S.A.F.C. - the future

What the EFL are asking is nothing more than normal business practice.

Their problem is that just as KLD can decide not to put in more money so can any of the shareholders.

When all the thrashing about is done there are no guarantees and the EFL know that ...

... they're just washing their hands now in case there's any dirt later on.

 

The real reason why it’s being delayed is because KLD is a member on here. I’m not going to say who, but he’s just waiting until we get to page 1973. It then gets announced and it becomes a symbolic moment in the history of not606.
You heard it here first.

 

I think the fans deserve an official update. We want transparency going forward. They were happy to release a statement before Christmas, then should release another.

 

That has been pure speculation and guesswork.

If a business owner owns anything from 25% or more, they are deemed as significant shareholders and therefore need guarantees across the business itself. That's not to mention that KLD appears to have a trust fund rather than business assets or personal wealth which makes it even more stringent.

On a secondary note, too right should a business shareholder be liable for the costs, it shouldn't all be left to someone purely because they are the majority shareholder.

 

Because that was on the basis they would cover the costs of the club as the only shareholders (alongside Methven). Sartori and Donald cant have it both ways with the new proposed setup, acting as shareholders within the business but not guaranteeing to fund it.

 

This is exactly right.

 

Oh Oh, I have a bad feeling about this!

 

Being shareholders means they automatically have financial responsibilities.

The EFL are just doing a 'belt & braces' operation to make themselves look better than they are imo.

 

I agree, but if the report is true and Donald / JS aren't sure they should be funding the club in an equation comparable to their shareholding percentage, they really are thicker than we thought.

FWIW - I don't think it will prove to be an issue because as I say, they can't have it both ways. They have three options, one is to walk away from the deal and fund the club between them (which i dont think they can actually afford to do), settle and accept that they will need to fund the club up to the value of their ownership, or renegotiate the structure completely removing themselves entirely and having KLD run it entirely himself.

They will go for the second option as they will be hopeful they can have a slice of the pie should we get back to the Premiership.

 

I agree with you, it's a win win situation for us as it offers the possibility of Louis-Dreyfus pushing the other shareholders into additional financing or diluting their shareholding. I doubt KLD has any respect for Donald and might have a few tricks up his sleeve.

 

KLD was liking stuff on the clubs insta again on Tuesday, I’ll take any sign atm that there’s no issues

(I know nobody is saying anything is an issue)

 

I think its the 4th scenario of KLD saying 'cant be arsed with this, **** it' and walking away from the deal, is what makes folk nervous.

 

I guess their is that too but i would have thought this is far too down the line for that to happen, this would also mean Donald therefore has to fund the club completely again, something i dont think he can afford to do.

 

I think you're missing the point a little. SD and Sartori already own 94% of the club. If they choose not to guarantee that they will fund the club for 2 years what do the EFL do?

Option 1: agree to the takeover?
Option 2: knock back the takeover and the 2 who chose not to guarantee funding 20% for 2 years keep 94% of the club?
Option 3: put it to a vote from the other clubs because they realise their logic is flawed and it it goes tits up they can trot out the "other clubs voted for it line"

Personally i think it's all on track and will go ahead

 

Naturally the longer it goes on the more nervous folk get, but as far as I’m concerned the last update officially from the club was positive and until I hear otherwise it’s going ahead.

 

Tell that to the Town fans.

 

It almost looks like they're looking for a way to turn it down, even though there's nothing there for it to be rejected. Then again the EFL don't surprise me, bloody useless.

 

No, YOU are missing the point.

Donald, Sartori and Methven currently own the club, that doesn't change until they agree a new proposition. They are legally obliged to therefore maintain the club solely through their own finances which is already in place at a 100% combined ownership as a three.

You are looking at it in far too simplistic terms. If there was no takeover in place, the three of them would continue to operate by owning and funding the club between the three of them.

The discrepancy appears to be that Donald / Sartori are possibly unwilling to fund the club at a significant reduction in percentage of ownership. It doesn't mean that because they aren't willing to fund the club for their 20%, they can't cover it in the event that KLD withdraws. It's simply a negotiation between the parties and one that I would expect Donald and Sartori to lose. If KLD withdraws, they would therefore need to cover the club entirely, as they are doing now.

The guarantee of them running the club between them is already agreed, they are doing it as we speak. The guarantee of them funding the club for 20% ownership is not agreed, hence we are stuck here (if reports are to be believed)

 

The EFL have their work cut out to resemble anything other than incompetent self serving fools. In my opinion of course.

 

your right...what the EFL are asking for , a guarantee, I cant see how that would work.. If a bank loan the business money that would be in some form of debenture. Now from past experience if the EFL did have a form of guarantee or debenture over the club, any future lender that the club chose to use would look twice and probably say "no thanks" ... It would also raise the issue of just Who would have a first charge over the club? I also do not think The EFL could interfere in Corporate Law which is what this would tantamount to.