El DerbyCo

[StarterForTen]

Apologies if this has already been said but it looks to me like Mel and Erik have struck a 'hand-in-hand' deal, whereby the purchase of the Club (probably for a relatively nominal fee given its dwindling assets and loss-making status) is linked to the separate purchase of the real estate (stadium, training ground, or any combination of these!) for a far greater amount - for the sake of argument (as I have not a clue) lets say that is for the amount Mel bought it from the Club for at £80m

If that is the case, then Our Erik may well be able to 'fund the deal' for the Club out of cash. Probably be able to do so by emptying the change out of his pockets because its likely to be (relative) peanuts.

But he would then need to raise funds against the stadium to purchase that. And how will that debt be serviced? Most likely through a lease/rental/service charge fee levied by Erik on the Cub for the use of the stadium. An £80m asset at 4% rental, that's (a hypothetical) £3.2m per year straight out of operating income.

By most sensible definitions, this scenario would be the club paying for itself, albeit through a circuitous route.

But then it might be the only way the Club can move forward because until the ownership changes the Club remains in the quick sand up to it's neck.

And if this model allows Erik to spend a bit of cash on revamping the playing squad over the short term, it might even pay dividends.

 

[GboroRam]

15 minutes ago, JfR said:

"Fool me once, shame on...shame on you. Fool me—you can't get fooled again."  George W. Bush

I'll just get on my knees and pray...

[Carnero]

2 hours ago, Leeds Ram said:

How does putting the stadium in his name but not refinancing it ensure he can buy players with it?

If he had to use cash to buy the stadium, then there's less cash to spend running the business (and buying players).

Same as if you had to buy your house outright without a mortgage as a bridge, you'd have less cash to pay the monthly bills.

[ThePrisoner]

3 minutes ago, GboroRam said:

I'll just get on my knees and pray...

That was the President before…

[Wolfie]

2 hours ago, G STAR RAM said:

I don't think any media outlet should be applauded for publishing factually incorrect information.

They have not really forced the issue, they have forced someone to have to come out and defend themselves against their made up story, and in the meantime many fans have now decided this guy is a 'chancer' on the back of this story.

Just to be clear, I'm not actually suggesting we literally celebrate that particular fascist rag. As I've stated previously on here, I hate everything about the current media and it's hunger for clickbait and creation of speculative "stories" presented as breaking news.

What the Mail have done, though, is help bring it to a head, outside of our DCFC bubble, so it can no longer be ignored.

1 hour ago, Nuwtfly said:

Do you feel this way despite Ed Dawes saying he had heard the same thing?

Who's even heard of Ed Dawes outside of Derby?. I don't listen to RD unless I'm driving to or from a match at PP. I'm sure Ed is a lovely bloke but he's come across as unprofessional today, bitter about TalkRadio (which I don't listen to either) getting the scoop that he couldn't - because he's a local radio guy and not a national broadcaster.

If Ed had a scoop, then maybe Radio Derby could have gone to 5Live & get them to pick it up (no idea what the mechanisms are within the BBC for this) and run with it - to gain the clout to get Erik on the end of the phone.

[MuespachRam]

2 hours ago, Nuwtfly said:

Do you feel this way despite Ed Dawes saying he had heard the same thing?

I wouldn’t believe anything that joker says. 

[Gringo]

How to buy a football club without any cash

1. Find a friendly guy/guys with a lot of spare cash and borrow many £millions

2. Buy club with cash thus passing all rules and regulations and establishing credibility

3. Refinance assets for many £millions more than purchase price, at a crazy interest rate (ask 3 amigos for advice on this part)

4. Give friendly guy his money back all neat, tidy and legal

5. Club has cost nothing and you have  many £millions profit 

 This is the hedge fund/private equity model

[Curtains]

2 minutes ago, Wolfie said:

Just to be clear, I'm not actually suggesting we literally celebrate that particular fascist rag. As I've stated previously on here, I hate everything about the current media and it's hunger for clickbait and creation of speculative "stories" presented as breaking news.

What the Mail have done, though, is help bring it to a head, outside of our DCFC bubble, so it can no longer be ignored.

Who's even heard of Ed Dawes outside of Derby?. I don't listen to RD unless I'm driving to or from a match at PP. I'm sure Ed is a lovely bloke but he's come across as unprofessional today, bitter about TalkRadio (which I don't listen to either) getting the scoop that he couldn't - because he's a local radio guy and not a national broadcaster.

If Ed had a scoop, then maybe Radio Derby could have gone to 5Live & get them to pick it up (no idea what the mechanisms are within the BBC for this) and run with it - to gain the clout to get Erik on the end of the phone.

I was really angry last night when he was interviewing someone from Rotherham and he agreed Rotherham deserve to stay up more than Derby to the guy .

He really needs to stop this sort of stuff .

I would never ever ever agree with an opposition supporter against Derby County. 
 

The bloke also said to him it’s  rumored on Twitter that Rooney  might play Saturday and that if hadn’t retired from playing Derby wouldn’t be in this relegation position and on that I agree 

[Curtains]

4 minutes ago, MuespachRam said:

I wouldn’t believe anything that joker says. 

I agree 

[GboroRam]

1 minute ago, Curtains said:

if hadn’t retired from playing Derby wouldn’t be in this relegation position and on that I agree 

You mean we'd be already down and bottom of the division? I agree.

