Hoffman Deal For Ricoh Agreed? (1 Viewer)

Skybluedar · Jan 16, 2012

Just read an interesting article
http://www.coventrycity-mad.co.uk/news/tmnw/one_hoffman_consortium_deal_done_723238/index.shtml

I wonder if this is what was causing the pre-SISU bid holdup. Clearly any "interested consortium" are not going to bid for a club that is not going to break even from the word go or potentially they could end up digging a hole for themselves, just like SISU. If this IS true, then I would expect a bid to be made for the club next week and SISU won't be able to say no on the grounds that it is not good for the club, as clearly the council will have already deemed it good for the club. Time to go SISU, time to go! Believe!

flashgary · Jan 16, 2012

Let hope so but i wont hold my breath

Nonleagueherewecome · Jan 16, 2012

What? Easy with the headline, I thought this was factual! No way, Joe Cole, etc.They can't buy the ground without buying the club anyway. They've opened the stable door before the horse is ready to bolt

TheRoyalScam · Jan 16, 2012

Breaking news on Kev's rumour mill. I hope it's true, especially as it's my birthday - this really would be the perfect present - at last a ray of hope for the club I've supported for nearly 50 years!
:blue::blue::blue:

Jimthor · Jan 16, 2012

My understanding of how takeovers work is shaky, so feel free to correct me if i'm wrong.
But from what i believe- the proposition goes to the board of directors, who assess the bid, and have a legal obligation to decide whether it is in the best interests of the club. If they decide it is, the bid gets passed onto the owners. Correct? Almost correct?
Anyway- if this is true, then having a deal in place to buy the Ricoh helps to establish the bid as being "in the best interests of the club". Anyone can come along and say "I'll buy the stadium", but if someone says "I'll buy the stadium, look, I've got a deal with the council already", that legitimises it.

Of course, my fear is that our board is full of people full of self-interest, and they know that if the takeover goes through, they'll be out of a job. So they'll look to pick holes in the bid, such as to justify it not being in the club's best interests. So even if Hoffman and co knock down these walls, they might still have a hard time. And this is even before reaching SISU.

I'm possibly totally talking out of my arse here, someone that actually knows what they're on about can come along and correct me on the bits where i'm wrong. This is just my understanding on why the stadium deal is a good sign, but why i ultimately think the takeover bid is probably never going to amount to anything. Does this make any sense?

(Part of me feels like deleting this for how wrong i fear i am, lol... but i'll leave it here for the sake of hopefully someone coming along and explaining how it actually works!)

Skybluedar · Jan 16, 2012

Nonleagueherewecome said:
What? Easy with the headline, I thought this was factual! No way, Joe Cole, etc.They can't buy the ground without buying the club anyway. They've opened the stable door before the horse is ready to bolt

Nowt wrong with the headline, it wasn't in all caps and it ended with a question mark. However the way things have been in recent times, any glimmer of hope is enough to set a Sky Blue heart racing. Sadly it means the ball is in SISU's court a little. Lets keep our fingers crossed.

Skybluedar · Jan 16, 2012

Jimthor said:
My understanding of how takeovers work is shaky, so feel free to correct me if i'm wrong.
But from what i believe- the proposition goes to the board of directors, who assess the bid, and have a legal obligation to decide whether it is in the best interests of the club. If they decide it is, the bid gets passed onto the owners. Correct? Almost correct?
Anyway- if this is true, then having a deal in place to buy the Ricoh helps to establish the bid as being "in the best interests of the club". Anyone can come along and say "I'll buy the stadium", but if someone says "I'll buy the stadium, look, I've got a deal with the council already", that legitimises it.

Of course, my fear is that our board is full of people full of self-interest, and they know that if the takeover goes through, they'll be out of a job. So they'll look to pick holes in the bid, such as to justify it not being in the club's best interests. So even if Hoffman and co knock down these walls, they might still have a hard time. And this is even before reaching SISU.

I'm possibly totally talking out of my arse here, someone that actually knows what they're on about can come along and correct me on the bits where i'm wrong. This is just my understanding on why the stadium deal is a good sign, but why i ultimately think the takeover bid is probably never going to amount to anything. Does this make any sense?

(Part of me feels like deleting this for how wrong i fear i am, lol... but i'll leave it here for the sake of hopefully someone coming along and explaining how it actually works!)

I know no more than you about the intricacies of a takeover bid, however that is exactly my point. IF an agreement has been made for them to buy 100% of the Ricoh (considering SISU weren't even allowed to purchase a 50% share), it certainly legitamises the consortium as being in the clubs interest, at least in the eyes of the respected parties involved in the deal. SISU couldn't possibly have a long term plan to break even, as it is not going to happen and it is clear that they are looking to sell players to get as much cash up front as possible. Their must be some dialogue with Hoffman and they must know that the end is in sight. I can only dream but if this is true, it means that there is genuine interest.

