Sign in to follow this  
lingard

private equity company land plans

Recommended Posts

private equity firm to pump in 2 million to develop land if we sign it over to them...we keep controlling share and they risk the cash in order to develop to provide an income from out assets.  

AGM next week and a vote on the night to...

stay as we are

share holders stump up the two million

or vote for the private equity plan

discuss. 

Share this post


Link to post
Share on other sites

Stay as we are = No change..... land we can't use. Assets not being realised.

Use those assets wisely = extra income.

Yes i know that's a simplistic view and we need more info.... but it does feel like owning a sweet shop and not being allowed to have any sweeties at the mo

  • Like 1

Share this post


Link to post
Share on other sites

Doesn't it need all the A shareholders to vote on something like that, not just those who turn up on the night? In any case I'm pretty sure that a minimum % of shareholder votes would be needed to do such a thing. I'm assuming that folks have had stuff through the post or email about this? I'm still waiting for mine.

  • Like 1

Share this post


Link to post
Share on other sites

needs share holder votes and proxy provision on the form

 

if you havent had a letter and your a share holder contact the club.

i know what you mean Robin.  its no good sitting there and dreaming.

need more info

Share this post


Link to post
Share on other sites

We need to use our assets to generate income. The method outlined does not give enough details of the proposal.  How much control will they have will we generate income over the two million and will our controlling interest last? Further to take control of 18 acres for £2 million is very little. All the details need to be studied and a brief outline at an AGM is not enough.

Share this post


Link to post
Share on other sites

I think we need to be a bit pro-active here. If we pizz about waiting for info.... discussing it, feeding back etc etc.... it'll go on for bloody years without moving forward.

Let's bash it at AGM and move it forward..... 

  • Like 2

Share this post


Link to post
Share on other sites
16 minutes ago, Robin Evans said:

I think we need to be a bit pro-active here. If we pizz about waiting for info.... discussing it, feeding back etc etc.... it'll go on for bloody years without moving forward.

Let's bash it at AGM and move it forward..... 

Private Equity firms are in business to make money for themselves, no one else. I'd agree with Colin, a brief outline at a short meeting is not the way to make such an important decision. Merely the fact that it looks as though it's trying to be rushed through is reason to be cautious.

  • Like 2

Share this post


Link to post
Share on other sites

Here's and alternative. WE get planning permission. We sell 2 to three acres which will generate £2 million plus. We then gradually develop the land on a leasehold basis for rented property. We get the income. The land appreciates in value and the future is secure. To bash it out sounds a quick solution but does it safeguard us. All the details are required before a 'yes' vote. If we hand over the land for a song then the assets are gone and in the future the capital of the company will slowly disappear as the outgoings exceed the income. Due to travel problems I might not make the meeting but I will do my best to be there. This needs careful thought.

Share this post


Link to post
Share on other sites

The big issue is not mentioned- Planning Permission. The land is worth a lot more with this than without, and I have trouble understanding why its not a foregone conclusion? Half the farmers in Castleford have been turned into multi-millionaires on the back of development on green belt land, so why not this bit of scrubland and former allotments? Shopping malls were planned and planning permission granted on green belt at Glasshoughton and Newmarket because council tax payers wanted new stadia for Wildcats and Tigers, so what do the council tax payers of Featherstone want? Would they support a planning application or not?

A few years ago the labour councillors lost their seats over a swimming pool, so why has there been no pressure group set up to lobby the council into supporting a planning application? If this happened the land would be worth far more and the private equity firm would have to either pay more or settle for a lower stake in the land. 

Share this post


Link to post
Share on other sites
1 minute ago, jamescolin said:

18 acres with planning. Value at least 16 million. Tread softly.

That will get us to the top of SL, 😂 😂😂 

  • Like 1

Share this post


Link to post
Share on other sites
2 hours ago, Fev1983 said:

That will get us to the top of SL, 😂 😂😂 

just what Toronto thought....

you still get a Salary Cap on players....

