Diamandis slams Trust

[red macca]

St Modwen can only get their investment back if:

- STFC repays the debt in cash
- they build a stadium and then long term lease it
- they build a stadium and then sell it on
- they get a deal over developing something other than a stadium and make a return on their dosh by building something (houses/shops/industrial) that adds value
- they get a deal on building a new stadium and associated back door housing etc on another cheap site (as Shaw was, as J17 probably would be)

No doubt they want their pound of flesh. At the moment the only way I can see it happening is with the hotel/conference centre additions to the CG. Apart from SSW doing other land deals like Hungerford Marina that is.

so in theory any takeover would have to pay off st modwen aswell???

probably wrong so please let me know

[TalkTalk]

so in theory any takeover would have to pay off st modwen aswell???

probably wrong so please let me know

Not necessarily. It would depend on how the deal was structured.

I don't know what St Modwen's interest in the holding company is. They certainly are a joint venture with the Wills family in Shaw Park Developments Ltd, but that is unrelated directly to STFC.

"The value of investments can go down as well as up. Past performance is no guarantee of future performance."

[RobertT]

I thought the plan was for POwer to take on the St Modwen debt in full (I could be wrong).

The article is laughable.  So they are at an advanced stage but in an interview Diamandis decides to throw in that maybe they could include a theatre.

Is it just me or does the development sound like it'ss be not much different to the current proposals?  The give away was the bit where he discussed needing £45m to finance it and then the Council can get the stadium out of it - so the essentially still want to be given the land to profit from.  I can almost see now a plan coming out with houses etc on the green spaces but with bigger gardens or something equally daft so they can shade it in green.

They haven't even spoken to the local Councillors or residents yet.

I also love the way that he gets so excited about how clever he is to have converted loans into loan notes, like it's saved us from crippling debts.  Then he mentions they can be called in once development gets the nod - well, given you also state development is the only way of saving us long term, then we'll still be paying the fucking money back won't we (or go bust as seems your two options).

So we have a £5.5m loan note to SSW and what I would estimate to be about £3m in debentures through St Modwen (who are claiming interest I believe).

and he'll be claiming all his owed salary when we are rich!  Is he serious (or does he expect a huge pay off from a ground development?).  

I can now see why we have such ongoing financial problems, he seems to confuse turnover with profit.  Reading broke even at best last season and were still expecting not to make money this year.  their revenue has indeed gone up quite dramatically this season (TV revenue & Prem payment) but their costs have also escalated.  Without Madejski they would be in a worse state than us.  If he thinks just generating money is profit then we are in trouble.

[OOH! SHAUN TAYLOR]

I hate that man sooooooooooooooooooo so much :evil:

[flammableBen]

He's got GRID

[millom red]

I thought the plan was for POwer to take on the St Modwen debt in full (I could be wrong).

The article is laughable.  So they are at an advanced stage but in an interview Diamandis decides to throw in that maybe they could include a theatre.

Is it just me or does the development sound like it'ss be not much different to the current proposals?  The give away was the bit where he discussed needing £45m to finance it and then the Council can get the stadium out of it - so the essentially still want to be given the land to profit from.  I can almost see now a plan coming out with houses etc on the green spaces but with bigger gardens or something equally daft so they can shade it in green.

They haven't even spoken to the local Councillors or residents yet.

I also love the way that he gets so excited about how clever he is to have converted loans into loan notes, like it's saved us from crippling debts.  Then he mentions they can be called in once development gets the nod - well, given you also state development is the only way of saving us long term, then we'll still be paying the fucking money back won't we (or go bust as seems your two options).So we have a £5.5m loan note to SSW and what I would estimate to be about £3m in debentures through St Modwen (who are claiming interest I believe).

and he'll be claiming all his owed salary when we are rich!  Is he serious (or does he expect a huge pay off from a ground development?).  

I can now see why we have such ongoing financial problems, he seems to confuse turnover with profit.  Reading broke even at best last season and were still expecting not to make money this year.  their revenue has indeed gone up quite dramatically this season (TV revenue & Prem payment) but their costs have also escalated.  Without Madejski they would be in a worse state than us.  If he thinks just generating money is profit then we are in trouble.

Exactly!

[Simon Pieman]

What makes me even angrier is that the club have happily taken money from the RAF (which I understand is not entirely to do with the Trust) but yet still have the audacity to make these statements.