New beginnings - 25% Truth, 80% Bollocks

[Nemo]

It’s you.
What he actually said was he has nicked a wheelchair from a hospital and gets in on a disabled ticket.

Boo! Chuck him in the stocks! Make him eligible!

[DV]

It’s you.
What he actually said was he has nicked a wheelchair from a hospital and gets in on a disabled ticket.

I was out running when you posted this

[Audrey]

Here’s the pic to prove it

[Ƭ̵̬̊: The Artist Formerly Known as CWIG]

How much actual up front capital is a new owner/consortium going to actually need to oust Clem and the crooks/hangers on do we think?

Clem wants £15m but lets be honest, he won't be getting that and he definitely won't be getting it up front.

I can't imagine he'd fuck off for a quid and the new owners take the figure owed out of the club to pay him over a period of time either.

[RobertT]

Given the Balance Sheet, and the fact he now doesn't own 100%, you expect a couple of million upfront and an agreement to repay the Directors Loans over a period of time would end up being sufficient.  The freehold and new lease give them that bit extra, but there isn't any planning permission or agreed contracts in place yet on the ground.  The business has few assets on the books other than that.

[Audrey]

It’s got to the stage now whereby nobody knows what to believe - pretty much a similar situation to the death throes of the Power era. He got the club for a pittance and, as far as we know, has consolidated a load of debt in his name.

Unless, and until, the accounts are scrutinised it’s difficult to tell how ‘healthy’ the club is - or isn’t. But you’ve got to think that the heel dragging of keeping the accounts from the Trust’s prying eyes doesn’t augur well.

Based on not much, I reckon he’d flog it for £7m.

[Ƭ̵̬̊: The Artist Formerly Known as CWIG]

Given the Balance Sheet, and the fact he now doesn't own 100%, you expect a couple of million upfront and an agreement to repay the Directors Loans over a period of time would end up being sufficient.  The freehold and new lease give them that bit extra, but there isn't any planning permission or agreed contracts in place yet on the ground.  The business has few assets on the books other than that.

Yeah that is what I'm expecting. How much are the loans up to now?

[Audrey]

Can he sell the club without having to ask ‘others’ for permission?

[RobertT]

Somewhere between 4.8m and 6m to Clem I think - we really do not know about the portion paid by Kiely and team though.  They may or may not appear as loans against their own names, funneled via Clem or just as pure share equity, who knows.  It could well stretch to 7m all in.  Assuming he is true to his word (yikes) something like 700k a year for 10 years.  You factor that into any bid, that you need to be confident of finding that much extra revenue or cost savings to cover it.

[RobertT]

Can he sell the club without having to ask ‘others’ for permission?

He can offer his shares, but the other duo get to make an offer as well I believe.  I am 99% certain the new Articles and Memorandum of Association added include pre-emption rights, although the terms are not public, if there are any.

[Audrey]

So is there a minimum share % that invokes the same right Clem had when he bought the club.

[RobertT]

So is there a minimum share % that invokes the same right Clem had when he bought the club.

I may walk back my 99% statement!!!

I need to get my head around the shareholding situation - there are three or four companies intertwined.  Looks like STFC & Seebeck 87 Ltd do NOT have pre-emption rights, but Swinton Reds DOES.

It will al depend on where the shares really sit in terms of control.  Might take a while to figure that out again.

The pre-emption rights in Swinton Reds make it so all shareholders must be given the option to match any offer.  The company has the rights to do a share buy back before that as well, which seems unlikely as it isn't really a trading company.

[Audrey]

So, for arguments sake, if someone rocked up and offered Clem an amount - £7m? - which he accepted would that flush out all the turds that are clinging on to the club.

[Mooneyraker]

Everyone do the Euromillions tonight please

[DV]

It’s probably been answered a hundred times already but how does the ground factor in to a club sale?

…could Clem in theory sell up for less / wipe some of the personal debt to himself in exchange for keeping / owning a % of the Stadium and / or being involved with the redevelopment ?