Carl Reader Publicly Pulls Out Of Buying SUFC

[* ORM *]

Great player but never a favourite.

Or a star

 

[tommy tucker]

I hink the only answer to this man is To put the club into administation .Then ron will be releved of the club A buyer can then be found And from what i have read there would be plenty of willing takers .But the fly in the ointment is would ron rather have the club fold rather than let someone eles take over .Yes we would have to take a points penalty But that would be better than the club being wonded up .

 

[Chris Powell's mate]

Correct me if I'm wrong, but doesn't the money have to be in the HMRC account by March 1?
And therefore, a deal to pay has to formulate before deadline day allowing funds to drop in a timely manner?
If the 11th hour arrived and no loan, Ron would be in a corner demanding some sort of compromise ie partner(s).
If the club were to be wound up, any assets would go to pay creditors, so 'bull-headed' Ron would lose big time.

 

[Shrimpet steve]

Forget cox and his little consortium,the saudis or American ownership is what I'm talking about!

 

[Mad Cyril]

Forget cox and his little consortium,the saudis or American ownership is what I'm talking about!

Do you have some connections?

 

[crangoner]

Simon obviously has some cash burning a hole in his pocket.

He is currently launching a F45 gym in Southend opposite Warrior Square.

The Chelmsford F45 charges £15 a visit or £119 for 10 visits. Not sure that price point is going to work in such a run down part of Southend.

I'm not convinced. It wasn't so long ago he was trying to flog Bitcoin mining get rich quick schemes on Instagram.

 

[Shrimper]

Do you have some connections?

Shrimpet is secretly an American billionaire

 

[Mad Cyril]

I'm not convinced. It wasn't so long ago he was trying to flog Bitcoin mining get rich quick schemes on Instagram.

It sounds like he would make an ideal owner of SUFC then.

 

[Shrimpet steve]

Do you have some connections?

I wish!! But its well documented that americans want to own anything to do with English football right now!

 

[Suffolk Blue]

Correct me if I'm wrong but Carl and friends wanted to buy much more than the club didn't they?

If they, or anybody else with deep pockets, wanted to buy just the club then I would imagine a deal could be done.

But... if somebody does want to buy just the club (i.e. Southend United Football Club Ltd) they'll need to:
- pay and keep up top date with the company's tax bills (legacy debt, PAYE, VAT etc.)
- pay the players (what they are owed plus future earnings as they become due)
- pay the non-playing staff (what they are owed plus future earnings as they become due)
- pay suppliers what they are owed (St John Ambulance, printers, utilities etc.)
- repay other creditors (Trust, sponsor, anybody else who has loaned the club funds)
- repay Ron the money he and his companies have loaned the club
- possibly pay the back rent on Roots Hall (and B&L?) that has been accrued but not charged
- pay rent, maintenance, and utilities on Roots Hall until Fossets Farm is developed
- agree future rent for the stadium and training facilities at Fossets Farm.

You might get Ron to write-off what's owed to him and his companies, and some of the other creditors might do a deal. There'll be income as well to offset some of the ongoing costs.

Imagine Ron was willing to part with the club for £1 and write off rent and other money owed to him and his companies; I'd estimate that you'd still need £2million at least to pay off current debts and at least another £500K to get to the end of the season.

For your investment, you'd get little in return; player registrations, a National League place, agreement to rent Roots Hall (free?) and probably Fossets Farm stadium complex (nominal rent?). There'd be some football and commercial income presumably; ticket sales, perhaps the residual season ticket money, and anything else that hasn't already been borrowed against and spent.

So basically we're looking for a lottery winner, one or two Hollywood film stars, or some other person looking for the glamour of owning a National League (potentially EFL) football club.... or perhaps 2,500 fans with £1,000 each to spare now and perhaps £50 a month long-term commitment.

 

[WestyReturns]

So we could've had Simon Cox in an advisory position with a pension fund that could've ransacked us for a housing development - I bet Simon is a nice guy, but... He won us 0 promotions, 0 play offs attempts, had 3 managers sacked during his time here. He also has 0 experience in running a football club, or even being on the board of one. Let alone one that will continue to lose £1.4-2million every year.

Thanks, but no thanks.

