I didn't invest in the North Stand or the other bond thing.
Given the undoubtedly parlous state of our finances, even without the impending threat of relegation, how likely is it that the club will seek to defer payments of any interest or bonuses?
Even if the payments are not imminent, recovering from this crisis will take years.
Is there any small print that allows the club to seek a delay? How does such a request go down with you if you invested? I know that will vary depending on personal circumstances
Got the email today offering bondholders the option to forego interest to help the club.
How do you feel about that Sev?
I've waived mine.
But I was on vouchers so not really going to help that much. As they don't need to find the cash to pay the vouchers out.
I suspect it's aimed more at the cash interest receivers who will be a financial/cash flow burden on the club. Also supported by the fact they're offering them the option to swap to receiving 8% vouchers instead of the 4% cash.
Imagine how many portions of cheesy chips one could consume with 8% vouchers
None because they cannot be used in the refreshment bars.
The 'bond thing' has no payback attached to it, only a dividend payable on promotion.
My decision to contribute (modestly) was a gesture of faith rather than any kind of investment. While I wish Phil had spent it more wisely, given it was meant to aid the promotion push, it doesn't keep me (or him) awake at night.
Think unless you sell the shares during one of the Tifosy sharedealing windows the only perks for that were money if we get promoted whilst maintaining the shares, wasn't it? So effectively a promotion dividend. Don't see any way investors in that could help the club here, without investing further.
For the Norf Stand, there is a caveat in place whereby if we got relegated the club could delay returning the money by a year, so extending it from a five-year bond to a six-year bond. Not aware of any other terms in place. The repayment isn't due for another three seasons on that so in the immediate term investors could only assist by deferring (or voiding) any interest payments (we have had the first two years, next one would be due in September).
I would have no problem with them delaying repayment of the investment, even in the event of us staying up, but believe it would be something each investor would have to individually agree to with the club and isn't something the club could action across the board without agreement, unless we went down. And guess I would be fine with no interest this year as well, although would miss my free beer vouchers.
I can send you a pdf of the bond instrument for the north stand bondholders scheme, if you're interested (already got your email address).
I think that has all the conditions etc in it.
Worth remembering the bond is held in a separate company Stevenage Football Club Finance PLC (I think) as opposed to Stevenage FC Limited but if the club went bust then it wouldn't be able to repay the finance co so same effect I guess.
Doesn't appear to account for deferrments but does describe default events, guarantors etc.
Personally I'd written off the capital in my head but was expecting interest payments, so that would be disappointing if those stopped before the 5 years were up.
No suggestion yet of there being any problems though... other than y'know the whole country being on it's knees!
Edit: the invitation document highlights risk one of which funnily enough is:
A major incident such as a terrorist attack or pandemic outbreak of illness, or any event which impacts upon the Club's mainframe systems, key central support functions or information technology systems could affect the clubs ability to trade and have an adverse impact on the Club's financial performance."
So can't say we weren't warned!
Thanks, nah you're alright on the doc.
I was just wondering if the club would be hugely disadvantaged by payouts when it had even less money than it expected.
Edit: I know some businesses have specific major incident insurance for such things at an extra premium (terrorism and pandemics are normally excluded from policies). The Lawn Tennis Association are claiming £40m plus apparently having paid for pandemic cover.
Edited by BALDOCKBORO at 14:02:31 on 9th April 2020
Thought they were getting £140mil rather than £40mil? It has cost them just under £40mil to insure over the last 19 years.
The most we would be paying out is £48k per year if everybody took club credit (so could only spend it at the club), or £24k if people selected interest payments in to their banks.
Think you're right on Wimbledon.
Seperate question... Reckon we've had our rent deferred? Sharon has always been a big fan.
Assume business rates are on hold as per the Govt scheme.
The cynic in me thinks PW is fully aware the great work we are doing as a club at the minute will come in very handy in favourable treatments when we need it in future.
Hopefully with regards to the FL more than anything else.