New beginnings - 25% Truth, 80% Bollocks

[Mooneyraker]

I appreciate you're not very happy about the performances on the pitch but the suggestion above is a bit too far IMO.

The fanbase and the Trust have benefited from hours from multiple people giving up their time over the last 8 years to make the ground purchase happen and be as watertight to protect it for our Club and fanbase, regardless of who is either sat on the board of the Trust or owns of the club. The entire setup is in the interest of ensuring it benefits the Club and fans overall.

Don't shoot from the hip at something that is enormously positive for this club and that other fans would chew their right arm off to achieve if given a chance. The comments above are really nothing more than poor form and out of order frankly.

Keep your insults about the pitch performances to the pitch if that's what you want to complain about.

Is everyone at the Trust naive? No. Are some? Absolutely.

The tweets of a Trust board member in the last 6 months, long after his past emerged:

"Well done Zav"

"Hes a good guy Zav love it"

"Wonderful well done Zav"

Throw in a "buy him a pint" article through your official channels and some pathetic answers left unquestioned at the Advisory Board and forgive me for thinking that the Trust are his muckers.

They could have come out on Day One and said "The Trust notes the appointment of convicted drugs money launderer Zav Austin as Vice Chairman in charge of the day to day running of the club with concern." But they didn't.

[Frigby Daser]

If we were walking the league, I doubt we’d be as vocal about Hart and Z Austin lurking in the shadows with questionable intent. If they want to take the heat off themselves, they’d better build a decent squad over the summer.

[ChalkyWhiteIsGod]

My understanding is he was the one who recommended/appointed Sandro. So fuck that guy.

This.

[Oaksey Moonraker]

The £2M debenture was what reported in the accounts for several years but may have not been the final settlement.

Peterborough's ground was sold back to the local council for £7M a few years ago so £2.3M for the CG looks a good deal for a similar size stadium.

[horlock07]

Again, I'm not pushing this as some sort of anti-Clem narrative, it's just interesting info that maybe shed's some light on why a person may have gone down the road he did.  

I suspect if nothing else, getting the debentures sorted, and paying down most of the third party debt would have been a requirement for the Eady money being released?

[RobertT]

I do not know, we probably never will.  However, what is certain is that the combined impact is a much more valuable business than was purchased for 200k less than two years ago.  Yes he has had to invest money (some of which is via his own business), but he's essentially converted debt the business owed to difficult external parties, to him.  That makes a buyer much less worried about chucking money in.  I'd also wager the Lease + 50% ground ownership, even via a tricky vehicle for transfer, adds for more value than it will be on paper on the day the deal was signed.

Two years ago, most serious buyers would have waited for Admin and got the club for a quid.  Why would anyone pay real money for a business that was a) loss making and b) owed 7m to nasty external parties (in terms of aggressive nature of collecting debt or the fact it was secured).

Now we have a business with 3-4m worth of assets on the books, trading at close to break even with record Revenue and most debt is to the owner.

From a pure business perspective, it's a remarkable salvage operation.

The downside - we got a shit football team as a result and a bunch of hangers on finding their own ways to leverage some of the Revenue or brand equity.

[Batch]

My recollection was that The trust always claimed they had done all their due diligence on Zav Austin

mine too

[Pookemon]

Is everyone at the Trust naive? No. Are some? Absolutely.

They could have come out on Day One and said "The Trust notes the appointment of convicted drugs money launderer Zav Austin as Vice Chairman in charge of the day to day running of the club with concern." But they didn't.

Is he in charge of day to day operations?  I've not seen anything that suggests that.

Surely you've elevated him from an honorary spiv who has influence as a mate of Clems and given a slot on the AB, which many think is pointless - to someone who runs the club on a full-time basis.    The rest of the statement is fine but that bit is pure conspiracy and speculation.

[Pookemon]

The £2M debenture was what reported in the accounts for several years but may have not been the final settlement.

Peterborough's ground was sold back to the local council for £7M a few years ago so £2.3M for the CG looks a good deal for a similar size stadium.

It's hard to compare. 
The CG needs millions spent on it so would be substantially discounted compared to one that has been renovated.
The rent of only £200k pa caps the asset at around the £2m mark. 
 There's a covenant stopping resi being built restricting the long term premium.

No idea if Posh's ground had anything similar but I suspect they are paying £500k+ rent to get close to that valuation and to make it worthwhile for the council to spend tax payers money on.

[Mooneyraker]

Clem said he was there to oversee the running of the club in his absence, as he was going to be in Australia a lot, or something like that. It’s not a non-exec role.

[skiptotheLouMacari]

No idea on Clem being keen to fund the 50% of the purchase but the Eady Trust funding means the ground is owned by the Club, meaning when/ if the club is sold - the 50% ownership in the CGJV is also sold meaning no owner can keep hold of the asset once they sell the club. There are also mechanisms in place to prevent transfer of the Club's 50% share of the ground without the consent of the CGJV board, which then avoids the situation occurring without the Trust and fans knowing about it too.

I don't understand all this 50% ownership lark. If clem sold the club does he get 50% off the sale? Not a bad deal if he didn't pay a penny towards it. He will pass his debt on to the new owner and take a good share of the spoils. Is that how it works?

[DiV]

Not my wheel house at all but assume the club owns 50% of the ground - so if Clem were to sell the club it would be an assets factored into the sale.

Like selling a house furnished rather than unfurnished I guess.

[The Artist Formerly Known as Audrey]

Surely the separate JV entity owns the CG. Clem ‘only’ owns 100% of the football club.

[theakston2k]

I assume there are legal clauses that mean the club can’t raise finance secured against their 50% of the ground without the Trusts approval?

[Formerly Drummer Boy]

I assume there are legal clauses that mean the club can’t raise finance secured against their 50% of the ground without the Trusts approval?

There are various things that need to be voted on with a majority outcome for it to happen. Raising debt against the asset is one of them.