SISU - why are you here? (1 Viewer)

Buy a club in distress turn it into a break even then sell at a profit ride into sunset
Didn't go to plan
Make money
No

This will remain to be seen my friend !

No offence to you mate but I'm sick of hearing the same old questions

skybluenewman said:

No offence to you mate but I'm sick of hearing the same old questions

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I'll vary it up a bit for you...

Whats the answer to "the average foot size of a ccfc squad player minus the amount of goals scored by cody mcdonald last season times the amount of days pressley has before he is sacked


Hopefully you havent been asked that one before

I think there are a lot of people asking the same questions.

The purpose of a hedge fund is to make money for its investors, at a rate higher than they could expect from more 'regular' types of investment. If SISU have indeed invested £60m in the Club and are going to spend a further £30m on a new ground how are they going to get a return on these monies?

Hedge funds are, by their very nature, risk taking enterprises but at he end of the day they have to show an increase in the value of the fund otherwise investors will withdraw their monies or at the very least it will prove difficult to attract new funds.

We will never know SISU's modus operandi but it would be interesting to be a fly on the wall in the office of this particular fund!

play_in_skyblue_stripes said:

I have one more question.
Are SISU incredibly brilliant clever business people or complete baffons?

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Neither.

The nature of their business means some won't come off, but the nature of the business means taking the risk that some do come off.

This is interesting on Sisu/Joy from 2011. http://www.londonspectator.com/2011/08/queen-of-debts-secretive-hedge-fund.html

1. Sisu specialise in debt trading, so I guess the plan was buy really cheap, maybe manage some of the debt away (by a web of companies), then sell on in a couple of years at a good profit.

2. Due to failure and relegation, the club in itself will struggle to be sold at anything resembling a profit; so Sisu need to focus more on packaging it with the Ricoh. The Ricoh ownership became a key focus, it wasnt before.

3. Whilst there was some focus on reducing rent after relegation (to make sale of the the club more attractive). the change to acquire the Ricoh/coupled with the opportunity to distress ACL and acquire cheaply was too good to miss. The focus became to distress ACL. and that led to the current war [despite ACL offering 400k rent], move to Northants, new stadium etc all a ploy to get ACL to sell cheap.

IMHO

Deleted member 5849 said:

Neither.

The nature of their business means some won't come off, but the nature of the business means taking the risk that some do come off.

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From The Telegraph in 2011

"The Telegraph over the weekend[FONT=Arial, Tahoma, Helvetica, FreeSans, sans-serif] has now reported that in the last financial accounts Sisu Capital, has reported a loss that seems closely tied with their ownership of Coventry City Football club. The owner of Coventry City registered a loss before tax of £272k, a slight improvement on last year's figure of £376k. The figures were not helped by a £161k tax bill Sisu had to pay after an HMRC inquiry into previous tax years."[/FONT]

[FONT=Arial, Tahoma, Helvetica, FreeSans, sans-serif]So Sisu are failing as a general business (as well as failingly at CCFC)....[/FONT]

I understand that a healthy CCFC playing in the Championship at a club owned Ricoh Arena would make an attractive sale but there will be further losses before that ever happens, if it happens at all.

Ground sharing at Sixfields with a losing team is going to cost a packet and, in my opinion, is not sustainable over a period of 3 to 5 years.

The new stadium is also, again in my opinion, a non starter as it lessens the gap between SISU's investment and their ability to recoup it at a profit.

Unless I am missing something I cannot see how SISU's investors can possibly be happy with their performance. Of course it may be that their investment has reduced by an amount that makes it impossible for them to pull out. Also, of course, we have no idea who SISU's investors are.

And the last sentence in that article is...

The figures were not helped by a £161k tax bill Sisu had to pay after an HMRC inquiry into previous tax years.

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