SISU supporters like to push the Liquidation myth.... (1 Viewer)

[OyJimmy]

Getting a bit sick of SISU loving 'fans' pushing the line that SISU would liquidate the club if they walked with absolutely no evidence to support this myth. As an accountant I can categorically say that liquidation is a much less attractive option to SISU than liquidation.

Why? Because the value off CCFC's assets would shrink to almost nothing overnight. Think about it. What are our assets?

- The brand
- The playing staff
- League one status
- Option on Ricoh
- TV rights

What would SISU be able to recover some cash on if they chose liquidation?

- The brand? No because it would be worthless to the fans who would just start a new club under a new name.
- The playing staff? No because under league rules they are all relased for FREE!
- League one status? - No because they can't sell that
- Option to buy the Ricoh? No that goes if the club is liquidated
- TV rights? No club no money

By contrast in admin someone will offer to buy the club even if it's just for 1 pound!

So don't believe the SISU back stabbers lies!

 

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[Otis]

'liquidation is a much less attractive option to SISU than liquidation.'


?



:thinking about::thinking about::thinking about:

 

[Godiva]

Jimmy, if you're an account you know all about costs.
In administration the costs will continue to add to the externaly owed debts. Sisu's funds will get nothing, even if a new owner is found.
In liquidation the costs will be much lower, and sisu may recoup a few pounds.

 

[OyJimmy]

Jimmy, if you're an account you know all about costs.
In administration the costs will continue to add to the externaly owed debts. Sisu's funds will get nothing, even if a new owner is found.
In liquidation the costs will be much lower, and sisu may recoup a few pounds.

Yes admin has costs but liquidation is more expensive if there are no assets for you to realise the value of. Indeed if Sisu wanted to exit the club then they should simply put it on the Market as that would realise the most potential. The fact they haven't put it up for sale suggests they are going to attempt to inflict more misery on us.

 

[Godiva]

Yes admin has costs but liquidation is more expensive if there are no assets for you to realise the value of. Indeed if Sisu wanted to exit the club then they should simply put it on the Market as that would realise the most potential. The fact they haven't put it up for sale suggests they are going to attempt to inflict more misery on us.

Looking at all the financial experts they have draftet in as directors over the last year suggests that they have tried hard to find investors. In a sense the club have been put up for sale for quite some time.
If any investor showed the slightest interest I would think negotiations were well underway by now, but that's not the signal they send.

So no buyer, meaning if sisu pulls the plug the end result will be the same wheter it's administration or liquidation -> closed for business.

Any asset that can be sold will be sold - and there are always assets that can be sold. In administration an outside lawyer controls the selling of assets and the distribution of the income ... including his own fee. In addition many costs can continue for months till the administrator decide to liquidate the business.
In liquidation sisu controls everything and save the administrators fee. The new canadian guy ... Baker ... will probably only cost half of an external administrator.

 

[OyJimmy]

But Sisu are not asking for a realistic price. With no debt they might get an optomistic 15 million for the club. I believe Hoffman offered 1 pound plus 10 million or so for the debt. That's realistic. Unfortunately Sisu want silly money.

 

[pw362]

So Richard Keys is a SISU supporter? Because his comments on twitter were the reason for all this speculation that CCFC were going to be threatened with liquidation.

 

[Godiva]

So Richard Keys is a SISU supporter? Because his comments on twitter were the reason for all this speculation that CCFC were going to be threatened with liquidation.

I don't think this has anything to do with Keys being a supporter or not. He was the first to put the word out in public, but how he heard it himself is everybodys guess.
It could be that he was told by someone who either himself was told or directly overheard a talk between sisu and ACL about the rent killing off the club. Only Keys knows if the word liquidation was his interpretation or his sources. Mr Mutton then went public and said sisu had threaten to liquidate the club, and then Keys said: 'See! It's all true.'

But beside all the peripheral persons who thrive in the spotlight, we need to consider the possibility that there's no smoke without a fire. We all know the club is skinned and that sisu are having a very hard time finding extra money to fund further losses. Last time they found a few pounds seem to be in march or april and in exchange a charge by AVRO was placed over all assets in CCFC and CCFC Holding. So if the club goes bust it looks like this AVRO business will own everything related to the football activities ... including the FL license.
So this is a new player who we know precious little of.

Maybe sisu's last shuffling with the loans and all the different companies is setting up a scenario where AVRO and sisu can run an administration process and getting rid of all debts and then still own CCFC and CCFC Holdings ... not unsimilar to an administration resulting in a clear table and new owners. This would require sisu and AVRO to have some extra money to run the club and sufficient funds (maybe other investors) to buy into the Ricoh and all the revenue streams.
I don't know ... it may look far out, but nothing really seem to surprise me anymore.

 

[1zhane2aaron]

The future of the club will depend on the meeting between the council and Sisu this week regarding the rent at ricoh. The rent hasn't been paid for two months now so an amical agreement needs to be made before the club can move forward.

 

[sky blue john]

I am with you on this one OJ and this is what I posted a little while back-

I don't think they will go for liquidation, why would they ?
reasons assets they could sell via liquidation would be Ryton and players, Ryton is mortgaged and they wouldn't get much for the players.
The two most valuable assets they have are-
1) Going concern league one team with 10k season ticket holders.
2) Higgs share of the stadium agreement.
These would be both worthless down the liquidation route because CCFC would cease to exist and the Higgs agreement would die with the club.
I may be wrong but that is how i see it.​

 

[sky blue john]

The future of the club will depend on the meeting between the council and Sisu this week regarding the rent at ricoh. The rent hasn't been paid for two months now so an amical agreement needs to be made before the club can move forward.

These on going meetings are very interesting for several points.
1) Joy herself is involved, so this tells me its got to a serious nature because she has never got involved before.
2) I agree they should ask for a rent reduction purely on the basis of relegation and the income available to CCFC will drop. And I believe the counsel should give them a rent reduction even if it is only a token gesture. What I don't believe in Sisu not paying the rent and trying to hold a gun to the counsels head on the rent.
3) Sisu want to benifit from other Ricoh revenue streams !!!!! Anything could come under that heading but typical Sisu probably want something for nothing because I can't see them paying to purchase the stadium. Before people bang on about them buying the stadium I remind you of the fact Sisu have posted losses for the last two years and don't have the money.

 

[Grendel]

Any investors considering buying the share of the ground will fund via loans and the debt will be against the club.

 

[sky blue john]

Any investors considering buying the share of the ground will fund via loans and the debt will be against the club.

A very bold statement !!!
Yes there are so called investors of other peoples money like the Glazers or Sisu who will finance by mortgage.
But thats not all investors there are other club owners who invest their own money without need to borrow.