While that may or may not be true the problem is evident that Ron will not even correspond to offers which shows he is incapable of making rational decisions. Him holding off narrows his options and power to negotiate almost daily. Any business owner worth their salt would always listen to offers. Doesn't mean they have to take them.

 

[Mad Cyril]

While that may or may not be true the problem is evident that Ron will not even correspond to offers which shows he is incapable of making rational decisions.

Maybe Ron is pretty adept at spotting and ignoring offers from wide boys, chancers and dreamers?

 

[Napster]

Maybe Ron is pretty adept at spotting and ignoring offers from wide boys, chancers and dreamers?

He signed Phil Brown as manager, so no.

 

[undercovershrimper]

He signed Phil Brown as manager, so no.

twice!

 

[Shrimpet steve]

Correct me if I'm wrong but Carl and friends wanted to buy much more than the club didn't they?

If they, or anybody else with deep pockets, wanted to buy just the club then I would imagine a deal could be done.

But... if somebody does want to buy just the club (i.e. Southend United Football Club Ltd) they'll need to:
- pay and keep up top date with the company's tax bills (legacy debt, PAYE, VAT etc.)
- pay the players (what they are owed plus future earnings as they become due)
- pay the non-playing staff (what they are owed plus future earnings as they become due)
- pay suppliers what they are owed (St John Ambulance, printers, utilities etc.)
- repay other creditors (Trust, sponsor, anybody else who has loaned the club funds)
- repay Ron the money he and his companies have loaned the club
- possibly pay the back rent on Roots Hall (and B&L?) that has been accrued but not charged
- pay rent, maintenance, and utilities on Roots Hall until Fossets Farm is developed
- agree future rent for the stadium and training facilities at Fossets Farm.

You might get Ron to write-off what's owed to him and his companies, and some of the other creditors might do a deal. There'll be income as well to offset some of the ongoing costs.

Imagine Ron was willing to part with the club for £1 and write off rent and other money owed to him and his companies; I'd estimate that you'd still need £2million at least to pay off current debts and at least another £500K to get to the end of the season.

For your investment, you'd get little in return; player registrations, a National League place, agreement to rent Roots Hall (free?) and probably Fossets Farm stadium complex (nominal rent?). There'd be some football and commercial income presumably; ticket sales, perhaps the residual season ticket money, and anything else that hasn't already been borrowed against and spent.

So basically we're looking for a lottery winner, one or two Hollywood film stars, or some other person looking for the glamour of owning a National League (potentially EFL) football club.... or perhaps 2,500 fans with £1,000 each to spare now and perhaps £50 a month long-term commitment.

I get what you're saying,but people don't buy football clubs to make money and they know they will bleed money! They do it for fun and because they can.There are the exceptions like man utd etc but no clubs in leagues 1,2 and national actually make money.

 

[LeedsSUFC]

While that may or may not be true the problem is evident that Ron will not even correspond to offers which shows he is incapable of making rational decisions. Him holding off narrows his options and power to negotiate almost daily. Any business owner worth their salt would always listen to offers. Doesn't mean they have to take them.

If your name is Ronald Martin and in your mind, you’re a £5 million loan away from hundreds of millions in profit, setting up your family for generations and satisfying your ego.

You would not be listening to random people saying ‘come on, sit at the table, here’s £20mil now **** off’.

At the same time, you wouldn’t be negotiating with a random consortium to buy you out when you may (or may not) already have a new potential investor around the table already… Who knows what is going on behind closed doors.

 

[LeedsSUFC]

I get what you're saying,but people don't buy football clubs to make money and they know they will bleed money! They do it for fun and because they can.There are the exceptions like man utd etc but no clubs in leagues 1,2 and national actually make money.

Owning a football clubs is great for money laundering though.

 

[Mad Cyril]

Owning a football clubs is great for money laundering though.

Better than nail bars and barbers?

 

[Mad Cyril]

If your name is Ronald Martin and in your mind, you’re a £5 million loan away from hundreds of millions in profit, setting up your family for generations and satisfying your ego.

You would not be listening to random people saying ‘come on, sit at the table, here’s £20mil now **** off’.

I suspect it is just random people rather than random people with £20m

 

[Mad Cyril]

Who knows what is going on behind closed doors.

The evening before bin bag collection day is the time to find out.