Smisa & Gordon Scott Submit Bid

[shull]

Sell House

Rent another.

Give all money to St Mirren.

Free Season Ticket for life

Sortit

[Lord Pityme]

I have reservations about the model and the ability to manage cashflow in the down times like when our current board have advanced cash to keep club ticking over, however this won't be a barrier to me joining up as I feel it is time to try something different. The thing that is stopping me signing up immediately is my personal circumstances as I'm in the middle of selling my house and not wanting to make a commitment to this to find I need every penny going forward... however I should be able to make a decision by end of May.

A valid and reasonable concern there.

The more people signed up to #BUYTHEBUDS...

The more Smisa will have in their rainy day fund to address such issues if they arise. But dont forget, or if you werent at saturdays meeting let me say this.

Gordon and George were very clear that so many revenue/cash generating avenues at the club were not being explored as the Bod just want to pass it on now. I fully expect to see those opportunities fully exploited leading to a much healthier cashflow situation.

And these are not all big (for want of a better phrase) ticket ideas. We could all rhyme off a few quick wins that would see more revenue generated for the club in the short term.

[gazmc83]

I have reservations about the model and the ability to manage cashflow in the down times like when our current board have advanced cash to keep club ticking over, however this won't be a barrier to me joining up as I feel it is time to try something different. The thing that is stopping me signing up immediately is my personal circumstances as I'm in the middle of selling my house and not wanting to make a commitment to this to find I need every penny going forward... however I should be able to make a decision by end of May.

Gordon addressed the cash flow issue at the meeting and 1k members would be over estimating what we need , the club as it's currently run has good cash flow but they were keen to point out that lots of things can be done to increase revenue and cash flow for the club.

Also are you aware that your first direct debit wouldn't come out until July so it does not get deducted immediately?

Edited April 19, 2016 by gazmc83

[madball]

Gordon addressed the cash flow issue at the meeting and 1k members would be over estimating what we need , the club as it's currently run has good cash flow but they were keen to point out that lots of things can be done to increase revenue and cash flow for the club.

Also are you aware that your first direct debit wouldn't come out until July so it does not get deducted immediately?

Thanks for the bit about cashflow. Was intending on Saturday and asking about that, but had house viewers and couldn't attend.

Good to know re Direct Debit, but will still need to see where I am re money once I know what I get for my house and what there is out there to buy before jumping in to support this and find myself having to withdraw.

[Edinbuddie]

I'd be very suspicious of any bid that thought it'd be a good idea giving Chick Young a role at the club. What would his role be - an ambassador, a spokesman, fan liaison......? That would immediately indicate a superficial view of the club and the fans, and would be a big mistake for any consortium.

You only had to listen to him slavering about the weekend's OF game, about how fans of other clubs may not like it but this is what Scottish football is all about etc. The fact that he doesn't even understand the structure of the bid and Gordon Scott's role shows how ill informed he is. Yet he's given national radio airtime to spout nonsense that suits an agenda that he may benefit from in the future!

He may be a decent guy on a personal level, but he's like Archie McPherson and other media types of that era who can't see beyond the OF in terms of Scottish football. I think that betrays a lack of understanding of fans of other clubs, including the one he claims to passionately support, and suggests that he'd be a disaster in any half significant role at St Mirren.

[gazmc83]

No coincidence that after chic youngs embarrassing ramblings last night that our memberships increased I don't want that guy anywhere near our club so the thought of him being involved in a rival bid should only help our cause !

[gazmc83]

Ps Douglas McNeil has offered Gordon an interview on sportsound so hopefully he can go on soon and give people the actual FACTS behind the bid

[Stu]

Chick was at our game on Saturday and when I got to the ground he, like most other journalists, was in the press room watching the end of the Hibs v Dundee United game. He kept mumping and moaning that they were talking about Cummings' comical penalty miss but weren't actually showing it.

I'd already seen it on my phone before leaving the SMiSA meeting and was tempted to show him the video, however given his views on modern technology and the internet I was worried he'd think I was some sort of witch and try to set fire to me.

[div]

Way I read the information on the website was that if they manage to sell the 20 "Premium" slots then that £50K would go into the rainy day pot.

Similarly if 1000 do sign up then there would be £2k a month for the members to decide how to spend so potentially after just a few months should be further cash available to lend the club if and when it encountered cash flow bumps.

My sole concern with the whole project is that we still don't have clarity on who it is that is lending the £360K SMiSA is borrowing at what rate of interest and what it is secured against. The website states it's going to almost certainly be secured against the stadium which is I suppose inevitable but it does add a certain element of risk to the club as a whole.

I guess having that hanging over us isn't a particular bad thing as it will hopefully stop people from cancelling their memberships in a hissy fit just because they don't like certain decisions that have been made.

I would like to see that position clarified sooner rather than later though.

