Uptherams Posted April 2, 2019 Share Posted April 2, 2019 Reading the details on the Telegraph website, this is a very smart move by MEL. The stadium remains in the hands of someone who wants the best for the club, to prevent any future investors from asset stripping the club....despite that being the case here ? It will allow this company more freedom to generate more revenue. The trouble is, for who's benefit? Would Mel be willing to re-invest this revenue back in to the club? Hopefully the wage bill will be back under £30m by the summer. Link to comment Share on other sites More sharing options...
Mihangel Posted April 2, 2019 Share Posted April 2, 2019 25 minutes ago, Millenniumram said: OP was right, financial results just published, confirms sale of stadium to a separate company owned by MM. Suggests reports of him wanting to keep the stadium after he sales the club are true, potentially adding credence to the whole roof rumour if he wants to use it for other events too. I'd managed to miss that one completely - Having a quick read of that thread, the information about Morris' other 'new' directorships and this news today, it does strike me that something will be happening with the stadium soon.... Link to comment Share on other sites More sharing options...
LazloW Posted April 2, 2019 Share Posted April 2, 2019 Hmm. So the football club no longer own the stadium. I’m sure clever people will explain what this all means in practical terms but that the kind of thing that would bother me a bit. While it’s Mel it will probably not be considered a problem, but isn’t this the kind of mess Coventry have gotten into? Still, I won’t throw my dummy out until there is a bit more info. I’m sure there must be some positives to it. Link to comment Share on other sites More sharing options...
Spanish Posted April 2, 2019 Share Posted April 2, 2019 3 minutes ago, SaintRam said: No, but it means we get this summer to get rid of some more wages. I suspect without selling the stadium this summer transfer window will have come too late. we also don't look desperate to buy or sell anymore. This is a game changer as it stands and gives me hope that we can have a good summer if we learn from past mistakes. Interesting to see what we do with BJ now. Link to comment Share on other sites More sharing options...
Angry Ram Posted April 2, 2019 Share Posted April 2, 2019 24 minutes ago, BurtonRam7 said: https://www.dcfc.co.uk/news/2019/04/derby-county-reveal-201718-financial-results @Angry Ram, Stephen Pearce doesn’t need the sack, he needs a raise. Somehow we’ve managed to turn £3 million per week in losses into a £14 million profit?I have no clue how this affects FFP, mind. He sold something to Mel.. Brilliant. How much bonus does he deserve. Link to comment Share on other sites More sharing options...
DarkFruitsRam7 Posted April 2, 2019 Share Posted April 2, 2019 11 minutes ago, Angry Ram said: Disagree mate.. Was slightly tongue in cheek. I don't know enough about the issue to have a serious, strong opinion on it. Not owning the stadium might be risky if relations between Mel and a hypothetical future investor/owner/etc turn sour, however. As it stands, it seems to be a fairly shrewd financial move. Link to comment Share on other sites More sharing options...
Spanish Posted April 2, 2019 Share Posted April 2, 2019 27 minutes ago, BurtonRam7 said: https://www.dcfc.co.uk/news/2019/04/derby-county-reveal-201718-financial-results @Angry Ram, Stephen Pearce doesn’t need the sack, he needs a raise. Somehow we’ve managed to turn £3 million per week in losses into a £14 million profit?I have no clue how this affects FFP, mind. you're mixing up club issues with Mel's personal debt though Link to comment Share on other sites More sharing options...
ram59 Posted April 2, 2019 Share Posted April 2, 2019 2 minutes ago, LazloW said: While it’s Mel it will probably not be considered a problem, but isn’t this the kind of mess Coventry have gotten into? Please don't compare MM with the likes of SISU. Link to comment Share on other sites More sharing options...
SaintRam Posted April 2, 2019 Share Posted April 2, 2019 9 minutes ago, LazloW said: Hmm. So the football club no longer own the stadium. I’m sure clever people will explain what this all means in practical terms but that the kind of thing that would bother me a bit. While it’s Mel it will probably not be considered a problem, but isn’t this the kind of mess Coventry have gotten into? Still, I won’t throw my dummy out until there is a bit more info. I’m sure there must be some positives to it. If it had been sold to anyone else I'd be more concerned. This is a short term chunk of money for DCFC to get by on FFP - the fact we're announcing a profit is a huge deal. It's the first time in 10 years we've had one and significantly alters our FFP outlook. To the point where assuming the wages do still get brought down to a less ridiculous level, we're now looking quite comfortable financially for the future. DCFC will lease it off Mel Morris, I'd imagine this lease is pretty low, and that while he owns it independently the revenue it generates will be largely from other events - with the plan for the club to buy the stadium back somewhere down the line, after promotion or some similar injection of a financial safety net. That's conjecture, but seems the most likely course of action. I wouldn't be too worried even if Mel continued to own the stadium while ceasing to have a role at the club, because he's a fan and I feel it's probably unlikely he'd kick us out. There would be reason to worry, though, if for some reason the Stadium changed hands again down the line and fell under the ownership of some entirely separate 3rd party. Then we'd be potentially in for Coventry esq shenanigans. But I don't think that's likely at all. Link to comment Share on other sites More sharing options...
