The club is on the doorstep of London, it’s in a deprived part of Kent and has a history of supporter apathy. GFC isn’t an attractive proposition for an investor.
The SOB want Scally to exit the club but they haven’t got a clue how that would be achieved. Their stupid 10 man protests are pointless and counter-productive. They need to stop contributing to the problem and come up with real roadmap if they want to achieve their goal.
One potentially feasible solution is leveraged finance. I wondered what the opinions on here would be about it.
I’m not an expert in leveraged finance but in layman’s terms, it involves borrowing a shit load of money from a bank to buy Scally out. Profits are used to service the debt and pay off some of the principal.
Let’s talk numbers (based on last published accounts)...
The balance sheet shows approx £1m of net assets. Suppose PS was happy to sell his shares for £1m. On top of that, Three Directors Ltd is owed £2m which would need to be repaid. So £3m would need to be raised to complete the transaction.
£600k (20%) might be raised from sale of shares to fans. That equate to 600 fans forking our £1k on average.
£2.4m (80%) would be raised by a loan secured against the club’s assets.
It might cost £120k per year in interest payments to the bank each year (btw - the club is paying £60k interest today in interest to Three Directors Ltd).
I’m sure that overhead costs could be cut further, marketing could be improved to bolster the top line (and of course thousands of fans would return because they’re all staying away because of PS’s ownership... ...ahem bullshit!). Probably need to cut back on squad budget.
What we’d end up with is:
- genuinely fan owned club
- no cash to invest in the squad
- a new CEO
- a load of debt and be at the mercy of the banks
Just waiting for Tarian to rip this to shreds :-)
The SOB want Scally to exit the club but they haven’t got a clue how that would be achieved. Their stupid 10 man protests are pointless and counter-productive. They need to stop contributing to the problem and come up with real roadmap if they want to achieve their goal.
One potentially feasible solution is leveraged finance. I wondered what the opinions on here would be about it.
I’m not an expert in leveraged finance but in layman’s terms, it involves borrowing a shit load of money from a bank to buy Scally out. Profits are used to service the debt and pay off some of the principal.
Let’s talk numbers (based on last published accounts)...
The balance sheet shows approx £1m of net assets. Suppose PS was happy to sell his shares for £1m. On top of that, Three Directors Ltd is owed £2m which would need to be repaid. So £3m would need to be raised to complete the transaction.
£600k (20%) might be raised from sale of shares to fans. That equate to 600 fans forking our £1k on average.
£2.4m (80%) would be raised by a loan secured against the club’s assets.
It might cost £120k per year in interest payments to the bank each year (btw - the club is paying £60k interest today in interest to Three Directors Ltd).
I’m sure that overhead costs could be cut further, marketing could be improved to bolster the top line (and of course thousands of fans would return because they’re all staying away because of PS’s ownership... ...ahem bullshit!). Probably need to cut back on squad budget.
What we’d end up with is:
- genuinely fan owned club
- no cash to invest in the squad
- a new CEO
- a load of debt and be at the mercy of the banks
Just waiting for Tarian to rip this to shreds :-)