CCFC were required to place 500K in a separate account at Yorkshire Bank that ACL could draw against in the event that CCFC defaulted. As it turned out a sensible thing to have done
Details are disclosed in the ACL & CCFC Holdings accounts.
Technically CCFC have not paid the rent,................ but ACL have drawn against the deposit guarantee, that deposit is supposed to be kept at 500K
Had raised the point about the deposit before but never got to the bottom of what was going on. The email you had helps explain that thanks cloughie
Surely if there is a rent guarantee deposit it has to be topped up when it is drawn down, otherwise it would have been taken years ago by Robinson and his gang. I believe that if the Club doesn't pay its rent and money is taken from the account it only gives CCFC temporary relief but they then have to repay the escrow account, which means if/when they start to pay rent again it would be rent + arrears. The debt can't just disappear.
money can only be accessed by ACL if CCFC default on rent payments BSB and £500k is required to be held in the account as security to meet the terms of the lease. ACL do not control the account so it isnt classed as money that ACL has until CCFC default. CCFC has been in default and the security weakened.
What I think SISU have done is said there is £500K there lets draw it down to pay the rent, knowing it would be hard to kick CCFC out on the basis of the security being diminished. It helps the SISU cash flow at a time where there is little income. In their eyes it would be efficient use of funds and cleans the balance sheet up as TF put it. But it breaks the terms of the lease just the same
Think you need to look where the news of the defaults came from. I might be wrong but I do not think it was ACL running to the press ..... my recollection is that they responded to not created the reports. It suits SISU to paint ACL as the bad guys in this. They (SISU) are the ones who are wanting the rent reduced.
It is embarrassing that people write to councillors demanding to know why legal action is not being taken against their football club.
Not too sure this is sensible move by ACL - better to negotiate surely - pushing SISU hard may possibly backfire on them
doubt there is much if anything to pull out ...... certainly not enough to significantly reduce what they are owed
What about the money from player sales?
Is there any confirmation of this other than what Nick has posted?
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