Breaking News Sainsbury agree £5m loan

[Andy_S]

If I told you that I would have to kill you.....



















It was in today's Echo in truth mate!

I'm an out of towner, go easy on me. ;)

 

[Beefy]

So is £1.8m enough to finance a club for a season???

RM said at the Q&A that he needed a £3m injection to cover cashflow for two seasons, but presumably that was on the assumption that existing debts would need to be paid off. As it is he's managed to find £5m. If the budget is strictly adhered to then there's no reason at all why we should come into any cashflow problems now.

This loan is fantastic news. It enables us to fully restructure our debt and obligations and represents a guaranteed form of income, if needed, to budget against.

 

[Yorkshire Blue]

So is £1.8m enough to finance a club for a season???

If we were a viable business we'd need £0m as we'd be generating enough income to cover our costs, so after having had a chance to start again on more realistic wages, I bloody hope so.

 

[ozzy-shrimper]

What would we do without Sainsburys?!

 

[Beefy]

What would we do without Sainsburys?!

We'd be in a World of trouble. God bless them.

 

[bazzashrimper]

No news of a repayment to the Trust then?

 

[Interpol Shrimper]

Can somebody remind me where Martin Dawn plc now stand with regards to the specific winding up order(s) HMRC have got against them?
The £1.6m to "other Ron Martin companies", presumably you would think this will be utilised to again see off the tax man?

 

[OldBlueLady]

No news of a repayment to the Trust then?

I believe this is covered in the latest Trust statement on the website and on their forum on here.

 

[SARF]

If we were a viable business we'd need £0m as we'd be generating enough income to cover our costs, so after having had a chance to start again on more realistic wages, I bloody hope so.

if we were aviable business we would be in the conference.. actually nearly everyone would be in the conference

 

[Clinton Baptiste]

http://www.echo-news.co.uk/news/8312868.Sainsbury_s_puts___5m_cap_on_its_Blues_bailout/

 

[Jam_Man]

RM said at the Q&A that he needed a £3m injection to cover cashflow for two seasons, but presumably that was on the assumption that existing debts would need to be paid off. As it is he's managed to find £5m. If the budget is strictly adhered to then there's no reason at all why we should come into any cashflow problems now.

This loan is fantastic news. It enables us to fully restructure our debt and obligations and represents a guaranteed form of income, if needed, to budget against.

Looks like we have 1.8 million as the 5 million includes previous money lent.

 

[EastStandBlue]

The playing staff wage budget for the year is around £1.3m, so if RM defers the debt to his companies for at least this year (And I imagine he will as some kind of a goodwill gesture to get a portion of the fans back on side) then that £1.6m should, in theory, cover at least 95% of the entire company wage expenditure for the year.

Other expenses, with any luck, will be covered by match day related revenue, although there'll probably be a shortfall for the season.

Am I right in thinking that this is InsureandGo's last season sponsoring the club? Whilst they'll probably retain sponsorship of matchdays and a handfull of hoardings, I imagine Sainsburys will have first refusal on shirt sponsorship next Summer, with maybe Rank Casino's as a shirt-back sponsor?

 

[THE SEVENTIES NORTH BANK]

The playing staff wage budget for the year is around £1.3m, so if RM defers the debt to his companies for at least this year (And I imagine he will as some kind of a goodwill gesture to get a portion of the fans back on side) then that £1.6m should, in theory, cover at least 95% of the entire company wage expenditure for the year.

Other expenses, with any luck, will be covered by match day related revenue, although there'll probably be a shortfall for the season.

Am I right in thinking that this is InsureandGo's last season sponsoring the club? Whilst they'll probably retain sponsorship of matchdays and a handfull of hoardings, I imagine Sainsburys will have first refusal on shirt sponsorship next Summer, with maybe Rank Casino's as a shirt-back sponsor?

In the Echo the other day, Rank said they were now looking at other site's for the new casino as they basically said time and their patience had run out in regards to Fossetts.

 

[Beefy]

Looks like we have 1.8 million as the 5 million includes previous money lent.

True. But the important thing is that it's cleared the previous debts and will provide a pool of cash to cover wages/taxes without having to rely directly on our income coming through the turnstiles. Our problems last year came about due to having a lot of empty bank balances accross the group.

Ironically, the drop in season ticket holders this season should help our cashflow too, presuming that some of these fans buy tickets for some of our home games and don't just abandon the Club.

Still very positive news,

 

[EastStandBlue]

In the Echo the other day, Rank said they were now looking at other site's for the new casino as they basically said time and their patience had run out in regards to Fossetts.

I think that's more of a case of them hedging their bets in case the Fossetts development falls through... I'd imagine they'd much prefer their casino on the site of a 22,000 capacity football ground with hotel suites, bars and a few restaurants.

 

[OldBlueLady]

In the Echo the other day, Rank said they were now looking at other site's for the new casino as they basically said time and their patience had run out in regards to Fossetts.

Beat me to it, was just going to say the same thing. Although I don't exactly think that a casino on the Greyhound Retail Park is going to be any match for an outlet at Fossetts!

 

[Jam_Man]

True. But the important thing is that it's cleared the previous debts and will provide a pool of cash to cover wages/taxes without having to rely directly on our income coming through the turnstiles. Our problems last year came about due to having a lot of empty bank balances accross the group.

Ironically, the drop in season ticket holders this season should help our cashflow too, presuming that some of these fans buy tickets for some of our home games and don't just abandon the Club.

Still very positive news,

Oh its definitely good news, was just pointing out we dont have 5 million cash before people start demanding we buy players.

Now we can relax and just enjoy the football.

 

[united we stand]

Very good news .
However , I hate to say it , but I can still see us paying people late

Why ?
Well we haven't paid the trust yet , that indictes to me either

• The club doesn't care and will fob them off as long as possible
• Each time we need to draw down on the loan the paperwork takes a couple of weeks to complete

I would like to assume the answer is the second point, but at the same time I would have no faith in the club remembering to draw down on the loan in advance of a payment beocming due.Especially if there is a bank holiday !;)

 

[Rayleigh boy]

oh well - with a lge 2 squad/outgoings i am sure RM will be able to extract more for his "debts" from this -

we are one of the better supported lower league clubs - with a massive assett - RH/planning permission - and everyone is delighted that we are still alive -

 

[palexander]

This was tucked away a bit. Can't news like this go not the main shrimpers chit chat forum first, then get moved so everyone has a chance to see it?