Are we trapped?

[DP8789]

Mccabe has advised that the debt we are in to him is secured by him with no interest and he will happilly wait for these funds when an 'investor' comes along. But is this inderictly affecting us? Most investors these days seem to wait for clubs to go into/be on the brink of admin - this is something which wont happen to us due the securing of these debts.

Its clear we need a fresh outlook on the club, someone who is willing to invest and someone who is willing make wholesale changes and be honest with the fans in respect to the policys the club will take on transfers, prices etc.

I know if had a shed full of cash and could buy a club close admin or a club with a lot of debt, i know which one i would pick. And it wouldnt be the one where the exchairman was getting 50mill of my cashWe dont have the squad to say to an investor "it only needs a few more players" because it needs about 15!

and if we dont get an investor then who is going to buy a new squad for us when were in league 1?

 

[super_pig]

yes i reckon you are right. basically noone with cash to invest in their right mind would buy us at the moment.. the team is doing a pretty good job of sending us into administration so you could pick us up on the cheap.. why spend 50mill. now when you could buy us in a couple of years for a quid?

 

[Yossarian]

Trouble is, he's waiting for someone to take the club off his hands, which is looking less likely with the debts they'd have to pay him coupled with League One status... and until they do, he's not going to dip his hand in his pocket for new players.

 

[Micalijo]

Good post DP.

Very good points raised. My view is that nobody in their right mind is going to pay more than £1 for the shares held by McCabe.

I was under the impression that following the debt to equity conversion there are no substantial loans shown as owing to McCabe and as such he has basically written off any hope of recovering that element of the money he has put in. This has to be applauded. If however he is wanting to sell his shares for the equivalent of the loans that were converted then yes we are 'trapped' as you say.

In theory, it would be possible tomorrow for someone to pay £1 for the share and then use wedge for team building without needing to pay any debts off to McCabe I believe.

 

[Worksop II]

Good post DP.

Very good points raised. My view is that nobody in their right mind is going to pay more than £1 for the shares held by McCabe.

I was under the impression that following the debt to equity conversion there are no substantial loans shown as owing to McCabe and as such he has basically written off any hope of recovering that element of the money he has put in. This has to be applauded. If however he is wanting to sell his shares for the equivalent of the loans that were converted then yes we are 'trapped' as you say.

In theory, it would be possible tomorrow for someone to pay £1 for the share and then use wedge for team building without needing to pay any debts off to McCabe I believe.

Ahem, if you look back at previous posts you will see I have already offered 50p - after last night I am not prepared to increase my offer.

A full pound, its madness

 

[raul]

What if they said "make it £1, and we'll do the hall stairs and landing in luxury wool twist shag"?

On topic, it seems that the decrease in assets is not reflected in any decreased valuation by the overseer of said decrease. Wonder if he'd just want his money back if we were still in the Prem?

Not been fully explained yet, but my understanding of the new TV contract for the Football League is both a) Lower than the last one b) Showing fewer games (and bugger all from Leagues 1 and 2).

Lower gate recipts.....lower tv revenue....lower sponsorship revenues......lower player budgets......

Going to have to be very lucky with the Academy lads or Superblade will be faced with the choice of leading us into admin, or doing a Co-Op style deal and taking market values back for his loans.

 

[Muttley]

Mandaric to jump ship maybe? He likes ships that sink and he also likes to jump them. Now THAT would be funny!

 

[Grecian2000]

Mandaric to jump ship maybe? He likes ships that sink and he also likes to jump them. Now THAT would be funny!

Oh yes. That would be funny as a Little and Large Christmas special. Topped off with bringing the Ginger Pig along to really split our sides.

 

[Muttley]

Irony Grecian. Irony!

 

[ghandi]

What if they said "make it £1, and we'll do the hall stairs and landing in luxury wool twist shag"?

On topic, it seems that the decrease in assets is not reflected in any decreased valuation by the overseer of said decrease. Wonder if he'd just want his money back if we were still in the Prem?

Not been fully explained yet, but my understanding of the new TV contract for the Football League is both a) Lower than the last one b) Showing fewer games (and bugger all from Leagues 1 and 2).

Lower gate recipts.....lower tv revenue....lower sponsorship revenues......lower player budgets......

Going to have to be very lucky with the Academy lads or Superblade will be faced with the choice of leading us into admin, or doing a Co-Op style deal and taking market values back for his loans.

