Sainsbury Situation

[mrsblue]

True for corporation tax, not for VAT (or NI) as we nearly found out!

Don't spoil the fun:winking:

 

[SUFCFANS]

The MD sponsorship was to inflate our income to raise our wages cap. If we accepted a low level offer we would have had to cut wages earlier. If MD is the sponsor we can inflate that number (given its pocket swapping given Ron has to find the money one way or the other) and hence the wage cap. I believe this was subsequently confirmed at the club Q & A by the CEO.

Surely no reason to turn down a lower offer? Ron could have accepted the offer and made MD the shirt-back sponsor, or even just bill-boards arround the ground if that was case..

 

[Shrimper51]

I would imagine that there is only so much allowed for each of those, so he needs to maximise every revenue stream so as not to affect the salary cap,

 

[OldBlueLady]

I bet Ron doesn't put in a penny to keep anything afloat.

You can't really believe that?

 

[mrsblue]

You can't really believe that?

Bury FC now have to fund impossible loan arrangements with interest rates set so high they can never ever fund these loans.

The owner is either extremely stupid or very very clever...I think he is very very clever.

 

[amsemp]

Bury FC now have to fund impossible loan arrangements with interest rates set so high they can never ever fund these loans.

The owner is either extremely stupid or very very clever...I think he is very very clever.

I'd have to disagree that he's very clever. After reading the article in the paper about it, looks to me as if he's put all his eggs in one basket and basically gambled the future of the club away. They need to get into the Championship to have a chance of sustaining that loan and if they don't then they're facing financial ruin, as the debt is secured against their ground. The fans are pleased they're seeing decent football and being touted as strong promotion contenders, but they're all worried about the long term future of their club and I would be too.

Love him or hate him (I'm in the middle), Ron does put his hand in his pocket for this club and has done for years. Running a football club isn't profitable, especially one in League 2. Ron doesn't endear himself to anyone because he's always gone about it in a shady and less than transparent way.

 

[Tangled up in Blue]

Anyone else see the Newsnight report on big out-of-town supermarkets last night?

Apparenty, they're passé.:sad:

http://www.bbc.co.uk/programmes/b006mk25

 

[Beefy]

I'm not convinced that RM is putting his hand in his own pocket but he's getting the money from somewhere every month which is all that can be asked I guess.

 

[THE SEVENTIES NORTH BANK]

I'm not convinced that RM is putting his hand in his own pocket but he's getting the money from somewhere every month which is all that can be asked I guess.

http://www.echo-news.co.uk/news/11049792.print/

 

[Beefy]

I mean on an ongoing basis. The very fact that he had to mortgage his house to avoid an adminstration shows that he isn't personally bridging our cashflow deficit every month.

He has undoubtedly sunk some of his own money in and has personally borrowed a shed-load which is why it fanciful to think that he could or would ever just walk away. But I don't believe that he is personally contributing funds at this point in order to pay wages and keep HMRC at bay.

 

[Ozzer]

Anyone else see the Newsnight report on big out-of-town supermarkets last night?

Apparenty, they're passé.:sad:

http://www.bbc.co.uk/programmes/b006mk25

Yes, I watched the programme. It seems that supermarkets will be closing stores to avoid future losses. They showed a large Tesco store that had been closed. The public doesn't want these large stores which also sell non-food goods as they prefer to buy these goods on-line. Supermarkets will be concentrating on food sales in local shops as the public don't want to travel to these out of town stores. If Sainsburys go ahead with Roots Hall it will be against current business preferences. It seems only Aldi and Lidl are expanding strongly but they have stores in the town and Lidl are currently building another at the corner of Progress Road and Rayleigh Road, Eastwood.

 

[londonblue]

Yes, I watched the programme. It seems that supermarkets will be closing stores to avoid future losses. They showed a large Tesco store that had been closed. The public doesn't want these large stores which also sell non-food goods as they prefer to buy these goods on-line. Supermarkets will be concentrating on food sales in local shops as the public don't want to travel to these out of town stores. If Sainsburys go ahead with Roots Hall it will be against current business preferences. It seems only Aldi and Lidl are expanding strongly but they have stores in the town and Lidl are currently building another at the corner of Progress Road and Rayleigh Road, Eastwood.

