SO when will the takeover go through?

[defender05]

There is one other option but the Consortium would have to put more money in than they planned.

Look for another site for a stadium, they could do a deal to rent the current stadium, sort out a new location with the council and get the plans sorted. In the mean time RM can hand over the training ground and the club so the Consortium own them and then can take as long as he wants to sort out the deal with council with the condition that no work can start at Roots Hall until the new stadium is ready.

I know it won't happen but it would solve everyone's problems.

 

[Holy Joe]

They have already sunk £3.5million in keeping a club they don’t own afloat. I’m guessing they want a deadline date more than you as that level of at risk investment is unsustainable. This all sounds like it could take months to resolve, at which point they could have spent 7 or 8 million. At some point they must have a walk away completion date or expense limit in mind

I suspect there expense limit is somewhere around £3.5m!!

 

[Boreham Shrimper]

No response yet to my question on ****ter on timescales.

He answered another tweeters question on timings - but not a very good answer imho

He's absolutely correct though. The entire point of due diligence is to unearth potential issues, some of which will result in queries to other parties and their representatives, the responses to which may in turn throw up further questions. I don't think it is possible to put even an indicative timescale on this as there are too many variables, particularly in a project of this magnitude.

All of this would have been more straightforward if the Rat had been forthcoming with all of the details at the outset, which leads me to believe he has ulterior motives, as many have suspected all along. One thing's for certain - he doesn't need this deal as much as many of us have been thinking.

 

[Tommy2holes]

What a car crash.

At Kidderminster away for a party atmosphere and then again at the cliffs pavillion for the meet and greet.

We all seemed so positive of a bright future.

Fast forward a few months and things appear bleaker than ever.

Supporting this club should be a matter of turning up and spending hard earned cash, cheering the players and enjoying football. How long has it been since the club felt stable. To me it seems like a lifetime ago.

 

[Grayson]

If the Council could somehow get RM to stop holding SUFC as hostage for the FF/RH deal, and complete the SUFC sale but without any of the other bits sorted, would that be enough for the consortium to proceed? Is it even feasible?

FF/RH situation could go on for months, if not years. It feels like the only way out in a positive direction, if feasible. I have no idea how the Council could force that though.

 

[Holy Joe]

He's absolutely correct though. The entire point of due diligence is to unearth potential issues, some of which will result in queries to other parties and their representatives, the responses to which may in turn throw up further questions. I don't think it is possible to put even an indicative timescale on this as there are too many variables, particularly in a project of this magnitude.

All of this would have been more straightforward if the Rat had been forthcoming with all of the details at the outset, which leads me to believe he has ulterior motives, as many have suspected all along. One thing's for certain - he doesn't need this deal as much as many of us have been thinking.

No project runs without timescales. Whilst you're quite right that issues will arise during DD, you'd build in some contingency for that in your project plan. If that contingency proves sufficient or not who knows. When is the next progress meeting? When will he update public again? What is the current proposed end date?

 

[JB Shrimper]

@JB Shrimper you seem to find something funny?? What about all the other posts falling for protests to return

I do not find the situation funny. I find you only ever say one thing over and over funny.
The statement today Is most concerning and confirms to me what I said all along and that is that Ron has all the power and will do what he wants. It does not matter to him if you protest because if he wants the club to fold, which looks likely, then it is going to happen.
If he genuinely does want to sell then by hook or by crook it will sell eventually.
We are in limbo with Ron needing to give information to the council then the coucil doing what they need. No matter what we do as fans, we don't have and never did have the power to change what Ron wants.

 

[Sammy Shrimper]

It’s telling that according to Councillor Cowan, Ron Martin has still not provided the outstanding information, gross area schedules and specifications!
Without these, SCC property advisers will not be able to complete their appraisals for the Development, let alone complete the DD.

As always with this Shyster, he’s playing games, and I’m fearful for our future.

