Could ECFC be sold?

[Poultice]

Not that I think it would happen but does this mean that the board of Exeter City FC could do the same over the heads of the majority shareholders (and owners?)

Of course it does, but first they would have to create the right conditions.

The Liverpool situation has been created because of the level of debt involved and the inability of the majority shareholders to re-finance it, Hicks and Gillette signed away many of their rights in order to gain time which they believed would allow Broughton to get a price that allowed them to nick a few quid, they were wrong.

This is why I am always concerned when it looks as though the club is taking on liabilities which may not be affordable, that is the only way we could lose control beyond an outbreak of utter madness among the Trust membership.

 

[ralph]

This is why I am always concerned when it looks as though the club is taking on liabilities which may not be affordable, that is the only way we could lose control beyond an outbreak of utter madness among the Trust membership.

That's what rang the alarm bells for me when the Strategic Plan talks about exploring the possibilities of borrowing.

 

[andrew p long]

It would appear that the board pf Liverpool FC are able to sell the club over the heads and against the wishes of the majority shareholders (and owners) of the club, with the independant Chairman apparently doing the deal.

Not that I think it would happen but does this mean that the board of Exeter City FC could do the same over the heads of the majority shareholders (and owners?), i.e. the Trust? From the Liverpool example it would appear that all it would require is a majority vote by the board.

Erm... no.

The position here is that the majority shareholders (Hicks and Gillett) made agreements with their lender RBS , who were owed a few hundred million quid.As they couldn't repay RBS Hicks and Gillett entered into agreements a few months back which said that they either had to repay in full by today or acquiesce in a sale sorted out by the independent chair.

So the principles being applied at Liverpool are not of general application.

 

[Grecian1987]

Am I right in thinking that the Trust have about a 40% stake in the club? I would have thought that it would need a majority ruling to sell the club (no idea what the majority percentage would be). Therefore the Trust as an organisation would have a vote, but not us as individuals (unless we vote on what the Trust's vote would be).

Although aren't many shares unaccounted for? Therefore making it difficult for any majority ruling without the Trust's backing.

I am probably talking out of my arse.

 

[Poultice]

I am probably talking out of my arse.

Yep !

The Trust is the majority shareholder.

 

[Grecian1987]

Yep !

The Trust is the majority shareholder.

See, I was right...

How much as a percentage?

 

[Grecian1966]

See, I was right...

How much as a percentage?

62% i think?

 

[Pete Martin (CTID)]

62% i think?

In 2006 it was 65%. I think it may possibly have risen to 67% since then.

I believe that 75% is required for full control.

 

[LOG]

It says 53.6% on the Trust accounts, although this is a best estimate.

Always thought it was quite a bit more than that.

I've probably read it wrong.

 

[Pete Martin (CTID)]

It says 53.6% on the Trust accounts, although this is a best estimate.

Always thought it was quite a bit more than that.

I've probably read it wrong.

If that's the case, then we've gone backwards big time!

This was extracted from a report on a presentation on V10 made at the SJC in January 2006;

As well as all of this, there is an intention to effect a share issue that would raise (a quoted figure) of between £800,000 and £1.2 million. The share issue would also effectively raise the shareholding of the Trust from the current 65%, over the 75% watershed - where it would have full control - and on to 92% ownership of the club. This will strengthen the Trust position and ward off potential take over bids from outside parties. *We were told that, at the present time, the Club is in serious danger of being unable to defend a takeover bid with the likely price for consideration making such an offer an attractive proposition for a serious investor

*And, of course, we were still in the Conference back then....