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| Quote ="Tarquin Fuego"The stalling is probably due to due dilligence unearthing the unviable business model.
Investor person has lost a bit of initial enthusiasm as their accountant took an involuntary gasp when he saw how the business model has been running and how debt will need to be serviced going forward. Of course Mr Hudgell and Crossland will rightly want to recoup some of their loans and in a brisk timeframe , naturally.
The Salary Cap just looks way to high at £1.5m and really it needs trimming to £1 million. However this is why the talks are stalling , £1m on wages. How can they chase success on £1m but how can they run the club on break even basis, without reducing the Cap by £500,000.
£500,000 is what the Club loses each year so common sense says reduce the wage bill as there are no other costs left to reduce. Neil has already cut to the bone remember.
BUT will gate revenue fall if it is a team of kids finishing 12th/13th ? maybe bottom ?
So for me that's why there is no announcement . The new investor would love a crack at it but with a clean slate and we all know what a clean slate involves for the current debt holders.
A catch 22 ? mexican stand off ?'"
Whether and the extent to which the debt stays on the books might be an issue, as that would be where the power or control would ultimately lay. That is what is important, rather than the cash itself, which is effectively gone.
that running a SL club as a viable business isn't feasible for most, we seem to have finally accepted. Investment is inevitably, to a large extent, really subsidy. Nobody will invest with a view to making money. Which might mean nobody invests. Or somebody might do it to pursue sporting success.
More likely, IMO, is that there's a deal to keep us ticking over but no announcement has been made yet either because:
A. It is only very early June, and they haven't quite got around to it or
B. they're still trying to secure an additional or alternative deal.
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| If , as you suggest , a deal is struck to keep you going , is that not a loan from the new investor ?
If it is a loan then unless the whole business model changes then they won't see it again. Is that what any normal fan of a club would do ? Invest knowing there is little chance of seeing a return of capital nor indeed a return on capital invested. Are there really any Sugar Daddy's left ?
I would imagine a new investor would also have to line up behind Allams as a creditor as well. Also if the SL moves to 12 teams in 2015 would Rovers really be 1 of the Clubs and thus what about income streams ?
A LOT to think on and hence delays in announcements
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| Quote ="Tarquin Fuego"If , as you suggest , a deal is struck to keep you going , is that not a loan from the new investor ?
If it is a loan then unless the whole business model changes then they won't see it again. Is that what any normal fan of a club would do ? Invest knowing there is little chance of seeing a return of capital nor indeed a return on capital invested. Are there really any Sugar Daddy's left ?
I would imagine a new investor would also have to line up behind Allams as a creditor as well. Also if the SL moves to 12 teams in 2015 would Rovers really be 1 of the Clubs and thus what about income streams ?
A LOT to think on and hence delays in announcements'"
Happily for RL there are a good number of sugar daddies around. McManus, Moran, Koukash, Hughes, Davy - none of them are in it to enrich themselves.
The rfl have said that the clubs that drop down a level will be the bottom 2 with no exemptions or protection. A bad season and it could be us - as it could be any 2 of about 8, realistically.
If we make the cut and SL holds onto all the money, we're a bit better off. Hopefully the north stand will turn a few quid. You never know quite how things are going to turn out - that's the gamble and excitement of it. We're a better bet than some, but it is very much a niche market.
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| For a rovers supporter,you dont arf talk a lot of common sense mild rover, , for what its worth as i have said many times we need 2 hull teams in sl,
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| Quote ="Tarquin Fuego"The stalling is probably due to due dilligence unearthing the unviable business model.
Investor person has lost a bit of initial enthusiasm as their accountant took an involuntary gasp when he saw how the business model has been running and how debt will need to be serviced going forward. Of course Mr Hudgell and Crossland will rightly want to recoup some of their loans and in a brisk timeframe , naturally.
The Salary Cap just looks way to high at £1.5m and really it needs trimming to £1 million. However this is why the talks are stalling , £1m on wages. How can they chase success on £1m but how can they run the club on break even basis, without reducing the Cap by £500,000.
£500,000 is what the Club loses each year so common sense says reduce the wage bill as there are no other costs left to reduce. Neil has already cut to the bone remember.
BUT will gate revenue fall if it is a team of kids finishing 12th/13th ? maybe bottom ?
So for me that's why there is no announcement . The new investor would love a crack at it but with a clean slate and we all know what a clean slate involves for the current debt holders.
A catch 22 ? mexican stand off ?'" You decided to stick with posting Rhubarb then.
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| Rhubarb? More like absolute horse poop.
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| Quote ="Tarquin Fuego"If , as you suggest , a deal is struck to keep you going , is that not a loan from the new investor ?
If it is a loan then unless the whole business model changes then they won't see it again. Is that what any normal fan of a club would do ? Invest knowing there is little chance of seeing a return of capital nor indeed a return on capital invested. Are there really any Sugar Daddy's left ?
I would imagine a new investor would also have to line up behind Allams as a creditor as well. Also if the SL moves to 12 teams in 2015 would Rovers really be 1 of the Clubs and thus what about income streams ?
A LOT to think on and hence delays in announcements'"
Have you let Adam Pearson know that he will never see his hard earned again? And he is not even a fan.
In his interview he said that he is not prepared to fund £500,000 loses.
