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[Kat_r]

That’s the situation, yes. Ron might decide to waive rent but also he could quite conceivably sell the stadium and training pitches to another developer who wants to use the land for something more profitable which would leave the club homeless.

Cheers. Sorry if it sounds like I’m being thick I just couldn’t quite believe this was the case.
So the club is held hostage to his whims basically.

 

[Devon Blue]

Martin has once again played a blinder. By remaining silent in the midst of a crisis he has been the lucky recipient of £80k as a windfall without having to say a word, Not to mention the Go Fund money. Whether these loans will ever be repaid is something for the lenders to worry about and as a bonus he has managed to cause a bit of friction between the different supporters groups. Machiavelli could have learnt a few lessons from him.

Well put. Scary how much power Ron has over the fans/trust/sponsor.

 

[Kat_r]

Well put. Scary how much power Ron has over the fans/trust/sponsor.

And as I was just saying his family will own the stadium not the club. So who would buy a club without a stadium?

 

[Supa Shrimpa]

Yes. I understand the immediate need for cash so a loan was always the starting point, but it could have been convertible to equity.

There is one downside - the Trust doesn’t get the money back - but the big upside it would force RM to value the club when pricing the equity. In reality, the Trust would have been in a strong position to dictate terms.

I have long been of the view the Trust use capital to build a shareholding and that individual shareholders should gift their shares to the Trust. A material shareholding would be leverage for the Trust.

Happy to discuss if helpful

I can't see RM agreeing to release any equity !

 

[rigsby]

Well put. Scary how much power Ron has over the fans/trust/sponsor.

Maybe Ron has offered a flat to each Trust board member and zone moderator…. I hope I’ve done enough to be on the list.

 

[Devon Blue]

Maybe Ron has offered a flat to each Trust board member and zone moderator…. I hope I’ve done enough to be on the list.

They're clearly gullible enough, that's for sure

 

[Shrimper]

They're clearly gullible enough, that's for sure

Yeah, I suppose they could have just let the staff go without money, great alternative

 

[kentblues]

Thank you.

Genuine question - why a loan and not an equity investment?

Please? I suspect one or two owners of existing shares can answer that one :-)

 

[Devon Blue]

Yeah, I suppose they could have just let the staff go without money, great alternative

No of course. Well done, I meant...

 

[kentblues]

Martin has once again played a blinder. By remaining silent in the midst of a crisis he has been the lucky recipient of £80k as a windfall without having to say a word, Not to mention the Go Fund money. Whether these loans will ever be repaid is something for the lenders to worry about and as a bonus he has managed to cause a bit of friction between the different supporters groups. Machiavelli could have learnt a few lessons from him.

On the contrary he will hate this- it will be a big dent to his ego.

 

[Tangled up in Blue]

Maybe Ron has offered a flat to each Trust board member and zone moderator…. I hope I’ve done enough to be on the list.

What have you "done" exactly? (Genuine question)

 

[fbm]

Reading this thread, never has this cartoon been more appropriate in my opinion -

 

[Yorkshire Blue]

Yes. I understand the immediate need for cash so a loan was always the starting point, but it could have been convertible to equity.

There is one downside - the Trust doesn’t get the money back - but the big upside it would force RM to value the club when pricing the equity. In reality, the Trust would have been in a strong position to dictate terms.

I have long been of the view the Trust use capital to build a shareholding and that individual shareholders should gift their shares to the Trust. A material shareholding would be leverage for the Trust.

Happy to discuss if helpful

A material shareholding would be fantastic. However we’re not getting a material shareholding for £40k nor even the start of a material shareholding. @Napster - do you have a list of major shareholders and what percentage of shares Ron owns?

I also wouldnt be surprised if Ron is unable to reduce his shareholding because it’s acting as security for various loans.

This is the type of thing we should be thinking about though.

 

[Smiffy]

A material shareholding would be fantastic. However we’re not getting a material shareholding for £40k nor even the start of a material shareholding. @Napster - do you have a list of major shareholders and what percentage of shares Ron owns?

I also wouldnt be surprised if Ron is unable to reduce his shareholding because it’s acting as security for various loans.

This is the type of thing we should be thinking about though.

SEL = 70.62% I think.

 

[fbm]

Late to the party on this, just catching up on the meeting last night, the loans etc.

