The paying off of the debts and charges

[fbm]

Ok, so huge speculation as to the reason for this... is there a consortium? Has Ron sold all or part of his stake?

In my opinion, no.

The reasons for this sudden cash injection might actually be even more exciting... it indicates to me that we might be finally ready to start getting serious re the new stadium.

When you are dealing with a local authority and big developer, they will not want to be dealing with companies that are indebted up to the hilt. Ron won't want to give personal guarantees, so it's my guess that the shareholders of the companies concerned have cleared any outstanding debts so that the companies are "clean" and available for the debentures and facilities that will be needed to bankroll a new stadium and retail park/hotel/casino whatever.

I reckon it's a coincidence and nothing to do with the manager.

I have no inside info on it, just guessing.

 

[Medway Blue]

I’d like to believe that’s the case but BBC Essex reporter last night that the Club and council have agreed to another 6 months of talks about the new stadium.

 

[Mad Cyril]

Ok, so huge speculation as to the reason for this... is there a consortium? Has Ron sold all or part of his stake?

In my opinion, no.

The reasons for this sudden cash injection might actually be even more exciting... it indicates to me that we might be finally ready to start getting serious re the new stadium.

When you are dealing with a local authority and big developer, they will not want to be dealing with companies that are indebted up to the hilt. Ron won't want to give personal guarantees, so it's my guess that the shareholders of the companies concerned have cleared any outstanding debts so that the companies are "clean" and available for the debentures and facilities that will be needed to bankroll a new stadium and retail park/hotel/casino whatever.

I reckon it's a coincidence and nothing to do with the manager.

I have no inside info on it, just guessing.

I wonder if any SZs with experience building large stadia would care to opine?

 

[MK Shrimper]

I wonder if any SZs with experience building large stadia would care to opine?

@Sherif H if he logs in.

 

[fbm]

I’d like to believe that’s the case but BBC Essex reporter last night that the Club and council have agreed to another 6 months of talks about the new stadium.

Maybe those talks are as a result of the companies clearing the debts?

 

[lombard]

No,still big concerns by the council.

 

[Medway Blue]

No,still big concerns by the council.

By “concerns” I guess you mean a concern to rush through their favoured Seaway project so that they can reject Fossett’s as “too similar” and/or detrimental.

 

[yogi bear up the cagire]

Ironic to see a season which has started so disasterously and disappointingly on the pitch, transformed into a buzz of hope, speculation and excitement about activity off the pitch. Personally, frustrating though it may be, I'm happy to wait for news, aware that the situation may be delicate and complicated to put in place. God! If we end up with a simple announcement of GW being announced manager, it's going to go into meltdown on here!

 

[Crawliano]

I wonder if any SZs with experience building large stadia would care to opine?

I've never built a large stadium, but I've been involved in the research process behind one so I might be of use. *Deep breath* here we go...

I would imagine that the lenders on the project would have wanted a sweep of impact analysis reports to be completed to determine how healthy their loan on the stadium would be, With that in mind, things such as the building of the main stand and hotel would need to be outlined in meticulous detail, Ron's "it'll be built at some point" won't free up funds... I mean he could just make up what he wants as he goes and hope for the best but it'll be pulled apart quickly.

Relegation impact analysis would have been carried out as well as well as the impact of switching managers, being crap in the cups, strength of the youth team and sales from players etc.

Basically - are there stable cash lines or is the club using it's creditors as an unconventional overdraft and this could impact the ability of paying back the loan.

Likewise, somewhere there's going to be some sort of financial model in existence showing forecast on club earnings in L2, L1 and Championship with an indicator of how the main objective once in the stadium is going to be achieved.

So... back to the original question - there's got to be some capital in the club right now and that will make things a hell of a lot more favourable with creditors. Uncle Ron can't go and ask for credit when he's associated with frequent trips to the High Court to see his mates from HMRC, but where that capital has come from who knows...

