FC United Thread

[Mostonisblue]

It will be revealing if the council have put a freeze on the loan repayments as at a time of council's struggling for money what would make this rabble exempt from paying their debts!!

Spoiler alert, It won’t be revealing, it’s definitely happened for the last two years. The original loan was due but they had absolutely no method to repay any of it, so they’ve been in discussions about restructuring the debt for the last two years as it was completely unmanageable.

The last loan of £150k was set at an interest rate of circa 14% as the council had to lend to them at a rate that recognised their difficulties and the risk involved. Whilst negotiations have continued for two years payments have been on hold although the interest has been adding. They paid off nothing previously as they made a loss. They anticipated making repayments In the past year as they forecast £100k profit but the finalised accounts show they made £500 profit instead (That’s hailed as a good result) As well as interest payments they should have also been paying £50k a year into the 3G replacement fund as much of their business plan revolves around renting that out & was a condition of the grant in 2016. They have currently paid zero into that. Their finances are an a absolute mess and the council should never have ploughed our money into them.

The bucket shaking “fund the foundations” campaign raised a credible £24k in a year, but that’s a mere drop in the ocean with their debts. They’re repaying that money to their big issue loan and the council will see none of it as they view them as a low priority/a pushover. The council are looking at an self calculated figure of the community value the mini rags bring to Moston with a view to using that to justify offsetting the loan

They have just launched a new bucket shaking initiative yet again to boost the managers budget hoping to raise £15k. That’s an absolute disgrace if they can afford an extra £15k on shit players then the council should insist that sort of money is repaid to them instead

 

[manimanc]

Thought It might have read they'd gone bump.
Disappointed.

 

[Mostonisblue]

If anyone else is interested in asking the council questions here’s an interesting list of demands from the council as they were worried about getting their money back as early as November 21.

Maybe worth once we’ve heard about the massive outstanding debt ask the council why despite these demands that are nearly 3 years old & no loan repayments made since then why do Fc United currently only have 6 directors? Why were Manchester premier services never appointed to make up for the poor level of administration? & why a council representative was never co-opted onto their board to try and safeguard or prioritise getting out money back?

 

[Blue Mist]

Spoiler alert, It won’t be revealing, it’s definitely happened for the last two years. The original loan was due but they had absolutely no method to repay any of it, so they’ve been in discussions about restructuring the debt for the last two years as it was completely unmanageable.

The last loan of £150k was set at an interest rate of circa 14% as the council had to lend to them at a rate that recognised their difficulties and the risk involved. Whilst negotiations have continued for two years payments have been on hold although the interest has been adding. They paid off nothing previously as they made a loss. They anticipated making repayments In the past year as they forecast £100k profit but the finalised accounts show they made £500 profit instead (That’s hailed as a good result) As well as interest payments they should have also been paying £50k a year into the 3G replacement fund as much of their business plan revolves around renting that out & was a condition of the grant in 2016. They have currently paid zero into that. Their finances are an a absolute mess and the council should never have ploughed our money into them.

The bucket shaking “fund the foundations” campaign raised a credible £24k in a year, but that’s a mere drop in the ocean with their debts. They’re repaying that money to their big issue loan and the council will see none of it as they view them as a low priority/a pushover. The council are looking at an self calculated figure of the community value the mini rags bring to Moston with a view to using that to justify offsetting the loan

They have just launched a new bucket shaking initiative yet again to boost the managers budget hoping to raise £15k. That’s an absolute disgrace if they can afford an extra £15k on shit players then the council should insist that sort of money is repaid to them instead

I know nothing about financial business loans but common sense says that you have to continue to repay part of the money whilst you renegotiate. You are saying the council have agreed to no payments at all for a 2 year period !
That ticks every box in the 'That's a fucking disgrace' category.
Further, anyone can 'project' a 100k profit, did the council not see any business plans to show how this would be achieved ? Whoever on the council that agreed those projections looks a right idiot now, 100k to £500, even the real rags couldn't do that.

 

[Brooklands Blue]

Spoiler alert, It won’t be revealing, it’s definitely happened for the last two years. The original loan was due but they had absolutely no method to repay any of it, so they’ve been in discussions about restructuring the debt for the last two years as it was completely unmanageable.

The last loan of £150k was set at an interest rate of circa 14% as the council had to lend to them at a rate that recognised their difficulties and the risk involved. Whilst negotiations have continued for two years payments have been on hold although the interest has been adding. They paid off nothing previously as they made a loss. They anticipated making repayments In the past year as they forecast £100k profit but the finalised accounts show they made £500 profit instead (That’s hailed as a good result) As well as interest payments they should have also been paying £50k a year into the 3G replacement fund as much of their business plan revolves around renting that out & was a condition of the grant in 2016. They have currently paid zero into that. Their finances are an a absolute mess and the council should never have ploughed our money into them.