There is so much that doesn't add up really... to those who have run businesses before, they will know that cashflow is the absolute key. You could have the most profitable product in the world, but a negative cashflow will bring that business down very quickly.

But this isn't just about cashflow.

I think that the communication between RM and TL + the management team is very good. Tom says he speaks to RM daily, or most days. He has been through similar stuff before elsewhere. He knew what he was getting into.

KM says we don't need to sell players in January, and if we are out of the embargo, we may even add to the squad.

Does anyone not think it highly co-incidental that Blondy was brought in as a sub keeper just before we went into an embargo?

With the analysis that TL will have done and the daily conversations with RM, I am willing to bet that this was almost planned. They knew the cashflow situation and got their ducks in a row squad wise so that we didn't need to get anyone in. After all, if you don't need anyone, it doesn't matter if you are under an embargo or not.

Stan's recent statement told us to trust the management team. I am sure they all have much more acute knowledge of the situation than we do and are well aware of all the pitfalls. And they are still here. I absolutely trust them.

I have maintained for some time that whilst Ron probably hasn't got tons of money, he has got access to it if necessary. I'd not considered this before, but I wonder if he already has got backers or investors behind the scenes? After all, he certainly hasn't got much himself and there doesn't appear to be a huge amount of panic coming from Ron Towers, does there? Especially if we don't need to sell players. You'd have thought that the whole bloody squad would be up for sale if we were as skint as many seem to think we are.

Maybe the backers are the ones pulling the strings. In any event, we know that - whilst to a degree the clubs interests and Ron's are aligned in as much as that he needs us as much as we need him, otherwise he won't collect the BIG prize - Ron is quite prepared for the club to drop a division or two, as long as it stays out of administration, which would see the end to his pipedream as all he would then collect on would be a payment of a few pence in the pound for all the monies owed on the books. A hedge, a bit of insurance, the biggest creditor... but a pittance compared to the property deals.

So panic throughout the supporters groups has set in (a bit). TL, KM, Benno and Currie have been as honest and transparent as they can be in an attempt to settle the nerves. The club have got a bit of an additional lifeline with the two loans to the club. By the way, I know most will understand this, but when you lend money, you can't stipulate with any certainty what it is used for; it will just go into the money pit that is Roots Hall and will keep us ticking over until the next time. And Ron will pay it back, probably, a month or two late maybe.

But for all the panic and shouting by the fans, the actions and behaviours of the management don't align. And I'm not aiming criticism at anyone here, just for the avoidance of doubt. They all have a job to do, and are doing it extremely well, especially considering the situation.

Something just tells me it will all be fine; we'll sail close to the wind, but we won't go bust, we won't go into administration, we won't sell our best players and FF will keep on rumbling on.

 

[Napster]

SEL = 70.62% I think.

Yeah that sounds about right. The other 30% is made up of lots of small holdings

 

[flangejackrabbit]

Call me all the names you want.

Could somebody explain this line, taken directly from a newspaper article.

Roots Hall Limited will then lease the new stadium and training ground to the football club

The company is run by Ron’s son amongst others.
What does this mean for the club?

the football club under who whoever owns it will be paying to use its stadium?

Same as the current situation, but none of the rent has ever actually been collected. The due rent sits as an asset on the balance sheets of the other group companies to make them a brighter lending prospect. Millions has already been written off.

Not a Ron lover by any means but rather have that then, say, a Coventry situation.

 

[Hadleigh-shrimper]

Just read the thread from start to end. Am I right in thinking bridging loan happens we be ok if it doesn’t we’re screwed

 

[flangejackrabbit]

Just read the thread from start to end. Am I right in thinking bridging loan happens we be ok if it doesn’t we’re screwed

That is probably the most succinct and accurate summary!

 

[rootshall rambler]

RM has stated on numerous occasions that he puts in 150k plus a month to cover the shortfall in costs. Whether you believe that or not (i don't) if he has not done so for 2 months at least now that is 300k that TL finds himself short of when it comes to paying wages and bills. RM obviously has no money so is trying to get a bridging loan.

I’ve never been convinced when that “person” has made any claims about how much he has “put into” the club In the past. Why could ANYONE believe a single word that ever comes out of his mouth ? The guy has absolutely zero credibility……a bit like SUFC, who under his ownership, have become a embarrassing pariah of a club. Totally humiliated and turned into a laughing stock off the pitch.