HRH quest to purchase the club's assets - Star article

[Sothall_Blade]

Stupid questions based on what you believe rather than the facts which you invariably question with little knowledge tend to be frustrating. It's not like it's not happened before is it?

At least you've got a handle on it though. Or almost. McCabe owns the land. He's owned the land since he bought the club. Whatever subsidiary the land sat in, sits in or whatever, he owns it. hes always owned it. When it was on the FC's balance sheet, guess what? He still owned it. It's his. Now I know you won't believe me, but SU Ltd loses money as well. So by taking two loss making assets out of the club - and the debt that goes with it - he's actually safeguarded the football club.

Yes he's the owner of the land. Therefore all Sheffield United fans are relying on him to utilise it for the benefit of the club.
He’s done a lot of good things for the club over the years and quite a few bad.
Building a permanently loss making hotel wasn’t one of his better moves however you try to spin it.
It’s also made the club harder a less attractive prospect for any potential new investors which is what this thread is actually about.

 

[Sean Thornton]

So what happens after 999

Dogs can get in the ground on match days.

 

[Freethinker]

Yes he's the owner of the land. Therefore all Sheffield United fans are relying on him to utilise it for the benefit of the club.
He’s done a lot of good things for the club over the years and quite a few bad.
Building a permanently loss making hotel wasn’t one of his better moves however you try to spin it.
It’s also made the club harder a less attractive prospect for any potential new investors which is what this thread is actually about.

not being funny but how do you know the hotel makes permanent losses

 

[Sean Thornton]

Yes he's the owner of the land. Therefore all Sheffield United fans are relying on him to utilise it for the benefit of the club.
He’s done a lot of good things for the club over the years and quite a few bad.
Building a permanently loss making hotel wasn’t one of his better moves however you try to spin it.
It’s also made the club harder a less attractive prospect for any potential new investors which is what this thread is actually about.

I haven't tried to spin anything. Simply stated the fact that it lost money, something you found hard to accept and were wrong about.


This thread is actually about the Prince seeking to buy the land and buildings. He's signed an agreement it would appear, that to become 100% owner of the lot he has to buy the hotel as well. I suspect he knew of the trading results when he signed the deal. Now I can't prove that, but you can either take my word for it or assume the Prince knows what he was doing at the time and was happy with it.


Which other investors have been put off because of the hotel?

 

[Sean Thornton]

not being funny but how do you know the hotel makes permanent losses

It has done, the accounts show it. It was news to SB though, he must have thought it made money which is why McCabe took it away from the football club (in his mind). Now he has the facts, we go down the route McCabe has therefore been stupid because he started a business, funded effectively by himself, that hasn't made a profit. And not followed the obvious business plan just to shut the lot down.

 

[Marcus Tullius Cicero]

Dogs can get in the ground on match days.

Dogs, yes but bitches no, even if they cover their fur I don't think females can attend sporting events. Mind you cant wait to see some thief getting his/her hand chopped off on London Road...We could name a beer after it, cant think of a name right now but when the sword goes down. Ah got it, no we are already called the Blades. Leave it with me...

 

[Marcus Tullius Cicero]

. Ah got it, kill the infidel, drink "Saudi Pale Ale" free pack of camel cigarettes with every six pack (limited time only) suicide bombers get 10% off.....

 

[Sothall_Blade]

not being funny but how do you know the hotel makes permanent losses

I know because Sean told me.

I wrongly assumed that an experienced, successful Property Developer wouldn’t build a hotel without being able to make it profitable. If not in the short-term then at least in the long-term.

Apparently that’s not the case and it’s already lost £11M with further losses to continue indefinitely.

That being the case, I suggested that it might possibly be a bad thing to have built a loss-making white elephant but apparently it’s wrong to suggest that as well. So I’ll leave it there.

 

[Sean Thornton]

I know because Sean told me.