Mind you if the 2,000 subscribe to the gambling website that he was asking the Hull fans to do the club will gain
£100,000. But probably lose 2,000 fans next year when they can no longer afford a season pass due to their
new gambling habit.
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| Quote ="The_Mighty_F90"Have you let Adam Pearson know that he will never see his hard earned again? And he is not even a fan.
In his interview he said that he is not prepared to fund £500,000 loses.
Mind you if the 2,000 subscribe to the gambling website that he was asking the Hull fans to do the club will gain
£100,000. But probably lose 2,000 fans next year when they can no longer afford a season pass due to their
new gambling habit.
'"
Hull board (if they'll have you! ), now please. Cheers.
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| Quote ="Mild Rover"Hull board (if they'll have you!
), now please. Cheers.'"
I thought the topic was investment and sugar daddys
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| Quote ="The_Mighty_F90"Have you let Adam Pearson know that he will never see his hard earned again? And he is not even a fan.
In his interview he said that he is not prepared to fund £500,000 loses.
Mind you if the 2,000 subscribe to the gambling website that he was asking the Hull fans to do the club will gain
£100,000. But probably lose 2,000 fans next year when they can no longer afford a season pass due to their
new gambling habit.
'"
HE did say we need 11-12,000 crowds to break even though
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| Quote ="Jake the Peg"HE did say we need 11-12,000 crowds to break even though'"
14,000 Didn't he. As for Investment Neil stated in his program notes that it will all be sorted this week. Hopefully that will be an end to all the uncertainty.
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| Quote ="Mild Rover"Hull board (if they'll have you!
), now please. Cheers.'"
I miss him being completely owned everytime he posts.
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| Quote ="Easty"14,000 Didn't he. As for Investment Neil stated in his program notes that it will all be sorted this week. Hopefully that will be an end to all the uncertainty.'"
Pretty sure he said 11-12k, certainly wasn't 14k
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| Quote ="Jake the Peg"Pretty sure he said 11-12k, certainly wasn't 14k'"
It was 14,500
However, with much more investment still needed, Pearson says the club must get back towards the peak of 2007 – when the club averaged more than 14,500 fans – to balance the books.
[urlhttp://www.thisishullandeastriding.co.uk/HULL-FC-Shocked-Pearson-blames-300k-loss/story-14379069-detail/story.html#axzz2UPe11jNM[/url
Probably why he was begging 2000 Hull FC fans to subscribe to online gambling this week. tut tut tut.
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| Quote ="Jake the Peg"Pretty sure he said 11-12k, certainly wasn't 14k'"
Are they still on the deal where 50% of anything over 7,500 goes to the SMC, if so a 12,000 gate is only worth the same as a 10,000 gate anywhere else.
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| Quote ="The_Mighty_F90"It was 14,500
However, with much more investment still needed, Pearson says the club must get back towards the peak of 2007 – when the club averaged more than 14,500 fans – to balance the books.
[urlhttp://www.thisishullandeastriding.co.uk/HULL-FC-Shocked-Pearson-blames-300k-loss/story-14379069-detail/story.html#axzz2UPe11jNM[/url
Probably why he was begging 2000 Hull FC fans to subscribe to online gambling this week. tut tut tut.
'"
Towards, and you've obviously watched the interview so you know your post is a load of shat
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| Quote ="rover49"Are they still on the deal where 50% of anything over 7,500 goes to the SMC, if so a 12,000 gate is only worth the same as a 10,000 gate anywhere else.'"
Indeed, but unlike anywhere else, that 10k is ours and we've paid for everything including rent, stewarding, stadium running costs, ticketing etc.
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| Quote ="Jake the Peg"Towards, and you've obviously watched the interview so you know your post is a load of shat
'"
So that means you won't be posting a loss this year if you are correct.
Would you like a Foxy Bingo bet on it?
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| Quote ="The_Mighty_F90"So that means you won't be posting a loss this year if you are correct.
Would you like a Foxy Bingo bet on it?
'"
We're posting a £1/2m loss for last year but that includes significant off field investment and isn't a reflection on a "normal" year. Post the link to the HDM article as many times as you want but it still won't say what you want it to
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| Quote ="Jake the Peg"We're posting a £1/2m loss for last year but that includes significant off field investment and isn't a reflection on a "normal" year. Post the link to the HDM article as many times as you want but it still won't say what you want it to'"
That was last year. Are you saying you will break even this year?
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| Quote ="The_Mighty_F90"That was last year. Are you saying you will break even this year?'"
Worry about your own team tiny we will be fine .
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| Quote ="Legends and Icons"Worry about your own team tiny we will be fine .'"
And you are on a rovers thread because?
Any top tips or insider info this week?
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| Our new investor is none other than Anthony Larvin.
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| Quote ="The_Mighty_F90"And you are on a rovers thread because?
Any top tips or insider info this week?
'"
1. Im on the rovers board not talking about adam pearson or repeating the same crap
2. Havent had a bet for a couple of weeks pal because ive lost all my money on foxy bingo
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| Quote ="Legends and Icons"1. Im on the rovers board not talking about adam pearson or repeating the same crap
2. Havent had a bet for a couple of weeks pal because ive lost all my money on foxy bingo
'"
A fool and his money are soon parted
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