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Offline portsniper
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Re: Vote on 3G
« Reply #66 on: Yesterday at 21:33:35 »
Thanks Newrymaner, Deano and others for your kind comments.
Suppose the simplest and most effective method of dealing with the situation is bringing the game into disrepute charges for the club killers. A tribunal sitting during April should know how many charges need to be considered and so exactly how many points to knock off!
Thus paving the way for Dulwich, Kingstonian, Wealdstone, Bognor, Lowestoft, Hornchurch or any other more deserving team!
Anyway, for any lurking Maidstone fans who have been egging their owner on with his legal threats, especially Binsey, a few thoughts. Just think of this fellow Angels and let’s give stray Stones something to think about!
Maidstone United seems to be owned by two companies. That is not unusual, but whose names are on the deeds? Individuals or the club? To spell it out who owns the ground and the land?
Stones’ supporters ought to be wondering who would be the real beneficiary if a large legal bill kills off the football club. (Scenarios later).
Is one of the owners playing to the gallery in a convenient sideshow as a smokescreen for the real end game? He might be a genuine fan? But, on the other hand, a lot of sides have gone to the wall because of the actions of one individual. The old Maidstone United for starters!
The county town now has a purpose-built community facility making money without the need for a football club, part owned by someone with interests in rugby, albeit in France.
Business people are usually extremely shrewd and know legal action comes with considerable risk.
So, say the latest manifestation of Maidstone United is landed with large legal bills on top of the £3million-plus liabilities on the books? Are we are looking at mark 3?
The usual routes of debt-ridden football clubs are the following:
A Company Voluntary Arrangement (a CVA). Fans are fairly familiar with these because they are quite common these days. Known as “administration” it involves points’ deductions football-wise.
This happens when clubs cannot pay their debts (say £3.3million, plus a large legal bill for a non-league side), insolvent basically. Very expensive experts are usually drafted in to slash costs and try to reach an agreement with creditors (the CVA). At the very least it will mean reductions in the wage bill. That academy team at James Whatman Way might become the first team! Creditors need to accept a “pence in the pound” deal for the money owed with outcome decided by a vote.
Be warned Stones that will be about cold, hard money, not football (like the Conference poll)! And more importantly those voting will not be bullied or blackmailed into meeting demands. In fact, liquidation is likely to offer a better return because a one-off sale of assets and possibly sale and leaseback is more lucrative than say 10p in the pound for a debt!
The usual protagonists in such circumstances (in football) are: lenders, usually banks, (no sentiment about football from them), construction firms that have built stands and a stadium, (builders love land assets), HMRC (those tax bills that have not been paid for a while), landlords (think Maidstone are OK there at the moment), utilities (another bill that can soon grow with floodlights on during those winter months), councils (taxes again), suppliers and sometimes individuals. Individuals could be the owners.
Decisions are cold with no sentiment whatsoever and it is a lottery – especially if liquidation offers more potential cash. If agreed, it still means downsizing, which is why teams often plunge down the leagues (Portsmouth is one notable example) So, that is if CVA is agreed. If not, next option.
Liquidation. A straight sale of the assets to the highest bidder usually. The attraction of the Gallagher Stadium (named after the builders incidentally) is a purpose built community facility generating, according to Mr Ash, “direct income of £110,000”,plus spin-offs, a year. That over a few years might provide a better return than the pittance from a “pence in the pound” deal. The Gallagher Stadium does not need a football club to make money, as Mr Ash has boasted - in what could have an unintended consequence! Indeed a football club is actually a bit of a nuisance and usually a drain on the resources.
But if vultures start circling there is another option to top up the £110,000. And that is sale and leaseback. Charging a football team a large rent for what used to be theirs. It’s becoming very popular among sharks because on-going rental income is guaranteed, until property prices rise and the land might provide more lucrative use. The new owners basically have the team’s supporters over a barrel. Unless they want to start from scratch again – Maidstone United Mark Three, playing Snodland, Hildenborough, etc.
There are a couple of other options. I wondered if Maidstone Borough Council had a stake in the ground but the £3million liabilities suggests otherwise. The council taking it on would probably be the safest bet, particularly with the established community use. But Sittingbourne took that route at one stage and it did not help them.
The next possibility is quite a canny move (not for the fans eventually) and again becoming very popular. And that is kindly benefactors (like the football club owners) writing off or settling debts in return for the stadium and land. (Any of the above scenarios could then play out at a later date. This is OK if the people involved are genuine fans, but be very afraid if relations get their hands on the land (they might not share the love of MUFC – well not the club killers in Kent anyway). Landlords are a lottery (ask Grays, a club which were tenants of a kindly old owner who died. The offspring sold the ground).
Of course, I might just be scaremongering, joking and indulging in a bit of banter with the fans of Kent’s favourite club?
If things go badly wrong Stones’ fans, those lurking on the Angels’ forum or otherwise, will find out.
One final point on the potential legal bill. If Maidstone lose, they are liable for the lot, on their own. If the Conference sides lose, it will be spread among many.
I suspect if Maidstone do pursue a legal case and lose, with the costs big, the club will be put into administration almost straight away (for reasons I won’t go into).