I wrongly assumed that an experienced, successful Property Developer wouldn’t build a hotel without being able to make it profitable. If not in the short-term then at least in the long-term.

Apparently that’s not the case and it’s already lost £11M with further losses to continue indefinitely.

That being the case, I suggested that it might possibly be a bad thing to have built a loss-making white elephant but apparently it’s wrong to suggest that as well. So I’ll leave it there.

You actually asked why he built it in the first place. Which I thought, still do, was a daft question, rather than it being "wrong" to ask.

 

[Freethinker]

I know because Sean told me.

I wrongly assumed that an experienced, successful Property Developer wouldn’t build a hotel without being able to make it profitable. If not in the short-term then at least in the long-term.

Apparently that’s not the case and it’s already lost £11M with further losses to continue indefinitely.

That being the case, I suggested that it might possibly be a bad thing to have built a loss-making white elephant but apparently it’s wrong to suggest that as well. So I’ll leave it there.

It seems strange an hotel in this location in a City like Sheffield continues to lose money I just don't get it

 

[blade789]

The property is all outside of BL Ltd/SUFC Ltd. Market valuation as has been said. I'd assume HRH knows what's in the accounts already. Negotiations over the price will take longer than the legal work in my view. We still aren't sure who will come out of this owning us.

Then there's promotion......

He didn't know the accounts up until 2 weeks ago.

 

[metty]

Then why has the clause been triggered now?

As far as I'm aware it was Mr McCabe that triggered the clause, I might be wrong though.

 

[Keen Blade]

Dogs can get in the ground on match days.

In my personal experience , what happens after 999 , is that I get wrongfully arrested (again).
And never mind the dogs.
I want to know about that cat that keeps getting a mention in other threads.
I know it's not a fixed asset - it's in their nature to prowl around a lot - but where does it appear on the balance sheet ? There could be a lot of money int Kitty for all we know.

 

[Blade58]

As far as I'm aware it was Mr McCabe that triggered the clause, I might be wrong though.

Yes, that has been pointed out by Sean Thornton and others previously, but I still ask what prompted this action weeks ago if HRH is not interested in buying KM 's assets until he knows which division we are in next season?

 

[Sean Thornton]

He didn't know the accounts up until 2 weeks ago.

Who? The Prince? How come he put his name to a joint owners statement in November last year?

We all knew about them the day they were filed at Companies House on December 11th. They were discussed on here.

 

[LoughboroBlade]

You actually asked why he built it in the first place. Which I thought, still do, was a daft question, rather than it being "wrong" to ask.

Not wanting to completely dive into this can of worms, but I don’t actually think it’s that daft a question to ask, and till reading this thread I had assumed that at the very worst the hotel had broken even, as property investment is supposed to be what McCabe’s best at in the business world. Is its profit-making in the long-term dependent on top league football? In that case you can understand it being continued as there is the prospect it will eventually be beneficial. But if it is not, then why continue with it?

 

[metty]

Yes, that has been pointed out by Sean Thornton and others previously, but I still ask what prompted this action weeks ago if HRH is not interested in buying KM 's assets until he knows which division we are in next season?

Invoking the clause could be Mr McCabes way of saying show us your money or ship out, who knows. The Prince hasn't made public as to what he intends to do so it's all guesswork at the moment. Hopefully it will become clearer at Saturday morning meeting.

 

[Sean Thornton]

Not wanting to completely dive into this can of worms, but I don’t actually think it’s that daft a question to ask, and till reading this thread I had assumed that at the very worst the hotel had broken even, as property investment is supposed to be what McCabe’s best at in the business world. Is its profit-making in the long-term dependent on top league football? In that case you can understand it being continued as there is the prospect it will eventually be beneficial. But if it is not, then why continue with it?

As I alluded to earlier, what are his options? Let it rot while paying rates and other costs and seeing its value drop to nothing? What else could he do with a purpose built hotel other than play the long game? Or sell it.