Share this post


Link to post
Share on other sites
9 hours ago, jamescolin said:

Here's and alternative. WE get planning permission. We sell 2 to three acres which will generate £2 million plus. We then gradually develop the land on a leasehold basis for rented property. We get the income. The land appreciates in value and the future is secure. To bash it out sounds a quick solution but does it safeguard us. All the details are required before a 'yes' vote. If we hand over the land for a song then the assets are gone and in the future the capital of the company will slowly disappear as the outgoings exceed the income. Due to travel problems I might not make the meeting but I will do my best to be there. This needs careful thought.

I suspect to follow this plan would cost thousand of pounds in fees etc to achieve . Therefore where would this money come from?

Share this post


Link to post
Share on other sites

So I assume that this private equity firm is Colm Corran, the recently appointed director of the club.

Seems like a decent enough bloke, I sat next to him on the way out to Toulouse. 

Hopefully MC has done his homework on the man and he's not another fake sheikh. 

Assuming our tenure at Post Office Road is assured and that the proposal generates a decent income for us, I say go for it.

However, I only hold B shares, so my opinion doesn't really count.

 

Share this post


Link to post
Share on other sites

I got a share through having a season ticket when the club became a limited company. Would this be an A or a B share?. Alas my address has changed and it’s years since I’ve had any correspondence. I’ve contacted the club to see what I should do.

Share this post


Link to post
Share on other sites
32 minutes ago, Monkeymagic22 said:

I got a share through having a season ticket when the club became a limited company. Would this be an A or a B share?. Alas my address has changed and it’s years since I’ve had any correspondence. I’ve contacted the club to see what I should do.

It will be an A share.

Share this post


Link to post
Share on other sites

Sometimes you can be too cautious, and the memory of '83 is fading year on year as us Old 'uns pass away. Since the Destination Super League caption was dropped and Rovers stopped being Top Dog attendances have been falling. The equity company might make a few bucks, but might also make Fev more than they would on their own? I feel that the time is right to make a push both on the field and with developing other income streams. We don't know how far expansionism will go, so Fev need to get into the mix before it is too late, and also before many of us bite the dust before seeing the promised land..

  • Like 5

Share this post


Link to post
Share on other sites

I’m in favour of this, we get a cash injection and then an ongoing income when the development is completed. Ok, the equity firm will make plenty, but what’s the point in never utilising asserts which would make the club stronger. 

Share this post


Link to post
Share on other sites
23 minutes ago, Monkeymagic22 said:

I’m in favour of this, we get a cash injection and then an ongoing income when the development is completed. Ok, the equity firm will make plenty, but what’s the point in never utilising asserts which would make the club stronger. 

What cash injection? Reading the (admittedly limited) information that's been posted there appears to be no money up front. We effectively hand over the land (possibly keeping a 50 %+1 share), they use up to £2m to 'develop' it and we (may) get an income at some point in the future.

Share this post


Link to post
Share on other sites
Just now, Les Tonks Sidestep said:

What cash injection? Reading the (admittedly limited) information that's been posted there appears to be no money up front. We effectively hand over the land (possibly keeping a 50 %+1 share), they use up to £2m to 'develop' it and we (may) get an income at some point in the future.

If we don’t accept this deal, I guess we would need to find an alternative way if raising the money required to develop the land, or alternatively sell the land.

Share this post


Link to post
Share on other sites
1 hour ago, The Blues Ox said:

Sounds like a get rich quick scheme without looking at the long term.

Couldnt be further from the truth, the idea is we will lease it out and get paid 3/400k a year indefinitely 

Share this post


Link to post
Share on other sites
38 minutes ago, Monkeymagic22 said:

If we don’t accept this deal, I guess we would need to find an alternative way if raising the money required to develop the land, or alternatively sell the land.

Yes, but something like this shouldn't be rushed into. I doubt there'll be many (if any) present at the AGM who will be able to pass sound judgement on whether it's a good deal or not for the Club/shareholders during the time of the meeting. Full details should have been sent out with the notice of the AGM to allow shareholders adequate time to study them.

  • Like 2

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.


League Express Yearbook 2018/19 - Order Now

Rugby League World - Christmas Offer

League Express - Online Now

League Express - Every Monday



Rugby League World - Dec 2018