Smisa & Gordon Scott Submit Bid

[steve_the_saint 163]

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.

[Slash 4,179]

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%.

GLS said he will retain his 8% initially. He said he may chose some or all of that outside of this agreement - that would be his choice.

He never said he would gift this. But who knows he might in the future. Regardless it provides shared ownership and shared investment moving forward.

I believe that SMiSA not having to pay back GLS his existing 8% shareholding as part of this deal is a massive positive and demonstrates the shrewd bargaining that has taken place over the last few months.

GLS is bringing a huge amount of experience and knowledge of the inner workings of the football club. He is a Saints fan and he is placing his money and his existing shareholding on the line to make this a success.

It is up to the wider support and local community and businesses to stand shoulder to shoulder and support this project.

This is about St Mirren fans and the local community taking control and shaping the future of this proud club.

Let's feckin do it!

[Slash 4,179]

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

Feck Hearts and Motherwell.

I blame Gregor Stevens, Willie Pettigrew, John Robertson, Henry Smith, Neil Berry and various others......

[beyond our ken 3,591]

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.

[beyond our ken 3,591]

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)

[Slash 4,179]

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)

Those in attendance last night were made aware of what challenges we face securing funding - however the point of last night was about explaining how the deal would be structured and how we move forward.

The main purpose of last night was to take a vote to proceed to the next phase.

No-one is in any doubt that there are challenges ahead.

[rea 848]

Just wondering Is Gordon Scott not the lender ( as hearts are with Anne budge ) with the intention of stepping down once the fans raise sufficient funds ?

not as proposed just now

[pozbaird 20,991]

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.

[Bud the Baker 8,634]

£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 ).

Here's hoping!

[Stuart Dickson 4,266]

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 ).

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.

[BuddieinEK 8,644]

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.

[shull 30,901]

I hope we never ever buy a player again.

[BaldyOzBud 1,426]

I'm in, as soon as I can sort out what would have to be approximately 12GBP a month in AUD ( $25?) without having to deal with the fluctuating exchange rates.

ETA as a direct debit

Edited March 31, 2016 by BaldyOzBud

[Bud the Baker 8,634]

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 March 31, 2016 by Bud the Baker

[Drew 21,116]

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.

[saint in exile 2,184]

Haven't read the various links, so forgive me if it's there, but must you be a SMISA member to sign up to the £12 a month?

[Slash 4,179]

Haven't read the various links, so forgive me if it's there, but must you be a SMISA member to sign up to the £12 a month?

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.

[pozbaird 20,991]

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.

[Slash 4,179]

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.

Aye I'm sure the new logos will look excellent on the towels for the first team squad.

TowelGate Part II

[pozbaird 20,991]

Aye I'm sure the new logos will look excellent on the towels for the first team squad.

TowelGate Part II

As long as there's no PumpkinGate II.

[HSS 11,891]

Sounds good.......I'll ask the Mrs tonight if I can get more pocket money. ????

[Mid Calder Saint 1,450]

Myself my wife and son will all be in now looking forward to a great future for our wonderful football club that I have supported for over sixty years.

[Vambo57 1,608]

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 March 31, 2016 by Vambo57

[Mr Optimistic 621]

Mmmmm. Am I the only one who sees a big flaw in this plan. It's called football fans and St Mirren Fans in particular!!! Did no one read the thread re Rangers getting the South Stand. With a forum member saying he was going to write to the club and ask for his money for that game back and loads saying they would not renew their season ticket!!!!

What will happen the first time the board make an unpopular decision? Easy, many will throw the dummy out the pram and stop their Direct Debits. Can you imagine what would have happened to Direct Debits during the Tommy Craig Era!!? Or when the Celtic shop sign went up?? Or when Murray was taking us to the first Division? There is no chance in the world 1000 St Mirren fans will pay £12 a month for 10 years!!!! No chance at all!!

[rea 848]

Mmmmm. Am I the only one who sees a big flaw in this plan. It's called football fans and St Mirren Fans in particular!!! Did no one read the thread re Rangers getting the South Stand. With a forum member saying he was going to write to the club and ask for his money for that game back and loads saying they would not renew their season ticket!!!!

What will happen the first time the board make an unpopular decision? Easy, many will throw the dummy out the pram and stop their Direct Debits. Can you imagine what would have happened to Direct Debits during the Tommy Craig Era!!? Or when the Celtic shop sign went up?? Or when Murray was taking us to the first Division? There is no chance in the world 1000 St Mirren fans will pay £12 a month for 10 years!!!! No chance at all!!

but would Tommy Craig, Murray or the shop have happened under FO....dont think so