Selling Consortium

[scoopydoo1987]

With the CIC missing another deadline rumour has it that 1 or more of the selling consortium is on the verge of pulling out

[BIG BEN]

With the CIC missing another deadline rumour has it that 1 or more of the selling consortium is on the verge of pulling out

Who?

[div]

With the CIC missing another deadline rumour has it that 1 or more of the selling consortium is on the verge of pulling out

Presumably there is someone else waiting to buy their shares then ?

[Stuart Dickson]

With the CIC missing another deadline rumour has it that 1 or more of the selling consortium is on the verge of pulling out

Fair enough - it's their choice.

I believe there is a football club in Lanarkshire where the players all have medals who are looking for a forward thinking, community focused owner - and where there's a motivated community ready to be involved.

[Stu]

Fair enough - it's their choice.

I believe there is a football club in Lanarkshire where the players all have medals who are looking for a forward thinking, community focused owner - and where there's a motivated community ready to be involved.

Do Albion Rovers get medals for winning the play-offs? I know you do down south but didn't think they'd brought that in up here.

[Stuart Dickson]

Do Albion Rovers get medals for winning the play-offs? I know you do down south but didn't think they'd brought that in up here.

Are all journalists this stupid?

[Big Fras]

With the CIC missing another deadline rumour has it that 1 or more of the selling consortium is on the verge of pulling out

Hmmm. I heard this as well. Sounds like they just want the CIC deal to actually happen ASAP, as opposed to having misgivings about its structure. (ie. running out of patience to get their dough !)

[Gary Blues]

Fair enough - it's their choice.

I believe there is a football club in Lanarkshire where the players all have medals who are looking for a forward thinking, community focused owner - and where there's a motivated community ready to be involved.

Is this the same club that still owes £ millions to all the employess and local businesses it shafted?

[div]

Having grouped together to sell what became a majority shareholding it would seem incredibly unlikely that a single member of the consortium would at this stage decide to break away from the others and pull their own shares out.

Financially it would be a suicidal move, unless of course they have someone waiting in the wings who is willing to pay them pro-rate £2m for their holding. Why would anyone want to do that ?

I daresay if one member did break rank purely in order to scupper the CIC deal there would be sufficient folk within the 48% of remaining shareholders who would be more than willing to part with their shares to get the consortium back up to over 50%.

All sounds like bollocks to me to be honest !

[Big Fras]

Having grouped together to sell what became a majority shareholding it would seem incredibly unlikely that a single member of the consortium would at this stage decide to break away from the others and pull their own shares out.

Financially it would be a suicidal move, unless of course they have someone waiting in the wings who is willing to pay them pro-rate £2m for their holding. Why would anyone want to do that ?

I daresay if one member did break rank purely in order to scupper the CIC deal there would be sufficient folk within the 48% of remaining shareholders who would be more than willing to part with their shares to get the consortium back up to over 50%.

All sounds like bollocks to me to be honest !

Pretty much agree with the above Div......but the info came from a very good source (ie. non-SMFC, ex-employer of mine who knows the BoD member). To be honest, it just sounds like a bit of frustration. Imagine waiting ages to sell your house for a decent fee, then the buyer asks for another time extension. You'd probably get a wee bit p*ssed off & frustrated, which is fair enough. Don't think there is much more to this to add.

Playing Devil's Advocate for a moment.......say the CIC bid failed (I don't think it will - but what do I know ?), then 2-3 months later another (revised ?) bid came in from a group of businessmen for say £1.2m (50% more than Gordon Smith's lot by all accounts). Would the BoD have no option but to accept, or would they carry on ? I just have a sneaking feeling that someone is watching developments at the club with interest, and if the CIC bid fails, the BoDs resolve/desperation could be tested. I stress that this is just hypothetical, and I think there is enough critical mass behind the CIc bid for it to succeed (although that is where the fun will really begin).

[Gary Blues]

Having grouped together to sell what became a majority shareholding it would seem incredibly unlikely that a single member of the consortium would at this stage decide to break away from the others and pull their own shares out.

Financially it would be a suicidal move, unless of course they have someone waiting in the wings who is willing to pay them pro-rate £2m for their holding. Why would anyone want to do that ?

I daresay if one member did break rank purely in order to scupper the CIC deal there would be sufficient folk within the 48% of remaining shareholders who would be more than willing to part with their shares to get the consortium back up to over 50%.

All sounds like bollocks to me to be honest !

Maybe this is the scenario?

