New beginnings - 25% Truth, 80% Bollocks

[RobertT]

I'm not sure that it would, in theory Clem's lump is worth £1.15m (if its even that now the market is wobbling like a jelly) and that would only give any purchaser 50% with the other 50% being held by a single objective Trust who have the scope (and total ability) to be a pain in the arse about things. Add into the equation the power the Council weild and the fact that they would be invariably incredibly pissed off if Clem tried to flip it.

And that's not even accounting for any (I imagine extremely onerous clauses) the Eady Trust will have put into the agreement to fund the purchase in the first place.  

If Clem (or whoever) has put the money into the club which he has been reported to have done, I honestly struggle to see how that money comes out again unless he is in very long term, we get up the leagues or someone with either a local interest or a fetish for fucked up football clubs comes in with a silly offer.

Ah but the valuation is not just based on the 50% Eady paid the Council.

The valuation will be 50% of the Asset itself, owned by STFC, which is then owned by Clems holding companies, plus 100% of a 250 year lease.  That lease will have some value as well - not least because it ensures the Lessor gains certain rights to income from anyone doing business via said asset, namely the football club.  It was also at a lower cost per annum than the previous lease.

Other clubs have gone through this process and significantly increased the reported value of their assets as a result.  This in turn opens up financing options or increased perceived value for any potential purchaser.

The 7m Power was claiming he wanted, that was for the business with a much higher cost and lower term lease and no rights to the freehold, plus a Debenture was sat in the accounts.  Right now, that has been cleaned up to some degree.  The risks for any potential buyer are much less than they were two years ago.  On paper, we are a much better prospect - in so far as any football club is an investment opportunity!

[The Artist Formerly Known as Audrey]

Nicely explained.

[RobertT]

As an example, but different - Gillinghan own their ground fully.  In 2020 they valued the Ground at 4m, in 2023 it was valued at 17m.  They used this revaluation to finance investment into player purchases in January.  The new owner stated that the investment was to ensure they remained an EFL team, the impact of going down being in excess of 1m to Revenue.

Now, the CG may have significant hinderances that make it less valuable than some real estate in Gillingham, but I bet someone can make a very good case for the combination of the freehold and leasehold (250 years) being worth more than 1.15m to STFC.  I think Reg may well have been one to question the original valuation as being too low and that the Council would be pressed to increase that (not that they ever did).

There are many factors, the Covenant being one example, but a good financial bod can make a very good case for adding value.  On the other side, the liabilities have been softened - although we still don't know how the 2.95m is being treated within the clubs financial reporting.

[NotHarryAgombar]

Various posters have  highlighted things both in the Power era and since Morfuni took over.  
I am certainly not defending either individual, but a common thread in both takeovers is that in both cases there were not a wide range of apparent alternatives available at the time -
1. when Power bought the club, while his past history made many of us feel uneasy,  it was clear Jed and cronies continuing would probably have been more problematic.
2. similarly, when LP wanted to get out, having run the Club almost into the ground, had Morfuni not wanted to exercise his option to buy,  LP would probably have used the the "Able" set up to extract what he could and put the Club into administration - with undoubtedly dire consequences. Against that background Morfuni was the only serious option for supporters to get behind.

However, after the euphoria of the 2021-22 season, reality has set in.
Like many I am uncomfortable about the way in which things stated by the Club under the guise of "openness and transparency" seem to be subsequently contradicted as further information comes to light.

It was always likely that Morfuni did not have deep pockets (in the context of running a football club) and would need  outside investment to help him - the "running on a sustainable basis (ie we only spend what we receive in income) was undoubtedly an opaque way of saying he didn't have the funds of (say) Salford's or Wrexham's owners.

I  have repeatedly asked myself why the owner of what is essentially a building services business (plumbing etc) wanted to buy STFC - clearly he was unlikely to be able to flip it at a profit because of the complexities around ground ownership, so I concluded that stadium redevelopment was the opportunity he was looking for.
As I understand it the ownership model (the JV with the Trust) limits any opportunity for him or any subsequent owner to cash in on the development value of the County Ground site, I assume that the Nigel Eady Trust also insisted on some appropriate protections for the Club as part of the purchase contract. So while CM owns "half the stadium" - I don't think it is something he can easily turn into cash, and of course it needs some serious money spending on it to bring it up to modern day standards and increase revenue from it.

Apart from the apparently never ending saga of ownership / court cases etc, my other concern is that this unrest behind the scenes will undermine what Flynn seems to be doing on the field - the football I have seen so far this season has been good (I didn't go to Doncaster), we are unbeaten in the League, (and cups in 90 mins - shame about the penalty shoot outs), but will he be able to bring in any fee agents, and what happens in January?

Life is never dull supporting this Club.  At risk of sounding like John McGreal - It's Swindon Town.



 

[RobertT]

BTW, none of that is bad - just shows that Clem has done a pretty impressive job on paper and the exit he can generate is likely much less risky than us being shoved into Admin overnight. (This refers to my previous post)

[Robinz]

Robert... end of the day it seems Morfuni is being chased by a liquidator who will smell blood available in North Wilts. CM has assured everyone he owes and has personally loaned cash to STFC.
Suggest there will be soon a demand placed on the club requesting the monies owed.

[The Artist Formerly Known as Audrey]

Impossible. The club is in no way on the hook for Clem’s debts in other businesses.

[Robinz]

NHA
Fully agree and this situation all started when Andrew Black sold the club.
Someone will buy the club in a far better position than it was. Told Andrew Fitton has moved back to Lambourne.
He might be interested in a bargain

[horlock07]

Robert... end of the day it seems Morfuni is being chased by a liquidator who will smell blood available in North Wilts. CM has assured everyone he owes and has personally loaned cash to STFC.
Suggest there will be soon a demand placed on the club requesting the monies owed.

What liquidator?

[Robinz]

Audrey
Why do you say that.
CM loans his personal money to the club.
Said liquidator wants money from CM.
Suddenly the club will need to repay loan to CM.
STFC does not have 850000 widgets and what happens then

[Robinz]

Liquidator who is Liquidating Axis Plumbing NSW Ltd

[horlock07]

Liquidator who is Liquidating Axis Plumbing NSW Ltd

Sorry where is this coming from now?

[Robinz]

For all the good work CM has done with STFC.
Just hope he comes out of this with as much as he came in with.

[The Artist Formerly Known as Audrey]

Audrey
Why do you say that.
CM loans his personal money to the club.
Said liquidator wants money from CM.
Suddenly the club will need to repay loan to CM.
STFC does not have 850000 widgets and what happens then

A business is its own legal entity. Limited Companies are what protects owners from being personally liable for debts. Unless Clem has put STFC up as collateral against the failed business there is zero way the club is on the hook.

[ChalkyWhiteIsGod]

Anyone know any Saudi Arabians?