What happens when SISU leave? (1 Viewer)

[Sterling Archer]

I hear everyone wanting them out but I genuinely have no idea what would happen if SISU woke up one morning and said "right, thats it no more funding for Coventry City".

Does the club go into administration because it can't run on a day to day basis with no one supplying the money?

I'm genuinely confused about this point. Any info would be appreciated.

 

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[Bennets Afro]

Hoffman would buy the club. It will not go into admin as they would get money off Hoffman than te administrators

 

[Bennets Afro]

More money that was meant to say

 

[Sterling Archer]

Hoffman would buy the club. It will not go into admin as they would get money off Hoffman than te administrators

How do we know if he has any money to improve our current on and off field issues when he couldn't prove this to SISU so ultimately dropped out of the running for it? What the difference in the name of an owner if there is no money to invest?

I just don't understand the blind faith in Hoffman when if you look at this without anti-SISU glasses on, he was about as effective as Jojar Dhinsa and when he was asked to put up or shut up, he went away with his tail between his legs. If he had the money to buy the club why didn't he buy the club?

Also, that doesn't really answer my question. Forget Hoffman .... what would happen if SISU just walked away?

I'm trying to get my head round why SISU not funding to keep the club running is a worse option than them currently just walking away.

I am not pro SISU, I am just looking for some financial 'nous' to all this. Anyone good with finances or footballing finances care to answer my queries?

 

[Nonleagueherewecome]

When SISU leave, we'll have the biggest party since 1987, of course!

 

[wingy]

If hes back or someone else is in ,as appears to be the roumer at the moment ,you would expect he has the funds stated, we would only know when it comes to due diligence ,the issue at the time was not about whether he had the funds ,but who his backers were ,who wanted to stay silent until the point of takeover ,exactly the same process followed by sisu when they came in,,no one asked them to put up or shut up ,they are in the same position as the club was then,so why should any potential investor be expected to do any different ,they've managed their resources appallingly ,yet expect to somehow be rewarded handsomely.Why would any suitor reward them at the expense of resources for their future team.

 

[Nonleagueherewecome]

they've managed their resources appallingly ,yet expect to somehow be rewarded handsomely.Why would any suitor reward them at the expense of resources for their future team.

Hence Kens article-an attempt to argue all the wonderful things they've done for us?

 

[ccfctommy]

I hear everyone wanting them out but I genuinely have no idea what would happen if SISU woke up one morning and said "right, thats it no more funding for Coventry City".

Does the club go into administration because it can't run on a day to day basis with no one supplying the money?

I'm genuinely confused about this point. Any info would be appreciated.

We will go into administration basically. Then the real problems begin.

 

[wingy]

If they truly have invested £30+m. ,then admin is not an option for them ,unless of course theres a clever way of producing some convenient tax rightoff stat for there whole group.

 

[crowsnest]

Businesses go into admin when there is no money in the pot to pay the bills.

So if they said no more money - they could keep the club running by selling players, mortgage/sell ryton.

Once that runs out then you are looking at admin - just like 3 years ago under Richardson, who stopped funding the losses and we had no money to pay the bank loans.

This is where hoff comes in and can get the club for £1 just before admin and do a deal to write off the £30m loan.
So as long as his investors are still interested we will probably not go into admin.

 

[Godiva]

How do we know if he has any money to improve our current on and off field issues when he couldn't prove this to SISU so ultimately dropped out of the running for it? What the difference in the name of an owner if there is no money to invest?

I just don't understand the blind faith in Hoffman when if you look at this without anti-SISU glasses on, he was about as effective as Jojar Dhinsa and when he was asked to put up or shut up, he went away with his tail between his legs. If he had the money to buy the club why didn't he buy the club?

Also, that doesn't really answer my question. Forget Hoffman .... what would happen if SISU just walked away?

I'm trying to get my head round why SISU not funding to keep the club running is a worse option than them currently just walking away.

I am not pro SISU, I am just looking for some financial 'nous' to all this. Anyone good with finances or footballing finances care to answer my queries?

Investors would walk away for a number of reasons e.g.
- They calculate it will take more investments than they can raise to make the business profitable
- They realise that even if they put in more investments they will never regain that even in a good sell scenario
- They need to cash in what they can as they have a more profitable investment on hand

It does not make any sense for outsiders to speculate if or when sisu pull out - it all depends on them and what other opportunities thay have.
If they come across a project that requires - say - 8 mil and with a good prospect of doubling their money within 3 years, then it might just be a good solution for them to liquidate the club selling all assets and pay off all creditors to get that 8 mil to invest in their other project ... especially if the alternative is keeping their position in the club with an outlook of losing say 5 mil in the same period.

 

[wingy]

Does that comply with plan for this season submitted to the league Godiva,Fullfilling that fit and proper test.Is you're £8m. projection chance or linked to their valuation of the club.