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Debt gone, ground gone, sounds a good deal for the Swanns.
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ScAvengers Endgame
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This sort of thing has become common place in football over the last few years, and although it’s an ideal solution to fix a problem of mounting debt, it does leave the club without any assets and means that the club will be paying rent to play in a ground that once owned outright!
I guess a lot depends upon what the long-term plans are from Swann and Cool Silk. The biggest danger is that with the challenges of the global pandemic and subsequent economic squeeze, Cool Silk go into administration and all assets are sold off.
At the moment, for me, I am not quite sure what to make of it. It does leave me with a feeling of unease in the pit of my stomach, and ties the club into the Swann’s and Cool Silk forever, or until they get fed-up and walk away!
I’m no property guru however I have a feeling that the Swann’s have got an incredible amount of assets for very little money.
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I am expecting an in-depth statement from the club, and Swann today.!!!
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Putting the positive cap on momentarily, I’d assume it makes capital lending more accessible and favourable if intend on redeveloping the ground and the surrounding area? Also will the 300k a year we paid in interest now be put towards the playing budget?
However, I share the same sentiment as you Daz; a lower league club with no assets is not often a winning combination and it leaves our future firmly tied to that of Coolsilk.
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We shall now see what the grand plan is !!
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I’m sure our resident economics expert will put our minds at rest by coming on here and telling us that “there’s nothing remotely unusual about this” and that it makes “perfect sense”!
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Should be seen as a positive no debt, easier for someone else to come in and take over, its what you all want. If the rent becomes to high the new owners could walk away like Rotherham did and build a new ground, look what it did for them, not affected Coventry to much either won promotion to the championship playing in Birmingaham, maybe we could play at the seaside every week.
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Putting the positive cap on momentarily, I’d assume it makes capital lending more accessible and favourable if intend on redeveloping the ground and the surrounding area? Also will the 300k a year we paid in interest now be put towards the playing budget?
Two questions about that: how can the club borrow money if it doesn’t have its main asset as a security? And will the club be charged rent instead of interest?
1) If I remember correctly it was something along the lines of Coolsilk having access to more favourable rates of borrowing money than the club would. The club wouldn’t need to borrow anything. Obviously that then leads to the question of what benefits does the club gain from having its land being developed on.
2) the obvious answer is Yes. What the rent could be is guesswork. That also leads to the question of what happens when Coolsilk eventually sells up…
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not affected Coventry too much either
Err, ground sharing with Northampton and Birmingham?
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Swann’s just been on Humberside & you’ll all be pleased to know that it’s all absolutely fine.
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The biggest news to happen at Scunthorpe United in my lifetime and at time of typing this, there is nothing on the club website!!!
You would think the club would have a statement prepared for such a momentous occasion!
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Swann / Cool Silk has got the land at a steal, £11,000,000 for the land. The ground was worth £2,500,000 in 1988. Even the most modest of predictions would value the ground and associated land at double the fee paid by Cool Silk.
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I wouldn’t believe anything on the OWS anyway. Not when the ‘In Memoriam’ refers to the final game, against Stevenage being in Skybet League One.
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I said before that this situation was happening at the club, and that they did not appear to bother that the club was falling into what we currently have, a club that is in the depths of league two bottom three of four, we have lost are about to lose our better players, we are over £10 million pounds in debt, and it is only a matter of time before we are a non-league outfit. No new stadium, no refurbishment, no appartments, and certainly no Championship football, it does not seem to bother anyone that the managements record is terrible, the entertainment has gone, but it would be ok if the club went out of business, simply because Mr Swann has his interests looked after because his loan to the club is well covered by the value of the ground and land, but I did not think that this would happen just yet!!
Looking back a few years, didn’t Peter state that the money put into the club by him was in the form of shares and not loans????
Anyway, the football being presented to supporters is now unenjoyable defensive rubbish, and fans do cartwheels if Scunny are involved in a match when they actually have above two shots pon target during a 90 min game. I can just see Awaywego99 doing cartwheels in front of the main stand, and UpTheIron69 standing on his seat cheering him on ha ha!
Sad times, but it has been coming over the past five or six years, and we will have an experienced National League manager in Cox, when we are there in a couple of years time, maybe ground sharing with Brigg Town.
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We were talking awhile back about Swann owning the entire club so nothing really changes, he could have sold up and moved on before this transfer of debt surely. His business model for the club has caused this debt and the transfer to Coolsilk of this debt is just a way of moving figures around, it could lead to the property side of his business as Cliff said being able to raise more funding for the long awaited re-development programme. Either way unless we can raise a stupid amount of cash between us all which I personally can’t see, then we are just stuck with this but hey we have been on the outside looking in on our beloved club for a long time now in more ways then one. Yes it may be worrying but we can quote other clubs where it appears to be working and we just need to cross our fingers and keep believing, hand wringing and shouting ” Swann out ” every five minutes won’t change a thing.
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You would also think Max Bell would have plenty to say about it via Codsonline. Maybe he’s still writing it?
Yeah, I just checked the online rag. It’s truly amazing! The BIGGEST news story affecting Scunthorpe United in my lifetime and yet at time of posting this, there is NOTHING mentioned on the official Scunthorpe United website, and NOTHING mentioned in the ‘thisisScunthorpe‘ online rag!
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Absolute disgrace what has happened, and it will not end well. We will be homeless within 3 years in my opinion. Seen enough clubs who don’t own their ground end up in dire straits, and we will shortly be in that camp ! Even more dire straights than we already are !
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