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What happens when The Buds is Bought


Kombibuddie

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Interested to hear, what other SMISA members thoughts or expectations are of when the deal is actually done, The Buds are bought and SMISA is, the majority shareholder of St Mirren FC PLC.

I know it is a few years away yet but I have started thinking, how things might pan out when the time for transitioning arrives

How do you think things will pan out? The transition from current Board to new board. What criteria/restrictions will SMISA set/impose for members candidacy for election to the Club Board and will it be a simple process or do you think it might be a bit messy? (I ask that because the £2 monthly spend votes have, to date, triggered some debates with differing opinions on a few aspects of the spend which I see as being a bot messy at times)

Edited by Graeme Aitken
typo
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As far as I am aware absolutely  nothing is place. There is no obligation or plans as far as I know for SMISA members to keep paying their contributions. Its going to take a lot more than two pounds a week to keep the club going and the rest of the money is being used to buy shares not run the club. At the moment the club pays for that obviously. Once the shares are bought individual SMISA members have no obligation to keep paying and there is no framework in place for them to keep doing so.. They as individuals also have no stake in the club.

It seems strange to have a plan for buying the club but no plans on what to do with it, once it's bought.

Not sure what the books are like but by the way they couldn't pay the bills for USH or loan players, sports scientists etc,  the surplus from income over expenditure doesn't look that good and without the extra SMISA subscriptions which cease after the shares are bought life might be difficult.

That was the position last time I enquired but hopefully things have moved on since last year and an ownership plan is in some stage of development.

 

 

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Stirling Albion are supporter owned but are now considering a buy out offer from some businessmen who appear to wish to put money directly into the club budget. 

I mention this as the same thought has occurred to others and to myself.  Buying the club is parhaps easier (not easy!) than running it successfully. 

My "concern"  has been where sources of working capital would come from for investment other than the develop players and sell model.

 

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'Working Capital ' will, as usual, come from Season Tickets, Matchday Ticket Sales, Hospitality and a few other Income Streams. 

Simply, whoever is in charge will have to  construct a Budget and fecking stick to it. 

We should always have a ' Rainy Day Fund ' which should be added to continuously, no matter the size of amount. 

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1 hour ago, St.Ricky said:

Stirling Albion are supporter owned but are now considering a buy out offer from some businessmen who appear to wish to put money directly into the club budget. 

I mention this as the same thought has occurred to others and to myself.  Buying the club is parhaps easier (not easy!) than running it successfully. 

My "concern"  has been where sources of working capital would come from for investment other than the develop players and sell model.

 

More gate money.

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44 minutes ago, pod said:

More gate money.

It is correct management of finances which is key , no matter how large or small our income is.

The Bigots from Glasgow had full houses for more than 2 decades.

They still died.

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2 minutes ago, melmac said:

SMiSA need to stop pissing money away, they can't be all things to all people, it's time to save money.

They are not spending St Mirren Football Club income.

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Gate money alone is not sufficient in my opinion. It helps, particularly season ticket sales which provide a degree of certainty for the next season. More is needed in sponsorship, revenue raised from the use of the assets such as the ground, facilities and training ground amongst others.  Ultimately though there will be times when investment (not debt) will be either needed or advisable. For example. Let's say we fill the ground each week for 2 seasons and have sold out our season tickets. If we want to fill in the corners to sell more seats then where do we get the investment required. No one is suggesting that we spend more than our income allows but how capital investment might be handled.

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8 hours ago, pod said:

Fill the seats we already have for starters.

8 hours ago, pod said:

Fill the seats we already have for starters.

Still doesn't answer the question I asked. I am not trying to be smart. The question of availability of capital is important going forward. I like the  idea of fan ownership in principle.  

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17 hours ago, shull said:

They are not spending St Mirren Football Club income.

Soon enough, it will be one and the same.

There is probably a case for asking SMiSA members to make, for instance, a once a year / season contribution of say £25 or £50 which would go towards the running of things once the takeover is complete. I appreciate a number of members may not be in a position to make an additional contribution but it would be something to consider.

It would be worthwhile asking SMiSA's accountant to give a forecast, based on outgoings over the last x amount of years, of the preferred figure they should have in the bank for working capital once the takeover goes through.

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The only people putting money into the club, and expecting nothing in return are Smisa and the support. Given we have received almost £1million (yes a championship club picking up an unbudgeted £1m) in transfer fees since the buyout, and we are led to believe the club are still 'tight' for money..! I would worry a lot more about what may happen in the next eight years, than when smisa takeover!

