Ron makes bid for Delancey and FF developments

[sufcintheprem]

Quote[/b] (Benfleetshrimp @ Dec. 10 2004,19:33)]

Quote[/b] (* ORM * @ Dec. 10 2004,19:25)]Is there any truth whatsover in the rumoured plans for Franchise FC mach II ?

What are the rumours surrounding this?

Was that the start of it?

 

[footymad13]

How is the stadium being funded ?, Martin Dawn arn't exactly 'big players' and his paying off Delencey, so how does he pay for a stadium ?

 

[Javea Shrimper]

How have Arsenal paid for theirs?

WS

 

[footymad13]

Quote[/b] (Javea Shrimper @ Dec. 12 2004,19:56)]How have Arsenal paid for theirs?

WS

Do you think Granada, Nike & Air Emirates will have a wip round for Southend ?

Seriously, any ideas how RM will fund the stadium, more debt ?

 

[McScriven]

Quote[/b] (footymad13 @ Dec. 12 2004,22:25)]

Quote[/b] (Jávea Shrimper @ Dec. 12 2004,19:56)]How have Arsenal paid for theirs?

WS

Do you think Granada, Nike & Air Emirates will have a wip round for Southend ?

Seriously, any ideas how RM will fund the stadium, more debt ?

Forget sponsorship deals thtas extra money how has Wembley been paid for?

Money is borrowed from banks. Whether this is how a new Southend stadium will be financed I haven't a clue.

 

[Javea Shrimper]

Quote[/b] (footymad13 @ Dec. 12 2004,22:25)]

Quote[/b] (Jávea Shrimper @ Dec. 12 2004,19:56)]How have Arsenal paid for theirs?

WS

Do you think Granada, Nike & Air Emirates will have a wip round for Southend ?

Seriously, any ideas how RM will fund the stadium, more debt ?

I have no idea how exactly RM intends to raise the necessary funding but the money could raised against an asset. Can you think of any prime development land that SEL could use?

WS

 

[footymad13]

Quote[/b] (Javea Shrimper @ Dec. 12 2004,22:04)]

Quote[/b] (footymad13 @ Dec. 12 2004,22:25)]

Quote[/b] (Jávea Shrimper @ Dec. 12 2004,19:56)]How have Arsenal paid for theirs?

WS

Do you think Granada, Nike & Air Emirates will have a wip round for Southend ?

Seriously, any ideas how RM will fund the stadium, more debt ?

I have no idea how exactly RM intends to raise the necessary funding but the money could raised against an asset. Can you think of any prime development land that SEL could use?

WS

Indeed, but interesting to see what he can build on it once the convient has been lifted. Wern't there problems building on RH, something about the soil ?

I understand the whole stadium, bank thing however surely that would be going from the frying pan into the fire.

 

[sufcintheprem]

Quote[/b] (footymad13 @ Dec. 13 2004,00:33)]

Quote[/b] (Jávea Shrimper @ Dec. 12 2004,22:04)]

Quote[/b] (footymad13 @ Dec. 12 2004,22:25)]

Quote[/b] (Jávea Shrimper @ Dec. 12 2004,19:56)]How have Arsenal paid for theirs?

WS

Do you think Granada, Nike & Air Emirates will have a wip round for Southend ?

Seriously, any ideas how RM will fund the stadium, more debt ?

I have no idea how exactly RM intends to raise the necessary funding but the money could raised against an asset. Can you think of any prime development land that SEL could use?

WS

Indeed, but interesting to see what he can build on it once the convient has been lifted. Wern't there problems building on RH, something about the soil ?

I understand the whole stadium, bank thing however surely that would be going from the frying pan into the fire.

I guess quite a lot of it may be raised by selling off leases for some of the commercial areas we intend to build. I would have thought they may get a loan secured on Root Hall but this would commit RM to a long time with the club as the liability would lie in his interests alone and not the club's as we don't own te ground anymore.

No idea which bank would lend a third division side who've only turned one profitable year in about ten years of trading.

Seriously, why can't my accounting course have stuff like football financing in instead of forcing me to write about the OFR (if you don't know, you don't want to!)

 

[Matt the Shrimp]

Quote[/b] (Napster @ Dec. 09 2004,13:18)]RM said that he had placed a Fully Funded proposal to Delancey to acquire their 50% shareholding in SEL.  Delancey have said they want out and were carrying out an appraisal to see if they are getting value from the proposed buy-out...

He said that he wants to return the stadium to the supporters and also wished to remove the debt.

Thoughts?

Hmm, whilst we're about it, can we have an end to war, famine and third world debt?

Seriously, the $64,000 - or, more accurately, the £6-8m question is: how is the buy-out of Delancey's 50% stake in SEL - which will be, in effect, the way in which they recoup their investment in SUFC over the last 5 or 6 years - going to be funded?

In answer to Scriv & Mike - how are Wembley / Ashburton Grove funded:

1. Wembley: mixture of banks, but ultimately security is provided by the Government. It's the national stadium.

2. Arsenal: funding provided by banks, on the security of "Arsenal". They are one of the biggest and most successful brands in Europe. That's good enough security for most banks.

So, how about Ron & SUFC? What sort of bank is going to loan us money? Where's their security? Roots Hall...? Erm, we don't own it. Ron only half owns it. Is it worth, as a site, the amount that he needs to draw down in order to pay off Delancey?

Besides, if we're not to be saddled with crippling interest payments, that means we'll have to move bloody quickly into a new stadium in order to sell Roots Hall (and/or redevelop it, if that's Ron's plan?) and realise the capital in the asset in order to pay off the bank.

Surely, Ron shouldn't even be thinking about trying to buy Delancey out until we've got planning permission approved (bearing in mind that Prescott may wish to "call it in"). Any attempt to buy out Delancey now surely smacks of empire-building, rather than putting in place the plans that will allow the club to move into a new stadium, and also to move out of debt...