 

[Holy Joe]

It’s telling that according to Councillor Cowan, Ron Martin has still not provided the outstanding information, gross area schedules and specifications!
Without these, SCC property advisers will not be able to complete their appraisals for the Development, let alone complete the DD.

As always with this Shyster, he’s playing games, and I’m fearful for our future.

I'm not sure if thats the current state or if thats the state as at the April report date - at first glance it can be read both ways

 

[Tommy2holes]

I've seen a few people reference Ron not really wanting to sell.

I'm not sure how not selling would benefit him.

I'm guessing he believes that the original deal with stadium at Fossetts etc would go through.

That would be a very big gamble on his part. It's quite likely that the council would block this, revoke permissions without a club and the public backlash would be quite substantial.

 

[SS9_Shrimper]

I suspect there expense limit is somewhere around £3.5m!!

It shouldn't be in truth, they knew this and the other debts would have to be serviced once they owned the club, as per their DD. The club will still lose 1m+ per season over the coming years. Either way, own the club now, or own it 6 months down the line, they are going to lose money hand over foot for years to come. This is modern football.

The only way these boys return a realistic profit on their stake is if we turn in to a Brentford and make it to the Prem, which lets be honest, probably won't happen. Championship clubs lose significant amounts of dosh, even with much bigger fan bases. The consortium know the money they are pumping in will not result in relaised financial gains, surely. Football clubs are toys of the rich, or the criminal.

I wouldn't blame them for pulling out out of principle, but in reality their wallets are going to take a bigger beating in subsequent years.

 

[Holy Joe]

It shouldn't be in truth, they knew this and the other debts would have to be serviced once they owned the club, as per their DD. The club will still lose 1m+ per season over the coming years. Either way, own the club now, or own it 6 months down the line, they are going to lose money hand over foot for years to come. This is modern football.

The only way these boys return a realistic profit on their stake is if we turn in to a Brentford and make it to the Prem, which lets be honest, probably won't happen. Championship clubs lose significant amounts of dosh, even with much bigger fan bases. The consortium know the money they are pumping in will not result in relaised financial gains, surely. Football clubs are toys of the rich, or the criminal.

I wouldn't blame them for pulling out out of principle, but in reality their wallets are going to take a bigger beating in subsequent years.

I meant expense limit whilst not owning the club.

 

[Sammy Shrimper]

I'm not sure if thats the current state or if thats the state as at the April report date - at first glance it can be read both ways

Cowan states “Outstanding information still required…..” I take that to mean as at today.
Hopefully I’m wrong but Ron Martin has got pay some fees to his consultants to produce that information!

 

[kentblues]

No response yet to my question on ****ter on timescales.

He answered another tweeters question on timings - but not a very good answer imho

Quite- and he is not even answering the question when will DD complete and that is a basic and fundamental question- yes the outcome affects timing but at least tell us when DD will be completed? If he doesnt even know that then I have no faith in the process and nor can anyone else?

When is the ST statement- they will have asked? did they get the same answer- i.e. no answer? i'm sure they pressed the question hard.

 

[kentblues]

He's absolutely correct though. The entire point of due diligence is to unearth potential issues, some of which will result in queries to other parties and their representatives, the responses to which may in turn throw up further questions. I don't think it is possible to put even an indicative timescale on this as there are too many variables, particularly in a project of this magnitude.

All of this would have been more straightforward if the Rat had been forthcoming with all of the details at the outset, which leads me to believe he has ulterior motives, as many have suspected all along. One thing's for certain - he doesn't need this deal as much as many of us have been thinking.

But
1. they should know any major isssues from the DD as they arise. To be in the dark until receiving the report would be idiocy on a truly biblical scale.
2. They should at least know when the report on DD will be delivered. If they are not extracting that commitment from highly paid contractors then its simply not good enough.

Yes of course based on that report there may be further actions that then have a timeline. But points 1 and 2 are Janet and John territory.

 

[TUMBO]

I don’t think it would be realistic to put a timescale on due diligence.

