Astute
Well-Known Member
I posted this comment on another thread. But have put it on here as it will be lost in with other comments.
My questions are why does Joy want the freehold so much and how does she plan to get her investors their money back plus make them a profit. And before anyone says anything this is my worse fear and not a fact.
All insults welcome as usual
I will say what my worse fear is again and it is nothing like demolishing the arena like I was recently accused of saying. I had said in the past that it would never happen even if they wanted it to because of planning rules.
SISUE have put millions into our club. How much is very debatable. At one stage we were told we were losing 500k a month. It has been much lower than this for a fair bit of time considering they have been with us for six years. But lets say 500k per month for the time they have been with us. 6m a year. 36m in total. So I would guess that it is somewhere between 25m and 30m. No idea how it has got as high as the 60m or 70m as they have said. Can't all of come from management fees and interest as we know they charge us.......can it? They want their money back plus a return for their investors. Two promotions and they would be in the money. But they already tried this when we were only one step away from the Prem. This is how we started losing 500k a month. If only they would have got a decent manager in before they started throwing money at the squad. So to me they won't get their money back this way as they failed and changed direction.
Plan B. Get the freehold. Get rid of the leasehold at the same time. They would own the whole thing. Start up yet another section of SISUE.......Coventry City Arena lets say. Timothy even said the arena wouldn't be owned by the club itself. Most of the fans have come back. The rest of the arena is still profitable. Coventry City Arena remortgages the arena to pay back money owed to SISUE/Otium and whatever/whoever the money is owed to. Their investors get their money back plus a profit. So then we are left with a massive mortgage to pay. Interest rates will go up soon. Just like they were much higher when the stadium was built. They are the lowest in living history ATM. Mortgage repayments can't be met. Would this lead to liquidation? Would liquidation happen before this?
I know certain people will say this won't happen. They have said it each time I have said the same. But Joy wants her money back. Has anyone got a better idea on how she will do it? Can anyone say 100% they don't work this way? Look back at the way SISUE work. They use litigation to get their own way. We are seeing this for ourselves even now. They then use admin/liquidation to get the best return a lot of the time. We also know about the admin bit. They got out of the rental agreement by doing this. Buying the arena will not suddenly make our club worth a lot of money. We would have to be a Prem side to be worth as much as they would want. And for this to happen we would have to do twice what we haven't done for nearly 50 years.......finish in the top 6. We can't even manage it in the old division 3.
My questions are why does Joy want the freehold so much and how does she plan to get her investors their money back plus make them a profit. And before anyone says anything this is my worse fear and not a fact.
All insults welcome as usual
I will say what my worse fear is again and it is nothing like demolishing the arena like I was recently accused of saying. I had said in the past that it would never happen even if they wanted it to because of planning rules.
SISUE have put millions into our club. How much is very debatable. At one stage we were told we were losing 500k a month. It has been much lower than this for a fair bit of time considering they have been with us for six years. But lets say 500k per month for the time they have been with us. 6m a year. 36m in total. So I would guess that it is somewhere between 25m and 30m. No idea how it has got as high as the 60m or 70m as they have said. Can't all of come from management fees and interest as we know they charge us.......can it? They want their money back plus a return for their investors. Two promotions and they would be in the money. But they already tried this when we were only one step away from the Prem. This is how we started losing 500k a month. If only they would have got a decent manager in before they started throwing money at the squad. So to me they won't get their money back this way as they failed and changed direction.
Plan B. Get the freehold. Get rid of the leasehold at the same time. They would own the whole thing. Start up yet another section of SISUE.......Coventry City Arena lets say. Timothy even said the arena wouldn't be owned by the club itself. Most of the fans have come back. The rest of the arena is still profitable. Coventry City Arena remortgages the arena to pay back money owed to SISUE/Otium and whatever/whoever the money is owed to. Their investors get their money back plus a profit. So then we are left with a massive mortgage to pay. Interest rates will go up soon. Just like they were much higher when the stadium was built. They are the lowest in living history ATM. Mortgage repayments can't be met. Would this lead to liquidation? Would liquidation happen before this?
I know certain people will say this won't happen. They have said it each time I have said the same. But Joy wants her money back. Has anyone got a better idea on how she will do it? Can anyone say 100% they don't work this way? Look back at the way SISUE work. They use litigation to get their own way. We are seeing this for ourselves even now. They then use admin/liquidation to get the best return a lot of the time. We also know about the admin bit. They got out of the rental agreement by doing this. Buying the arena will not suddenly make our club worth a lot of money. We would have to be a Prem side to be worth as much as they would want. And for this to happen we would have to do twice what we haven't done for nearly 50 years.......finish in the top 6. We can't even manage it in the old division 3.