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4 hours ago, melmac said:

Soon enough, it will be one and the same.

There is probably a case for asking SMiSA members to make, for instance, a once a year / season contribution of say £25 or £50 which would go towards the running of things once the takeover is complete. I appreciate a number of members may not be in a position to make an additional contribution but it would be something to consider.

It would be worthwhile asking SMiSA's accountant to give a forecast, based on outgoings over the last x amount of years, of the preferred figure they should have in the bank for working capital once the takeover goes through.

That would of course involve SMISA seeing the cashflow and not just the accounts. One easy way I suppose would just be to take the cost of every request to SMISA, add a certain % of transfer fees as we may not get the same amount per season going forward and then just add 50K. I say every request to SMISA because the club evidently don't budget for those things in order to push the boat out on the playing budget. Add in the women's team of course to those requests and replace Glenvale with say providing free spaces on a camp for example. 

As for saving, it doesn't take a genius to work out SMISA are ahead of schedule as the target was 1K of members and they are currently above 1,200. I can't see that dropping below 1,100 so at some point there will notionally be say around 120K available for at least 2 seasons to put aside. But, how do you do it and at what point? Maybe after August you'll see movement as they move in to phase 2 and begin building the Gordon pot. If memory serves me right that's around 680K so again it's obvious to see that the 10 year plan has scope for building a fund. Especially as there's no current option to complete early or buy Gordon's shares in chunks. How do you sustain that fund going forward and how do you also fund any large project at the same time.  

To answer Tony...yip!

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1 hour ago, guinness said:

After the 10 years we will be asked to continue with the monthly contributions.

 

I don't get why this option is not on the table. Offer a few token shares which are valid as long as subscriptions are being paid and I'm sure all SMISA members would continue to subscribe in the knowledge they really do have a stake in their team.

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On 04/03/2018 at 4:23 PM, St.Ricky said:

Stirling Albion are supporter owned but are now considering a buy out offer from some businessmen who appear to wish to put money directly into the club budget. 

As a SMISA member this is my biggest concern. If we contribute for 10 years, Gordon gets his cash and walks away then SMISA (which most of us will no longer be part of because they don't take our money any more) Sell out. That would be more than a little Shady.

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2 hours ago, East Lothian Saint said:

I don't get why this option is not on the table. Offer a few token shares which are valid as long as subscriptions are being paid and I'm sure all SMISA members would continue to subscribe in the knowledge they really do have a stake in their team.

 

2 hours ago, East Lothian Saint said:

As a SMISA member this is my biggest concern. If we contribute for 10 years, Gordon gets his cash and walks away then SMISA (which most of us will no longer be part of because they don't take our money any more) Sell out. That would be more than a little Shady.

You cant divvy up the shares as they belong to all Smisa members, and things can only change (sell out etc) if the members vote for it.

one thing to consider though, you can join smisa on the day they buy out Scott and you will have as much say, and ownership as anyone who has paid £12, £25 a month for ten years, or a £2500 lump sum..! 

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2 minutes ago, Lord Pityme said:

 

You cant divvy up the shares as they belong to all Smisa members, and things can only change (sell out etc) if the members vote for it.

one thing to consider though, you can join smisa on the day they buy out Scott and you will have as much say, and ownership as anyone who has paid £12, £25 a month for ten years, or a £2500 lump sum..! 

That is sort of my Point but essentially who is SMISA. We are all SMISA Members whilst paying our subscriptions but we only pay till the club is bought. There is no framework for paying beyond that. so who then will be the voting members?

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8 minutes ago, East Lothian Saint said:

That is sort of my Point but essentially who is SMISA. We are all SMISA Members whilst paying our subscriptions but we only pay till the club is bought. There is no framework for paying beyond that. so who then will be the voting members?

You have a valid point. Smisa was around a long time before 'buy the buds', however the committee have as you observe neglected to put forward what smisa will look like post BtB. In theory it should go back to members paying £10 a month, but as you highlight.. but to what end?

its a point that should be brought up at the AGM. smisa needs to get gack to its own independent day job and get out the clubs back pocket. At present it seems its only there to give Scott back his money, and pay club wages!

 

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On 04/03/2018 at 7:43 PM, melmac said:

SMiSA need to stop pissing money away, they can't be all things to all people, it's time to save money.

My thoughts also while £2.00 is not a lot over some years it is. My first thought is that members will be asked to keep contributing a monthly sum its the only obvious way forward. Next question will members be willing to do that ? As long as I can afford it I will. 

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