prem (possibly use that money to buy a share of the stadium) and sell the club at a profit. The problem seems to be that they budgeted on a certain level of attendance which they didn't get and there was no contingency fund to cover that so the likes of Dann and Fox got sold to offset that.

That of course meant there was never a realistic chance of going up and once Ranson went there was a change of strategy to get the club to a breakeven point. Again it's guesswork but I think their idea was if they got the club to break even this season they would have a more attractive business to sell and of course wouldn't have to put any money in themselves. Of course they made a huge gamble hoping we could stay up when everyone could clearly see from the start of the season we didn't have a hope with the squad we'd got.

So where does that leave them, they could make more cuts to the playing squad to try and offset the loss of income but this doesn't seem to be a strategy that has any sign of working for them. No one, apart from Hoff, seems remotely interested and it seems to be a never ending spiral. Cut the budget more and there's every chance of ending up in another relegation battle, at what point does that downward spiral stop? So what can they do?

Sell up - The club is worthless, there may be a few assets but everything seems to be mortgaged. Of course we're not sure how much they've put in but you can be sure if they sell up now they'll have to take a pretty big hit.
Admin - Makes little sense as they are the major creditor, why would they pay an administrator it would just mean they get less money back.
Liquidate - They can sell off all the assets, problem being I can't see that we have much in the way of assets.

If it was me I would be looking at the value of my assets and then actively marketing the club at that value. Of course any sale would be for a £1 but say there is £2m in assets I would be snapping the hand off anyone who offered me that. It's alright Fisher saying no ones shown interest but they keep saying the clubs not up for sale. Until they say they are willing to sell and actively look for buyers how can they judge the level of interest.

The fly in the ointment may be that they are renowned for being stubborn and spiteful and if they think they're only going to get a couple of mill back, small change to these type of investors, they may just say screw it and liquidate us just because they can.

 

[Godiva]

I put myself in sisu's shoe's as you request and choose

6. Tell the board to make the club self-sustainable. There will be no more 'investments' in lost cases. Provide us with a credible budget that results in a small operational profit. If you do that, we will make sure the club can handle cash-flow flucturations.