In 10 years time, if there was another Grenfell, the council can’t use the excuse “We were looking into it but ran out of time for due diligence to check the cladding met the fire regs”.

So I think as fans we need to be realistic about that. As an example, Due diligence won’t be a list of questions that require yes / no answers. Some answers will need follow up questions to ensure the council are covered.

“Are the Entrance doors fire rated 60mins”
“Yes it is fire rates, but to FD30S”
“We require it to be FD60”
Period of Ron getting new costs from a supplier- creating a schedule, sending it. The supplier reviewing it, pricing it and sending it back
“There will be an uplift of cost to X as FD60 doors are more expensive”
“Review and Agreed/denied”

Ron is hardly the straightest arrow is he, so I can imagine him being extremely awkward in these exchanges, delaying things.
Whether that is his personality, or he’s just useless I honestly don’t know.

I expect the latter.

 

[Somerset Ex-TTB]

Who is currently paying wages for the next couple of months? The club have zero revenue at the moment?

Even if the DD gets agreed tomorrow, it then has to go through the external audit DD which isn’t going to be quick?

This is a complete and utter s***show of a mess and that statement from the council smacked of typical Southend council for the past 50 years that they won’t actually have the balls to do anything to improve the city.

Utterly gobsmacked at the lack of urgency in the council and to get this done.

Best case we can hope for is to actually start the season on zero points with a good squad of about 18 players. I would take that as a massive win right now.

 

[Thor1]

Would it not be possible as individuals to write into the council and oppose planning for FF? I assume if they get 8k letters of objection they would have to give them serious consideration?? If Ron were to be refused planning I'm sure there would be a lot of tears shed.

 

[kentblues]

I don’t think it would be realistic to put a timescale on due diligence.

In 10 years time, if there was another Grenfell, the council can’t use the excuse “We were looking into it but ran out of time for due diligence to check the cladding met the fire regs”.

So I think as fans we need to be realistic about that. As an example, Due diligence won’t be a list of questions that require yes / no answers. Some answers will need follow up questions to ensure the council are covered.

“Are the Entrance doors fire rated 60mins”
“Yes it is fire rates, but to FD30S”
“We require it to be FD60”
Period of Ron getting new costs from a supplier- creating a schedule, sending it. The supplier reviewing it, pricing it and sending it back
“There will be an uplift of cost to X as FD60 doors are more expensive”
“Review and Agreed/denied”

Ron is hardly the straightest arrow is he, so I can imagine him being extremely awkward in these exchanges, delaying things.
Whether that is his personality, or he’s just useless I honestly don’t know.

I expect the latter.

I have never, ever in years of business been involved in a transaction where there is not an expectation of when DD will be completed and a target deadline for completing same. Never.

Yes stuff happens, and it needs to be done properly, and so delivery/deadlines can change. Often to avoid that normally the relevant parties will look at what is causing the holdup, and also come to a view on materiality. And also there will be an expectation that ramping up resources to stay on track has been, and is, considered as an option by the party delivering the DD.

There again I have always avoided doing business with local or national government, where delivering anything ever successfully and in a timely fashion appears to be impossible..

 

[Tribal Chief]

I have never, ever in years of business been involved in a transaction where there is not an expectation of when DD will be completed and a target deadline for completing same. Never.

Yes stuff happens, and it needs to be done properly, and so delivery/deadlines can change. Often to avoid that normally the relevant parties will look at what is causing the holdup, and also come to a view on materiality. And also there will be an expectation that ramping up resources to stay on track has been, and is, considered as an option by the party delivering the DD.

There again I have always avoided doing business with local or national government, where delivering anything ever successfully and in a timely fashion appears to be impossible..

Agreed. When I briefly worked in the corporate finance department at E&Y, there were very clearly defined deadlines for DD work, which often meant working all night. I liked to spend my chop budget on a good time, so I transferred to Inbound Investment. However, this was in the private sector, so there was at least some semblance of accountability.