This debt thing

[Revolution]

There's another issue with the hotel deal that has only just occured to me. the Hotel stands on land which, I assume, was freehold owned by the club before it was built. Does the club still own that land or is it now owned by whichever McCabe company acquired the hotel?

 

[parisblade]

If the income outweighs the annual costs - then yes - he's got a bargain.

Isn't that a rather important point? If the asset is worth 10M but it costs 5M a year to maintain it, doesn't it soon become a liability to SUFC and hence the sale to Scarborough? Genuine question as I have no idea what the running costs were...

 

[beightonblade]

There's another issue with the hotel deal that has only just occured to me. the Hotel stands on land which, I assume, was freehold owned by the club before it was built. Does the club still own that land or is it now owned by whichever McCabe company acquired the hotel?

who owns the freehold ?

Now what if Mr McCabe says i'll write off the debt or a % for the freehold to BDTBL ?

 

[broomhillblade]

If they're serving kippers at the AGM you'll know SUFC has been done up...

 

[Chris Webster]

I'd guess (that's all it is) that it's about £20M, owed to McCabe.

The sale of the assets, followed by future Tevez money, should wipe out "external" debt - according to the club. I presume "internal" debt is that we owe MCCabe - and I believe that was about £20M, though he may have taken some payment in the recent shake-up.

The 2 big issues are;

1. Reducing the wagebill in line with current income (preventing further debt) - which requires contracts for dross (Evans etc) to expire, or for us to find an idiot willing to pay.

2. How much interest McCabe actually charges.

Based on this I don't think the financial state is too bad - providing we can ride out the next 18 months. What we need to do is ensure that we stop paying average players world class salaries.

UTB

Spot on. Someone who answers a question to the point and isn't moaning and groaning. Hats off.
UTB

 

[shorehamview]

If they're serving kippers at the AGM you'll know SUFC has been done up...

There's a cast-iron guarantee lenners won't be smelling of fish in the slightest this weekend. Purely in a won't-be-at-the-AGM kind of way of course.

 

[Ted Danson]

Havent the club got an option to buy back the hotel in the future anyway?

 

[Studge]

Isn't that a rather important point? If the asset is worth 10M but it costs 5M a year to maintain it, doesn't it soon become a liability to SUFC and hence the sale to Scarborough? Genuine question as I have no idea what the running costs were...

Well if I read the accounts right the loss on the hotel was made up of an impairment review plus an actual trading loss. So in theory unless that changes in the future SUFC will have been sheltered from future trading losses.

 

[Flatulent_Bob]

Havent the club got an option to buy back the hotel in the future anyway?

For the same as it was sold for apparently.

 

[BornOnShorehamStreet]

who owns the freehold ?

Now what if Mr McCabe says i'll write off the debt or a % for the freehold to BDTBL ?

So you're saying he doesn't own the freehold then...

 

[Studge]

strikes me he used the football club money to pay off the property debt and then sell it to himself for less than the market value.. is that a correct interpretation?

Well actually he sold it to himself at its current market value in November 2010. Also is not the football clubs money the money he actually loaned to it in the first place.

---------- Post added at 12:40 PM ---------- Previous post was at 12:38 PM ----------

It would appear that he has now stripped out all the of none core footballing activities of SUFC PLC perhaps to make it easier for sale/investment

---------- Post added at 12:42 PM ---------- Previous post was at 12:40 PM ----------

Not quite it looks like at the 30 June 2010 the assets still outweighed the debt but only by £2M rather than the £20M of the previous year

 

[super_pig]

>only by £2M rather than the £20M of the previous year
soo.. everyone suddenly realised that monty isn't worth 18m after all?
seriously .. thanks for the heads up guys.. it's complicated innit??

 

[parisblade]

Well if I read the accounts right the loss on the hotel was made up of an impairment review plus an actual trading loss. So in theory unless that changes in the future SUFC will have been sheltered from future trading losses.

Right, and as you quite rightly mention elsewhere that could have put off future investors.