Carl Reader Publicly Pulls Out Of Buying SUFC

[Carl]

Have you alerted the media, Carl? I’m sure Chris Phillips could do a big story for you for such a big and potentially consequential announcement. That really would be a public statement, and might lend some credence to you and your proposals for the club.

Missed this reply, sorry. I've been in touch with Chris since our first approach - we've stayed away from "the media" (including All At Sea, Echo etc) at the heat of each approach because making an approach asking for an NDA, whilst simultaneously shouting about it, really doesn't lend any credence to our approach, let alone us or the proposals.

Similarly, when I was asked to join the documentary filming when it was initially launched - within days of an approach that we made.

We could easily have worked with TalkSport on this, and from my previous 'day job' I've got contacts at most of the nationals - but creating a media fuss wasn't the aim of all this, our aim was to complete the project - that was reflected in my screenshotted statement shared here.

Does that make us less credible? I don't think so personally, but appreciate others might view this differently.

Chris has got my number so if he wants to chat, I'm happy to, but really it's after the event now - focus should actually be on who is going to fix this.

 

[Carl]

Whilst there is profit to be made from the development, I'm sure there are buyers queuing up, but once that's gone, I'll be one of those losers asking who would want to buy us without any assets

For accuracy, who would want to buy us without control of the stadium build, the revenue generating abilities, access rights on land, etc - and of course, the rent that could or could not be charged in the future. That's why people could and should be queuing up now rather than sitting back and waiting.

It's a very worrying time IMO - not just the HMRC bill, as given the size and scale of our project that should be easily found - but also, the longer term prospects should the stadium be built, as the club won't be a necessity for a payday by that point...

 

[Carl]

My bet is that Ron didn't think he/they could bring enough of it to the table to bother with a conversation.

Quite possibly. My bet is that he can't bring enough of it to pay wages, nor HMRC, on time. Just saying. A five minute call or an email exchange could have cleared it all up...

 

[mattytheshrimper]

Whilst there is profit to be made from the development, I'm sure there are buyers queuing up, but once that's gone, I'll be one of those losers asking who would want to buy us without any assets

I'd suggest reading post 19 in that case.

 

[* ORM *]

In other new grass is green and sky is blue

 

[kentblues]

For accuracy, who would want to buy us without control of the stadium build, the revenue generating abilities, access rights on land, etc - and of course, the rent that could or could not be charged in the future. That's why people could and should be queuing up now rather than sitting back and waiting.

It's a very worrying time IMO - not just the HMRC bill, as given the size and scale of our project that should be easily found - but also, the longer term prospects should the stadium be built, as the club won't be a necessity for a payday by that point...

Agree with this really, although in answer to the the two points highlighted 1. someone who wants to buy the club and can't afford/is unable to fund the stadium. The planning I think reference an initial min 20 year lease so a buyer would want to negotiate a commitment against that. Of course better to own the stadium. The point that is invariably overlooked is we don't get to choose you Ron sells to. And he may prefer not to sell the stadium although he has said he would be open to both options.

On the second point 2. you are right. But then this is also why he will sell. And the club with a new stadium and the chance to wash its face financially will be more attractive than it is now.

 

[londonblue]

For accuracy, who would want to buy us without control of the stadium build, the revenue generating abilities, access rights on land, etc - and of course, the rent that could or could not be charged in the future. That's why people could and should be queuing up now rather than sitting back and waiting.

It's a very worrying time IMO - not just the HMRC bill, as given the size and scale of our project that should be easily found - but also, the longer term prospects should the stadium be built, as the club won't be a necessity for a payday by that point...

One question I've asked which hasn't been answered is what percentage will go to the club, and what percentage will go to the pension fund. My fear is that a pension fund will need to be making a return on its investment, which means (to me) that it will take the lion's share of the revenue.

 

[TJC]

I'd suggest reading post 19 in that case.

Yep, read that. Guess what I am getting at, and Carl seems to back up, once the development is out of the equation, we are worthless and at the mercy of the landlord if Ron doesn't hold up his promise of gifting the stadium to the club (slap my wrist for having doubts Ron wouldn't keep a promise )
In a nutshell then, we are up the poo creak without a paddle unless someone manages to buy the club AND development pdq.

 

[Holy Joe]

Yep, read that. Guess what I am getting at, and Carl seems to back up, once the development is out of the equation, we are worthless and at the mercy of the landlord if Ron doesn't hold up his promise of gifting the stadium to the club (slap my wrist for having doubts Ron wouldn't keep a promise )
In a nutshell then, we are up the poo creak without a paddle unless someone manages to buy the club AND development pdq.

