Backroom Staff Salary Issues

[stewart]

I think its a disgrace on 2 fronts , the staff not being paid on time also the fact RM wont at least talk with those prospective buyers ,At least by talking to them he ( RM ) may be able to come to a compromise with them on a solution where he does get his golden handshake and the club become viable ,staff and players get to be paid on time and the supporters are happy .

 

[Shrimper]

Could future late payments put home games at risk?

 

[Maldon Shrimper]

In the current economic climate you have to feel for anyone that has additional financial pressures.So if anyone knows of anyone at the club that is struggling then please speak up I am certain the trust could assist in some way.

Concerning RM I dont think he has done this on purpose it's the current classic case of the struggle in having sufficient funds available to run the club.Until the club has adequate levels of funds this will continue to occur until FF is up and running.

My biggest fear is that Tom and Stan decide enough is enough and leave then we have a problem

 

[Jai]

I originally heard a few months ago that a large wedge was coming Rons way in Oct, but that getting to that point was always going to be a dodgy period for cash flow, which in recent months has left the club having to make decsisions on what gets paid and what doesnt. If the shortfalls were, just for example, 60 to 100k each month, decisions about what gets paid and what doesnt need to be made. Unpopular decisions and who'd want to have to do that job! Games recently called off etc wont have helped. Although I dont know any updates on what, if, or when amounts will be received, its starting to sound like there are delays, which I very much doubt the club could afford to be factored in, which is probably why we are hearing phrases such as bridging loans etc..

There was an update in the last AAS about the refinancing of the club. Company's House suggests a large number of charges over Ron's companies have been resolved, and details of a new financial agreement was published.

It came through just as we went to press, so I managed to get a paragraph in with the basics, but I haven't had time to investigate further. Perhaps someone with a nose for this type of thing can have a look.

 

[Jai]

I’ll repeat again. Show me a credible investor or alternative. Ron’s not walking away tomorrow with no return on years of juggling and even if he did there are no assets wouldn’t have either been stripped, mortgaged or pledged as security. What then?

I’ll also repeat the inability to pay staff is disgusting. The talk of getting a keeper to cover a crisis is almost as bad. No more loans or signings until those that need paying get paid and get paid on time. This fiasco is now out in the open. Interested to see what NL does next.

I agree but I feel the signing of a goalkeeper is being done now because who knows when the next fruity soft drink is going to be upon us given this latest news.

 

[Sherif H]

By the way, just for some reporting parity, albeit from a rugby perspective, today has seen Wasps enter administration, and Worcester staff suggest they are on the verge of downing tools...

 

[Jai]

Thank you @TrueBlue @Yorkshire Blue & @Swiss Tony

Fair play to them.

Exeter yes but they would have been absolutely ****ed without Ollie Watkins. Most fan-owned models hold clubs back because football clubs are utterly unsustainable and fans just don't have deep enough pockets. Wrexham struggled for years at this level with a fan-owned model.

I'm not saying it's not desirable, as clearly clubs need to be in the hands of people who care for them. But you have to be wise to the limitations. We won't be competing at the top end of the National League under a fan-owned model.

 

[kaymac]

I went to the real St James's Park in August with WS Junior when on holiday in Devon. Very tidy ground, with proper standing behind the goal and a fan-zone area with local cider and food. Got big plans - and the money they got for Ollie Watkins probably helps - and they are succeeding on the pitch too.

Yep, Exeter were struggling heavily financially and the good folk running the club didn’t have the dosh to keep it going, the monies received from Watkins and a couple of other player sales saved them.

 

[kaymac]

Waps are a financial basket case. How they got the Ricoh Arena was a travesty.

 

[Tommy2holes]

I've read this thread now..

I keep hearing the name Carl Reader mentioned.

Who is Carl Reader and what's his background and interest in the club.

 

[sufc4life21]

Ron do the right thing and talk to potential buyers. Can't be fun running football club with off field issues every season and getting abuse from fans. The FF project looks underfunded, you clearly haven't got the capital in place to build a project of that size. Why keep struggling along with the hope you might hit the jackpot...... surely its time to engage with other parties to reach a better place for the club and yourself.

 

[JD]

Ron do the right thing and talk to potential buyers. Can't be fun running football club with off field issues every season and getting abuse from fans. The FF project looks underfunded, you clearly haven't got the capital in place to build a project of that size. Why keep struggling along with the hope you might hit the jackpot...... surely its time to engage with other parties to reach a better place for the club and yourself.

Explain how you think “the project is underfunded” and how “you clearly haven't got the capital in place to build a project of that size”?

 

[TrueBlue]

back in the day Scriven got in the luggage rack on the way back from Exeter.

Scriven was a big lad back then as well

 

[sufc4life21]

Explain how you think “the project is underfunded” and how “you clearly haven't got the capital in place to build a project of that size”?

Just looks underfunded from the footballing perspective..... training ground with no actual facilities also the stadium itself being 3 sides without a main stand. I guess this project isn't about the footballing side of things, which is disappointing.

 

[TrueBlue]

I've read this thread now..

I keep hearing the name Carl Reader mentioned.

Who is Carl Reader and what's his background and interest in the club.

Southend supporter, top bloke but more importantly is serious in his endeavours to talk to Ron about buying the club, has legitimate backers.

Also has previous experience running a football club as well (semi professional)

 

[pottster]

We won't be competing at the top end of the National League under a fan-owned model.

We arent competing now under ron!

 

[BoyWonder2]

Exeter yes but they would have been absolutely ****ed without Ollie Watkins. Most fan-owned models hold clubs back because football clubs are utterly unsustainable and fans just don't have deep enough pockets. Wrexham struggled for years at this level with a fan-owned model.

I'm not saying it's not desirable, as clearly clubs need to be in the hands of people who care for them. But you have to be wise to the limitations. We won't be competing at the top end of the National League under a fan-owned model.

Exactly, and that’s the only “successful” fan led football team in this country.

For what we want/hope to achieve, I can’t see it ever happening under a fan owned model like that.

Yes, fan representatives on the board, or a billionaire Southend fan, but not the conventional fan owned model.

 

[GNH]

The one thing he's not doing is robbing the club. Sound to me like you're ****stirring.

I'd suggest that £450k a year rent and a £300k per year managment charge lasting for 20+ years isn't being generous to the football club

 

[Danshrimper]

I'd suggest that £450k a year rent and a £300k per year managment charge lasting for 20+ years isn't being generous to the football club

These charges just sit on the balance sheet as creditors. This isn’t a cashflow out of our club and isn’t the cause of our financial problems.

Instead he just uses the figure to dismiss talk of takeovers by saying he wants it back if he’s to sell the club. Is that much better? Well no, not really. But he hasn’t been taking £750k cash out of the club every year for the last 20 years like you’re suggesting.

 

[GNH]

These charges just sit on the balance sheet as creditors. This isn’t a cashflow out of our club and isn’t the cause of our financial problems.

Instead he just uses the figure to dismiss talk of takeovers by saying he wants it back if he’s to sell the club. Is that much better? Well no, not really. But he hasn’t been taking £750k cash out of the club every year for the last 20 years like you’re suggesting.

It's on the balance sheet and it's this that is now being used as the reasoning why he won't sell, it's very much relevant.

Just look at the last filed accounts, if a club turning over £7.43m per year is not sustainable you need to look at the chairman's business model. Also circa £2.3m per year 'Admin expenses' outside of the rent charge etc.

Also the total wage costs for the same period, including all Director remunerations was £6.24m, so still £1.19m left after wages

These are all very real cash draining issues