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Reply | Targeting Groups
at 21:34 8 Apr 2024
I agree - interesting model. It would appear to me that they issue a share offer and the Jabara Family have, very the last few years, picked them all up. They now own almost 40% of LCFC's parent - and my guess is that they can only have done this by picking up virtually all the shares that are made available. How long that this can continue is debatable and just looks like the type of EFL1 model which is based on a gamble on promotion to the Championship. They could make the playoffs this year - but that is a strong playoff group and coming out on top over Bolton, Peterborough and Barnsley is one heck of a gamble.My worry would be that this year could be their best chance. I do think that a couple of thousand on their average gate comes from (a) them doing well and (b) some teams with strong away support where a midlands trip isn't an onerous one. I'm not so sure that it is based on their not being much else around. Whilst this is true, Lincoln isn't a populous city (100k or so) and the county is very spread out. They do have Newark close by but I see a lot of Newark base going to the Nottingham clubs. I live just outside Newark. Lincoln do market themselves well - I often see young kids with imps shirts. Lincoln is also a stag party venue - and I do suspect that they sell game packages to groups.
Boston United's model is also an interesting one, and should we be successful in closing out the Ogden Family deal then it is one worth looking closely at. The investors are in (local) property. They have built a community hub type of stadium. It's small (5-6,000) but it has lots of add ons that bring money in. The investors have stated a long term interest in returning Boston to the fans. Boston's home gate is maybe 1100 -1200 below ours but with success this could easily rise to 1800-2000. They have also got a chance of making the playoffs. They may not make it this year but I suspect that we'll see Boston in the NL before we see Lincoln in the Championship. |
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Reply | The Ogden Family
at 18:17 25 Mar 2024
Wow, this has to be made to work - it is exactly what I was hoping for but never really thought it would happen. It's what both Rochdale and RAFC need. |
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Reply | TFC respond to WSH exclusivity
at 14:28 15 Mar 2024
Sadly we are both on the same page - with minor differences. I am surprised, given the words emanating from the Chairman at the EGM, that the NL hasn't taken the matter into its own hands and because of this I do wonder about how rigid their original ruling is/was. It probably is too late now as it would need a new lender to kick in asap.
I'd be very surprised if other would-be investors aren't watching the situation very closely. If the WSH deal falls through on the last day of their exclusivity window then apparently everything ends. This isn't in the interests of would-be investors as it would be better to keep a going concern than start from scratch. In this case I suspect that immediate cash offers from late entrants cannot be ruled out. Slim chance? Yes. Miracle, No - don't believe in them - I leave that to others. We need to get to the end of the season - that is all that we need funds for. Next season would be very different - cut the outgoings to match the income. OK it may mean a bottom 4 finish but I'm pretty sure that with the income that we continue to generate through the gates we could survive in NL/NLN and then attract the right suitor. Unfortunately , like you, I see the chance of cash through to the summer as a slim chance and therefore WSH hold all the cards. They may be great for us - and I think that we have to hope that is the case.
Your point about the timing of the 90% approach is an interesting one. I've been of the opinion that, as it is quite creative, the board has only recently had its eyes opened to it. It could be though, because this approach lends itself to legal challenge, that they have sat on this card until the last possible moment and only played it when it could be offered as a last resort with no other options. |
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Reply | TFC respond to WSH exclusivity
at 10:21 15 Mar 2024
The club is not technically insolvent. As far as I'm aware the total assets are still greater than the total debt. One of the big issues here is an issue of the National League's own making. In refusing to allow the main asset to be used to secure finance, NL has placed the club in a position where cash flow has dried up.Liquidation as a term is being used at its most extreme. It is the quick end but it isn't the only path. Although technically not insolvent, the club is facing severe financial stress and likely finding it difficult (or soon impossible) to pay its bills and is almost certainly exploring avenues that any insolvent business would also do. It starts with restructuring debt and the repayment thereof.
There are big things worry me though. I was unaware that significant debt was still owed to RMBC - this is very important as RMBC would be a first port of call for a secured loan. SG is clearly a huge creditor - we have no idea of the terms of his loan. More importantly he would have to accept restructuring in order for the club to continue. Would NL make exception to its rule regarding lending against the major asset? I hope that it would see sense here. All of this only buys time. Any loan that could be secured would have to be for both working capital and debt repayment. It is not a long term answer.A buyer is required.
