Breaking News Ron's Blog 14/4/09

ElstreeBlue · Apr 17, 2009

Matt the Shrimp said:
As I'd suspected, my question was rather side-stepped. The club is not servicing its debts; they're simply just sitting there. They are still there - he's admitted as much this week.

Ho hum.

Matt

Matt - your question was well put - but I wouldn't have expected anything less! It was rather brushed aside dismissively. Of course the club has debt and lots of it. You didn't really need to wait for this week's blog to confirm the answer, though, did you?!

Similarly, why have certain other important questions about the finances (which have been emailed in by a few people) not even been given any form of answer yet (not even a brush off one that you got!)? Please can someone correct me if I'm wrong, but Ron has never yet made the financial case for the new stadium IN THE INTERESTS OF SOUTHEND UNITED FOOTBALL CLUB LIMITED (as opposed to Ron's companies generally). Of course it would be nice to watch our club play football in a newer and more modern stadium and there MAY (depending on whether Ron's done his sums right and the economic climate is right at the time) be financial upsides FOR THE PROPERTY COMPANY THAT WILL OWN THE LAND (presumably Ron's company initially, but he could of course sell that company to someone else that has no other connection the football club). But what are the financial upsides for the club (as a separate legal entity)? Why have there been suggestions that the club is going to be getting a pot of gold that is going to attract/keep good managers, good players, etc that can sustain a good Championship-level team when we move to the new stadium - other than being on the assumption that we will get much higher attendances to the games?

My understanding is that the club would NOT be entitled to get any of the non-footballing revenues and may also be required to pay rent to the landowner (whereas any rent is currently being waived and we're still struggling to break even each year, plus we think the club DOES still have a lot of debt on our balance sheet). In contrast, haven't we been told by Ron that the club WILL benefit from the ancillary revenues at the new complex? This is all very confusing, so it would be good for Ron to clarify. What's the financial model FOR THE CLUB going forward so it can have the sustainable future that we're told it will get at the new stadium?

Anyone else want to ask to add weight of numbers and ask?

For info, for anyone who thinks I'm having a dig at Ron, that's wrong. I believe the club was in such a financial mess when Ron took over after what had gone on before in the previous 3 or so years. Ron should take a lot of credit for the fact that he stabilised the club, and despite the club losing its major assets it kept going and we have had about another 10 years to watch our football club - and what a last 5-6 years they have been under Tilly and Brush's management! But how does this all stack up going forward when Ron gets the new stadium complex developed and possibly further on whenever he decides to sell his company to someone else? I just want him to clarify the position over something important that affects our club's future that I believe has never been explained properly to us (and we don't need everything in masses of detail - just some basic answers).

grassroots · Apr 17, 2009

ElstreeBlue said:
Matt - your question was well put - but I wouldn't have expected anything less! It was rather brushed aside dismissively. Of course the club has debt and lots of it. You didn't really need to wait for this week's blog to confirm the answer, though, did you?!

Similarly, why have certain other important questions about the finances (which have been emailed in by a few people) not even been given any form of answer yet (not even a brush off one that you got!)? Please can someone correct me if I'm wrong, but Ron has never yet made the financial case for the new stadium IN THE INTERESTS OF SOUTHEND UNITED FOOTBALL CLUB LIMITED (as opposed to Ron's companies generally). Of course it would be nice to watch our club play football in a newer and more modern stadium and there MAY (depending on whether Ron's done his sums right and the economic climate is right at the time) be financial upsides FOR THE PROPERTY COMPANY THAT WILL OWN THE LAND (presumably Ron's company initially, but he could of course sell that company to someone else that has no other connection the football club). But what are the financial upsides for the club (as a separate legal entity)? Why have there been suggestions that the club is going to be getting a pot of gold that is going to attract/keep good managers, good players, etc that can sustain a good Championship-level team when we move to the new stadium - other than being on the assumption that we will get much higher attendances to the games?

My understanding is that the club would NOT be entitled to get any of the non-footballing revenues and may also be required to pay rent to the landowner (whereas any rent is currently being waived and we're still struggling to break even each year, plus we think the club DOES still have a lot of debt on our balance sheet). In contrast, haven't we been told by Ron that the club WILL benefit from the ancillary revenues at the new complex? This is all very confusing, so it would be good for Ron to clarify. What's the financial model FOR THE CLUB going forward so it can have the sustainable future that we're told it will get at the new stadium?