The shareholders outside the consortium own small numbers of shares. It would take a large number of these shareholders to get back over 50% possibly?

If an alternative prospective buyer dangled a smaller but guaranteed sum of money in front of a consortium member then they might be tempted to take it?

If they did that then the consortium would be broken and the CIC would be dead. The alternative prospective buyer could then negotiate with the remaining consortium members at a knockdown price.

[St. Sid]

Maybe this is the scenario?

The shareholders outside the consortium own small numbers of shares. It would take a large number of these shareholders to get back over 50% possibly?

If an alternative prospective buyer dangled a smaller but guaranteed sum of money in front of a consortium member then they might be tempted to take it?

If they did that then the consortium would be broken and the CIC would be dead. The alternative prospective buyer could then negotiate with the remaining consortium members at a knockdown price.

Not too worried about the rumour, especially now we have seen the source.

I think you do make a very good point about what happens should the CIC fail though. SG did say that they would continue to look for a solution that would be in the best interests of the club. He has been good to his word so far as has the rest of the consortium. However, they would in fact have the right to say - we tried and no one met our price - hello Mr Massone, £2M cash you say...here's the keys, have fun.

[St. Sid]

Playing Devil's Advocate for a moment.......say the CIC bid failed (I don't think it will - but what do I know ?), then 2-3 months later another (revised ?) bid came in from a group of businessmen for say £1.2m (50% more than Gordon Smith's lot by all accounts). Would the BoD have no option but to accept, or would they carry on ?

If the fictional group of businessmen can only afford £1.2M it would suggest that they can't really afford to be running a football club and we would be back to square one and more likely in a worse position.

[uhhu]

If the fictional group of businessmen can only afford £1.2M it would suggest that they can't really afford to be running a football club and we would be back to square one and more likely in a worse position.

That is a ridiculous statement. Why would you pay £2m for something if you can get away with paying £1.2m? You should think before you type.

[St. Sid]

That is a ridiculous statement. Why would you pay £2m for something if you can get away with paying £1.2m? You should think before you type.

Not really. This fictional group of businessmen (sexist businesspeople) are surely keen to be owners of the club. At this point in time they would have to compete at least on a level footing with the CIC who will pay the £2M asking fee. They either don't want the club that badly or simply can't afford to buy ther club. I would suggest that the latter is more likely apart from the fact that the group of business people are of course fictional, like a lot of things in some posters heads.

[JH02BUD]

Having grouped together to sell what became a majority shareholding it would seem incredibly unlikely that a single member of the consortium would at this stage decide to break away from the others and pull their own shares out.

Financially it would be a suicidal move, unless of course they have someone waiting in the wings who is willing to pay them pro-rate £2m for their holding. Why would anyone want to do that ?

I daresay if one member did break rank purely in order to scupper the CIC deal there would be sufficient folk within the 48% of remaining shareholders who would be more than willing to part with their shares to get the consortium back up to over 50%.

All sounds like bollocks to me to be honest !

[Big Fras]

If the fictional group of businessmen can only afford £1.2M it would suggest that they can't really afford to be running a football club and we would be back to square one and more likely in a worse position.

Of course they are fictional. Read the post properly. Just trying to look at "what happens next" should the CIC bid fail......which I also stated I don't think will happen.

[V...]

Click

[St. Sid]

Click

Old news....it was announced on here and on the 10000 hrs site long before the press release. It is actually very positive news as the early target date now looks more likely. There had been two dates depending on how quickly they could get the funding sorted. Open news at the public meetings.

[stlucifer]

Not really. This fictional group of businessmen (sexist businesspeople) are surely keen to be owners of the club. At this point in time they would have to compete at least on a level footing with the CIC who will pay the £2M asking fee. They either don't want the club that badly or simply can't afford to buy ther club. I would suggest that the latter is more likely apart from the fact that the group of business people are of course fictional, like a lot of things in some posters heads.

The person or person's who MIGHT be waiting in the wings may be sufficiently confident of the CiC's failure that they MIGHT think that they would have the upper hand in any future negotiations. By paying "bottom dollar" for the purchase of the club they would have more, (potentially an extra £800,000) to invest in THEIR club.

Seemples.

[St. Sid]

The person or person's who MIGHT be waiting in the wings may be sufficiently confident of the CiC's failure that they MIGHT think that they would have the upper hand in any future negotiations. By paying "bottom dollar" for the purchase of the club they would have more, (potentially an extra £800,000) to invest in THEIR club.

