AN UPDATE

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DEREK
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AN UPDATE

Post by DEREK » Wed Jul 25, 2012 7:43 pm

It's been a week since there has been any news (good or bad) regarding the purchase of Filtrona. Can anyone give an update please. Also it has been rumoured that Shields are to play all their home games at Birtley Town next season. Is this true? How will it affect the likes of gate money and sponsorship? Do Shields have to pay to rent Birtleys pitch and facilities?

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Re: AN UPDATE

Post by matty the mariner » Wed Jul 25, 2012 11:21 pm

Once again the silence is deafening.As someone who has pledged money what is going on?

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Re: AN UPDATE

Post by passtheball » Thu Jul 26, 2012 12:19 am

A progress report to bring interested parties up to date reads as follows. The definitive and final version of the Share Issue is in preparation by the solicitors at Ward Hadaway in Newcastle, following several lengthy meeting and preliminary document presentations and is subject now in at least in part to a successful conclusion of current and ongoing discussions to resolve the ground situation for the forthcoming season, will be made available to all interested parties and the general public via the media as soon as is practicable. No effort has been spared in numerous attempts to date to resolve most difficult financial problems, not least of which is the situation regarding the bank situation regarding a mortgage deposit, in view of economic circumstances of the country as a whole at this moment in time, which all impact directly on the football club, which should and will no doubt be fully appreciated. Suffice to reassure all with a positive interest in the wellbeing of SSFC that everything possible is being done to effect a successful conclusion to bring about the best possible solution to the current impasse. It can be said that with the season now but three weeks distant from opening, that matters to our mutual satisfaction may be most hopefully realised in all respects and the best that can be achieved in the short term will be made good. I hope that on behalf of all colleagues working to effect the outcome we all most fervently desire, that this brief report will suffice until further conclusive information can and will be made public.

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Re: AN UPDATE

Post by DEREK » Thu Jul 26, 2012 10:22 am

Thanks for the progress report Passtheball. It does not, however answer the questions I posed earlier ie

Has enough funds now been raised to satisfy the bank for the mortgage?

Has a bid been accepted for Filtrona by JR?

Where will we be playing in the meantime? (Birtley FC has been mentioned)?

Would JR allow us to play on Filtrona until the necessary legalities have been completed? (assuming a mortgage has been arranged)

If a mortgage cannot be obtained is there a back up plan (maybe another site)?

Thanks in anticipation

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Re: AN UPDATE

Post by andysfootball » Thu Jul 26, 2012 12:31 pm

to me it looks as though shields will be playing somewhere else this season

if there was any goodwill involved between the current owner and the club

there would have already done a short term rental deal with announcements made

look on the bright side though

more away games to take the bus too and there's bound to be a few good boozers in birtley!
STAY CALM AND SANDDANCE ON

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Re: AN UPDATE

Post by passtheball » Thu Jul 26, 2012 1:06 pm

Derek,

1. If the capital sum required by the banks had been available, a mortgage perhaps could have been concluded.
2. A confirmed mortgage only is apparently required, though the owner may yet hopefully be persuaded otherwise.
3. As of yet not confirmed, and discussions are yet ongoing.
4. One would hope so, also if and possibly when the bracketed question was confirmed.
5. Currently under discussion.

Matters are complex, time consuming and involve numerous factors that are inter-related. Hopefully a resolution may be reached to satisfy the requirements of the club, and a statement may be anticipated soon to that effect.

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Re: AN UPDATE

Post by matty the mariner » Thu Jul 26, 2012 1:13 pm

Playing home games 'away' will to me mean the death of the club.They'll be lucky to get 40 paying spectators,especially if the team is struggling.Once supporters stop going it's hard to persuade them back.The committee really should have acted much earlier-they've known about the ground being up for sale for a couple of years at least.

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Re: AN UPDATE

Post by optiontrader » Thu Jul 26, 2012 1:47 pm

Derek:- The share issue will be supporting the mortgage + future ongoing expenses. Im not sure of the figures but say JR wants 350k for filtona-the banks are willing to give Shields 70% + Shields have to find 30%-that would mean the banks giving Shields 245k with Shields having to find 105k from the share issue + other means. However the banks do not value Filtrona at 350k, maybe 250k, that means the banks will only lend 175k, however JR wants 350k so Shields now have to find 175k which will have to come from the share issue etc.

The share issue prospectus would have to be done properly-which takes time. Regarding the playing arena it may mean playing games away from Filtrona for hopefully only a short period of time, we are not going to win the league this year as long as we hold Division One status this year will do!!

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Re: AN UPDATE

Post by DEREK » Thu Jul 26, 2012 3:01 pm

If there is a shortfall in the amount needed before a mortgage can be obtained I would have thought the more publicity the better to try and raise the capital. By keeping a silence people who may want to help financially could put their money elsewhere. Publicity whether it is good news or bad news can only help the cause

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Re: AN UPDATE

Post by passtheball » Thu Jul 26, 2012 5:06 pm

The share issue final version is as reported previous on this thread in process of completion, following on from the final meeting at Ward Hadaways in Newcastle on Monday past and publication is as things stand actually could be imminent, with a considerable number of local and regional newspapers all ready to run, including not least the Shields 'Gazette' with a large feature article, and all to maximise its potential impact and desired result. Very much work has also been done and achieved through the good offices of club President David Miliband MP, details of which will be made public at the appropriate time. So readers may be assured that contrary to erroneous conjecture, as business confidences remain just that until released into the public domain, there has indeed been a continuous series of meetings to address all issues affecting the club.