The question I referred to as "stupid" was the one - once the penny had dropped that it was making losses as stated - which asked "why did he build it in the first place" . If you think that's an intelligent question fair enough.

That posters initial stance was that it wasn't losing money, how could it? It went downhill from there.

 

[ucandomagic]

Maybe McCabe triggered the clause, asking for a price that reflected that there was a chance of Prem Football next year, hoping that it could be agreed quickly.

If that is the case, then it’s not surprising that the Prince would clearly want to delay things until next year becomes clearer.

 

[Moan? Nope-I saw Longhorn]

Can't believe the fucker is loss making
According to sources on ere it's always chock full of premier league gaffers
Apparently Sean Dyche has a permanent reservation (twin room in the name of Fleck)

 

[LoughboroBlade]

As I alluded to earlier, what are his options? Let it rot while paying rates and other costs and seeing its value drop to nothing? What else could he do with a purpose built hotel other than play the long game? Or sell it.


The question I referred to as "stupid" was the one - once the penny had dropped that it was making losses as stated - which asked "why did he build it in the first place" . If you think that's an intelligent question fair enough.

That posters initial stance was that it wasn't losing money, how could it? It went downhill from there.

Cheers.I’m not really sure though from that whether this is a long-term investment that like the club will only realistically be substantially profit-making once we reach in McCabe’s words “the upper echelons of football”, or if it’s doomed. If the additional stadium additions are made will the situation change? Had the original business case for it been dependent on the once-planned casino proposal?

 

[blade789]

Who? The Prince? How come he put his name to a joint owners statement in November last year?

We all knew about them the day they were filed at Companies House on December 11th. They were discussed on here.

Mate, I'm telling you up to a few weeks ago the prince did not know what that running costs of Sheffield united were.

 

[Chali 2na]

I wrongly assumed that an experienced, successful Property Developer wouldn’t build a hotel without being able to make it profitable. If not in the short-term then at least in the long-term.

Just about every successful businessman on the planet will have made mistakes or poor investments at some point.

 

[Boxer Blade]

Just about every successful businessman on the planet will have made mistakes or poor investments at some point.

Bet trump wouldn't admit to that chali

 

[Sean Thornton]

Mate, I'm telling you up to a few weeks ago the prince did not know what that running costs of Sheffield united were.

So he's pumped in £17m and never asked where it's gone? Okay.

 

[Sean Thornton]

Mate, I'm telling you up to a few weeks ago the prince did not know what that running costs of Sheffield united were.

https://www.thestar.co.uk/sport/foo...bdulaziz-al-saud-interview-part-two-1-8826088

 

[Nicolaus_Copernicus]

Just about every successful businessman on the planet will have made mistakes or poor investments at some point.

Quite possibly, but mistakes are usually quickly corrected and loss making ventures disposed of to; well, reduce losses.

It's a strange one tbh, and the only person who knows the full story is KM and he's not telling.

 

[blade789]

So he's pumped in £17m and never asked where it's gone? Okay.

I will stick to the facts mate. You keep speculating.

17 million. Never in a million years.

 

[I should coco]

17 million. Never in a million years.

No, becuase we don't lose money and he hasn't covered 50% of it.

Everyone knows that the money tree pays all wages so what with the Walker and Maguire money, the Prince is quids in.

 

[Mad Mick]

Sean makes some good points. I think his background may be accountancy so he knows his stuff. With regards to building a loss making hotel anyone with any knowledge of business would know the answer. You start a business to make a profit, but sometimes it just doesn't happen. The hospitality industry is notoriously fickle. Having stayed at the hotel I can say it's very nice, but food and drink there is expensive, as you would expect. It's also slightly out of town with no secure parking. Most Blades wouldn't stop there neither would most people from the dark side. McCabe's background is in real estate so he knows what he's doing, but like anyone he can and has made mistakes. I've owned a number of properties and business's in my lifetime and most have made profits, but not all. You win some you lose some, that's business for you.