Trust loan repaid

[Hants_red]

Was execting this to happen, as that loan would help inhibit any takeover. I wonder what the Trust will do with the money

📝 Repayment of Supporters' Trust loan

The long-term financial loan provided to Exeter City Football Club by the Supporters’ Trust has been repaid.

www.exetercityfc.co.uk

 

[RedPaul]

Was execting this to happen, as that loan would help inhibit any takeover. I wonder what the Trust will do with the money

📝 Repayment of Supporters' Trust loan

The long-term financial loan provided to Exeter City Football Club by the Supporters’ Trust has been repaid.

www.exetercityfc.co.uk

Shall we pay for a new pitch?!

 

[Matt Phillips]

Might be in the minority here, but I'm not a fan of this in the slightest.

The major benefit of keeping the loan was:
1) non credible investors would be put off
2) credible investors would have to prove their financial commitment
3) if it goes wrong, the Trust then have a significant amount of cash to either support, bail-out, or ultimately, restart, the football club.

The Trust should either keep the cash tucked away someone, or invest into a physical asset, which could be resold (i.e. Centre Spot) in case of the worst case scenario.

 

[paperclip]

"A spokesman"? FFS, this isn't Parliament! Not actually naming who gave the quote in the article just suggests to me that it was pre-prepared or even made up.

Surely it wouldn't be too hard to actually attribute the quote to an actual person, would it?

 

[RedPaul]

Might be in the minority here, but I'm not a fan of this in the slightest.

The major benefit of keeping the loan was:
1) non credible investors would be put off
2) credible investors would have to prove their financial commitment
3) if it goes wrong, the Trust then have a significant amount of cash to either support, bail-out, or ultimately, restart, the football club.

The Trust should either keep the cash tucked away someone, or invest into a physical asset, which could be resold (i.e. Centre Spot) in case of the worst case scenario.

The Trust is still the majority shareholder though isn't it so would have an effective veto on any 'takeover'?

Maybe one of the many contributors well versed in Trust and Club Governance can clarify?!

 

[Matt Phillips]

The Trust is still the majority shareholder though isn't it so would have an effective veto on any 'takeover'?

Maybe one of the many contributors well versed in Trust and Club Governance can clarify?!

Agreed, and you'd hope that the chances of an unscrupulous owner getting through a takeover attempt would be slim. But... people get sold a dream, and getting a majority to approve at an AGM/EGM might not be the the most challenging. If that dream were to burst, the Trust would be left to pick up the pieces, and having the financial resources to do that swiftly, rather than scrambling for cash and going through a CVA (again) would be crucial. The loan gave us the opportunity to do that. If the Trust opt to spend the cash now, it should be focused on ensuring some form of ongoing long term protection.

 

[Super Ronnie Jepson]

The Trust should either keep the cash tucked away someone, or invest into a physical asset, which could be resold (i.e. Centre Spot) in case of the worst case scenario.

How much would it cost to purchase SJP from the council?

 

[i8cornwall]

How much would it cost to purchase SJP from the council?

Probably more then the loan, though buying SJP would be useful but only if the trust was wanting to sell the club to a private investor or bring a “junior partner” in to invest money into the club.

 

[Nigel E]

Presumably the Club is due to make significant profits in the current financial year owing to the receipt of Watkins/Chrisene transfer money. Does repaying this loan effectively reduce the profits by £830K, and therefore reduce the Club's corporation tax bill by about £160K?

 

[fred binneys head]

Does repaying this loan effectively reduce the profits by £830K, and therefore reduce the Club's corporation tax bill by about £160K?

No it doesn't.