Seemples.

That wouldn't work though....either the taxman would take that £800K or the more likely scenario is that they would be trying to secure the club through debt against the assets of the club.................there is also nothing to suggest that the fictional group of businessmen are St Mirren supporters. Keep in mind that Big Fras is desparate to stop the consortium from getting any money from the CIC process and is currently thowing up poorly disguised what if nonsense to try and rock a couple of mibaes aye, mibbaes naw pledgers. Very poor show in my opinion - at least the likes of animal / yul have been honest in their anti-St Mirren personal issues driven bawbaggery. Either way they are fictional like a lot of things in Big Fras's heid.

In the highly unlikely event that this fictional group of businessmen did suddenly take on a real identity I would be very concerned about having one "inner circle" of hangers on replaced by what appears to be an even worse "inner circle" of hangers on.

[stlucifer]

""2"

That wouldn't work though....either the taxman would take that £800K or the more likely scenario is that they would be trying to secure the club through debt against the assets of the club.................there is also nothing to suggest that the fictional group of businessmen are St Mirren supporters. Keep in mind that Big Fras is desparate to stop the consortium from getting any money from the CIC process and is currently thowing up poorly disguised what if nonsense to try and rock a couple of mibaes aye, mibbaes naw pledgers. Very poor show in my opinion - at least the likes of animal / yul have been honest in their anti-St Mirren personal issues driven bawbaggery. Either way they are fictional like a lot of things in Big Fras's heid.

In the highly unlikely event that this fictional group of businessmen did suddenly take on a real identity I would be very concerned about having one "inner circle" of hangers on replaced by what appears to be an even worse "inner circle" of hangers on.

St Sid. The taxman would have nothing to do with this money as the shares would, ficticiously, have been sold for a sum of money that the shareholders agreed. Namely 1.2 million, which, BTW, I also think is a tad generous.

It could be that the fictional character/s have the extra funds but don't think the club is worth almost 4 million quid. (And I would tend to agree with that).

I suspect something is amiss with the CIC bid but it might be a minor blip.

However. There may be one or two of the consortium who don't wish to take the chance and are willing to deal with someone giving "readies."

I'm not saying this will happen. Only that it is not outwith the realms of possibility.

Edited May 26, 2011 by stlucifer

[steve_the_saint]

""2"St Sid. The taxman would have nothing to do with this money as the shares would, ficticiously, have been sold for a sum of money that the shareholders agreed. Namely 1.2 million, which, BTW, I also think is a tad generous.

It could be that the fictional character/s have the extra funds but don't think the club is worth almost 4 million quid. (And I would tend to agree with that).

I suspect something is amiss with the CIC bid but it might be a minor blip.

However. There may be one or two of the consortium who don't wish to take the chance and are willing to deal with someone giving "readies."

I'm not saying this will happen. Only that it is not outwith the realms of possibility.

I think Sid may be referring to something that what said at the meetings;

For Richad Atkinson to buy the club with his own money, it wouldn't cost him 2m, it will cost him something like 3.4m, because the taxman will take his cut before any money even reaches the consortium.

So for the consortium to recieve 1.2m, the buyers would need to have more than 2m initially before the taxman takes his cut.

[stlucifer]

I think Sid may be referring to something that what said at the meetings;

For Richad Atkinson to buy the club with his own money, it wouldn't cost him 2m, it will cost him something like 3.4m, because the taxman will take his cut before any money even reaches the consortium.

So for the consortium to recieve 1.2m, the buyers would need to have more than 2m initially before the taxman takes his cut.

The consortium would have to pay their own tax bill which, after deductions shouldn't be that heavy a burden.

Perhaps that is why GLS' bid was reported to be short of the 1 million mark by some.

Edited to add: It is in RA's, (CIC's {??}) interest to come out with this claim.

Edited May 26, 2011 by stlucifer

[WeeBud]

The consortium would have to pay their own tax bill which, after deductions shouldn't be that heavy a burden.

Perhaps that is why GLS' bid was reported to be short of the 1 million mark by some.

Edited to add: It is in RA's, (CIC's {??}) interest to come out with this claim.

If the consortium wanted to nett £2m then the amount paid over would be £2m + tax by any ordinary buyer. Although you may be correct that it could be in the CIC's interest to make this claim, it would be easy enough for someone to prove the figures as incorrect and therefore a pretty niaive claim to make if untrue!!

In the current economic climate I would think that there would be a fairly heavy tax burden on £2m although I don't know for sure.