The Serious Torquay Thread

[Martin Lawrence]

Anyone know what sort of bunce you'd need to buy into them? And what their level of debt is? Best thing this year would be a CVA, lose 10 points but clear the debt before starting again next year? If it drags on and they lose the 10 points next year, you've wasted a season of the recovery

Debt approaching £5 million though most of that is owed to the current owner. The problem with TUFC isn't the upfront cost of buying them, it is the ongoing financial drain of keeping them going. Anyone coming in, is highly unlikely to be able to fund them on a full time basis at Conf South level.

 

[Rosencrantz]

Debt approaching £5 million though most of that is owed to the current owner. The problem with TUFC isn't the upfront cost of buying them, it is the ongoing financial drain of keeping them going. Anyone coming in, is highly unlikely to be able to fund them on a full time basis at Conf South level.

Indeed, losses of over £1.1 million last season. Losing somewhere in the region of 23k per week.

 

[Martin Lawrence]

Indeed, losses of over £1.1 million last season. Losing somewhere in the region of 23k per week.

Its astonishing and quite frankly, madness isn't it.

 

[Nigel E]

Anyone know what sort of bunce you'd need to buy into them? And what their level of debt is? Best thing this year would be a CVA, lose 10 points but clear the debt before starting again next year? If it drags on and they lose the 10 points next year, you've wasted a season of the recovery

There's a timelag between the published accounts and the current state of play. As at end June 2022, the football club had long-term debts of just over £6 million. About £4.2 million of that was owed to the owner Clarke Osborne (via his company Riviera Stadium), which was unsecured.

Even if Osborne is prepared to lose most of his money, I do wonder whether the biggest issue is the identity of the other creditors and how amenable they are. In particular, the bank was owed over £600K and you might think that they would play hardball, and would need serious convincing as to the credibility of new owners. You might expect their loan to be secured against the club's assets which comprise the stands, buildings and other machinery that are required to run a football club. If the accounts are to be believed a fire sale of those assets (allegedly worth £2.2M in 2022 after depreciation) would be enough to pay off the bank's loan, and leave a fair bit of money for the other creditors.

Some of this is guesswork, re the status of the bank's loan and their attitude to it, but I don't think that agreeing a CVA would necessarily be a walk in the park.

 

[Boyo]

If the accounts are to be believed a fire sale of those assets (allegedly worth £2.2M in 2022 after depreciation) would be enough to pay off the bank's loan, and leave a fair bit of money for the other creditors.

Those assets may be worth that on paper, but in reality if it's largely based on stands and buildings, then they'd be lucky to get a fraction of that, particularly given the cost of dismantling and the reconstruction elsewhere would be high.

 

[Rosencrantz]

Indeed, losses of over £1.1 million last season. Losing somewhere in the region of 23k per week.

There's a timelag between the published accounts and the current state of play. As at end June 2022, the football club had long-term debts of just over £6 million. About £4.2 million of that was owed to the owner Clarke Osborne (via his company Riviera Stadium), which was unsecured.

Even if Osborne is prepared to lose most of his money, I do wonder whether the biggest issue is the identity of the other creditors and how amenable they are. In particular, the bank was owed over £600K and you might think that they would play hardball, and would need serious convincing as to the credibility of new owners. You might expect their loan to be secured against the club's assets which comprise the stands, buildings and other machinery that are required to run a football club. If the accounts are to be believed a fire sale of those assets (allegedly worth £2.2M in 2022 after depreciation) would be enough to pay off the bank's loan, and leave a fair bit of money for the other creditors.

Some of this is guesswork, re the status of the bank's loan and their attitude to it, but I don't think that agreeing a CVA would necessarily be a walk in the park.

Yes, I put last season incorrectly. Those accounts were announced last season for the accounting period upto the end of the 21/22 season. I doubt the 2023 season or this season's accounts will make for good reading though.

 

[Mid Devon Grecian]

I would suggest that anyone who buys the club before administration woul fail the fit and proper test.

On the other hand it’s not a particularly high bar to reach to pass the test.

 

[DB9]

I would suggest that anyone who buys the club before administration woul fail the fit and proper test.

You can suggest it, but don't make it true, You've no evidence that any party willing to buy the club would fail a fit and proper test.

 

[cannockred]

You can suggest it, but don't make it true, You've no evidence that any party willing to buy the club would fail a fit and proper test.

True, but anyone who pays over the odds when they can buy it out of administration without being saddled with Osborne's debt cant be full shilling

 

[DB9]

True, but anyone who pays over the odds when they can buy it out of administration without being saddled with Osborne's debt cant be full shilling

I'll agree it would be madness but stranger things happen, Osborne would certainly be hoping someone would. I'm hoping the TUST would be more aloof from any bidders and look into any carefully before nailing their colours to one particular one. Since they've no intention of buying it themselves, Don't get swayed by someone with promises of "Riches & Success" until you're absolutely sure.