Wed Oct 26, 2016 9:25 pm
If you are still around, here's a post from Tramp Army today:
I think that many of the reasons for what has happened over the last few months will shortly be revealed by the 2015-16 annual accounts which must be due to be published within the next few days.
I would not be surprised if they show a far worse situation regarding losses for that year than what most are anticipating.
If so that would explain a number of puzzling aspects regarding what has taken place.
1 Why was no money spent in the recent transfer window?
2 Why has Jenkins continued to play an active roll despite having received millions of pounds,which should have sent him into happy retirement abroad?
3 Why were the Trust excluded?
4 Why didn't Katzen and Morgan and Jenkins sell all their shares?
5 What is Katzen and Morgan's relationship with the New American holding company?
There have been various reports that the Americans valued and spent Up to £100m to acquire the Football club. In cash terms it was probably a lot less than that and could have been as low as £50m.
There is no doubt that Jenkins and his fellow shareholders have been desperate to cash out and have touted their shares in the American market for at least the last few years.
At the end of last season their desperation stakes must have grown dramatically.The struggle to avoid relegation , the aborted first offer to buy, and the worsening cash flow as a result of losses, put control of the sale firmly into the hands of the purchasers and not the sellers.
Firstly the Trust:
It has been suggested that the major reason for their exclusion was that a negative attitude as in the first sale would put the purchasers off. I believe that the main reason was that there was a limited pot of money available and they were determined that the Trust would not share in it.Although the Trust had always been adamant that they would not sell their shares under any circumstances, there was a growing feeling in the Trust that after a takeover their own position could be seriously undermined and that a sale of their shares should therefore not be ruled out completely.
Secondly Katzen and Morgan:
There was a lot of talk of two of the minority shareholders not being happy with the sale.
I believe that this was because the pot was not big enough to pay them out in full at the wanted rate of £1m for one per cent.
In the end they accepted a compromise. A retention of a small percentage of shares (apparently 5% each) and the transfer of further shares for an equity stake in the Americans own holding company.
Huw Jenkins:
Was key to the deal going through. He retained 5 % of his shares. He remained in a managerial position. His remit was to reduce expenses, particularly wages. To help with negotiations to purchase the Stadium. His reward; an excellent wage and the purchase of his remaining shares at full price.
Also part of the deal, a new agreement so that the shares retained by Katzen,Morgan and Jenkins could only be sold to the new owners.
As far as the Americans were concerned the deal minimised losses and maximised profits.
There was therefore no intention from the beginning to introduce any more money into the Club such as in the transfer market. The only way money would be introduced would be to buy the Stadium thereby facilitating future borrowing facilities.
From the American viewpoint the worst scenario would be relegation .This would however be offset by the non spend of the 60% increase in TV money this year, and future parachute payments.
The above is all speculation, but it does tick all the boxes.
If true it meant that they obtained control of a Premiership club virtually on the cheap.
Unless they change policy we will continue to see very little money put in by them in January.
If we are relegated we will suffer from asset reduction to repay their investments.
The accounts when released in the next few days will reveal why Jenkins and his cronies rushed to sell, regardless of the Trust and the club's future.