Spanish Posted April 2, 2019 Share Posted April 2, 2019 1 minute ago, ram59 said: 5 minutes ago, LazloW said: While it’s Mel it will probably not be considered a problem, but isn’t this the kind of mess Coventry have gotten into? Please don't compare MM with the likes of SISU. I get what both of you are saying but whilst this looks great today it's not necessarily a good thing. If Mel 'goes' and his executors look to realise his assets they may sell to someone like SISU. However, I would anticipate that this is something he has considered and his Will deals with it more defensively Link to comment Share on other sites More sharing options...
Angry Ram Posted April 2, 2019 Share Posted April 2, 2019 1 minute ago, BurtonRam7 said: Was slightly tongue in cheek. I don't know enough about the issue to have a serious, strong opinion on it. Not owning the stadium might be risky if relations between Mel and a hypothetical future investor/owner/etc turn sour, however. As it stands, it seems to be a fairly shrewd financial move. It's just the money merry go round mate, nothing new all companies do it to different degrees. As @LazloW alluded to earlier, this can be a positive or a huge negative. When Morris does sell, the due diligence for the new buyer is going to be complicated. Although separate entities now, once someone wants to buy they will all join together and become a whole. Just checking my route to Northampton in case I need it in 5 years. Link to comment Share on other sites More sharing options...
EnigmaRam Posted April 2, 2019 Share Posted April 2, 2019 It may be naive of me but if a new investor was to come in and hit some financial trouble they could never borrow against the ground(first thing they do) as they won’t own it. also weeds out any potential dodgy investors. They will be looking for prem money not selling assets not without risk but think this is a very shrewd and safe maneouver from MM alao gives us plenty of room for transfers in the summer Link to comment Share on other sites More sharing options...
SuperDerbySuperRams Posted April 2, 2019 Share Posted April 2, 2019 I was under the impression that FFP was only related towards footballing related activity. How would the stadium sale help improve that situation? Link to comment Share on other sites More sharing options...
Srg Posted April 2, 2019 Share Posted April 2, 2019 2 minutes ago, SuperDerbySuperRams said: I was under the impression that FFP was only related towards footballing related activity. How would the stadium sale help improve that situation? That's incorrect, or sponsorship or anything like that would be irrelevant - which it isn't. Link to comment Share on other sites More sharing options...
SaintRam Posted April 2, 2019 Share Posted April 2, 2019 3 minutes ago, SuperDerbySuperRams said: I was under the impression that FFP was only related towards footballing related activity. How would the stadium sale help improve that situation? I've never seen that distinction. I've only ever seen it in terms of a club's allowable overall losses from one year to the next. http://www.financialfairplay.co.uk/financial-fair-play-explained.php Pretty sure the idea of FFP was born from was trying to prevent clubs from mortgaging their future on short-term success, and that it's not being run in a shady way. It's really just presented as providing a level playing field, in reality it's doing nothing of the sort. If a club has a poo ton of non-football related revenue, they can spend far more on players. Link to comment Share on other sites More sharing options...
Wolfie20 Posted April 2, 2019 Share Posted April 2, 2019 Anyone know exactly how long the "long-term lease" is for? Link to comment Share on other sites More sharing options...
Carl Sagan Posted April 2, 2019 Share Posted April 2, 2019 43 minutes ago, Kinder said: Turns out we’ve sold Pride Park to another company owned by Mel. Sorry, not actually that exciting!! Genius! Surely that gets round everything FFP? Or should I read the posts after this which maybe say otherwise? Link to comment Share on other sites More sharing options...
The Key Club King Posted April 2, 2019 Share Posted April 2, 2019 So the £40m profit on the stadium sale has allowed us to get around FFP and post a £15m profit? Without it I assume this would be a loss of £25m for the year? Without such a clever financial trick we'd be having points docked I suppose. I've no doubt about Mel's good intentions for the club and I'm not concerned about the sale of the stadium but if I was a fan of a competitor I would say this is a highly dubious way to circumvent FFP. Having done it now, I hope we can reduce costs to a sustainable level and by sustainable I mean whatever Mel and FFP allow. Link to comment Share on other sites More sharing options...
SaintRam Posted April 2, 2019 Share Posted April 2, 2019 3 minutes ago, Wolfie20 said: Anyone know exactly how long the "long-term lease" is for? No clue. Probably a huge amount of time though (these sorts of things are often multiple decades). I'd put a significant bet on the club buying the stadium back long before it ends. Link to comment Share on other sites More sharing options...
SaintRam Posted April 2, 2019 Share Posted April 2, 2019 2 minutes ago, The Key Club King said: So the £40m profit on the stadium sale has allowed us to get around FFP and post a £15m profit? Without it I assume this would be a loss of £25m for the year? Without such a clever financial trick we'd be having points docked I suppose. I've no doubt about Mel's good intentions for the club and I'm not concerned about the sale of the stadium but if I was a fan of a competitor I would say this is a highly dubious way to circumvent FFP. Having done it now, I hope we can reduce costs to a sustainable level and by sustainable I mean whatever Mel and FFP allow. We don't know how much the stadium was bought for, do we? Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.