Do any of you guys remember a post by someone - we all decided it must be a WUM but we were not sure - and it was probably back on 606 - where someone posted a long article with a purported memo on the acquisition of Watford by someone who was previously looking at Charlton? I would like to have another look at that memo to see how it fits against Baz and co.
If you cant find it in nest archives1 have a look at wfc forums ,I believe the article you want came from there!
Bradleysdad---well, the Russo's wanted to takeover the club completely (and take on the debt) but they overplayed their hand. Simpson was reluctant to give up as Chairman till forced out by the Russo's , and though unable to put more money into the club he left his loans in, despite being ousted. So there are rich men around who will invest in a football club and leave their money there for quite a long time . I think Winter was trying to find another such investor. Instead he found Mr B. I am not saying that Mr B is taking £10M out of the club for his own pocket--in fact so far he seems to be taking nothing out of the club for his own pocket. Perhaps that will come later. No--what I mean is that the terms of the takeover require us to repay the £10M bonds to the previous owners over the next few years. That is money leaving the club and it can only come from player trading--in other words, the takeover is being financed by player trading. It was never the Winter plan that revenue from player trading be used to pay back debt. It was supposed to be used to fill the operating cost/revenue gap (provide working capital) and to provide funds for investment in ground/squad. I suppose if we can muddle our way through the next two seasons without being relegated we will be in a more stable place--lower level of debt (only Mr B's own debt) a lower cost base, a pipeline of Academy players still in place. But what a risk.
I think that's a fair analysis Roger. However, in the absence of a very wealthy investor (who would be prepared to buy out the bonds day 1) I don't see what other options there might be. If we can get through the next 3 or 4 years, we may find ourselves debt free and reaping the rewards both financially and on the pitch of the Academy. Also, I think that banking on player sales to make ends meet is a very high risk strategy - one would like to imagine there is a fall-back position. In response to an earlier post of yours, the only upside I can see to Bazini being a front is that there might be more funds than we can currently see and seem to be making doom laden assumptions from. Other than that, its not good.
Well said Roger. Winter's plan was to show that Watford could stand on their own two feet year-on-year even without getting promoted. The thinking was that if we don't get promoted, we are waiting for Ashley Young type money when one of the current 16-20 year olds has matured, to make a big name signing or two AND pay down a few million's worth of debt, and that if we aren't able to find a bankroller, promotion would sort the rest of the debt and stadium out.
Looks to me like we need to make 3 million a year surplus on player trading for 5 years at which point Mr Bassini will have an asset worth around 15 million for his outlay of half a million so as a business plan that looks ok to me. I mean the half million outlay as purchase cost the loans he's made will be paid back to him no doubt and remember that the bondholders can veto new loans so he cant in year 2 start making ridiculous loans to the club and is prohibited whilst bonds are in place from asset stripping so the thread of truth from his interviews is that he has a long term objective. The risks are we fail to make players of significant value in the 5 year period and what happens when the bonds are paid off as he then has complete carte blanche to strip assets, load debt or whatever to make his personal gain.
I have to agree with Roger and Aberdeen, Baz the Bankrupt is a front for something more nasty. Anyone thinking they can repay upwards of £10m back to an owner in 5 years at this level is bucking the trend of the last 100 years of football. The previous method of debt reduction was better known as Administration, quite simple really but that would hit LA, so that's not an option. It is clear Winter had a major falling out with Baz the Bankrupt, and since I trust Winter I have to take his side against Baz the Bankrupt who has a poor track record before arriving at Vic rd. I know when I last felt this low - august 1988, one Friday when Dave Bassett sold Dave Bardsley and Richard Hill to Oxford in a hurry for £500k. I was in Covent Garden that night and I met up with some mates and one of them said "you'll never guess what" and he knew it was a serious set-back. This week's events were going as planned, but Wednesday was a BAD day, and now the respected John Stephenson has been replaced by a "boy from Falkirk". At 29 I only hope he's brought his boots with him.
