Lee Power

[Flashheart]

The more one thinks about it, the more one can see just what a huge clanger Power has dropped. A monumental cock-up on an embarrassing scale.

He's been VERY badly advised somewhere along the way (or just went ahead without/ignoring advice).

[horlock07]

Has he got full consent on the Houses/Horses stuff yet?  STFC is clearly being used as a Community Trojan Horse for that, although I don't have any real issue with that.  If he has sold to Clem before he gets what he needs though, I presume Clem would not be obliged to take-up the training ground aspect on a lease.

The racing stables is granted and a DN notice issued, I note they have also started to discharge the Conditions submitting a further application in May. Also worth noting that the applicant on this one was Power Geneva Ltd, operating out of an address in Skeggy, so no mention of the club now albeit the agent name is the same as did the latter work on the TG & houses.

IIRC the houses application was approved at committee, however as far as I can tell no s.106 has been signed and on that basis I suspect that's what is holding up the issue of any DN, albeit I would not be surprised if it wasn't sold in the intervening period with the resolution to approve in place.

Likewise the training ground application appears to be in the same position ( was approved at committee, however as far as I can tell no s.106 has been signed and on that basis I suspect that's what is holding up the issue of any DN).

Do in short stables good to go (subject to discharging the conditions), houses probably OK to market the site for sale, and training ground well there is little point rushing it, I suspect his aim will be to get a lease tied up from him to STFC before he sells STFC, question would be how watertight that would be and could Axis wriggle out of it, and if so we are still without a remotely adequate training facility (unless axis buy from Power as part of club purchase).

[Batch]

What i want to know is how has the club been funded since lockdown? To me £2.9m in debt isn't the worst, could be better but am sure there are other clubs worse off.

Also, how are we funding the new signings? Signing on fees etc.

IMO its pretty bad when you take into account we sold season tickets and the early bird deadline passed. And that we have taken EFL loans. And we have sold player(s). And the amount is growing.

That's just this season.

[Crackity Jones]

Will there be any change from £7.5m once legitimate creditors have been paid? I guess only time will tell. First thing is to continue to pressure Power to follow up on what he has to do.  For me, that means supporting the boycott

[Batch]

Naive question here. If Axis was prepared to pay £7.5m for the club and now, by all accounts, only have to pay £250,000, I presume the difference could go on tidying the finances up once and for all plus, maybe, a smidgeon for recruitment!

250K is just for the sahres.

They have also said they'd pay all legitimate creditors. That could be huge, on top of the circa 3M loss from this season.

HMRC is a creditor btw, but are being lenient under the current covid climate.

edit: beaten by Crackity.

[The Artist Formerly Known as Audrey]

So, if Power sells he club to Axis before the September court case, who pays off Standing if he’s adjudged to have owned 50% of Power’s share of the club. On that basis he’d only get £125,000.

In fact, it’d be less than that cos if Power valued the club at £250,000 then he’s only entitled to 85% of that, or £212,500 shared 2 ways with Standing. Maybe Axis have promised to look after him.

[Batch]

For me, that means supporting the boycott

yeah, definitely.

I'll be amazed if season tickets go on sale before the deadline Power has to prove funding next Friday. He'll probably include its prediceted value in his proof of funds.

[The Artist Formerly Known as Audrey]

250K is just for the sahres.

They have also said they'd pay all legitimate creditors. That could be huge, on top of the circa 3M loss from this season.

HMRC is a creditor btw, but are being lenient under the current covid climate.

edit: beaten by Crackity.

Well, quite. But before the £250,000 bombshell they were going to have to pay the creditors PLUS £7.5m to Power. Or have I got that wrong?

[horlock07]

The more one thinks about it, the more one can see just what a huge clanger Power has dropped. A monumental cock-up on an embarrassing scale.

He's been VERY badly advised somewhere along the way (or just went ahead without/ignoring advice).

As noted previously, if Power has acted with the full knowledge of his legal advisors I could see a massive counter claim going between him and they (albeit I note his solicitor who appointed the Barrister in the hearings is a non exec at STFC), the first strange thing was the AoA of Swinton having the non-standard pre-emption provision added to it, then the sale of shares to Clem albeit he tried for a long time to keep that off the paperwork so assume he planned to do same to Clem that was done to Standing.

In terms of not wanting to go/sell alongside the books issue, I wonder if there are other less reputable 'investors' tied up in this who may want what they are promised (and possibly might not go down the legal route to receive their obligations) and not like their investments entering the public domain. I note that at least one of the other non-execs has a business registered at the CG, do we know much about that.

[The Artist Formerly Known as Audrey]

But, but, but . . .

Power had no outside investors. He told us so!

[Bob's Orange]

The more one thinks about it, the more one can see just what a huge clanger Power has dropped. A monumental cock-up on an embarrassing scale.

He's been VERY badly advised somewhere along the way (or just went ahead without/ignoring advice).

Can you just imagine the look on Clem's face when he saw the written offer to sell STFC to Able for 250k? The guy appears to know exactly what he is doing and couldn't have forced a more pleasurable own goal!

[Flashheart]

Well, quite. But before the £250,000 bombshell they were going to have to pay the creditors PLUS £7.5m to Power. Or have I got that wrong?

I think I took it at the time that Power would get the 7.5M, and Power would need to pay off creditors himself.

If it's as you say it is then all the better for Clem. As BO mentioned above, Clem's face must have been a picture when he realized what Power was trying to do.

[Bob's Orange]

Just thinking outside the box here, Power now has to effectively offer his shares to the only viable offer in town - Axis.

but, is there now anything stopping different buyers from coming in and offering 250k for the shares? I.e another 'Able', or even an alternative buyer, set of buyers from left field that could have been keeping an eye on proceedings from a distance? I'm just wondering if by the next court case there could be many offers for the club, some possibly administered by Power, some maybe not?

[Nemo]

Just thinking outside the box here, Power now has to effectively offer his shares to the only viable offer in town - Axis.

but, is there now anything stopping different buyers from coming in and offering 250k for the shares? I.e another 'Able', or even an alternative buyer, set of buyers from left field that could have been keeping an eye on proceedings from a distance? I'm just wondering if by the next court case there could be many offers for the club, some possibly administered by Power, some maybe not?

The suggestion is that the articles of association say that any share sale has to be first offered to existing shareholders. Axis are the only other existing shareholder, so have first refusal on any sale, at least from what I read in the Trust summary. If they decline to purchase at the price, then it's open market saleable.

[Flashheart]

but, is there now anything stopping different buyers from coming in and offering 250k for the shares?

Pre-emption rights. The same thing that won the case for AXIS in the first place.

It doesn't matter who Power offers the shares to - AXIS will always have first refusal.