But Roots Hall isn't out of town. It's right in the middle of town. Building Sainsburys on FF would be out of town in the same was Waitrose is.

 

[davewebbsbrain]

But Roots Hall isn't out of town. It's right in the middle of town. Building Sainsburys on FF would be out of town in the same was Waitrose is.

I wouldn't say it's right in the middle of the town. It's on the fringes but neither in the middle of town or out of town

 

[londonblue]

I wouldn't say it's right in the middle of the town. It's on the fringes but neither in the middle of town or out of town

I would have to disagree with you there.

 

[mrsblue]

I'd have to disagree that he's very clever. After reading the article in the paper about it, looks to me as if he's put all his eggs in one basket and basically gambled the future of the club away. They need to get into the Championship to have a chance of sustaining that loan and if they don't then they're facing financial ruin, as the debt is secured against their ground. The fans are pleased they're seeing decent football and being touted as strong promotion contenders, but they're all worried about the long term future of their club and I would be too.

Love him or hate him (I'm in the middle), Ron does put his hand in his pocket for this club and has done for years. Running a football club isn't profitable, especially one in League 2. Ron doesn't endear himself to anyone because he's always gone about it in a shady and less than transparent way.

The guy is a property developer so in essence he wants the club bust so he can build on the site allegedly ?

I think the loans work like this,another company which no doubt this guy is associated with lends a pile of cash which may or may not go into the club,the club are charged interest which is impossible to sustain BUT somebody somewhere takes a large chunk for probably borrowing nothing allegedly ?

If I owned a large house worth a million then remortgaged for 500k with the bank charging 10% per annum and I then lend the 500k to another source but charge them 50% per annum I then make a lot of cash without risk.

 

[amsemp]

The guy is a property developer so in essence he wants the club bust so he can build on the site allegedly ?

I think the loans work like this,another company which no doubt this guy is associated with lends a pile of cash which may or may not go into the club,the club are charged interest which is impossible to sustain BUT somebody somewhere takes a large chunk for probably borrowing nothing allegedly ?

If I owned a large house worth a million then remortgaged for 500k with the bank charging 10% per annum and I then lend the 500k to another source but charge them 50% per annum I then make a lot of cash without risk.

If you've got that right then it's worrying times for Bury.

To me it just looked like someone borrowing a payday loan for the weekend, then borrowing another one for more to pay off the first one and so on. It works for the short term but when the amount you owe is so big that no one else will give you another payday loan to pay off the previous one, the **** hits the fan.

 

[JD]

The guy is a property developer so in essence he wants the club bust so he can build on the site allegedly ?

I think the loans work like this,another company which no doubt this guy is associated with lends a pile of cash which may or may not go into the club,the club are charged interest which is impossible to sustain BUT somebody somewhere takes a large chunk for probably borrowing nothing allegedly ?

If I owned a large house worth a million then remortgaged for 500k with the bank charging 10% per annum and I then lend the 500k to another source but charge them 50% per annum I then make a lot of cash without risk.

There is nearly always a degree of risk when lending money, and at 50% APR I would think its so risky there's a fair chance you'll lose your money!

 

[mrsblue]

There is nearly always a degree of risk when lending money, and at 50% APR I would think its so risky there's a fair chance you'll lose your money!

Not if you loan it to yourself or your company/club.

 

[Jam_Man]

The guy is a property developer so in essence he wants the club bust so he can build on the site allegedly ?

I think the loans work like this,another company which no doubt this guy is associated with lends a pile of cash which may or may not go into the club,the club are charged interest which is impossible to sustain BUT somebody somewhere takes a large chunk for probably borrowing nothing allegedly ?

If I owned a large house worth a million then remortgaged for 500k with the bank charging 10% per annum and I then lend the 500k to another source but charge them 50% per annum I then make a lot of cash without risk.

The problem with that scenario is if you loan the money to someone that's impossible to sustain and they then cant pay it back then you have no way in which to pay back the money you borrowed yourself.

 

[mrsblue]

The problem with that scenario is if you loan the money to someone that's impossible to sustain and they then cant pay it back then you have no way in which to pay back the money you borrowed yourself.

See my previous reply.