McCabe is the major shareholder and he simply won't allow debts to increase (more cost cutting or asset sales) to a level where we cannot pay our way without borrowing from financial institutions as he is already stated he isn't investing anymore. The only way SUFC can go into admin is if we cannot pay our debts usually to HMRC . Any administrator appointed by the courts would look to sell the business with all the debt reduction clauses thrown in for a buyer. McCabe cannot allow that to happen as he will no longer be in control and lose everything. If he bought SUFC out of admin he would be committed to paying creditors and would be worse off than he was before SUFC went into admin as this would mean him having to use his own money to pay the creditors.

We will have to live within our means as there will be no speculate to accumulate moves from Mr Mccabe regardless of which tier of football we compete....unless of course there is an investor.

 

[bladeinspaceandtime]

We are doomed until McCabe has gone. I wouldn't be surprised if we are looking forward to League 2 football this time next year

 

[SheepdipBlade]

I'm not really up to speed with financial stuff - but isn't the situation that we're looking for an investor to come in alongside KMcC, rather than to totally buy him out? In which case they don't need to buy out his debts, and would be in a position to use their money to develop squad, academy etc within a club which is fundementally financially secure because KMcC is underwriting it.

As I say - I only tend to deal in enough pennies to buy a pint - so all this stuff may well be beyond me!

 

[ghandi]

I'm not really up to speed with financial stuff - but isn't the situation that we're looking for an investor to come in alongside KMcC, rather than to totally buy him out? In which case they don't need to buy out his debts, and would be in a position to use their money to develop squad, academy etc within a club which is fundementally financially secure because KMcC is underwriting it.

As I say - I only tend to deal in enough pennies to buy a pint - so all this stuff may well be beyond me!

I don't think there are any outstanding loans to McCabe as he swapped them for equity. Living within our means is what will be done as McCabe isn't going to invest any longer neither will he allow the club to build up debt with financial institutions. In that sense in League 1 we should be better off than most as we should have more revenue even with reduced crowds but as we all know being sound financially sound off the pitch does not guarantee success on it.

 

[SwissBlade]

Our predicament is starting to mirror the Wednesdayite-Dave Allen situation more and more. We should be worried.

For perhaps several reasons, McCabe has lost interest and has stepped away from the running of the club. How much he is still involved is anybody's guess. But as Chris Steer and Birch are now running the club, i'd assume that he's not particularly involved in the decisions now.

He wants to bring in new investors but obviously isn't prepared to let his majority go for a pittance, quite rightly he's holding out for big money.

Obviously there aren't many investors clamboring to buy a big share, Lenners soon backed down on his big statement to raise 500k in a year. So this will take a fair amount of time. And in the end we all know that an investor won't come and chuck money in until we're on the verge of/ or in Administration.

The question is how long are Blades fans prepared to put up with the way things are going and how long before McCabe has completely had enough. One thing is for sure, if it carries on (rightly or wrongly) someone will end up spitting the dummy and we'll be in the same situation as Wednesday were.

 

[ghandi]

Our predicament is starting to mirror the Wednesdayite-Dave Allen situation more and more. We should be worried.

For perhaps several reasons, McCabe has lost interest and has stepped away from the running of the club. How much he is still involved is anybody's guess. But as Chris Steer and Birch are now running the club, i'd assume that he's not particularly involved in the decisions now.

He wants to bring in new investors but obviously isn't prepared to let his majority go for a pittance, quite rightly he's holding out for big money.

Obviously there aren't many investors clamboring to buy a big share, Lenners soon backed down on his big statement to raise 500k in a year. So this will take a fair amount of time. And in the end we all know that an investor won't come and chuck money in until we're on the verge of/ or in Administration.

The question is how long are Blades fans prepared to put up with the way things are going and how long before McCabe has completely had enough. One thing is for sure, if it carries on (rightly or wrongly) someone will end up spitting the dummy and we'll be in the same situation as Wednesday were.

Difference being that DA held loan notes which he wanted paying for in full. The club doesn't owe McCabe anything as that's the way he wanted it. McCabe could give a loan in the future if he so wished but that would in effect make the club even less attractive to a would be buyer or investor.

 

[Bladesman]

Typical rock and hard place situation really.

No investor wants to invest and McCabe does not want to invest anymore.

So until someone shows up we are ship without a captain and eventually heading for some sort of iceburg.