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Smisa & Gordon Scott Submit Bid


div

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What is on OFFER from the selling Consortium is 68% for a fixed price which is LESS than what was on offer a few years ago.. That 68% shareholding is non-negotiable.

Over a ten year period the aim is for the fans to purchase that 68%.

Pretty basic maths. Feck - even I understand that so I don't understand why you are getting fixated on 51%.

The way I see it is that a large group of fans are taking out a second mortgage for less than a pint a week to support a not for profit business & community venture for less that it would cost to buy a one bedroom flat in some parts of London.

Not fixated just pointing out that owning 68% grants very little more power than owning 50%.

In order to get to the next legal level of power within a company you need to own 75%.

Any lender will likley be concerned about how an owner can control 75% of the share capital certainly the lawyers will.

One of the reasons for success of FoH and hopefully the Well society is there ability to own 75% at least of the shares capital

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Sounds promising. Was unable to make it last night so look forward to seeing the details.

I thought the plan meant SMiSA wouldn't be taking out any loans as GLS would be putting in the whole amount and being paid back but I see there's mention of need for a £400k loan. Has the initial plan changed or was that always the intention?

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Sounds promising. Was unable to make it last night so look forward to seeing the details.

I thought the plan meant SMiSA wouldn't be taking out any loans as GLS would be putting in the whole amount and being paid back but I see there's mention of need for a £400k loan. Has the initial plan changed or was that always the intention?

I was wondering exactly the same thing ....

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Not fixated just pointing out that owning 68% grants very little more power than owning 50%.

In order to get to the next legal level of power within a company you need to own 75%.

Any lender will likley be concerned about how an owner can control 75% of the share capital certainly the lawyers will.

One of the reasons for success of FoH and hopefully the Well society is there ability to own 75% at least of the shares capital

The way I read it was that over the 10 years SMISA would purchase the shares Gordon had purchased on day 1, to take SMISAs total shareholding to 68 (+3.4)%. Gordon would then gift his 8% to SMISA, without looking to regain his initial investment, taking SMISAs total shareholding to over 79%.

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Sounds promising. Was unable to make it last night so look forward to seeing the details.

I thought the plan meant SMiSA wouldn't be taking out any loans as GLS would be putting in the whole amount and being paid back but I see there's mention of need for a £400k loan. Has the initial plan changed or was that always the intention?

From both parties PoV it makes sense that both contribute initially - Gordon ensures SMISA are invested from the start and SMISA ensures Gordon never owns over 75% of the shares outright.

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Not enough info provided to get a categorical committment from me at this point.

I would like to know what the borrowing is secured against and could that, in time, become a liability that makes the club vulnerable to inroads from undesirables?

What kind of interest is expected? Is it feasible to ever pay it off?

If GLS dies or goes mad, how are we placed to take on his holding? Does it then go to the market, rendering the SMISA efforts somewhat wasted?

No smart ass replies pleae, i will table these questions to SMISA after lunch.

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There are a large group of minority shareholders like myself who I'm sure would be willing to "proxy" or gift those share to a shared co-operative FO vehicle to achieve over 75%.

Let's get the deal done to buy out the Douglas St consortium's 68% and pay off that first.

The point he is making is that the deal may not be "do-able" until there is a deliverable plan in place to secure the 400k loan(s)

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As I suspected when I initially posted I was almost certain to sign up, once the details were known, there are a lot of questions to be asked and answered - as it should be. A lot of work will have been done, a lot of hoops jumped through, and the meeting last night was another step down the road. I look forward to hearing more as the weeks go on.

I suppose one question can be dispensed with? 'They urnae' even Smurrrnn fans, whit's in it for them'.

Moving right along to Question 2 then.

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£10 of the £12 is going towards the buying of the shares, £2 is going towards continuing to fund SMiSA initiatives.

So over the course of the 10 years total raised by the fans would be £1m which I believe is £960K for the shares plus £40K to cover the £20K of legal costs plus the £20K of SMiSA funds that are being put down as a deposit. Or something like that anyway.

Cost is just under £1 million and that has been verified by Supporters Direct as being a fair and reasonable price to pay.

That's what I am taking from the SMiSA website statement anyway.

More than I said we should pay on P2 of the thread (£5 a share) but £980k for 68% of the shares is just about acceptable to me.

Doubt the sellers will be walking away with more money than they paid in - would go a long way to rehabilitate them with me (which I'm sure will cheer them up greatly rolleyes.gif).

Here's hoping!

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More than I said we should pay on P2 of the thread (£5 a share) but £980k for 68% of the shares is just about acceptable to me.

Doubt the sellers will be walking away with more money than they paid in - would go a long way to rehabilitate them with me (which I'm sure will cheer them up greatly rolleyes.gif).

Here's hoping!

I'm probably being really thick but I can't see how Divs figures are right.

SMISA want £12 per month. £10 goes to the share purchase and £2 to SMISA.

£10 per month × 12 months × 1000 members × 10 years is definitely £1.2m. Even allowing for the fees being paid that's not £980k.

I'm not suggesting there's anything funny going on. Its probably just a bit of contingency with some rounding all of which is fine.

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I'm probably being really thick but I can't see how Divs figures are right.

SMISA want £12 per month. £10 goes to the share purchase and £2 to SMISA.

£10 per month × 12 months × 1000 members × 10 years is definitely £1.2m. Even allowing for the fees being paid that's not £980k.

I'm not suggesting there's anything funny going on. Its probably just a bit of contingency with some rounding all of which is fine.

Any excess belongs to SMiSA as part of their rainy day fund, which could be used to buy a player, invest in youth development, or whatever else the members vote to spend it on.

Simple rounding up for the sales pitch. Makes sense.

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I'm probably being really thick but I can't see how Divs figures are right.

SMISA want £12 per month. £10 goes to the share purchase and £2 to SMISA.

£10 per month × 12 months × 1000 members × 10 years is definitely £1.2m. Even allowing for the fees being paid that's not £980k.

I'm not suggesting there's anything funny going on. Its probably just a bit of contingency with some rounding all of which is fine.

I concur with your arithmetic but it was explained elsewhere and again by BiEK in post#523 that any money in excess of the £980K + £20K in expenses (£1M which is absolute top-whack AFAIC) will be used for other purposes.

Edited by Bud the Baker
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Any excess belongs to SMiSA as part of their rainy day fund, which could be used to buy a player, invest in youth development, or whatever else the members vote to spend it on.

Simple rounding up for the sales pitch. Makes sense.

There will also be miscellaneous expense for SMiSA. Administration fees, general expenses for office bearers. £12 is a figure I won't quibble with. In the grand scheme of things it is easily a price worth paying to make this work.

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If you are not already a member then you can sign up to the scheme when it comes online.

SMiSA is just the vehicle to make this happen.

Once this deal (hopefully) goes through a name change will have to take place as SMiSA will no longer be independent.

Name changes and logo changes. Graphic designers dream. If they need one, in the new spirit of fan involvement, my rate for doing one would be a coffee and a curly wurly.

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Stranger things have happened....not much stranger though.

Will be interesting to see what rate of interest the "ethical lenders" charge and what interest swaps they will negotiate.

Remember that in 10000hours if we delivered certain community benefits then the interest was not payable.

Still a good chance an individual may Bank roll instead.

Go on... you know you wanna...

ETA I'm in

Edited by Vambo57
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