However there are still some idiots on here who will respond with "there is no takeover... Hoffman has nothing..."

MatthewWallis · Jan 16, 2012

I hope this is true as they can essentially force SISU out

Otis · Jan 16, 2012

Every time I hear the line "Sisu want the return of their 30m investment" I just shake my head and laugh.

Skybluedar · Jan 16, 2012

Otis said:
Every time I hear the line "Sisu want the return of their 30m investment" I just shake my head and laugh.

Yeah well that is a joke really.

dutchman · Jan 16, 2012

A single, anonymouse source has claimed the Hoffman group has made a deal equal to twice the amount that has ever been suggested before and we're expected to accept this as fact?

BrisbaneBronco · Jan 16, 2012

dutchman said:
A single, anonymouse source has claimed the Hoffman group has made a deal equal to twice the amount that has ever been suggested before and we're expected to accept this as fact?

All it will take is a quick call from the local media to the council to confirm/deny this story.
As for the reported increase from 30-70m, could be that they have purchased 100% of stadium plus land rights not just 50% as previously thought.

@richh87 · Jan 16, 2012

dutchman said:
A single, anonymouse source has claimed the Hoffman group has made a deal equal to twice the amount that has ever been suggested before and we're expected to accept this as fact?

£2?!

Astute · Jan 16, 2012

dutchman said:
A single, anonymouse source has claimed the Hoffman group has made a deal equal to twice the amount that has ever been suggested before and we're expected to accept this as fact?

Don't give a shite what kind of mouse gives the info. Will believe it when I see it and everything has been completed.

Ccfc1979 · Jan 16, 2012

Even if it was Dangermouse or Mighty Mouse? Surely you'd believe them!

PhilWasn'tBabb · Jan 16, 2012

This could be a double edged sword. If the deal for the ground has been done in principle at 70 mill (which is a mind blowing figure for me) SISU are going to think these people have money, and we want some. Anybody who thinks sisu are going to do anything in the interest of the club they are mistaken. They will only be interested in there investors and getting as much back as they can for them and trying to save there face.

Kajer · Jan 16, 2012

My gut feeling is that Hoffman is stalling as he does not have the capital in place to actually mount a takeover bid at this time.

Sky Blues · Jan 16, 2012

Struggling to believe this. Maybe there's a verbal agreement with council leaders to back it, but any deal would surely need formal approval by the council's Cabinet or Full Council - and that hasn't happened yet. Nor does it appear on an agenda yet.
Edit - At least that's what it appears from agenda papers for this month's meetings. I presume the CT would have picked up on it if it had happened before Christmas.

Otis · Jan 16, 2012

If true, my gut feeling would be that Hoffman is trying to pull the rug from under Sisu and trying a bit of oneupmanship.

Astute · Jan 16, 2012

Won't the council want to see how the club is run for a bit before they even consider selling the ground....that is if there is a takeover.

We'll_live_and_die · Jan 16, 2012

This is splendid news. SISU could end up paying rent to Hoffs consortium. If Hoffs men take ownership of the Ricoh, they could bump up the rent and force SISU to sell or enter admin. Either way it's a brilliant leverage tool.

skyblu3sk · Jan 16, 2012

La_Lucha said:
This is splendid news. SISU could end up paying rent to Hoffs consortium. If Hoffs men take ownership of the Ricoh, they could bump up the rent and force SISU to sell or enter admin. Either way it's a brilliant leverage tool.

I don't think they would be able to buy it up front without the club first would they? Especially with the right to buy on the charity's side

We'll_live_and_die · Jan 16, 2012

If the council and the charity agree to sell it then of course they can. If you rent out a house and decide to sell it, the buyer does not have to accept the tenants as there is no tenancy agrrement in place. Essentially the Ricoh and the Football club are unassociated businesses.

skyblu3sk · Jan 16, 2012

Not so sure... Thought the club would have first refusal minimum and would the buy backclause carry onto the new owners?

Fluffsta · Jan 16, 2012

I am really hoping this is true!

Am I right in thinking that this 70M is for the Ricoh only?

Would be frigging great if true as Hoffman could force SISU out quicker.

coundonskyblue · Jan 16, 2012

skyblu3sk said:
Not so sure... Thought the club would have first refusal minimum and would the buy backclause carry onto the new owners?

