OTR Ltd - Trust Vote

[AndrewP]

Makes total sense.
Also, gives us a buidling and freehold of a peice if land ajoining land we lease off the council (ie the rest of the ground)…..so a little bit more leverage than we would of had for the future of the park.

 

[SaintJames]

I can see no downsides on this issue and Trust ownership of club assets seems entirely in keeping with the aims and objectives of the Supporter's Trust. I'm going to assume the Trust has looked into whether it's constitution allows for the holding of Capital assets which you would imagine is in there but always best to know before huge legal costs are incurred. It also enables, should finances allow at some stage for the footprint of the Doble stand, St. James Centre and Stadium Way concourse to be fully utilised in redevelopment of the existing area for an upgraded 'New' Doble stand, club offices and hospitality area. This could be essential if we are to grow capacity at SJP when we hit the Championship under Gary.

The only other issue which perhaps an accountancy bod on here could answer is whether there are any ongoing contingent tax issues that the Trust would incur as a result of taking on a capital asset worth I imagine one million plus

 

[ChrisWickens]

Makes total sense.
Also, gives us a buidling and freehold of a peice if land ajoining land we lease off the council (ie the rest of the ground)…..so a little bit more leverage than we would of had for the future of the park.

Agree wholeheartedly with this but I cannot see in the email any mention of the Freehold. As OTR gave a lease to the Cluc I assume they are the freeholder.

 

[Colesman Ballz]

Agree wholeheartedly with this but I cannot see in the email any mention of the Freehold. As OTR gave a lease to the Cluc I assume they are the freeholder.

Another issue will be ownership. Iirc OTR consisted of 8 investors, and some of those holdings have already changed hands including some purchased already by the Club. Hopefully the unra ellinb of all this can be explained in detail on the 16th.

 

[Snakebite]

Does this begin to make the club more attractive for takeover if for the first time in 30 years it owns a tangible asset?

 

[SaintJames]

Does this begin to make the club more attractive for takeover if for the first time in 30 years it owns a tangible asset?

Not if the asset is owned by the Trust no

 

[Nigel E]

Does this begin to make the club more attractive for takeover if for the first time in 30 years it owns a tangible asset?

My reading of this is that it would be the Trust - not the club - who would control the ownership of the building. Either by owning the building itself, or the ownership of OTR Ltd transferring to the Trust.

I suppose you could actually read this as the Trust having greater leverage over the ownership/operation of the Club. I would assume that any potential new owner of the Club would not automatically own the building, but would have to negotiate with the Trust over the use/ownership of the building too.

Edit: I see St James just beat me to it!

 

[Snakebite]

Ahh Righto, I’d misread it as the club owning the building but the Trust loaning the club the money to buy it.

 

[rightwing]

In buying out OTR the Trust would also acquire the freehold of Red Square, much of Stadium Way and part of the land under the Doble Stand.

 

[grecian-near-hell]

I can see no downsides on this issue and Trust ownership of club assets seems entirely in keeping with the aims and objectives of the Supporter's Trust. I'm going to assume the Trust has looked into whether it's constitution allows for the holding of Capital assets which you would imagine is in there but always best to know before huge legal costs are incurred. It also enables, should finances allow at some stage for the footprint of the Doble stand, St. James Centre and Stadium Way concourse to be fully utilised in redevelopment of the existing area for an upgraded 'New' Doble stand, club offices and hospitality area. This could be essential if we are to grow capacity at SJP when we hit the Championship under Gary.

The only other issue which perhaps an accountancy bod on here could answer is whether there are any ongoing contingent tax issues that the Trust would incur as a result of taking on a capital asset worth I imagine one million plus

Isn't the trust buying the Company OTR Ltd from it's shareholders and therefore is in a similar position to it's share holding in Exeter City AFC LTD being the main shareholder of a company which owns an asset.