Anyone else want to ask to add weight of numbers and ask?

For info, for anyone who thinks I'm having a dig at Ron, that's wrong. I believe the club was in such a financial mess when Ron took over after what had gone on before in the previous 3 or so years. Ron should take a lot of credit for the fact that he stabilised the club, and despite the club losing its major assets it kept going and we have had about another 10 years to watch our football club - and what a last 5-6 years they have been under Tilly and Brush's management! But how does this all stack up going forward when Ron gets the new stadium complex developed and possibly further on whenever he decides to sell his company to someone else? I just want him to clarify the position over something important that affects our club's future that I believe has never been explained properly to us (and we don't need everything in masses of detail - just some basic answers).

You will see from some of my previous posts that I have exactly the same worries as yourself. As far as I am concerned, (1) The Club now own nothing, as the freehold of Roots Hall and Boots and Laces was signed over to clear the Club's existing debt (apparently!) (2) Further debts are now being rung up - to be paid off 'when' the move goes ahead. (3) The Club will then just be tenants of a sparkly new stadium and be charged rent. (4) So, if the Club own nothing, where exactly are the 'funding streams' coming from?

I would feel far happier if RM was working SOLEY for the Clubs interests and I am not sure this is the case.

fredheim_holm · Apr 18, 2009

For those of you that are for padded seats, did you go to MK Dons?

Really felt wrong...

shrimpfan · Apr 18, 2009

ElstreeBlue said:
Matt - your question was well put - but I wouldn't have expected anything less! It was rather brushed aside dismissively. Of course the club has debt and lots of it. You didn't really need to wait for this week's blog to confirm the answer, though, did you?!

Similarly, why have certain other important questions about the finances (which have been emailed in by a few people) not even been given any form of answer yet (not even a brush off one that you got!)? Please can someone correct me if I'm wrong, but Ron has never yet made the financial case for the new stadium IN THE INTERESTS OF SOUTHEND UNITED FOOTBALL CLUB LIMITED (as opposed to Ron's companies generally). Of course it would be nice to watch our club play football in a newer and more modern stadium and there MAY (depending on whether Ron's done his sums right and the economic climate is right at the time) be financial upsides FOR THE PROPERTY COMPANY THAT WILL OWN THE LAND (presumably Ron's company initially, but he could of course sell that company to someone else that has no other connection the football club). But what are the financial upsides for the club (as a separate legal entity)? Why have there been suggestions that the club is going to be getting a pot of gold that is going to attract/keep good managers, good players, etc that can sustain a good Championship-level team when we move to the new stadium - other than being on the assumption that we will get much higher attendances to the games?

My understanding is that the club would NOT be entitled to get any of the non-footballing revenues and may also be required to pay rent to the landowner (whereas any rent is currently being waived and we're still struggling to break even each year, plus we think the club DOES still have a lot of debt on our balance sheet). In contrast, haven't we been told by Ron that the club WILL benefit from the ancillary revenues at the new complex? This is all very confusing, so it would be good for Ron to clarify. What's the financial model FOR THE CLUB going forward so it can have the sustainable future that we're told it will get at the new stadium?

Anyone else want to ask to add weight of numbers and ask?

For info, for anyone who thinks I'm having a dig at Ron, that's wrong. I believe the club was in such a financial mess when Ron took over after what had gone on before in the previous 3 or so years. Ron should take a lot of credit for the fact that he stabilised the club, and despite the club losing its major assets it kept going and we have had about another 10 years to watch our football club - and what a last 5-6 years they have been under Tilly and Brush's management! But how does this all stack up going forward when Ron gets the new stadium complex developed and possibly further on whenever he decides to sell his company to someone else? I just want him to clarify the position over something important that affects our club's future that I believe has never been explained properly to us (and we don't need everything in masses of detail - just some basic answers).

as you said i believe the club was in such a financial mess ,all the directors not doing the re jobs then befor in the previous 3 or so years, as you said what went on befor.do tell mr blue fingy mr whats his name.