Wow - first time I have heard this one - David, can you confirm where you got this information from.
it was in the documentation provided to shareholders at the time of the vote. However I was doing it from memory so there may be other conditions that I couldn't remember. I'm not sure that I still have the papers, but if i get time I'll look.
The loans are absolutely worthless. They will never be repaid.
There are donations in all but name.
However it is quite usual to fund loss making ventures with soft loans.
It doesn't mean that anyone is trying to profit from the club.
The only time loans to the club would be worth anything would be if the club was sold and the new purchasers agree to repay some or all of them. That happened when MYFC bought it in the first place.
I doubt if MYFC would want any of its money back if a genuine purchaser came along
I doubt if MYFC would want any of its money back if a genuine purchaser came along
There is no guarantee that the loans won't be recalled, until they are (or they are written off they remain as creditors on the balance sheet of EUFC Ltd and thus weaken it.
There is no guarantee that the loans won't be recalled, until they are (or they are written off they remain as creditors on the balance sheet of EUFC Ltd and thus weaken it.
The loans will not be recalled - if an agreement was made to sell the club MyFC would vote to write them off.
I would also suggest that from a balance sheet point of view £65,000 in soft loans from MyFC that would be written off would cause far less problems for a potential buyer than the Fleet Leisure payments (oops - should I have said that)
There is no guarantee that the loans won't be recalled, until they are (or they are written off they remain as creditors on the balance sheet of EUFC Ltd and thus weaken it.The loans will not be recalled - if an agreement was made to sell the club MyFC would vote to write them off.
I would also suggest that from a balance sheet point of view £65,000 in soft loans from MyFC that would be written off would cause far less problems for a potential buyer than the Fleet Leisure payments (oops - should I have said that)
So you are talking for all the members? Wouldn't that take a vote to decide? After the crippling increase in the budget, I don't think many non-members would gather even a crumb of comfort from that one!
So you are talking for all the members? Wouldn't that take a vote to decide? After the crippling increase in the budget, I don't think many non-members would gather even a crumb of comfort from that one!
I really do not want to get into this -
The budget was mad - the budget was proposed by the club's CEO, supported by the society board which had 6 locals on it, and I don't recall hearing a single local voice in opposition. I kicked up blue murder over it and was told I was being stupid. The members have consistantly voted with the recommendation of the club representatives or the society board. I do not recall a single vote where the members have gone against such a recommendation.
The thing with the soft loans is they are exactly the same as the loans that Brian and the rest of the old directors gave to the club. They got their money back so where is the problem?
With the "old guard" (sic) loans it is the same with last season's budget, neither are reasons for the club doing badly so financially. The reason why the club is doing so badly is because we have not had too much going out but is because we haven't had enough coming in. MyFC renewals, locals apathy, ring any bells....?
We had all that money from , Wembley, Akinde, The MyFC buy out, all massive news stories, never mind the money they generated, we just never capitalised on it.
we just never capitalised on it.
Probably the truest statement you have made in the last two years Paul.
So you are talking for all the members? Wouldn't that take a vote to decide? After the crippling increase in the budget, I don't think many non-members would gather even a crumb of comfort from that one!I really do not want to get into this -
The budget was mad - the budget was proposed by the club's CEO, supported by the society board which had 6 locals on it, and I don't recall hearing a single local voice in opposition. I kicked up blue murder over it and was told I was being stupid. The members have consistantly voted with the recommendation of the club representatives or the society board. I do not recall a single vote where the members have gone against such a recommendation.
So if the board (and I take it you do not speak for them), decide to ask for the "soft Loans" back, the members would be likely follow their advice, putting the Club into immediate debt.....Even more worrying!
So if the board (and I take it you do not speak for them), decide to ask for the "soft Loans" back, the members would be likely follow their advice, putting the Club into immediate debt.....Even more worrying!
1. Why would the board look for the money back ?
2. how would it put the club into immediate debt ?
(the club doesn't and wouldn't have the money to pay it back and is running at losses of about £40,000 a month anyway).
So if the board (and I take it you do not speak for them), decide to ask for the "soft Loans" back, the members would be likely follow their advice, putting the Club into immediate debt.....Even more worrying!1. Why would the board look for the money back ?
2. how would it put the club into immediate debt ?
(the club doesn't and wouldn't have the money to pay it back and is running at losses of about £40,000 a month anyway).
Time will tell!
Many will still be surprised at the monthky 'loss' figure, given our playing budget of £6,000 per week + office staff + LD's salary.
Deduct from that income, which whilst difficult to quantify, has to circa £5,000 per week.
Is the main reason for the massive deficit the repayments to FL?
The only people who could be affected by the presence of the soft loans are the residual 25% shareholders. It makes it harder for those people to receive anything on a sale. However I cannot believe they would be expecting to receive anything unless the club unearthed 2 or 3 Chris Smallings.
If the club has no cash itself, it is not making profits and no other person is prepared to put a load of cash in that MYFC could take out, the loans will be worthless. Therefore whether they exist on the club's balance sheet or not does not make any difference to anyone.
WOW! Can't say I perfectly understand all of the above. Sounds horrendous. Bring back G & N.
The only people who could be affected by the presence of the soft loans are the residual 25% shareholders. It makes it harder for those people to receive anything on a sale. However I cannot believe they would be expecting to receive anything unless the club unearthed 2 or 3 Chris Smallings.
If the club has no cash itself, it is not making profits and no other person is prepared to put a load of cash in that MYFC could take out, the loans will be worthless. Therefore whether they exist on the club's balance sheet or not does not make any difference to anyone.
If the Club is sold, could they be added to the list of creditors?
If the Club is sold, could they be added to the list of creditors?
Potentially yes - but after spending two years pumping over £1million into the club, MyFC is not going to go out of its way to wreck any proposed sale (if that were to happen) in order to get a repayment of £65,000.
MyFC did not create this problem - it existed long before MyFC came near the club. Certainly, in certain ways MyFC has contributed to it - but the problem has existed for a long time and will exist long after MyFC is gone. Despite your cynicism AFF, you will find that the overwhelming majority of MyFC members are more interested in the survival of the club than anything else and if that requires writing off these soft loans in order to secure the future of the club, then that is what will happen.
Once again! Are you talking personally, or as a representative of MyFC?
If it is a personal opinion, that hasn't counted for much in other votes or actions, you admitted that yourself, so why should we listen now?
When you say "we", are you talking personally, or as a representative of everyone other than Dom?Once again! Are you talking personally, or as a representative of MyFC?
If it is a personal opinion, that hasn't counted for much in other votes or actions, you admitted that yourself, so why should we listen now?
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