Sainsburys Loan - at what cost?

[Hotman]

Interesting that whilst Roots Hall Limited are borrowing funds from Sainsburys, the security placed is the "blocked" bank accounts in the name of SUFC, and held by / property of SUFC, being the Season Ticket Sales Account, League Payments Account, and the Deposit Moneys.
:Naps:

 

[Holy Joe]

thought the security was the shares in SUFC held ultimately by Ron?

 

[Cricko]

Can you elaborate on that more please MC .

 

[THE SEVENTIES NORTH BANK]

Interesting that whilst Roots Hall Limited are borrowing funds from Sainsburys, the security placed is the "blocked" bank accounts in the name of SUFC, and held by / property of SUFC, being the Season Ticket Sales Account, League Payments Account, and the Deposit Moneys.
:Naps:

In laymans terms for us divs, please.

 

[Hotman]

I've only got access to publicly filed information, not the side agreements that would support this mortgage charge. It is a little concerning that rather than just security on the land and assets owned by RH Ltd, the security (for RH Ltd's benefit) is also SUFC Ltd's bank accounts (which have been "blocked").

Hopefully, by them being blocked, SUFC can't pay for Delloittes or any other consultants / contractors in relation to the work being performed for RH Ltd :whistling:, and can instead pay the players / managers / ex employees.

 

[Razam]

I've only got access to publicly filed information, not the side agreements that would support this mortgage charge. It is a little concerning that rather than just security on the land and assets owned by RH Ltd, the security (for RH Ltd's benefit) is also SUFC Ltd's bank accounts (which have been "blocked").

Hopefully, by them being blocked, SUFC can't pay for Delloittes or any other consultants / contractors in relation to the work being performed for RH Ltd :whistling:, and can instead pay the players / managers / ex employees.

If the blocked accounts were used only for players, manager, etc.. wouldn't it be classed as ring-fenced rather than blocked?

Also would using SUFC's bank account as security show how weak (financially) Ron personally is - or could there be another reason for using the accounts as security?

 

[Yorkshire Blue]

Also would using SUFC's bank account as security show how weak (financially) Ron personally is - or could there be another reason for using the accounts as security?

I wouldn't read too much into it. The SUFC bank account is presumably where the money Sainsburys lends gets paid into. If something was to happen (which, lets face it, is why security is taken in the first place), the lender would rather get their hands on cash, rather than an illiquid asset such as property. Besides, lenders generally like to take as much security as possible.

I don't think there's much doubt that both Ron and the club are in weak financial positions though.

 

[mattytheshrimper]

i truly believe we will be totally screwed in a few years time.

 

[Yorkshire Blue]

i truly believe we will be totally screwed in a few years time.

I've been saying that for every year since about 1995!

I hope my pessimism continues to be confounded and we are somehow still muddling on in 15 years' time.

 

[mattytheshrimper]

I've been saying that for every year since about 1995!

I hope my pessimism continues to be confounded and we are somehow still muddling on in 15 years' time.

i hope i am also wrong but i can't help but thinking there is some kind of money scheme going on with ron and this is all part of his master plan to end sufc. after all i do not believe a single word that leaves his mouth. saying that there hasn't been anything said for quite some time.

 

[Hotman]

If the blocked accounts were used only for players, manager, etc.. wouldn't it be classed as ring-fenced rather than blocked?

Also would using SUFC's bank account as security show how weak (financially) Ron personally is - or could there be another reason for using the accounts as security?

Blocked is the wording used within the charges.

 

[Beefy]

I've only got access to publicly filed information, not the side agreements that would support this mortgage charge. It is a little concerning that rather than just security on the land and assets owned by RH Ltd, the security (for RH Ltd's benefit) is also SUFC Ltd's bank accounts (which have been "blocked").

Hopefully, by them being blocked, SUFC can't pay for Delloittes or any other consultants / contractors in relation to the work being performed for RH Ltd :whistling:, and can instead pay the players / managers / ex employees.

The loan is providing working capital for the football club. I don't think it was ever intended to be directly aiding the FF development other than helping to keep the Club alive until that time.