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Newcastle United Supporters Trust (NUST)

Alby

by Alby
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colinmk

colinmk

Posted
Posted

Cheers, but I'm still not sure I get it fully. If Ashley was to sell the club 'lock, stock and barrel, no debts' for say £80m... what would happen to the debts? Ashley would take a hit on the ones owed to him I presume, and write them off. But the club would still have a sizeable overdraft, right? Or does this not exist anymore?

 

I'm not really expecting an answer to this fro you personally peaspud, I haven't got a clue myself.

 

The overdraft is an unknown however its less than £40m now as per Barclays rules. We;d only really find out the true stuff when we do due diligence, if the clubs in a s*** state and we couldnt afford to run it then we wouldnt buy otherwise we'd be putting the club in deeper crap than it is now.

 

This is what kind of f***s everything for everyone at the moment. We only find out how much the club costs after due dilligence...

 

Yes but then again, all that the NUST have done so far is asked for people to REGISTER there interest in the idea,  the next step will be to pay a 10% refundable (minus 5%) deposit, followed by due dillegence if it gets that far, then pay up the rest of the money and hopefully the end result is we get rid of Ashley.  At the minute people are getting too far ahead of themselves.

 

Exactly, and if it then turns out that we werent buying the club the deposits are returned (minus the 5% hamdling fee) so as I said before if you were looking to invest £1500, you'd pay a deposit of £150 to the Escrow account and if it all went pear shaped, you'd get £142.50 back.

 

Fair enough, sounds like a really good idea. I wouldn't like the 5% handling fee although I'm sure that something like Escrow is the safest way of doing it?

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Elbel1

Elbel1

Posted
Posted

Cheers, but I'm still not sure I get it fully. If Ashley was to sell the club 'lock, stock and barrel, no debts' for say £80m... what would happen to the debts? Ashley would take a hit on the ones owed to him I presume, and write them off. But the club would still have a sizeable overdraft, right? Or does this not exist anymore?

 

I'm not really expecting an answer to this fro you personally peaspud, I haven't got a clue myself.

 

The overdraft is an unknown however its less than £40m now as per Barclays rules. We;d only really find out the true stuff when we do due diligence, if the clubs in a s*** state and we couldnt afford to run it then we wouldnt buy otherwise we'd be putting the club in deeper crap than it is now.

 

This is what kind of f***s everything for everyone at the moment. We only find out how much the club costs after due dilligence...

 

Yes but then again, all that the NUST have done so far is asked for people to REGISTER there interest in the idea,  the next step will be to pay a 10% refundable (minus 5%) deposit, followed by due dillegence if it gets that far, then pay up the rest of the money and hopefully the end result is we get rid of Ashley.  At the minute people are getting too far ahead of themselves.

 

Exactly, and if it then turns out that we werent buying the club the deposits are returned (minus the 5% hamdling fee) so as I said before if you were looking to invest £1500, you'd pay a deposit of £150 to the Escrow account and if it all went pear shaped, you'd get £142.50 back.

 

So if the NUST manage to raise the estimated £80 million the investors will each pay 10% into the escrow acount, which works out at £8,000,000

If it then goes pearshaped during due diligence all deposits are returned minus 5% handling fee

This handling fee will be worth a total of £400,000 based on a registered £80 million but I would imagine that the NUST are hoping for a lot more than that

 

The whole financial world is like Chinese maths to me but that seems like an awful lot of money to me

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peasepud

peasepud

Posted
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It does sound a lot, I agree however you have to remember this is a handling fee per investor as such, each investor pledging £1500 would incur a handling fee (if we didnt go ahead) of £7.50. If you think theres the admin to manage that and get the money back to the investor then thats not a huge amount.

 

Also to note, this isnt our handling fee, its a proper full solicitor that is running that side of things and handling the ESCROW so none of that fee will find its way into the NUST.

 

£7.50 for a solicitor seems quite cheap tbh!

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Cronky

Cronky

Posted
Posted

who wants a return?. put it in an ISA if that matters.

 

I know what you mean, but if you're not expecting a return then it isn't an investment... it's a charity donation. And I don't think that's what NUST are asking for, is it?

 

its a combination of both tbh, we're not expecting people to just hand over their money and say "there you go, have it" (of course if you want to then great :D) but rather, "heres an investment opportunity, invest in the club you love and gain a little bit of interest while you're on". The big difference of course is you can get your original money back from an investment not from a donation.