Yep, the club have first refusal on the charity half until 2015.

gally9 · Jan 16, 2012

It will either be confirmed or denied during the course of the day, it also says according to reports.. Why can't we fin any of these reports? If covmad were told it wouldn't be a report.. I'm confused

We'll_live_and_die · Jan 16, 2012

coundonskyblue said:
Yep, the club have first refusal on the charity half until 2015.

So, Hoffman makes an offer. The Council/charity say the club have first refusal.......SISU do you want to buy the Ricoh it'll cost you £xxx........Sorry Mr Mayor we don't have that amount at the moment............Mr Hoffman, the club can't afford the ground it's yours.

DazzleTommyDazzle · Jan 16, 2012

If this is true, then my guess is that GH will have agreed an option to buy the stadium IF/WHEN he (the consortium) can complete a deal for the club.

We'll_live_and_die · Jan 16, 2012

DazzleTommyDazzle said:
If this is true, then my guess is that GH will have agreed an option to buy the stadium IF/WHEN he (the consortium) can complete a deal for the club.

There's a man thinking rationally for you. Probably the most likely.

skyblu3sk · Jan 16, 2012

La_Lucha said:
So, Hoffman makes an offer. The Council/charity say the club have first refusal.......SISU do you want to buy the Ricoh it'll cost you £xxx........Sorry Mr Mayor we don't have that amount at the moment............Mr Hoffman, the club can't afford the ground it's yours.

Only issue with that is they would have the cash for the charity half and with the other offer it may force the charity to sell to sisu without all the info they are currently demanding, they could then make it difficult for the Hoff. just think it may not be as cut and dry as some think, have everything crossed that it will be though

We'll_live_and_die · Jan 16, 2012

jon92 said:
Stuart linnell has spoken to council and they have said its not true he just said

Confidentiality agreements maybe?

oldskyblue58 · Jan 16, 2012

The council own the freehold at present - absolutely correct
That land has a long lease in favour of ACL
ACL is owned by Higgs Charity and the Council

so just a couple of questions/observations

Buying the freehold from the council still leaves ACL's lease in place. That would mean to get hands on the venue income GH Consortium still needs to buy the shares of ACL
Any "deal" is not a deal until approved by at a full meeting of the council - anyone see it being discussed in any council minutes.
Any sale of Higgs Charity shares can be vetoed by the council BUT sale of the council shares can be vetoed by the charity
No evidence that the criteria required by BOTH the charity and council have been met - one of which is a viable and sustainable business plan at CCFC. Another one is a plan to develop the area further (ie will cost millions more)
buying the freehold would get the consortium the rent ACL pays on the long lease of the stadium only.
CCFC has a valid lease with ACL and that hasnt changed
Owning the freehold of the stadium does not mean they can force a sale by SISU of CCFC. Which is worrying on several fronts.... no new owners are guaranteed, GH Consortium could just be looking to own stadium freehold as an investment, football club still wouldnt own the stadium outside investors would......

It might have been done but somehow i doubt it ....I think there are some serious questions to answer...... so until there is an announcement from the council and or charity I am not giving it any weight

skybluelee · Jan 16, 2012

oldskyblue58 said:
The council own the freehold at present - absolutely correct
That land has a long lease in favour of ACL
ACL is owned by Higgs Charity and the Council

so just a couple of questions/observations

Buying the freehold from the council still leaves ACL's lease in place. That would mean to get hands on the venue income GH Consortium still needs to buy the shares of ACL
Any "deal" is not a deal until approved by at a full meeting of the council - anyone see it being discussed in any council minutes.
Any sale of Higgs Charity shares can be vetoed by the council BUT sale of the council shares can be vetoed by the charity
No evidence that the criteria required by BOTH the charity and council have been met - one of which is a viable and sustainable business plan at CCFC. Another one is a plan to develop the area further (ie will cost millions more)
buying the freehold would get the consortium the rent ACL pays on the long lease of the stadium only.
CCFC has a valid lease with ACL and that hasnt changed
Owning the freehold of the stadium does not mean they can force a sale by SISU of CCFC. Which is worrying on several fronts.... no new owners are guaranteed, GH Consortium could just be looking to own stadium freehold as an investment, football club still wouldnt own the stadium outside investors would......

It might have been done but somehow i doubt it ....I think there are some serious questions to answer...... so until there is an announcement from the council and or charity I am not giving it any weight

Why do you always have to ruin everything with your business acumen and common sense? Let me dream of a happier future, its all I have left!

ccfc1973 · Jan 16, 2012

correct me if im wrong doesnt the agreement in place for the club to buy half or all of the ricoh run out this year?
perhaps the hoff wants to buy the ricoh and become sisus landlord and force them out with a huge rent increase

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