I'm not sure Ron has ever said he'll gift the stadium to the club has he?

He's said he'll possibly sell it to the new owners or could continue to own it and lease it to the club

 

[Supa Shrimpa]

I'm not sure Ron has ever said he'll gift the stadium to the club has he?

He's said he'll possibly sell it to the new owners or could continue to own it and lease it to the club

That's it. The club will have to lease it from his co./s. Where the clubs income is supposed to come from, who knows ? Other than a bit of karaoke in the social room !

 

[Holy Joe]

That's it. The club will have to lease it from his co./s. Where the clubs income is supposed to come from, who knows ? Other than a bit of karaoke in the social room !

The talking down of the new stadium is abit tiresome. As has been mentioned many times, plus the publically available plans show, there is far more than a social room to increase match day and more importantly non match day revenue.

The thing with owning a stadium and renting it out is that its not entirely in your interests to set the rent at a very high level, the alternative use/tenants for a stadium are very limited. Set the rent unaffordable and its a lose lose situation

 

[Supa Shrimpa]

The talking down of the new stadium is abit tiresome. As has been mentioned many times, plus the publically available plans show, there is far more than a social room to increase match day and more importantly non match day revenue.

The thing with owning a stadium and renting it out is that its not entirely in your interests to set the rent at a very high level, the alternative use/tenants for a stadium are very limited. Set the rent unaffordable and its a lose lose situation

Let's just hope he sets it at £1 pm then lol

 

[Carl]

The talking down of the new stadium is abit tiresome. As has been mentioned many times, plus the publically available plans show, there is far more than a social room to increase match day and more importantly non match day revenue.

The thing with owning a stadium and renting it out is that it’s not entirely in your interests to set the rent at a very high level, the alternative use/tenants for a stadium are very limited. Set the rent unaffordable and its a lose lose situation

I like a lot of your comments as they are fair - but surely our level of debt and current situation regarding how hard it would be to unwrap this situation is partly due to an excesssive rent and management charge?

I’m one to judge people on actions rather than words, I’d love to hope we’d see a benevolent side but…

 

[kentblues]

He has said he will write off debt and charge rent on an appropriate scale according to what division we are in (so rent reflecting income). The point of the new stadium is reduced maintenance on one side and vastly increased commercial revenues on the other allowing both paying the rent and investing in the team. Proof will of course be in the pudding.

He has also said he would consider selling the stadium as well as the club. I guess depending how deep the buyers pockets are. Again we will see.

Finally he has also made clear his expectation that any sale will be post build...(notwithstanding your observation re timing on that).

 

[Stan33]

Let's just hope he sets it at £1 pm then lol

How about a peppercorn rent of £1 ?

 

[Holy Joe]

I like a lot of your comments as they are fair - but surely our level of debt and current situation regarding how hard it would be to unwrap this situation is partly due to an excesssive rent and management charge?

I’m one to judge people on actions rather than words, I’d love to hope we’d see a benevolent side but…

Absolutely - my thoughts on charging excessive rent are where the stadium owner and the club owner are not the same person, ie the stadium owner actually wants to receive some cash rather than a debt accrue.

With Ron it was in his interests to charge a rent, knowing the club was not going to actually pay and let a debt accrue. He has written some of that off in the past, and if he's serious about selling in the future will need to write more off.

 

[Supa Shrimpa]

Absolutely - my thoughts on charging excessive rent are where the stadium owner and the club owner are not the same person, ie the stadium owner actually wants to receive some cash rather than a debt accrue.

With Ron it was in his interests to charge a rent, knowing the club was not going to actually pay and let a debt accrue. He has written some of that off in the past, and if he's serious about selling in the future will need to write more off.

Why would he write more off ? That's what's owed to him. He's already said he'd want what's owed

 

[Holy Joe]

Why would he write more off ? That's what's owed to him. He's already said he'd want what's owed

No - I think he said if he sold before stadium / flats were built he'd want the debt repaid.

No-one would buy just the football club with the debts - that'd be a £20m+ enterprise value - hence if Ron wants to sell the club in the future, imho, the debts will need to be reduced - which Ron has also hinted at.

 

[TJC]

I'm not sure Ron has ever said he'll gift the stadium to the club has he?

He's said he'll possibly sell it to the new owners or could continue to own it and lease it to the club

I thought he 'suggested' in a passing comment many moons ago, but just as likely I imagined it, so I stand corrected. What he promises doesn't hold much weight, so what chance does a 'suggestion' have anyway.

 

[Evening Echo]

FORMER Southend United favourite Simon Cox has revealed he was part of a group who failed in a bid to buy the club from chairman Ron Martin earlier this season.

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