TheParsonsHose
Member
I suppose chasing something that they may not be able to get ie a lost cause takes the emphesis off players? Perhaps this is just a smoke screen?
Would you trust sisu with the half ownership of the ground? (2 Viewers)
- Thread starter Mumford and Daughter
- Start date
georgehudson
Well-Known Member
oh ! gosh, onye & kd have always been honest with us,
& clouting gave us a true explanation of how things were,
that snake won't bite you, honestly !!
PUSB
& clouting gave us a true explanation of how things were,
that snake won't bite you, honestly !!
PUSB
BurbageSkyBlues
New Member
Absolutely agree, OSB.
I think that their desire to have more than 50% merely underlines their intentions of an exit strategy that is based on complete control/ownership of the Arena, without any care or concern to the wellbeing of ccfc.
The council will not sell, unless there is a situation wherebye they are cornered........and these are seasoned investors, so we can anticipate underhand manipulation.
I think that their desire to have more than 50% merely underlines their intentions of an exit strategy that is based on complete control/ownership of the Arena, without any care or concern to the wellbeing of ccfc.
The council will not sell, unless there is a situation wherebye they are cornered........and these are seasoned investors, so we can anticipate underhand manipulation.
oldskyblue58
CCFC Finance Director
Just a thought
Everyone assumes that buying 50% of ACL from the Higgs Charity will improve cashflow. Well I have, i think cast significant doubt on that previously because of the mechanism to withdraw cash (dividends) not being possible as yet. If you read what KD says in last CT report on this i think he actually hints at but doesnt admit this.
However instead of being positive or even neutral buying the shares for £10m could make things tighter for cashflow. We assume that the money found would be "free" ie not an interest accrueing or a repayment loan. An Interest only loan would be £500K at 5%. But at 5% pa interest with a term over 10 years a repayment loan would cost £1.27m per year. Thats £1.27m out of cashflow we dont have and cashflow that wont be improved by the ownership of 50% of ACL. (We will still have to pay the rent so no saving there to offset this cost)
Unless they have someone who is keen to provide £10m to buy the shares for no return then i do not see how doing this deal actually works. Perhaps KD is off to the newsagents to get his lottery ticket?
This stadium shares purchase is a distraction from the real issues. Makes it look like the Board is doing something the fans want but does it add up? If it falls through then the Board can say it made all efforts and blame the current owners of ACL for not doing the deal the Club & fans want. A win win situation for the Board - but is it if the negotiations were not credible in the first place ?
Perhaps there is something I am missing here ?
Everyone assumes that buying 50% of ACL from the Higgs Charity will improve cashflow. Well I have, i think cast significant doubt on that previously because of the mechanism to withdraw cash (dividends) not being possible as yet. If you read what KD says in last CT report on this i think he actually hints at but doesnt admit this.
However instead of being positive or even neutral buying the shares for £10m could make things tighter for cashflow. We assume that the money found would be "free" ie not an interest accrueing or a repayment loan. An Interest only loan would be £500K at 5%. But at 5% pa interest with a term over 10 years a repayment loan would cost £1.27m per year. Thats £1.27m out of cashflow we dont have and cashflow that wont be improved by the ownership of 50% of ACL. (We will still have to pay the rent so no saving there to offset this cost)
Unless they have someone who is keen to provide £10m to buy the shares for no return then i do not see how doing this deal actually works. Perhaps KD is off to the newsagents to get his lottery ticket?
This stadium shares purchase is a distraction from the real issues. Makes it look like the Board is doing something the fans want but does it add up? If it falls through then the Board can say it made all efforts and blame the current owners of ACL for not doing the deal the Club & fans want. A win win situation for the Board - but is it if the negotiations were not credible in the first place ?
Perhaps there is something I am missing here ?
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BurbageSkyBlues
New Member
I certainly do not think there is any money in it, for the club!
skybluedan
Well-Known Member
if sisu do get the half does that mean they will get 25 mil from the so called 50 mil which will be made from the city of coventry stadium and the olmpic football?
J
Jack Griffin
Guest
Read More http://www.coventrytelegraph.net/ne...na-stadium-deal-92746-31880394/#ixzz277U6W1tw
I can't track down the original reference...