[RoyMac5]

But we all believed what the Daily Mail wrote in their exclusive article with Mel?

https://www.dailymail.co.uk/sport/football/article-9257771/A-year-hell-Mel-Morris-reveals-major-health-problems-sell-Derby-200m-loss.html

Quote

His personal investment in Derby since he took control in 2015 is now ‘more than £200million’, and despite that being money he will NEVER recover, he will continue to bankroll the club until ‘a new custodian for this great club’ is in place...

 

[Jimbo Ram]

13 minutes ago, Curtains said:

I was really angry last night when he was interviewing someone from Rotherham and he agreed Rotherham deserve to stay up more than Derby to the guy .

He really needs to stop this sort of stuff .

I would never ever ever agree with an opposition supporter against Derby County. 
 

The bloke also said to him it’s  rumored on Twitter that Rooney  might play Saturday and that if hadn’t retired from playing Derby wouldn’t be in this relegation position and on that I agree 

Was Wazza only pretending that his legs had gone in his last game then?

[Leeds Ram]

34 minutes ago, Carnero said:

If he had to use cash to buy the stadium, then there's less cash to spend running the business (and buying players).

Same as if you had to buy your house outright without a mortgage as a bridge, you'd have less cash to pay the monthly bills.

My understanding is that the stadium is technically currently owned by Mel Morris?  So, why does he need the stadium in his own name instead of simply leasing it from Mel at a rate that is beneficial for the club? That comes without the necessity of a big injection to buy the stadium wholesale (which this dude doesn't have in a million years) and would speed up the deal. 

Edited May 6, 2021 by Leeds Ram

[Curtains]

1 minute ago, Jimbo Ram said:

Was Wazza only pretending that his legs had gone in his last game then?

Seriously he won’t be fit enough now will he I doubt but he could spray a few passes around ? 

[Rambalin]

18 minutes ago, Curtains said:

I was really angry last night when he was interviewing someone from Rotherham and he agreed Rotherham deserve to stay up more than Derby to the guy .

He really needs to stop this sort of stuff .

I would never ever ever agree with an opposition supporter against Derby County. 
 

The bloke also said to him it’s  rumored on Twitter that Rooney  might play Saturday and that if hadn’t retired from playing Derby wouldn’t be in this relegation position and on that I agree 

He wasn't a Rotherham fan he is  the local reporter covering the Sheffield and South Yorkshire clubs. 

The point he was making was that Rotherham are working to the limit of their capabilities has a club and playing staff, where has Derby and Wednesday have a far higher ceiling. 

 

 

Edited May 6, 2021 by Rambalin

[G STAR RAM]

2 hours ago, Leeds Ram said:

How does putting the stadium in his name but not refinancing it ensure he can buy players with it?

There is a currently a loan secured against the stadium, he seemed to suggest that rather than pay off this (as I think he said the EFL want him to) he would rather them funds for bolstering the squad.

[SparxTheRam]

5 hours ago, G STAR RAM said:

Any comments from all of the people that have decided the guy is a 'chancer' based on completely factually incorrect information in the Daily Mail now?

Nah, why would they do that, the hearsay and rumour mongering from that frequently wrong dirtrag is much more reputable than the guy actually coming on radio and talking about it and telling us what's happening....

I don't know why he bothered no one will believe him, it says volumes on here that the report comes out, the guy comes on to rubbish it and people moan that he is actually saying something and not keeping quiet cos 'thats what he said'

 

[Curtains]

6 minutes ago, Rambalin said:

He wasn't a Rotherham fan he is  the local reporter covering the Sheffield and South Yorkshire clubs. 

The point he was making was that Rotherham are working to the limit of their capabilities has a club and playing staff, where has Derby and Wednesday have a far higher ceiling. 

 

 

Rotherham deserve nothing .

We got knocked out the FA Cup during the pandemic fielding a reserve team .

This love on for Rotherham and Wednesday stinks. 
 

Wednesday should had a 12 point deduction as they were found guilty.

Derby were cleared 

[Spanish]

2 minutes ago, Leeds Ram said:

My understanding is that the stadium is technically currently owned by Mel Morris?  So, why does he need the stadium in his own name instead of simply leasing it from Mel at a rate that is beneficial for the club? That comes without the necessity of a big injection to buy the stadium wholesale (which this dude doesn't have in a million years) and would speed up the deal. My feeling is that if the report is correct he needs the stadium as an asset for the club to leverage it to hell so he can complete his 'takeover'. 

quite a mess no?

so Mel wants out but any buyer wants the stadium as an asset. 

Problem is that in order allegedly to avoid  12 point penalty he has had to buy it at an independent valuation price.  Now he could sell it at an undervalue but probably  he still owes the club for the purchase.  The club just can't forgive the loan because the loss would create an points penalty.

The stadium deal makes the club more difficult to sell.  The only way out is to give the stadium back to the club and forgive the loan.  The club then has a tangible asset to attract a buyer.  Not sure what the EFL will say though. 

then we have some chancer who has put up a temporary loan to purchase the club then mortgages the poo out of it to enrich himself

The point of having a local owner was to avoid carpet baggers like this

[G STAR RAM]

9 minutes ago, Leeds Ram said:

My understanding is that the stadium is technically currently owned by Mel Morris?  So, why does he need the stadium in his own name instead of simply leasing it from Mel at a rate that is beneficial for the club? That comes without the necessity of a big injection to buy the stadium wholesale (which this dude doesn't have in a million years) and would speed up the deal. My feeling is that if the report is correct he needs the stadium as an asset for the club to leverage it to hell so he can complete his 'takeover'. 

How is he going to leverage an asset that is already leveraged? Surely he would have to pay off the existing finance secured against the asset to the re-finance it. Makes no sense whatsoever.