Administration has immediate consequences regarding football status - a drop down the leagues - but it does allow for a restructuring of debt, an immediate reduction in costs and various other stringent measures. It is not an answer by any means. The way forwards, should an immediate buyer not be found is to recognise that liquidation is staring us in the face, but to act as our own administrators and find a working solution without officially declaring that we are under administration (without calling in an administrator). The board must be aware of this but as usual its approach to communication is palpable.Prior to the EGM The shareholders would have been better informed had they been shown a (maybe limited) set of working accounts to cover July 2023 to February 20234 - but instead we got rhetoric only eight weeks out from an AGM.
All interested parties should be allowed to have time to have their planned properly vetted. We need a way of funding the clubs financial activities though ought this period. The board's focus should have both of these points in mind and not be rushing one bidder through because of the risk of the money running out. |
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Reply | The Football Club LLC - Plans for Rochdale
at 19:39 14 Mar 2024
My take on the TFC offer to convert shares is that it allows cash to be transferred into the club. TFC buy shares, put the cash to the club, and then transfer 10% of the shares that they have purchased to SG. SG has indicated that he is prepared to take(at least a partial) equity stake to recover the debt (loan). This is a risk for SG as equity could be wiped out - but it also works both ways as if the club was to promoted (for example) the share value would rise and he would be free to sell at a profit. There are possible other reasons - one being that his 10% enables him to remain on the board. Who really knows what is going on in the background? I actually think that offering to take the loan repayment is a good thing. I'm less enamoured about his retention of 10% equity allowing him to remain chairman but overall it is better that the club retains the cash rather than a rapid repayment of a substantial loan. |
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Reply | Dale Trust Meeting With WSH LLC
at 13:09 14 Mar 2024
Because that is exactly what they did at Maastricht - with man obvious long term plan of taking 90+%.If it works there then why shouldn't it work here.
To be clear -I'm talking about a smaller stake as part of a longer term plan. I'm very concerned that if no actor puts cash in very soon then there will be nothing to take a stake in.
Yes, it's a business risk - but it's a small stake at a rock bottom share price - a share price that is obviouslty attracting attention. |
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Reply | Dale Trust Meeting With WSH LLC
at 12:22 14 Mar 2024
Reading the Trust Statement and seeing how WHS are operating at Maastricht then one potential way forwards is for them to take a medium sized stake (24%?) today. This would get the funds in place to keep the club functioning whilst they then put together the remaining part of the deal. I suspect that this might be how they entered Maastricht in the first place. The statement raises many questions - and most may well have answers, but we have been told very clearly that time is not on our side. Taking a smaller stake now would be a massive gesture and commitment - which I think is what we need at this point in time. |
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Reply | TFC respond to WSH exclusivity
at 21:05 13 Mar 2024
Maybe it's because it hasn't taken a couple of years to find a buyer - it's taken a couple of years to come up with the 'How to buy 90% of a business for £2m plan'. |
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Reply | TFC respond to WSH exclusivity
at 22:42 12 Mar 2024
If shareholders were misled then this is a very serious matter. "Seemingly" allows RAFC to clarify this. I am very concerned that a move towards a further EGM will result in the cash well drying up - and fast. This would finish the club - no ifs or buts - liquidation ends the club. I am also very concerned that there could be doubts that not all available information was on the table last week and this needs closing out. A communication from the club is necessary - and soon. |
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Reply | Exclusive period with WSH
at 14:49 12 Mar 2024
I took your recommendation to be based on the trading situation and not the bidder - and at the time the only talk was of Liquidation. Did you mean to say 'Administration' or did you mean 'Liquidation'? I suspect the latter, as SG never mentioned Administration until the EGM result had been called. |
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Reply | Salford looking for investment......
