New beginnings - 25% Truth, 80% Bollocks

[The Artist Formerly Known as Audrey]

I guess the suggestion is that there's a difference between the kind of "consistent costs/income" and "one offs" - things like the Man City game or the Twine sale that we can't rely on happening year after year. Without more detailed access to the finances or clearer answers, it's hard to know which one they mean.

Well, yeah but last year was only the second year of his ownership. That’s hardly losing £1m every season. Whatever losses were racked up under Power is irrelevant. That statement of losses is predictive not actual (at the moment).

[horlock07]

when we’re already cost cutting so harshly

Are we cost cutting harshly, we've still got a squad of 20+ players several of whom one would suspect are not being paid monkey nuts, its clear they are trying to run as efficiently as they can, but I don't see a slashing of costs approach here?

[Bennett]

I've heard that the office staff has been cut dramatically

[horlock07]

I've heard that the office staff has been cut dramatically

But is that a rationalisation of jobs as we had too many or just cutting it to the bone.

The most recent accounts 2021-22 suggest that the staff numbers went up between 2020-21 and 2021-2022 from 79-128, now now idea where these extra jobs were, may be hot dog sellers for all I know but suggests that in Clem's 1st year they employed a heck of a lot more than under Power?

[Mooneyraker]

Worth re-reading this article again.

No mention of Power/Curran. Why not? There was no reason to obfuscate here. If the money was owed to them, say it surely and get the fans more onside?

The wording of the article implies to me that the debenture needed clearing to release the Eady money. The Trust should know if that is the case, shouldn't they, having been intricately involved in it for years?


https://www.swindontownfc.co.uk/news/2022/october/town-take-huge-step-towards-financial-security/

Swindon Town can today confirm that all historic debentures, or debts secured against the football club under previous regimes, have now been paid off.

The move signals a huge step towards complete financial security for the football club, with £2.95million cleared by our owner, Clem Morfuni, with the help of our dedicated fans, sponsors and partners.

It means the overall outstanding figure of historic debts owed is now down to £1million, having originally stood at £7.5million around fourteen months ago.


Clem took over at SN1 back in July last year with the club under a transfer embargo, struggling to pay staff and just nine contracted players on the books.

On completing his takeover, he inherited an external debt of £4.5million, comprising of money owed to HMRC, the EFL, the local council and several other outstanding arrears.

In addition to this, there was also the £2.95million ‘debenture’ that arose following the decision of former owner Andrew Black to sell Town back in 2012, with the money secured against the club, similar to a mortgage, for almost ten years - until today.

This significant step in laying strong foundations will take another huge step forward in the coming months as we look to purchase The County Ground from Swindon Borough Council with our supporters in a unique fifty-fifty ownership structure.

The deal will be funded by the Nigel Eady Trust Fund – a huge Town fan who left a significant legacy when he sadly passed for the benefit of the football club, it’s fans and the local community.

Commenting on the latest milestone, Clem said: “I’m pleased to confirm that the historic debentures against the football club have now been satisfied.

“An incredible amount of work has gone on behind the scenes to get to this stage, and this signifies a really positive step for the future of Swindon Town.

“I would also like to pay tribute to our fans, sponsors and partners who have also paid a huge part in driving us towards this landmark achievement.

“Your support over the past 14-months, both on the pitch and off it, has been fantastic, and I feel we’ve all helped lay the strong foundations we need to take our great club forward.

“With our plans to purchase our stadium alongside our supporters progressing well, the future of this great club is looking very bright.”

Town’s Chief Executive, Rob Angus, added: “Thanks to Clem and the backing of our fans, sponsors and partners, the core of this football club is the strongest it’s been for generations.

“These foundations are essential if we are to continue building to ensure continued success moving forward, and that is exactly what we are doing under Clem’s ownership.

“I’ve no doubt exciting times lie ahead for Swindon Town with our fans by our side. A huge thank you for all your support.”

A spokesperson for The Nigel Eady Trust Fund, said: “Our trustees are delighted to hear of the progress Clem and everyone behind the scenes at the club has made in moving the club to a much more stable financial position.

“We are now significantly closer towards Nigel’s legacy being used in the way he would have wished, which is fantastic.”

