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good question but this makes a mockery of the 10 points thing!

 

Our main business is Southampton Football Club

The press conference was held at Southampton Football Club

The sign behind the admin staff at the pressconference was Southampton Football Club

The main assets are Southampton Football Club, the players of Southampton Football Club, Staplewood the training fround for Southampton Football Club

 

So the money from the games should goto Southampton Football Club

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I'm no expert, but as i understand it the administrators don't take any of the profit from a company they are running, they simply take a fee.

 

Sorry didn't make it clear. what pot does the gate receipts money go into. SLH plc and get swallowed by our O/D or Southampton FC Ltd and give us working capital.

 

I wasn't referring to the Admin company.

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Money spent by fans in the interim between now and the end of the season will have absolutely no effect whatsoever on the long-term prospects of SFC.

 

I find the rallying cries on the OS particualrly nauseating today.

 

The fact is, that the current priorities are:

 

1) convincing the FA not to levy a penalty

2) finding a buyer for the business of SFC

 

Injecting small amounts of cash into a failiing business in the interim is of no relevance at all. And before someone says, "we need to show a buyer how amazing everything is" - get real. Any serious buyer will not be considering our attendances for the next three matches in their equations. Anyone who isn't an idiot knows that SFC in the Champ, doing ok, means crowds between 20 and 30k depending on league position. SFC in the Prem means crowds of 30k+. They don't need an influx of flag wavers over the next three games to tell them that.

 

In answer to the original question, I suspect there is a cash sweep in the loan facility. Ie. the bank can sweep cash from subsidiaries with a credit balance to service the long-term debt of the PLC. If SFC isn't involved in any way in the security structure relating to the stadium finance I would be shocked - however recent noises seem to suggest that the finance may indeed be provided on some sort of limited recourse model.

Edited by benjii
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It's a good question which has been bothering me since I read the comments in one of the Echo articles urging fans to fill SMS to make the club more attractive to buyers. Isn't the Administrators duty to the creditors? If so, and no buyer comes forward before the end of May then perhaps the money goes to pay off debts.

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Money spent by fans in the interim between now and the end of the season will have absolutely no effect whatsoever on the long-term prospects of SFC.

 

I find the rallying cries on the OS particualrly nauseating today.

 

The fact is, that the current priorities are:

 

1) convincing the FA not to levy a penalty

2) finding a buyer for the business of SFC

 

Injecting small amounts of cash into a failiing business in the interim is of no relevance at all. And before someone says, "we need to show a buyer how amazing everything is" - get real. Any serious buyer will not be considering our attendances for the next three matches in their equations. Anyone who isn't an idiot knows that SFC in the Champ, doing ok, means crowds between 20 and 30k depending on league position. SFC in the Prem means crowds of 30k+. They don't need an influx of flag wavers over the next three games to tell them that.

 

In answer to the original question, I suspect there is a cash sweep in the loan facility. Ie. the bank can sweep cash from subsidiaries with a credit balance to service the long-term debt of the PLC. If SFC isn't involved in any way in the security structure relating to the stadium finance I would be shocked - however recent noises seem to suggest that the finance may indeed be provided on some sort of limited recourse model.

 

As i thought

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The influs of cash will indeed go to the PLC but this isn't necessarily the doom and gloom option some are portraying, Every penny of extra money goes towards reducing the debt making it easier and cheaper for a potential buyer. I also think we do need to demonstrate that the support is still here the attendences this season have been dire and I think 3 massive attendences will send the message that the fans at least still care and that many were staying away while Lowe was still here, the same can be said of any other purchase.

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The money raised would probably go towards the day to day running costs of the business - principally players wages . There must be a real danger we will not be able to pay the wage bill at the end of the month , what chance then of avoiding relegation ?

 

...and a further points deduction

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Any incoming money will be used for the day to day running of the club to help the administrators find a buyer.

Lets not forget that should we find a buyer who will obviously have to service the debt in one way or another even if it does get reduced they will have the benefit of season ticket money coming in immediately after as normally a large percentage would already be in the clubs coffers.

This would give an immediate kick start to the clubs finances from lets say may onwards.

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As far as I can tell, the stadium is "owned" by St Mary's Stadium Ltd - the stadium appears on the balance sheet of that subsidiary company, as does the debt associated with it. It receives income direct from Southampton Football Club Ltd, net of VAT, which is for "the provision of football entertainment". This essentially includes all matchday income.

 

The players' wages are paid for by SFC Ltd (NOT by the PLC) in accordance with League rules.

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Admin was called due in a large part to a shortage of funds to keep the day to day operations running.

 

Cash at this time will be used to pay critical costs to keep the club running while they try and find a buyer(s)

 

Without the cash they could not (for eg) pay for the stewards/policing/floodlights so we could not fulfill fixtures. That would stop the existence of the club, so ANY cash that is put in is critical. It was pointed out elsewhere that the Admin already have separated "admin receipts" from the debts servicing of the club. At Bournemouth for example, Mostyn had to pay from his own pocket to keep them going as reported in the Echo at the time

 

Every last pound will help keep us afloat a bit longer while those tyre kickers are forced into becoming buyers

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