FC United Thread

Tueartsoverhead kick said:
The club itself can be and now is profitable. We are forecast to make a very small operational profit this year which is quite a turnaround from the loss we made last year and the loss we would have made the year before without over £100,000 of unbudgeted income from the FA Cup run. Were it not for the ground debt we would be in a nice position.

The problem lies with near £3 million of ground debt.

The board has control over £2.1 million of this as Community Shares can only begin to be repaid when the club's funds allow. CS holders must be prepared to face that this will not be in the near future but the generous tax rebate in the CS scheme had much to do with the risk involved in such an investment. I include myself in the CS holder category by the way so this affects me as well.

The debt will be paid off over at least a decade and during that time unfortunately we can not anticipate a large football playing budget and supporters will still be asked to fund the DF.

The difficulty lies in the 2 large payment spikes in 2019 and 2023. Next year we have £325,000 of Loan stock falling to be repaid. There is no control over this and any loan stock holder who wishes to be repaid must be. If all loan stock holders ask for their money back this will be a considerable challenge and in all likelihood the club will need to seek to refinance to meet that obligation. The difficulty of course is that we can offer no security on any finance arrangement. The CEO met with our accountants yesterday to discuss our favoured options. Following that meeting all loan stock holders will be contacted by Damian next week for an initial discussion about the situation and their views on whether deferring the repayment may be an option for them. Remember that the annual interest on the loan stock (which not all LS holders asked for but is an option for all) is higher than you would get in a bank so there is the opportunity to defer and not suffer financial consequences. Others may be amenable to a repayment plan which spreads our burden over a period of time. The loan stock holders will be invited in for a more in-depth meeting if they wish to entertain discussing options. We have in the region of 20 LS holders btw.

The next spike is the £500,000 we are due to repay MCC in 2023. Remember they too receive a generous rate of annual interest on this loan. Once we have sorted out the LS position we can begin to turn our attention to that repayment.

I would therefore strongly refute we have a stadium we can't afford. We built a stadium which hugely exceeded our budget without a realistic plan to repay the that debt but the stadium is already profitable and this will increase year on as we better develop and market the facilities and increase the commercial parts of the club. The challenge is to find a way of dealing with the 2 payment spikes which satisfy all parties.

Of course, whilst we can't plan for it, a cup run like we had 2 seasons ago would make a huge difference especially now that the FA are doubling the prize money at all levels of the competition as of next season. And for the record I would not have boycotted the first half of the Chesterfield match if the financial situation had been explained to me at the time.

If you are a member you now get the full management accounts every month in the members docs area so you can read all the fine details for yourself.
Click to expand...

Seems like they could be taking the same road that Uncle Malcolm and his gang took, the road that was so despised by the 'Rebels' back in the day. They will be borrowing off Peter to pay Paul. Will be interesting to see the MCC's response in 5 years when that 500,000K of taxpayers money is due to be repaid.....
 
Other than to humiliate and expose the wrongdoings of the " supporters and committee " of this particularly unsavoury " team " , I have never been able to see the point of this particular thread.

Why give oxygen to them , they are surely just as big a set of hypocrites as the twats they supposedly distanced themselves from ?

It's bad enough having the original corrupt set of cnuts to contend with , without also having a
" Rags-lite " forum too.
 
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