SISUs strategy? (1 Viewer)

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win9nut

win9nut

Well-Known Member
Just throwing it out there...
We all know SISUs strategy was to distress ACL. Why would that change? Could ACL be in a worse financial position now than when the council/AEH owned them? Despite the scrutiny and unforseen court cases, the council could bail ACL out if it wasn't able to 'wash it's face' (to hijack a now-popular phrase) in order to protect ACL.
Wasps were losing £3m a year before the Ricoh move, ACL needs to support that and repay the loan twice as fast as previous when owned by the council and ACL. A big burden on cash flow...
Are Wasps now making enough money to turn themselves around? If not, what changes do they need to make to their business model and how will this impact CCFC/council? What financial backing do they have? And do they run the risk of insolvency?
Although, I suppose the most pertinent question at the minute is who has the better legal team, Council, Wasps, or SISU?
 
skybluetony176

skybluetony176

Well-Known Member
win9nut said:
Just throwing it out there...
We all know SISUs strategy was to distress ACL. Why would that change? Could ACL be in a worse financial position now than when the council/AEH owned them? Despite the scrutiny and unforseen court cases, the council could bail ACL out if it wasn't able to 'wash it's face' (to hijack a now-popular phrase) in order to protect ACL.
Wasps were losing £3m a year before the Ricoh move, ACL needs to support that and repay the loan twice as fast as previous when owned by the council and ACL. A big burden on cash flow...
Are Wasps now making enough money to turn themselves around? If not, what changes do they need to make to their business model and how will this impact CCFC/council? What financial backing do they have? And do they run the risk of insolvency?
Although, I suppose the most pertinent question at the minute is who has the better legal team, Council, Wasps, or SISU?
Click to expand...

I think it has more to do with who has the better argument in law rather than legal team and SISU are yet to produce any argument at all.
 
Samo

Samo

Well-Known Member
win9nut said:
Just throwing it out there...
We all know SISUs strategy was to distress ACL. Why would that change? Could ACL be in a worse financial position now than when the council/AEH owned them? Despite the scrutiny and
unforseen court cases, the council could bail ACL out if it wasn't able to 'wash it's face' (to hijack a now-popular phrase) in order to protect ACL.
Wasps were losing £3m a year before the Ricoh move, ACL needs to support that and repay the loan twice as fast as previous when owned by the council and ACL. A big burden on cash flow...
Are Wasps now making enough money to turn themselves around? If not, what changes do they need to make to their business model and how will this impact CCFC/council? What financial backing do they have? And do they run the risk of insolvency?
Although, I suppose the most pertinent question at the minute is who has the better legal team, Council, Wasps, or SISU?
Click to expand...

We could finish them off by withdrawing rent and moving to Northampton?
 
win9nut

win9nut

Well-Known Member
I was thinking more along the lines of wait until Wasps next financial statements to see what their financial position is like after six months or so trading at the Ricoh or wait till the outcome of the JR...
Just looking for a bit of hope which could finally mean us pushing on...
 
chiefdave

chiefdave

Well-Known Member
win9nut said:
Could ACL be in a worse financial position now than when the council/AEH owned them?
Click to expand...

There's definitely an argument to be made there. We know without our £1.2m a year it's been hard for ACL. Given we are told the loan terms have changed requiring quicker repayment and therefore bigger repayments there is of course a chance Wasps gamble may fail.

Previously ACL have been backed by a local council who, as we have seen, can bail them out if required and a relatively well off charity. Now they are owned by a rugby club losing millions.

The downside is that it gives SISU a good reason to continue with the same strategy. Its likely our best case scenario now is ACL getting into financial difficulty giving us the opportunity to either buy them out of admin (in that scenario would some or all of the loan to CCC be written off?) or buy a share from Wasps to provide a cash injection.
 
Skyblueweeman

Skyblueweeman

Well-Known Member
chiefdave said:
Have you got some money you want to invest with them :laugh:
Click to expand...

Ha ha! No chance...just that many mention on here that we seem to be a dumping ground for debt accrued from other ventures. Just wondering what other things SISU are involved with and whether they're making a loss or gain with those.


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R

RedSalmon

Well-Known Member
I don't think there is a strategy beyond hang around and see what happens. Maybe there will be a White Knight somewhere who wants to buy the club (cannot see it myself) at some point in the future, at which point they might get a bit of their money back. If they are not losing money then there is no pressure to sell up and move on.
They are a brass necked bunch of fuckers who really don't give a shit about what anyone else thinks about them, so don't see them departing any time soon.
 
win9nut

win9nut

Well-Known Member
According to a Google search, they own/owned a 10% stake in Netia, a Polish fixed line telephone company...
I seem to remember something about them having an investment in Welcome Break...
 
I

Intheknow

New Member
chiefdave said:
There's definitely an argument to be made there. We know without our £1.2m a year it's been hard for ACL. Given we are told the loan terms have changed requiring quicker repayment and therefore bigger repayments there is of course a chance Wasps gamble may fail.

Previously ACL have been backed by a local council who, as we have seen, can bail them out if required and a relatively well off charity. Now they are owned by a rugby club losing millions.

The downside is that it gives SISU a good reason to continue with the same strategy. Its likely our best case scenario now is ACL getting into financial difficulty giving us the opportunity to either buy them out of admin (in that scenario would some or all of the loan to CCC be written off?) or buy a share from Wasps to provide a cash injection.
Click to expand...

The quicker repayment of the loan must be a burden on ACL's cash flow. I wonder though if ACL was an under used asset under CCC/Higgs? A new naming rights deal might also assist?

Wasps won't be selling a share to Sisu anytime soon. Why would they want the hassle?
 
skybluetony176

skybluetony176

Well-Known Member
win9nut said:
According to a Google search, they own/owned a 10% stake in Netia, a Polish fixed line telephone company...
I seem to remember something about them having an investment in Welcome Break...
Click to expand...

Not sure what happened with welcome break in the end but I do remember reading it involved litigation and debt. Last I read on netia they were trying to offload their shares along with another hedge fund who was also involved. Not sure if they ever did though. Outside of that no idea.
 
mrtrench

mrtrench

Well-Known Member
I think that they genuinely intended to get the club into the PL when they first came but when that didn't work immediately they dropped it in favour of a cheap land deal. Now that has failed I think as long as they are not losing more money they are happy to sell anyone that is worth anything and take that. I disagreed with people saying they were asset stripping at the start - but that's exactly what they are doing now.
 
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