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Re: AN UPDATE

Post by awf » Fri Jul 27, 2012 1:26 pm

Could you please just give an update in plain english which will let people what is going on.

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Re: AN UPDATE

Post by SUNGONEIN » Fri Jul 27, 2012 3:39 pm

=D> =D> =D> =D> =D> =D> =D> =D> =D> =D>

Every post sounds like a Nigerian email scam

He said he was never going to post on here again

might have done some people a big favour instead of doing their heads in

:lol: :lol: :lol: :lol: :lol: :lol: :lol:

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Re: AN UPDATE

Post by felix » Fri Jul 27, 2012 3:55 pm

here's how i see it (and can i stress that i'm not in the loop and that this is my own personal opinion with small snippits of info into the goings on lately)

the banks are only prepared to lend a fraction of what we need to but the ground, i would suggest that even the most conservative estimates earlier on this thread are still above what we can get from them, even with a vastly inflated interest rate. if we could get 60% of the purchase price, or even the value of the ground i think we would be in and it would be all sorted by now. as it stands, they seem to be reluctant to lend us even 60p!

at present the clubs hard working officials are driving themselves round the bend trying to attain the additional funds, sponsorship, investments etc (with some hi profile assistance) in a bid to secure a big enough deposit. the way they are going they will probably of ended up raising the whole purchase price as the banks are less than sympathetic of our plight and daint seem to be lending much money these days, especially to "pub businesses" and all that.

hopefully it will be resolved soon and we can buy the ground lock stock and barrel before the big kick off. if not we may end up ground sharing at birtley or somewhere like that, and although it will be a struggle, the club will survive and return to shields as soon as possible. one thing is for sure, the club waint d*e, there is too many hard working lads behind the scenes.

if I win the £105M tonite al buy it tomorra and we can all relax...... but i want the no 1 jersey for next season.
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Re: AN UPDATE

Post by Skip » Fri Jul 27, 2012 5:20 pm

I think the banks will lend money, but the problem is they don't value the land or small buisness (social club) as much as the owner would like to think its worth. The land ain't worth much because of the covenant on it, and the small buisness doesn't make too much money either. So you can understand why the bank won't give money if the thing their investing in ain't secure enough. Its like asking a bank for £300,000 to buy a house when it's only valued at £200,000! They simply won't give you the amount you want.

People say the club knew about the sale of the ground and yes I suppose they did. But what they didn't know is they'd be playing the last game at filtrona, which I believe was only indicated to them near the end of this season. People at the club have been working day and night to keep the club going, using their own personal finances for travel all over the region for the past few months. Whatever the end scenario I'm sure the club will survive, although some people on here and throughout the region would like to see it fold for whatever reason.

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Re: AN UPDATE

Post by optiontrader » Fri Jul 27, 2012 5:58 pm

Banks are lenders, that's how they make money, however they lend on their terms and valuations. As stated the covenants location etc is not attractive enough to lend on JRs asking price!! If there is enough money realised from the share issue, commercial mortgage and other means to buy Filtrona and service ongoing commitments I think they should purchase Filtrona for JRs asking price providing its near to a couple of Chartered Surveyors asking price!!

However if their valuation is nearer the banks I believe Shields should negotiate a lower purchase price!!

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Re: AN UPDATE

Post by DEREK » Fri Jul 27, 2012 7:22 pm

Felix,
Don't know about no1! No1 groundsman so I've heard :D

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Re: AN UPDATE

Post by sonfan » Sat Jul 28, 2012 8:27 am

As stated before the banks will only lend up to 45% of there valuation which is a long way from the asking price in real terms the club need to find around £230k deposit before the banks will even take a look at it. Simple enough?

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Re: AN UPDATE

Post by optiontrader » Sat Jul 28, 2012 9:59 am

Probably looking at 300k including working capital then, of course Im assuming the Supporters club/Football club have had a couple of independant valuations......There's no reason that sum can not be found owing to the amount of press coverage that is imminent in local + regional newspapers!!

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Re: AN UPDATE

Post by passtheball » Sat Jul 28, 2012 10:46 am

Advice for readers - to read carefully through the statements that I have posted, understanding that all negotiations are confidential for obvious reasons and considering all the numerous figures and amounts that others have with the best of intentions also posted, and the general picture is plain and easy to see and understand. Suffice to say in conclusion that if, as and when option one is concluded, the club will make the appropriate announcement then, if option two is otherwise confirmed, then also a statement. If the ground for the coming season is not to be Filtrona Park, it will then be by necessity to wherever to safeguard and protect the club's Northern League status and membership in order to comply with its fixtures obligations.

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