Any other questions, I'll do my best to answer. Might not be able to answer fully, but I can lean on a bit of experience on this one.

 

[Floval Flyer]

I also heard that a convoy of gold plated limos has been seen in the Roots Hall carpark.

Immense cash injection from the Arab trillionaire Sheik Mahboutee is imminent

 

[kentblues]

There is something going on no doubt- could be inconsequential or significant, probably former, maybe latter. Impossible to tell.

However, its not the football club that is developing RH or Fossetts Farm. The football club will be a "tenant/owner of the stadium/football piece" who according to Ron will move into the new stadium debt free with some income generated by the new facilities/stadium. As such I am not sure that the travails of the football club over time is a major part of the overall funding equation. And with planning in place prior to development the resulting land valuations would provide plenty of collateral from to the balance sheet of "Big Project Ltd" against which various lending could be leveraged initially.

The major income generating part of the project will not be owned by the football club- i.e. RH development, retail park, Fossetts residential, hotel etc.?

However, it is very possible that given development at RH is dependent on a new stadium at RH, and to the council the continuation of the football club was critical to the underlying approvals, that the council have been getting concerned about the viability of the club. Ron will have been pointing to the future debt free status, but the council may have been unnerved by the trips to see HMRC in court.

So the move might be mainly to reassure the council that the club will still exist to move into Fossetts as the planning moves into a final approval stage.

So guess a slightly different take on Crawliano's piece

 

[tallboyblue]

Maybe a delay was promoted by Ron . In another six months we will either be safe or relegated. Do we need a new stadium in Division 2?

 

[rigsby]

What Ron wants to sell after FF has been granted but before the build has started. How will that change the councils view?

 

[rigsby]

Maybe a delay was promoted by Ron . In another six months we will either be safe or relegated. Do we need a new stadium in Division 2?

Not if we don't mind ending up non league when the East stand is closed for a whole list of fire and safety reasons.

 

[kentblues]

What Ron wants to sell after FF has been granted but before the build has started. How will that change the councils view?

Would he tell them up front? Would he need to? Planning permission and the legal commitments attaching to it would be transferable? But this is so complex- not like a normal planning permission- so would all of those contractual commitments be assignable? Would the council need to agree to those assignments? Dependent on who the assignment was to the council may be very happy or less happy or very unhappy..

Anyhow it would certainly be cause for further delay...I am guessing maybe even another 6 months..

 

[Rob1920]

So is it just rumour that money has poured in from somewhere to clear debts or a known fact? Not doubting anyone's info, I've obviously just missed out on the details probably due to spending too much time refreshing the 'whos it going to be' thread..

 

[Shrimper]

No,still big concerns by the council.

Having trouble crossing the t's.

Lazy.

 

[NG_Shrimp]

So is it just rumour that money has poured in from somewhere to clear debts or a known fact? Not doubting anyone's info, I've obviously just missed out on the details probably due to spending too much time refreshing the 'whos it going to be' thread..

The various companies Roots Hall, SUFC etc have had the debts paid off. By who or for what reason is not clear, but it's a matter of public record they were satisfied in full including Sainsburies and Bank of Scotland

 

[rigsby]

Would he tell them up front? Would he need to? Planning permission and the legal commitments attaching to it would be transferable? But this is so complex- not like a normal planning permission- so would all of those contractual commitments be assignable? Would the council need to agree to those assignments? Dependent on who the assignment was to the council may be very happy or less happy or very unhappy..

Anyhow it would certainly be cause for further delay...I am guessing maybe even another 6 months..

Since it was made clear that Sainsburys were no longer an option. I have thought that Ron's actions hinted, that he would sell the club and FF once the planning was passed.......As developers often do.

All though not planned this early but brought forward because of the Bond/league position. Maybe the chance to solve a lot of headaches at once, is the reason for the delay.

 

[Richard Hearn]

Immense cash injection from the Arab trillionaire Sheik Mahboutee is imminent

I heard it was Sheik En-Vaarque.