[Bennett]

Everything I have heard about the behind the scenes of the club at some point mentions how cheaply it is being done. Granted this is from “mates down the pub” chat and “I’ve heard this from X” so take with some pinch of salt and not as gospel but I’ve heard it enough times from different people who quote different sources to think there’s some truth there.

Could be a “focus all budget into the playing squad and keep everything else running on the minimum it can be” approach though

Eww keep calling it Twitter

[UTR]

Eww keep calling it Twitter

Sorry I meant “I’ve heard this from so and so” rather than “I’ve heard this from Twitter” 

[Bennett]

But is that a rationalisation of jobs as we had too many or just cutting it to the bone.

The most recent accounts 2021-22 suggest that the staff numbers went up between 2020-21 and 2021-2022 from 79-128, now now idea where these extra jobs were, may be hot dog sellers for all I know but suggests that in Clem's 1st year they employed a heck of a lot more than under Power?

That's also fair. I don't think my rumour mill comment particularly helped what's trying to be a reasoned break down of events.

[Bennett]

Sorry I meant “I’ve heard this from so and so” rather than “I’ve heard this from Twitter” 

I know, was being a funny fucker

[Bennett]

Worth re-reading this article again.

No mention of Power/Curran. Why not? There was no reason to obfuscate here. If the money was owed to them, say it surely and get the fans more onside?

The wording of the article implies to me that the debenture needed clearing to release the Eady money. The Trust should know if that is the case, shouldn't they, having been intricately involved in it for years?


https://www.swindontownfc.co.uk/news/2022/october/town-take-huge-step-towards-financial-security/

As I understand it if the debenture wasn't cleared prior the asset coming under the clubs control, the asset (half of the CG) could have been claimed by LP and AC.

It's annoying that the language isn't consistent but I think this is what they're alluding to

[Mooneyraker]

As I understand it if the debenture wasn't cleared prior the asset coming under the clubs control, the asset (half of the CG) could have been claimed by LP and AC.

It's annoying that the language isn't consistent but I think this is what they're alluding to

Totally but the same would be true if it was Andrew Black. He's mentioned, so why not Power/Curran if that's where the money went?

And the conjecture is, this wasn't a three day fire drill as Clem says. This was seemingly a known condition of the Ground purchase.

[Bob's Orange]

Well, yeah but last year was only the second year of his ownership. That’s hardly losing £1m every season. Whatever losses were racked up under Power is irrelevant. That statement of losses is predictive not actual (at the moment).

I guess the suggestion is that there's a difference between the kind of "consistent costs/income" and "one offs" - things like the Man City game or the Twine sale that we can't rely on happening year after year. Without more detailed access to the finances or clearer answers, it's hard to know which one they mean.

Yeah what Nemo posted was along my line of thinking. If you remove those things I mentioned - along with Twine money income - and the possible much lower wage budget because of the embargo that system then we would have probably lost circa £500k-£1m. Obviously this is still predictive as we don't know what last season's profit/loss was yet.

[Bob's Orange]

I've heard that the office staff has been cut dramatically

The fax machine operator for one.

[Bennett]

Totally but the same would be true if it was Andrew Black. He's mentioned, so why not Power/Curran if that's where the money went?

And the conjecture is, this wasn't a three day fire drill as Clem says. This was seemingly a known condition of the Ground purchase.

AB response suggests Clem:
- wasn't correctly informed of the debenture
- was told they wouldn't be cashed in "any time soon"

Clem was an investor in the club so at this point and was presumably sending in an accountant to look at the books before finalising buying the club and associated debt.
I'm not sure I'd be so trusting of Power

[horlock07]

AB response suggests Clem:
- wasn't correctly informed of the debenture
- was told they wouldn't be cashed in "any time soon"

Clem was an investor in the club so at this point and was presumably sending in an accountant to look at the books before finalising buying the club and associated debt.
I'm not sure I'd be so trusting of Power

As per my post earlier, I suspect the simple (and less salacious) answer is that  Clem took over at short notice with a short window to get it done, its obvious that the due diligence was either lacking or completely absent, and if he had asked to see the books in detail the window would have shut.

The underlying in all this is the extent to which wealthy people often seem prepared to take a flyer on things with little security, see also Standing and Power and I suggest why Kiely asked for security when he loaned cash to Clem (not saying that Clem would necessarily be dodgy, but seeing the chaos between Standing and Power would no doubt have focussed his mind).