The End Game.

[Greenbank2]

So....just trying to think through what triggers this and how it plays out. Someone with a better understanding of bankruptcy and the law may be able to put me right.

 

I think the complexity here is that Vlad is a major shareholder in Ukio/UBIG. I'm guessing that the only people that could cause a real financial crisis is the bank by calling in their loan. (this is where it's complex because vlad is both creditor and debtor). But if that were to happen, then receivers would be appointed and most likely look to liquidate the assets of the club and paying what they can of the debts, before winding things up. So, players contracts will be sold, or they'll be issued with redundancy notices. Leaving the main asset which is the stadium.

 

Now, if the best offer for the stadium were to come from people looking to continue its use as a football ground, I think the receiver would have to accept this bid, use the proceeds to pay the creditors (UBIG) and then they walk away. So, if a "club" were to be formed on a 1-member-1-vote basis, with a constitution of a regularly elected board, of operating without an overdraft, with an affordable wage structure (remember Motherwell's 25K policy?), with a policy of playing youth that comes through the development programme - and this club buys makes the best offer for the stadium and HMFC "name" - then the club would be back in the hands of the "members" and protected for the future.

 

I realise that this would take a membership of circa 15,000 at a grand each to raise the capital required. I realise that we would probably have to start again from the bottom division. I realise that living within our means would be really tough. But there would be an HMFC playing at Tynecastle and protected for the future by membership owners.

 

It may come to this. Thoughts?

[jambojim52]

In the senario you suggest, the club would have to apply to join the league. This would mean starting at the bottom, and working up to the SPL and could take years.

[Greenbank2]

In the senario you suggest, the club would have to apply to join the league. This would mean starting at the bottom, and working up to the SPL and could take years.

 

Yep - I know this. Just wondering if it would be worth it if it put the club on a sure financial footing and guaranteed the future. The only realistic alternative is to hope that Vlad stays put.

[Daydream Believer]

Getting 15,000 people to put in ?1k would probably be a problem though I would think most supporters could probably raise a grand if they really wanted to.

 

There would be a lot of other costs as well though. All they would own would be a stadium which by all accounts needs upgrading at some point. The day to day running would require a huge overdraft from somewhere and whether a bank would provide one is dubious IMO.

[Greenbank2]

Getting 15,000 people to put in ?1k would probably be a problem though I would think most supporters could probably raise a grand if they really wanted to.

 

There would be a lot of other costs as well though. All they would own would be a stadium which by all accounts needs upgrading at some point. The day to day running would require a huge overdraft from somewhere and whether a bank would provide one is dubious IMO.

 

Would probably have to happen over the course of the close season with season ticket sales generating the operating income. New board would be responsible for ticket pricing policies. There would be so many assumptions in this, but hopefully season tickets, say 7K at an average of 250 quid would generate 1.75M working capital. A basic first team wage of 30K plus coaching staff would eat about 1M of this. I know there are many holes......