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Author Topic: STFC & Power  (Read 1324 times)
joeydubya


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« Reply #15 on: Tuesday, September 10, 2019, 12:52:05 »

The fact is that 90%+ of all football clubs in the bottom 2 divisions never run an operating profit and rely upon player sales to fill any voids from low crowds or poor sponsorship deals etc.

We have few saleable assetts, again like 90%+ of all bottom 2 division league clubs so we rely upon cash injections from owners/sponsorship deals, selling rights etc.

A few take short term loans to get them out of this division and go for broke with promotion, some it works for like Bournemouth most it fails for like Bury.

I read this week that MKD are losing £3m a year, thats been for the last 3 seasons and that is considered an acceptible loss by Winklebum.

Power has always had an exit strategy, and its when he wont put any more into the club or he can sell it for what he considers its full value.

The club is not worth much at the moment so he won't sell unless there is a good fee from any buyer, which is massively unlikely, certainly not whle we are in this division. Power will own the training ground and lease it back to the club so will not lose money that way, eventually, but until thats all in place Power won't leave no matter what, until everything is in black and white and he has his investment covered.

And yes this has all been covered many many times in the past, the most recent in this thread about Morfunis investment.

http://thetownend.com/index.php?topic=57808.0


He's a sneaky one cos he owns the whole land and retail park their ground is on, including a massive IKEA and ASDA, and maybe more spaces too. Is he being disingenuous? What's the turnover for the whole 'project', as he has used the football club for leverage to expand his retail park at the expense of other areas of MK
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STFCforeigner


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« Reply #16 on: Tuesday, September 10, 2019, 13:13:39 »

The fact is that 90%+ of all football clubs in the bottom 2 divisions never run an operating profit and rely upon player sales to fill any voids from low crowds or poor sponsorship deals etc.

We have few saleable assetts, again like 90%+ of all bottom 2 division league clubs so we rely upon cash injections from owners/sponsorship deals, selling rights etc.

A few take short term loans to get them out of this division and go for broke with promotion, some it works for like Bournemouth most it fails for like Bury.

I read this week that MKD are losing £3m a year, thats been for the last 3 seasons and that is considered an acceptible loss by Winklebum.

Power has always had an exit strategy, and its when he wont put any more into the club or he can sell it for what he considers its full value.

The club is not worth much at the moment so he won't sell unless there is a good fee from any buyer, which is massively unlikely, certainly not whle we are in this division. Power will own the training ground and lease it back to the club so will not lose money that way, eventually, but until thats all in place Power won't leave no matter what, until everything is in black and white and he has his investment covered.

And yes this has all been covered many many times in the past, the most recent in this thread about Morfunis investment.

http://thetownend.com/index.php?topic=57808.0


Thank you Smiley
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Quagmire


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« Reply #17 on: Tuesday, September 10, 2019, 13:17:49 »

I’d be amazed if we managed to see out the season in all honesty, and if we do, I think it’s almost certain we will end up like Bury did this season.
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STFCforeigner


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« Reply #18 on: Tuesday, September 10, 2019, 13:19:08 »

Jeez, where’s Reg when you need him.  Roll Eyes
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Reg Smeeton
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« Reply #19 on: Tuesday, September 10, 2019, 14:09:45 »

Jeez, where’s Reg when you need him.  Roll Eyes

All this talk of love and seagulls, makes me think of Bobby Seagull and his interpretation of the Drake Equation, in order to calculate to how many women might be a good match for him.... he comes up with 73. Based on experience I'd say a decent estimate.

https://www.theguardian.com/lifeandstyle/2019/sep/09/all-you-need-is-maths-the-man-using-equations-to-find-love
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RobertT


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« Reply #20 on: Tuesday, September 10, 2019, 15:19:33 »

Over a four year stretch we are net positive (in profit), however, the first season back at this level left us a 1.7m deficit.  So, if we consider two more years of similar, we've wiped that out and owe someone some money.  It's possibly Power, maybe Morf, maybe someone else.  Total debt of 5m by end of 2017/2018 season, down from a peak of 14m under Black and a peak of over 6m under Power (when he had to get shot of Jed).  Basically being down here is bad for business and Power's bank balance, however it is all being loaded as debt, so we would be the long term losers.  I doubt the share purchase has been factored in yet, so we may have covered last seasons loss without adding to the debt pile, which would be good, and still leave us better off than most of the past 20 years.
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Exiled Bob


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« Reply #21 on: Wednesday, September 11, 2019, 14:57:57 »

Power will own the training ground and lease it back to the club so will not lose money that way, eventually, but until thats all in place Power won't leave no matter what, until everything is in black and white and he has his investment covered.
Power has been quoted as saying that:
Quote
the lease will be a peppercorn rent
i.e. a nominal amount, and it will be for 50 years.

When he bought the land for the training ground he had other ideas to ensure he wouldn't be out of pocket:

Quote
There are other areas of the site, the golf course is over 100 acres and there is only a certain acreage that is needed to create what we need as a football club and the remainder of it has different other facilities that will be placed on it.
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pauld


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« Reply #22 on: Wednesday, September 11, 2019, 15:31:24 »

Nah, he's going to use it as a slave farm, populated by season ticket holders who have been sold into slavery after having Mastercards foisted on them, going on a huge spending spree in the club shop and being unable to clear the debt.
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