Why are they so eager to hold on to a loss making business,and furthermore are prepared to fall deeper into debt over the next 3 years to build a new stadium that again they cannot guarantee will make a profit , when they have a clear opportunity to walk away right now ,it all makes no sense and feels to me that its more about dented pride than building a sustainable football club,can anybody else make a good argument as to why they want ccfc so badly when all it does to them is dent their bank balance
They're in too deep. They have been 'lending' money to CCFC from different funds. Those loans are liabilities to Coventry City (money owed or to be paid out) and an asset for the fund that lends the money (i.e. money to be received).
In its current state there is no value in the Club - any buyer would expect all monies owed by the club to be written off or sold to the buyer at 10p or 20p in the pound. SISU's funds can't afford to do this. If SISU hold on to the business all the monies owed remain at full value in their funds. If they sell then they take a huge hit of up to £45m. Members of funds might then want to leave and SISU will have problems attracting new members.
My opinion is that they can't sell. They would only do so if a buyer offered them full value for their 'loans'. That ain't going to happen!
Because regardless of everything, they will still have investors who will see the chance of premier league in 3 years. Which will be a gold mine. We all know it won't happen, but that is what will be sold to them.
Edit: And if I was in the position to gamble a significant amount I'd take the risk too. Purely looking at the odds, the are pretty favourable.
Edit: And if I was in the position to gamble a significant amount I'd take the risk too. Purely looking at the odds, the are pretty favourable.
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I agree, but we don't know how many investors they have, people who may not have any interest other than, in X amount of years we can give you back X amount. And then use Southampton as a model. A multi millionaire investing 10 million may think it would be worth the risk.
We know it's pie in the sky, and highly unlikely, but if 10 million is like £20 to us, why not do it?
Would they liquidate though? I can't see it myself, spiteful madness if they do. It would make no sense.
This may of already been posted...
Who would own the new stadium?
Sisu or ccfc?
If sisu... Would they charge rent? ... How much?
If ccfc... How would city pay the mortgage/loan? who would they make payments to?
If payments are to sisu does this mean sisu really own the stadium?
Who would own the new stadium?
Sisu or ccfc?
If sisu... Would they charge rent? ... How much?
If ccfc... How would city pay the mortgage/loan? who would they make payments to?
If payments are to sisu does this mean sisu really own the stadium?
People with £10m, that can be gambled as casually as you are suggesting, don't deal with tinpot outfits like SISU.