Why would? (1 Viewer)

Mary_Mungo_Midge

Well-Known Member
SISU waste their own money on the judicial review of the council's support loan to ACL; when they're leaving the Ricoh?

Are they that interested in local authority governance that they'd waste a six figure to prove a point that's irrelevant to them?
 

SkyblueBazza

Well-Known Member
I'd expect there would be grounds for compensation for their own distressed state. If the rescue package had been funded differently (i.e. in SISU terms, legally) then ACL would have been ripe for a cheap buyout, which would have meant gained revenue for the club. If the review leads to eventually the same end - SISU will be crowing...& be in a position to sell up - likely for a tidy profit, which is exactly what they are all about.
 

Mary_Mungo_Midge

Well-Known Member
I'd expect there would be grounds for compensation for their own distressed state. If the rescue package had been funded differently (i.e. in SISU terms, legally) then ACL would have been ripe for a cheap buyout, which would have meant gained revenue for the club. If the review leads to eventually the same end - SISU will be crowing...& be in a position to sell up - likely for a tidy profit, which is exactly what they are all about.

I think the former would be too spurious to value legally; and wasn't part of a contractual agreement in any case. On the second issue, that's closer to the truth. And had been from the very start, the more its thought through.

Another question? Does anyone believe SISU's Due Diligence was really 'that bad' when they bought the club so as to miss the elephant in the room?
 

ccfcway

Well-Known Member
hi ho, hi ho, its off to court we go...

We have had more battles in court than on the pitch !

CET will have to have 2 CCFC reporters, one for match days, and the other for court days
 

Grendel

Well-Known Member
I think the former would be too spurious to value legally; and wasn't part of a contractual agreement in any case. On the second issue, that's closer to the truth. And had been from the very start, the more its thought through.

Another question? Does anyone believe SISU's Due Diligence was really 'that bad' when they bought the club so as to miss the elephant in the room?

Good to see your on the forum MMM. Did you confirm the £7 million transfer discrepancy during sisu's reign. You said you would provide the evidence today?
 

Mary_Mungo_Midge

Well-Known Member
Well, how about it was their motivation right from the very start. And I mean the very start.

Think it through, a Hedge Fund like to mitigate exposure by hedging. To have a Plan B, a second horse to back, a deliverable that still pays out if the primary investment goes awry.

Here's a scenario; we know SISU were looking at distressed football clubs ahead of 'clinching' the deal in Coventry. So, imagine this paraphrased conversation, somewhere in a Mayfair office:

A) I think we've found another football club. This one's in Coventry - a place the Germans bombed in the war up by Birmingham somewhere. They're desperate
B) Can we buy it cheaply?
A) Yeah, for peanuts. We can turn the place around and sell it on very quickly as a profit
B) Okay, sounds interesting. But what if we can't turn it around?
A) They've got a new stadium, owned by a JV between the local council and a charity. The rent's sky-high and unsustainable if the team hits hard times. We can claim the rent is too high, cease to pay it which will break the JV - as they've heavily reliant on the football club's income - and we can pick up the stadium at a knock-down price

The above would explain the apparently slap-shot Due Diligence; they saw the rent issue - indeed it was part of their planning. It explains why Fisher isn't interested in lower rents, as they're irrelevant to the ambition. It explains why he didn't even bother to engage with the Compass JV to see where F&Bs could be driven to. It explains the madness to an out-of-town stadium. It explains why a Hedge Fund would throw it's own money at a judicial review that's supposedly now irrelevant to them.

It also means the whole rent saga, and all of the F&B debates on here about how much Fanta is drunk at Charlton, etc. has been a waste of time. It's all just been a convenient vehicle to hide behind what was always 'Plan B'. Or the hedge
 

ccfcway

Well-Known Member
Well, how about it was their motivation right from the very start. And I mean the very start.

Think it through, a Hedge Fund like to mitigate exposure by hedging. To have a Plan B, a second horse to back, a deliverable that still pays out if the primary investment goes awry.

Here's a scenario; we know SISU were looking at distressed football clubs ahead of 'clinching' the deal in Coventry. So, imagine this paraphrased conversation, somewhere in a Mayfair office:

A) I think we've found another football club. This one's in Coventry - a place the Germans bombed in the war up by Birmingham somewhere. They're desperate
B) Can we buy it cheaply?
A) Yeah, for peanuts. We can turn the place around and sell it on very quickly as a profit
B) Okay, sounds interesting. But what if we can't turn it around?
A) They've got a new stadium, owned by a JV between the local council and a charity. The rent's sky-high and unsustainable if the team hits hard times. We can claim the rent is too high, cease to pay it which will break the JV - as they've heavily reliant on the football club's income - and we can pick up the stadium at a knock-down price

The above would explain the apparently slap-shot Due Diligence; they saw the rent issue - indeed it was part of their planning. It explains why Fisher isn't interested in lower rents, as they're irrelevant to the ambition. It explains why he didn't even bother to engage with the Compass JV to see where F&Bs could be driven to. It explains the madness to an out-of-town stadium. It explains why a Hedge Fund would throw it's own money at a judicial review that's supposedly now irrelevant to them.

It also means the whole rent saga, and all of the F&B debates on here about how much Fanta is drunk at Charlton, etc. has been a waste of time. It's all just been a convenient vehicle to hide behind what was always 'Plan B'. Or the hedge

Great theory

in reality it went

1) we have just bought a club
2) that Andy Thorn looks like a cheap option
3) can we text a sub
4) can i sit on the bench
5) its all standatd business practice
6) embargo is a means to secure a sound financial future
7) SISU have agreed to fund the club for 3 years
8) a year later we are in admin
 

chiefdave

Well-Known Member
to answer you need to know what the possible outcomes would be. i guess if the council are found to be at fault SISU could sue the council and / or ACL. the other possibility is if ACL have to pay the money back they have a huge problem, would be very open to a takeover then and I wonder who would be interested in buying a football ground on the cheap.
 

Mary_Mungo_Midge

Well-Known Member
I think your avoiding my question.

Neh; come on - this could be a big issue. To sit all night and hypothesise what Best was sold for et al is small beer compared to this. You must admit, the crazed notion explains some strange decisions and actions; does it not?
 

wingy

Well-Known Member
to answer you need to know what the possible outcomes would be. i guess if the council are found to be at fault SISU could sue the council and / or ACL. the other possibility is if ACL have to pay the money back they have a huge problem, would be very open to a takeover then and I wonder who would be interested in buying a football ground on the cheap.

From my brief readings into such issues the likelihood is a judge in such a scenario will find nothing illegal in such arrangements ,but can deem it unlawful and instruct the Council to do it all again but in a Lawful way.

Personally I can't envisage an issue as in essence they have reverted to the arrangement they had in place to ensure the place got Constructed ,the private loan to ACL came about post rental agreement.

Where are those two new Lawyer guys we had on here last week when you need them.
 

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