New beginnings - 25% Truth, 80% Bollocks

[DV]

Just to give a little insight into how bad this could get long term

Colchesters owner has been there 18 years now.

2 relegations. 0 promotions.

31m debt.

Isn't keen to sell as he would essentially have to write that debt off, as he wouldn't get an offer anywhere near the debt value. They are losing 2m a year despite their academy doing quite well recently.

This could be us. We don't need investment. We need 100% change.

I expect that scenario could apply to 80% of the football league.

Running at a loss.
Owner wanting to recoup losses in any sale.

[Nemo]

They have a category 2 academy which probably costs them that £2m a year on its own. Think it's just them and Crewe in the division who do.

[Batch]

Just to give a little insight into how bad this could get long term

Colchesters owner has been there 18 years now.

2 relegations. 0 promotions.

31m debt.

Isn't keen to sell as he would essentially have to write that debt off, as he wouldn't get an offer anywhere near the debt value. They are losing 2m a year despite their academy doing quite well recently.

This could be us. We don't need investment. We need 100% change.

Ok. But if he's not willing to write off debt how does he get out?

Or is he happy  bumbling along making no progress and going deeper into debt?

[horlock07]

Ok. But if he's not willing to write off debt how does he get out?

Or is he happy  bumbling along making no progress and going deeper into debt?

One would assume, like everyone assumes here, that he is extracting a decent income from the club in other ways.

[Posh Red]

One would assume, like everyone assumes here, that he is extracting a decent income from the club in other ways.

They obviously built a stadium out of town, when we first visited there was fuck all around it, now there are houses, shops & all sorts. I presume that he had his finger in the pie of development so has personally made money.

The problem for any club is that whoever takes over might have the best intentions, but over time the constant losses just drain their interest & they may just pull the plug (ala Black) rather than try & get their money back

[Pericardinho]

Ok. But if he's not willing to write off debt how does he get out?

Or is he happy  bumbling along making no progress and going deeper into debt?

Who knows. Perhaps he just really likes the idea of owning a club and is happy for it to keep operating this way until he can no longer plug the holes.

As above - perhaps he is pocketing money himself and is just putting the debt against the club.

Perhaps he is  deluding himself he can bring Colchester back to the championship.

I have no idea.

[Pericardinho]

I expect that scenario could apply to 80% of the football league.

Running at a loss.
Owner wanting to recoup losses in any sale.

Umm. Well yes. But how many clubs in the EFL (mainly league 1 & 2) have a debt of 31m?

[horlock07]

They obviously built a stadium out of town, when we first visited there was fuck all around it, now there are houses, shops & all sorts. I presume that he had his finger in the pie of development so has personally made money.

Doubt it as the Council own the ground (and land) and the club lease the ground, so much like we used to be. Albeit I suspect the big difference is that the Colchester owner is the proud owner of his own pot to piss in!

[Batch]

Who knows. Perhaps he just really likes the idea of owning a club and is happy for it to keep operating this way until he can no longer plug the holes.

There is that.

[DV]

Umm. Well yes. But how many clubs in the EFL (mainly league 1 & 2) have a debt of 31m?

I mean that’s 1.7m a year over his 18 years as owner.

I would not be surprised if a lot of clubs balance sheets look that way *shrugs*

[RobertT]

The Colchester owner supports the club via other businesses in the group of companies he founded and runs, he is a fan I think.

[Ƭ̵̬̊: The Artist Formerly Known as CWIG]

One would assume, like everyone assumes here, that he is extracting a decent income from the club in other ways.

Hence why its most probably a similar situation to how we'll end up if these cunts stay.

[Pericardinho]

I mean that’s 1.7m a year over his 18 years as owner.

I would not be surprised if a lot of clubs balance sheets look that way *shrugs*

Over the short term, sure. 1.7m losses aren't uncommon in the lower depths of EFL at all.

But you seem to be downplaying the significance of 31m of debt accumulated over 18 years, especially for a league 2 side on the brink of the national league for 4 years now.

[Legends-Lounge]

I can only see two reasons why anyone stays owning a loss making football club. Either they’re off setting the losses elsewhere or they’re sucking money out without actually showing it aka ‘admin fees’ like pee lower.

Then again I’m not an accountant or financial guru.

[STFC_Manc]

If it was all about a financial return, the key way to do this is by increasing the value of the club, by getting promotions up the leagues.

For example, Ipswich Town were sold for 40m in 2021 then sold 40% in march this year for 105m, the difference is they were in the championship, nearing the Prem