at 14:44 11 Mar 2024
I'd also done the same research, as I knew that it had changed hands a few times but was unsure of who the current owners were. To me, the problem is the remediation of the rest of the site - and it's huge -but I do think that it is possible and yes, I do think that it is a project made for the levelling up initiative. If I was building a bid for RAFC it would be one of the options that I'd be working with. As soon as I saw the background of Mr Corrado I thought of the T&N site. In fact, if you look at the background of the Texan then his previous company builds out of town sports and hubs were social gatherings take place (I was thinking M62 corridor then though - which I feel is too far from the spiritual home). It wouldn't be cheap (but it could also be a long term payback project), it would have to be sensitive development and it would have to include plans of how to deal with the halo of currently contaminated land that would surround the stadium - but could it be worked up to secure investment? Yes, I think so. |
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Reply | Salford looking for investment......
at 12:09 11 Mar 2024
I agree with you regarding the drip-feed at the lower levels. I do think that gambling money could be better allocated too. Attracting people back through the gates - in meaningful numbers - is what brings sustainability. In my view the stadium has to become a social hub and maybe a new approach from American owners will include this.
I suspect that remediation of the T&N Site could be a very costly business. Close to 100 acres + the surrounding foliage is a big area and probably only recoverable by the building and sale of upwards of a 1000 dwellings. I do suspect though that the T&N site has not gone un-noticed by the second of the interested parties. If the T&N site could be cost effectively remediated then a relocation of Spotland could well be on the horizon and it may well be why the Golden Share offer specifically ignores the safeguards on the stadium. To do this is a big money project though - no doubt about it. |
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Reply | Another Interested Party..
at 20:09 9 Mar 2024
A true "Golden Share", as defined in Recommendation 28 of the Fan-Led Revue for Football Governance does place safeguards on the stadium. Safeguards on the ground form the first two points of the definition. Club badge, 1st Team Home Colours and Name are also in there - as is a further provision regarding competitions other that FIFA, UWFA, FA designated ones.
An interested party should not be going public with "Golden Share" without qualifying that it is "Golden Share as defined by the Fan-Led Review". Anything other than this is misleading. It's not that there is nothing to stop a new owner from engaging with fans regarding a new home - it's more that the Golden Share should make it mandatory that the Group holding the Golden Share are fully agreed with the changes - otherwise the veto can be employed.
It is an important clarification and one for The Trust to raise. Given the background of Mr Corrado I would find it difficult to believe that the Stadium is on the long term agenda. I'm not against a spanky new stadium - but it should be one that fans are in agreement with. |
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Reply | Another Interested Party..
at 10:53 8 Mar 2024
It will be in the Articles of Association - but I can't find my copy. I think that this issue has come up recently in that any change to the Ordinary share price of £2.35 has to be voted on. The reason for the A Share is primarily because the board needed to create a number of share to give 90% ownership at amp attractive price. This required a nominal value below the nominal value of the Ordinary Share - which is fixed. The Ordinary Share has a minimum of £0.50 but the A Share of £0.22. What I'm not sure about is whether the A Share price requires a vote. This is not specifically covered in the new Resolutions but the original Articles may just refer to 'Shares' and not 'Ordinary Shares'. At some point I will find a copy of the original Articles (in fact, as a Shareholder, I should soon be mailed a copy that incorporates the new Resolutions). |
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Reply | Another Interested Party..
at 10:42 8 Mar 2024
The 'Golden Share' bit is interesting for what it doesn't say:
"TFC looks forward to releasing more information on its strategy for the club on 14 March 2024. It includes a plan to return 5% of the club’s shares to the Dale Trust. They also plan to grant the Dale Trust a golden share, which would allow them to protect the name, colors, and badge of the club in perpetuity. "
The three nice bits are in there but no mention at all about the sale or relocation of club stadium - which is interesting as the stadium is covered right up front in Recommendation 28 of the Fan Led Review:
https://irp.cdn-website.com/f29b56ad/files/uploaded/FSA%27s%20Golden%20Share%20S |
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Reply | Another Interested Party..
at 10:21 8 Mar 2024
The nominal value of the "A" Share is £0.22 and the Resolution (2) voted on yesterday was for them to be allotted at no less than their nominal value. I'm pretty sure that it would take an EGM to change this value but it could be done. |
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Site Scores| Forum Votes: | 14 | | Comment Votes: | 0 | | Prediction League: | 0 | | TOTAL: | 14 |
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