Frigby Daser
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« Reply #90 on: Wednesday, October 14, 2015, 17:10:07 » |
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Fair level of scepticism on here. One thing is for certain - there is nothing wrong with Power making profit from running the club. Otherwise, why do it? There is no rule to say that any business must reinvest all of its profit. There's definitely no rule to say that a loss making business must reinvest revenue.
We, like most clubs, are likely to continue to operate at a loss. If the man who is prepared to fund the losses wishes to make profit from some extraordinary projects (such as a new ground or training grounds) than I'm not sure we can complain.
The key is that the arrangements that are put in place are balanced and fair such that they do not inhibit the future of the club, financial or otherwise.
If there was housing adjacent to the training facility, does that matter?
If he owned the training ground and the club pays a rent, there is a conflict of interest - there is nobody to negotiate that deal in the interests of the club rather than the chairman. But if the rent is fair, if the lease is long (99 years+), there's a sporting convenant put on the land - then where does that leave us? With a better training ground, better able to attract players, just without a valuable financial asset that could be sold / used as security for loans for the club etc.
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Skinny Pete
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« Reply #91 on: Wednesday, October 14, 2015, 17:33:07 » |
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Pleasantly surprised it could be up and running in time for next pre-season.
Makes you wonder why they signed a 3 year deal in Calne.
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FreddySTFC!
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« Reply #92 on: Wednesday, October 14, 2015, 17:42:06 » |
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Pleasantly surprised it could be up and running in time for next pre-season.
Makes you wonder why they signed a 3 year deal in Calne.
Knowing LP there'll be a get out clause!!
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I have a culture, I don't stop my culture!!
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Mother Brown
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« Reply #93 on: Wednesday, October 14, 2015, 18:34:10 » |
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Will playing golf improve thier footballing skills though
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suttonred
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« Reply #94 on: Wednesday, October 14, 2015, 20:15:53 » |
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Will playing golf improve thier footballing skills though Didn't do me any harm. When I started playing golf I was turning out in the Newbury and District 4th division, 4 years later after I stopped playing golf due to bad back, I was in the 3rd. Coincidence?
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corner
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« Reply #95 on: Thursday, October 15, 2015, 10:02:31 » |
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I wouldn't have thought the course would be staying
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Power to people
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« Reply #96 on: Thursday, October 15, 2015, 12:33:01 » |
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Fair level of scepticism on here. One thing is for certain - there is nothing wrong with Power making profit from running the club. Otherwise, why do it? There is no rule to say that any business must reinvest all of its profit. There's definitely no rule to say that a loss making business must reinvest revenue.
We, like most clubs, are likely to continue to operate at a loss. If the man who is prepared to fund the losses wishes to make profit from some extraordinary projects (such as a new ground or training grounds) than I'm not sure we can complain.
The key is that the arrangements that are put in place are balanced and fair such that they do not inhibit the future of the club, financial or otherwise.
If there was housing adjacent to the training facility, does that matter?
If he owned the training ground and the club pays a rent, there is a conflict of interest - there is nobody to negotiate that deal in the interests of the club rather than the chairman. But if the rent is fair, if the lease is long (99 years+), there's a sporting convenant put on the land - then where does that leave us? With a better training ground, better able to attract players, just without a valuable financial asset that could be sold / used as security for loans for the club etc.
But should the training ground not be an asset to the football club, like owning its own ground As for LP making money out of the club, I'm the money he puts in is not interest free but generally at this level there is not much profit to be made, the profit will come if the club has been run well and it get's sold on, unlike previous where it has had to be sold for £1 along with large debts.
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pauld
Aaron Aardvark
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Absolute Calamity!
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« Reply #97 on: Thursday, October 15, 2015, 13:00:40 » |
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But should the training ground not be an asset to the football club, like owning its own ground
Yes. But the proviso for that is can the club afford to pay for the asset? If it can't, then external funding will be needed, whether from Lee Power or other investors, which either sits in the club as a debt or else the club doesn't initially own the asset but has to lease it. Or we wait until the club can afford to build the asset from it's own means. That could take a while
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Frigby Daser
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« Reply #98 on: Thursday, October 15, 2015, 21:22:30 » |
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But should the training ground not be an asset to the football club, like owning its own ground
As for LP making money out of the club, I'm the money he puts in is not interest free but generally at this level there is not much profit to be made, the profit will come if the club has been run well and it get's sold on, unlike previous where it has had to be sold for £1 along with large debts.
It's only worth owning such an asset if you can afford it, afford it when you need it, and exploit it. If Power owns it, so long as sufficient protection is there that he won't be able to screw the club over in the future (e.g reasonable future buy out arrangements at market value or a limited percentage above) then I'm happy. As for his loans, the club won't have access to usual avenues of debt finance. No lower league football clubs will, so directors loans are the norm. If he takes a return through interest payments, again, it's a case of quite how reasonable they are. If they are along the lines of market rate (if the club solvent), then fantastic.
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bigbobjoylove
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« Reply #99 on: Tuesday, November 3, 2015, 18:44:17 » |
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Contracts being signed tomorrow. Going to be at Twelve Oaks golf course.
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Power to people
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« Reply #100 on: Friday, November 6, 2015, 12:27:02 » |
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Good interview with Fraser Digby on Flic about this and how they can get some pitches built up before having to wait to long
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Skinny Pete
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« Reply #101 on: Friday, November 6, 2015, 12:34:29 » |
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What's the point in hurrying if they are still contracted to Calne?
Unless they will move to the new place and are happy to carry on paying for Calne despite not using it.
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jayohaitchenn
Wielder of the BANHAMMER
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« Reply #102 on: Friday, November 6, 2015, 12:37:55 » |
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Only the first team are contracted to Calne, that's the main point of this place, get all the age groups training together
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fuzzy
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A Bastard apparently
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« Reply #103 on: Friday, November 6, 2015, 12:38:28 » |
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What's the point in hurrying if they are still contracted to Calne?
Unless they will move to the new place and are happy to carry on paying for Calne despite not using it.
Perhaps they can rent out pitches at the training ground to make a bit of money in the mean time?
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Simon Pieman
Original Wanker
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« Reply #104 on: Friday, November 6, 2015, 14:16:28 » |
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What's the point in hurrying if they are still contracted to Calne?
Unless they will move to the new place and are happy to carry on paying for Calne despite not using it.
I suspect there is a break clause in the contract, probably half way through.
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