Since I can't see where the money's coming from, nor can I see a set of approved plans for the construction of the stadium, I can't feel overly excited about Ron's latest pronouncements.

Matt

 

[Upminster Blue]

Quote[/b] (Matt the Shrimp @ Dec. 13 2004,11:58)]What sort of bank is going to loan us money?  Where's their security?  Roots Hall...?  Erm, we don't own it.  Ron only half owns it.  Is it worth, as a site, the amount that he needs to draw down in order to pay off Delancey?

I was under the impresssion, but might be wrong (it has been known!), that the club would have no direct financial interest in the new ground and surrounding developments. It is to be completely financed by RM and his associated companies with SUFC meerly being rent paying tenants at the new ground.

In which case, it is up to RM's companies to finance the deal in the same way that any other property development would be financed (where there is always the inevitable delay between starting the development, with the need for cash, and the development being profitable). So, surely a combination of short term borrowings, possibly against other company assets (eg Roots Hall), advance sale of leases and options on the retail part of Fossetts Farm etc would be needed to fund the upfront building costs.

As to whether the required short term borrowings are possible, this, I imagine, would hinge on the business plan RM can put to potential lenders, the strength of RM's companies' balance sheets and their past tack record on similar sized developments. This would seem to be the stumbling block.

 

[Firestorm]

Financing aside, the bit I want to know is where are we going to train and where will the academy play ?

 

[Napster]

I'm sure all will be revealed in due course. Ron seems to be very pleased with the way things are progressing.

 

[shrimperian]

my guess is that we will all be given wheelbarrows and a map to Highbury and told to purloin the old arsenal stadium bit by bit in the dead of night. even if we were to only work out how to put half of it together we would have a 20,000 all seater!!

 

[sufcintheprem]

Quote[/b] (Firestorm @ Dec. 13 2004,14:45)]Financing aside, the bit I want to know is where are we going to train and where will the academy play ?

Easy, Chalkwell park.

Quote[/b] (MattTheShrimp @ Dec. 13 2004,14:00)]Surely, Ron shouldn't even be thinking about trying to buy Delancey out until we've got planning permission approved (bearing in mind that Prescott may wish to "call it in"). Any attempt to buy out Delancey now surely smacks of empire-building, rather than putting in place the plans that will allow the club to move into a new stadium, and also to move out of debt...

Not sure about the empire building bit. However RM may intend to finance it, you can be sure it won't be from cash he has lying around in an offshore account. He's a businessman and I'd bet it's invested somewhere.

If it puts anyone at ease, my neighbour (director) spent his whole working life in the financial sector and I can certainly testament to the quality of his character.

Then again, suppose you'd have to be able to testament to my character as well.....

 

[Javea Shrimper]

Quote[/b] (Matt the Shrimp @ Dec. 13 2004,11:58)]So, how about Ron & SUFC?  What sort of bank is going to loan us money?  Where's their security?  Roots Hall...?  Erm, we don't own it.  

I was under the impression that it wasn't going to be SUFC who would finance and build the stadium. Therefore SEL (and subsequently RHL) would be able to do so?

WS

 

[sufcintheprem]

Quote[/b] (Javea Shrimper @ Dec. 13 2004,19:55)]

Quote[/b] (Matt the Shrimp @ Dec. 13 2004,11:58)]So, how about Ron & SUFC? What sort of bank is going to loan us money? Where's their security? Roots Hall...? Erm, we don't own it.

I was under the impression that it wasn't going to be SUFC who would finance and build the stadium. Therefore SEL (and subsequently RHL) would be able to do so?

WS

I agree. But then, if SEL gets full ownership of the club and has no other business purpose then there will surely be very little distinction between the two.

Question is, will RM be in for the long haul and keep the club or get his money back and sell it off?

 

[footymad13]

Quote[/b] (Matt the Shrimp @ Dec. 13 2004,10:58)]

Quote[/b] (Napster @ Dec. 09 2004,13:18)]RM said that he had placed a Fully Funded proposal to Delancey to acquire their 50% shareholding in SEL.  Delancey have said they want out and were carrying out an appraisal to see if they are getting value from the proposed buy-out...

He said that he wants to return the stadium to the supporters and also wished to remove the debt.

Thoughts?

Hmm, whilst we're about it, can we have an end to war, famine and third world debt?

2. Arsenal: funding provided by banks, on the security of "Arsenal".  They are one of the biggest and most successful brands in Europe.  That's good enough security for most banks.


Matt

To a certain extent, however they have a very good and very viable business plan to pay for the stadium and any debts. Yes at the end of the day a bank loan payed for the stadium but as well as the stadium is a large regeneration of Islington including affordable housing and lots of jobs, thus the council have been really supportive. Most of the prawn sandwich seats are sold and Arsenal have a disposit on them. Then combine this with the sponsorship deals with Nike (£50m) and Emirates (£100m) plus other little bits and pieces and you have alot of money and then theres the money the club have put in themselfs.

At the end of the day we need to get local companies on board, we can earn a packet in sponsorship and hospitality, I just don't see how RM is going to fund both the buying out of Delencey and the building of FF. And i hope to god its not a basic souless stadium e.g Chester. Any ideas when the planning application will go in ?

 

[londonblue]

Quote[/b] (Benfleetshrimp @ Dec. 10 2004,19:33)]

Quote[/b] (* ORM * @ Dec. 10 2004,19:25)]Is there any truth whatsover in the rumoured plans for Franchise FC mach II ?

What are the rumours surrounding this?

If we can play at twice the speed of sound who cares?

 

[J]

cant we close this, hasnt been used in ages

 

[Napster]

I think things may be interesting very soon.