The bucket shaking “fund the foundations” campaign raised a credible £24k in a year, but that’s a mere drop in the ocean with their debts. They’re repaying that money to their big issue loan and the council will see none of it as they view them as a low priority/a pushover. The council are looking at an self calculated figure of the community value the mini rags bring to Moston with a view to using that to justify offsetting the loan

They have just launched a new bucket shaking initiative yet again to boost the managers budget hoping to raise £15k. That’s an absolute disgrace if they can afford an extra £15k on shit players then the council should insist that sort of money is repaid to them instead

Thanks for the further information mate. Surely the council could have placed a debenture or charge over the stadium so when and not if it all goes belly up they have a fixed asset to recover the debts. Granted what the council would then do with pallet park is a good question. Worse case would be to knock the stadium down and sell the land for housing could recover the outstanding debts.

 

[Mostonisblue]

I know nothing about financial business loans but common sense says that you have to continue to repay part of the money whilst you renegotiate. You are saying the council have agreed to no payments at all for a 2 year period !
That ticks every box in the 'That's a fucking disgrace' category.
Further, anyone can 'project' a 100k profit, did the council not see any business plans to show how this would be achieved ? Whoever on the council that agreed those projections looks a right idiot now, 100k to £500, even the real rags couldn't do that.

They launched a five year business plan called the vision, it was an absolute pipe dream. It assumed & budgeted for promotion from their league at the end of the third year, which should have been the end of this season, they’ve delayed that one year yet they’re clearly a long way from that. They have constantly projected large profits & haven’t made any.

They said their academy partner was no good & they needed to take their academy/cashcow in-house so expanded their academy facilities at a budgeted cost of £50k (then overspent up to almost £70k) they then appointed their first team manager (a headteacher elsewhere) at great expense to the full time role of academy principal & projected 120 students. They were that confident of smashing that target that the principal and “education expert” said they needed to halt recruitment in august & hold out for a higher calibre player…they then panicked in September when they realised only 45% of the students they budgeted for turned up, the principal/first team manager jumped before he was pushed from the academy role.

Since then they made a big deal of launching a girls academy & were surprised when only 1 signed up. The vision is updated every year & approved by the members, it’s a work of fiction. The council should be more insistent & start by actually holding them to the demands they made nearly 3 years ago

 

[Mostonisblue]

Thanks for the further information mate. Surely the council could have placed a debenture or charge over the stadium so when and not if it all goes belly up they have a fixed asset to recover the debts. Granted what the council would then do with pallet park is a good question. Worse case would be to knock the stadium down and sell the land for housing could recover the outstanding debts.

The council do have the first charge on the ground. It would not be able to be sold off for housing due to covenants & restrictions on the ground and the associated Ronald Johnson playing fields.

What value to the council is the white elephant of a 4,000 capacity football ground in Moston?

 

[Mad Eyed Screamer]

It will be revealing if the council have put a freeze on the loan repayments as at a time of council's struggling for money what would make this rabble exempt from paying their debts!!

The fact they haven't got any money to repay the loans?

 

[Mad Eyed Screamer]

The council do have the first charge on the ground. It would not be able to be sold off for housing due to covenants & restrictions on the ground and the associated Ronald Johnson playing fields.

What value to the council is the white elephant of a 4,000 capacity football ground in Moston?

This is true. Despite overturning the initial covenant on the land from open playing fields for everyone, to an enclosed stadium for a handful of blokes with a mid life crises, unbelievably the splitters had it in their constitution (or whatever it is called) that should they club go belly up, the land can only be used for sporting purposes.
How they fuck they are able to dictate to local people what can happen to the land should they go bust is beyond me.

 

[Mad Eyed Screamer]

Spoiler alert, It won’t be revealing, it’s definitely happened for the last two years. The original loan was due but they had absolutely no method to repay any of it, so they’ve been in discussions about restructuring the debt for the last two years as it was completely unmanageable.

The last loan of £150k was set at an interest rate of circa 14% as the council had to lend to them at a rate that recognised their difficulties and the risk involved. Whilst negotiations have continued for two years payments have been on hold although the interest has been adding. They paid off nothing previously as they made a loss. They anticipated making repayments In the past year as they forecast £100k profit but the finalised accounts show they made £500 profit instead (That’s hailed as a good result) As well as interest payments they should have also been paying £50k a year into the 3G replacement fund as much of their business plan revolves around renting that out & was a condition of the grant in 2016. They have currently paid zero into that. Their finances are an a absolute mess and the council should never have ploughed our money into them.

The bucket shaking “fund the foundations” campaign raised a credible £24k in a year, but that’s a mere drop in the ocean with their debts. They’re repaying that money to their big issue loan and the council will see none of it as they view them as a low priority/a pushover. The council are looking at an self calculated figure of the community value the mini rags bring to Moston with a view to using that to justify offsetting the loan

They have just launched a new bucket shaking initiative yet again to boost the managers budget hoping to raise £15k. That’s an absolute disgrace if they can afford an extra £15k on shit players then the council should insist that sort of money is repaid to them instead

To my knowledge they haven't made a profit in any season since they started - so where the fuck did that £100K profit forecast come from and how did the council fall for it?

As someone said a few pages back, that £500 profit was down to Bury loaning the stadium (biggest crowd of the season lol) and also screening the FA Cup final on at Pallet Park for rags to watch it.
The whole set up is a shambles