[gazmc83]

George and Gordon explained that they are negotiating with several loan providers and they hope to announce soon the details of that and they had no concerns with the stadium being used as a security on that .

I think the other big thing to remember is that the selling price is far lower than that under 10000 hours (under 1 million) which I think is a really good deal , it really is now or never !

[Isle Of Bute Saint]

Thats me signed up.

Was having to think twice about this given my circalmstances of no employment. Going though lots of red tape with the council to go self-employed have every confidance something will work for me. See this as a very important opportunity too ignore the club means everything and more to me.

[div]

George and Gordon explained that they are negotiating with several loan providers and they hope to announce soon the details of that and they had no concerns with the stadium being used as a security on that .

I think the other big thing to remember is that the selling price is far lower than that under 10000 hours (under 1 million) which I think is a really good deal , it really is now or never !

The deal on offer is a good one and the SMiSA team are to be congratulated on everything they have done so far. I've already signed up but it is quite important that we all understand the structure of the loan and what it's secured against.

At the end of the day it has to be secured against something, and I can't imagine it being anything other than the stadium. It's not a massive concern to me as the £360k borrowing should be paid off inside the first 3 years but it's still something that needs to be understood. IMO.

[BaldyOzBud]

div, on 16 Apr 2016 - 04:13, said:

New SMiSA website is now online containing everything you need to know and an online sign up system.

Personally speaking, I'm in!

http://www.smisa.net

I've just emailed SMiSA asking what provisions have been, or could be made regarding supporters like myself who live outwith the UK, particularly as regards DDs and fluctuations in international exchange rates.

If it can be done without killing me with fees then I'm in.

[div]

I've just emailed SMiSA asking what provisions have been, or could be made regarding supporters like myself who live outwith the UK, particularly as regards DDs and fluctuations in international exchange rates.

If it can be done without killing me with fees then I'm in.

I think GoCardless now covers the Eurozone so hopefully ex-pats in those locations will be able to sign up online.

Outside the Eurozone there was talk of them using PayPal subscriptions but they do attract hefty fees for the organisation. Sure they will come up with something suitable for you bud.

[Drew]

Way I read the information on the website was that if they manage to sell the 20 "Premium" slots then that £50K would go into the rainy day pot.

Similarly if 1000 do sign up then there would be £2k a month for the members to decide how to spend so potentially after just a few months should be further cash available to lend the club if and when it encountered cash flow bumps.

My sole concern with the whole project is that we still don't have clarity on who it is that is lending the £360K SMiSA is borrowing at what rate of interest and what it is secured against. The website states it's going to almost certainly be secured against the stadium which is I suppose inevitable but it does add a certain element of risk to the club as a whole.

I guess having that hanging over us isn't a particular bad thing as it will hopefully stop people from cancelling their memberships in a hissy fit just because they don't like certain decisions that have been made.

I would like to see that position clarified sooner rather than later though.

Aye, this does remain a matter of concern.

I can understand why any lender would need to have a clear idea as to how the loan would be paid back, though (ie - how many supporters are signing up). The issue of security is also an inevitable factor, hence the stadium coming into the equation.

Its a bit of a bit chicken and egg scenario, but that is unavoidable, to a degree.

[gazmc83]

Aye, this does remain a matter of concern.

I can understand why any lender would need to have a clear idea as to how the loan would be paid back, though (ie - how many supporters are signing up). The issue of security is also an inevitable factor, hence the stadium coming into the equation.

Its a bit of a bit chicken and egg scenario, but that is unavoidable, to a degree.

From the SMISA website ...

We expect that a condition of the loan will be that the lender has security over the stadium, which Gordon is willing to grant on our behalf. We have been advised there is no reason to be concerned by this - in a sense it’s a bit like getting a mortgage and granting security over your house. You wouldn’t take out a loan you weren’t comfortable paying back, and neither will we. Also, if the lender has security over the stadium, it means nobody else could borrow against it or make a claim on it.

[gazmc83]

The deal on offer is a good one and the SMiSA team are to be congratulated on everything they have done so far. I've already signed up but it is quite important that we all understand the structure of the loan and what it's secured against.

At the end of the day it has to be secured against something, and I can't imagine it being anything other than the stadium. It's not a massive concern to me as the £360k borrowing should be paid off inside the first 3 years but it's still something that needs to be understood. IMO.

From SMISA

We expect that a condition of the loan will be that the lender has security over the stadium, which Gordon is willing to grant on our behalf. We have been advised there is no reason to be concerned by this - in a sense it’s a bit like getting a mortgage and granting security over your house. You wouldn’t take out a loan you weren’t comfortable paying back, and neither will we. Also, if the lender has security over the stadium, it means nobody else could borrow against it or make a claim on it.

So in theory The Lender might take a Floating Charge Over the stadium at very low risk as its a very small loan to value, but that actually prohibits Gordon from raising any money on the stadium so safeguards it in future

Edited April 19, 2016 by gazmc83

[magnus]

From SMISA

We expect that a condition of the loan will be that the lender has security over the stadium, which Gordon is willing to grant on our behalf. We have been advised there is no reason to be concerned by this - in a sense it’s a bit like getting a mortgage and granting security over your house. You wouldn’t take out a loan you weren’t comfortable paying back, and neither will we. Also, if the lender has security over the stadium, it means nobody else could borrow against it or make a claim on it.

Sounds like normal lending practice and nothing to get too vexed about -albeit debt free is the ideal place to be. I know the whole fan ownership movement is driven by a love of the Club and it's not about profit or pounds, shillings and pence but as a matter of interest do we know the book value of the stadium?

[gazmc83]

They mentioned a figure of around 9.7 million

[magnus]

They mentioned a figure of around 9.7 million

Thanks gazmc83

[WeeBud]

Way I read the information on the website was that if they manage to sell the 20 "Premium" slots then that £50K would go into the rainy day pot.

Similarly if 1000 do sign up then there would be £2k a month for the members to decide how to spend so potentially after just a few months should be further cash available to lend the club if and when it encountered cash flow bumps.

My sole concern with the whole project is that we still don't have clarity on who it is that is lending the £360K SMiSA is borrowing at what rate of interest and what it is secured against. The website states it's going to almost certainly be secured against the stadium which is I suppose inevitable but it does add a certain element of risk to the club as a whole.

I guess having that hanging over us isn't a particular bad thing as it will hopefully stop people from cancelling their memberships in a hissy fit just because they don't like certain decisions that have been made.

I would like to see that position clarified sooner rather than later though.

I've read through what's been available information and through your post Div and I think you're pretty well on the money.

I have to say I have a small concern (gripe maybe) that the rainy day fund will be supplied by the smaller shareholder (SMISA) and not by the major shareholder/director/chairman or is it accepted that both will contribute if and when required...........I guess what's sitting at the core of my concern is that it was rumoured, on here, that GLS hadn't been prepared to help out in the past when cashflow was an issue (that may or may not be true) and that membership money may be lost if there are deficits in the accounts. That plus securing funds against the stadium make me a bit nervous.

That said, I have pledged my support and still think fan-ownership, done properly, is the way forward.

[gazmc83]

GLS wanted to the buy the club when it went up for sale initially and this was rejected by the board presuming due to petty disagreements , which it looks like now they have overcame.

I was very impressed with Gordon and he comes across very well on the and seems on the same wave length as the fans .

This is a very well thought out and planned bid , George confirmed that this has taken months and months of negotiations with the board every Monday night so there has been so much hard work put in now it's the fans job to make it happen !

Edited April 19, 2016 by gazmc83

[Lord Pityme]

I've read through what's been available information and through your post Div and I think you're pretty well on the money.

I have to say I have a small concern (gripe maybe) that the rainy day fund will be supplied by the smaller shareholder (SMISA) and not by the major shareholder/director/chairman or is it accepted that both will contribute if and when required...........I guess what's sitting at the core of my concern is that it was rumoured, on here, that GLS hadn't been prepared to help out in the past when cashflow was an issue (that may or may not be true) and that membership money may be lost if there are deficits in the accounts. That plus securing funds against the stadium make me a bit nervous.

That said, I have pledged my support and still think fan-ownership, done properly, is the way forward.

The Smisa rainy day funds are/will be spent on a discretionary basis after consultation and agreement with the membership. There will be no payments/loans to the club unless the membership vote to do so.

Gordon and the other board members may well offer to loan the club money if required, or may not, the issue is the Smisa money is not there for them to draw on as they see fit.

We can reasonably assume given that he is putting up over £600k that Gordon would be in a position to assist in a cash flow issue, but also those issues may not arise as additional revenue is generated at the club.

[Stuart Dickson]

Regarding international payments a suggestion - https://revolut.com/

[buddiecat]

The Smisa rainy day funds are/will be spent on a discretionary basis after consultation and agreement with the membership. There will be no payments/loans to the club unless the membership vote to do so.

Gordon and the other board members may well offer to loan the club money if required, or may not, the issue is the Smisa money is not there for them to draw on as they see fit.

We can reasonably assume given that he is putting up over £600k that Gordon would be in a position to assist in a cash flow issue, but also those issues may not arise as additional revenue is generated at the club.

Also SMiSA can give interest free loans to tide the club over until they have enough to pay it back - much the same as the current board do. We are really just starting from where the current board left us - a financially well run club (as per the independent financial report we had done) so with Gordon's planned fund raising we could be in a better financial situation than we are now.

Most of all buddies we need 1000 to sign up so that we have all the finance to make the takeover smooth and less of a risk.