 

I see what you're saying, I know there will be a big emotional and/or charitable aspect to most of the investment. What I meant was more that it was a bit flippant to suggest that nobody will need or expect anything back at any time.

 

I agree, for me its an emotional thing, I wouldnt hand over £1500 as a donation but when I know its an investment and I'll get it back then Im happy to do it, even if its not increased by much, the fact it has increased at all would just be a little (tiny) bonus.

 

It's not been clear what structure NUST are aiming for, and this post makes me even more confused.

 

If you're guaranteed to get your original money back (with or without interest), then it's effectively a loan. In which case, who actually owns the club and is responsible for the finances?

 

If on the other hand, you become part of the ownership of the club through your £1500, then it's a share. You have to sell a share, and it may decline in value.

 

If there's a third way, or if I've got the above wrong, please you or someone else say.

 

Actually, it seems to me there's a simpler way of looking at it. In the unlikely event of a sale taking place, you can't be guaranteed your money back because Mr Ashley will have it. The only way to recover that outlay would be if the club were later sold on, or if you sold your share. In which case, like a plc, the value may go up or down. Yeah?

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ToonTastic

ToonTastic

Posted
Posted

Do we know how long before the full information is released on this?

 

I know it would be good to get a bit more out there. I know they are meant to know what their doing but so far the only information the company launching this have released is stuff we kinda already knew before the launch lol

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peasepud

peasepud

Posted
Posted

bobyule - Im not in a position to answer your query at the mo, not because I dont want to or arent allowed to but because I dont really understand the facts around that myself so Id be wary of any answer I give. What you say makes sense though, however its not matching in with my understanding on certain bits so please bear with me. 

 

The full financial information will be out shortly (at least a few days thought) , theres a few things still being discussed and amended with the partners and a few additional thoughts and ideas that have come from these type of Q&A's are being looked at therefore it all needs to be watertight and properly organised first. We dont want to be releasing the financial info and then two days later saying "oh this has now changed" or even more worryingly, 2 days after people have started signing up to it.

 

At the moment, we're getting a handle on how many of you would be interested, not until all the info has been released would be looking for people to start committing. I know its a little frustrating but imagine what its like for us! we know this can work, when you read all the stuff that comes out then Im sure you will be convinced too.

 

If nothing else has been learnt from the shaky start we had as the NUSC, we've at least learnt not to rush things out and dive in making statements and promises we cant keep.

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Mick

Mick

Posted
Posted

The campaign is running for six weeks, by that time we will know whether this is viable and the level of monies we have available, if its enough then we will have our deposits in and be able to prove "proof of funds".

 

I read that it was 6 weeks in the first post of this thread which is dated 7th October then noticed that Rich had edited the whole post.  :lol:

 

Anyway, do you think the asking price will change between now and the end of the season?

 

I think Ashley will want £100 million now that he's put in an extra £20 million and I think that will go up by at least 50% if we get promoted.  The asking price will probably start going up very soon if we're still winning games.

 

When will the "high profile backers" be named?

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peasepud

peasepud

Posted
Posted

Names of the backers and businesses involved will start coming out very shortly, as it is everyones working on getting the financial aspects finalised, which are almost all complete but as I said earlier, things change once you announce, people such as yourselves ask questions that havent been thought of or give ideas which mean a few tweaks etc.

 

What it does mean though is that we all get a financial product that should be spot on and have all the questions answered. The big businesses are then happier to be associated with a product which does exactly whats needed.

 

 

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Teasy

Teasy

Posted
Posted

I'd love to be involved in this though at the moment there's no way I could find £1500.  All my savings are tied up in Marks and Spencer shares.  I'm still looking forward to reading the full plans though and hope it comes off.  If it does I can hopefully get a share in a year or so.

 

Also on the subject of interest.  Why not have an option for people to opt out?  It might sound insane, but as long as I know my investment is safe personally I'd be prepared to forgo any interest in order to save costs and provide more money to run things (I'm sure I could live without the £30 a year interest or whatever it'd be).  No idea how many others would but it wouldn't hurt to have the option (like one of those "tick here to donate a certain percentage on top of your payment to charity" buttons you get on some websites).

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peasepud

peasepud

Posted
Posted

I'd love to be involved in this though at the moment there's no way I could find £1500.  All my savings are tied up in Marks and Spencer shares.  I'm still looking forward to reading the full plans though and hope it comes off.  If it does I can hopefully get a share in a year or so.

 

Also on the subject of interest.  Why not have an option for people to opt out?  It might sound insane, but as long as I know my investment is safe personally I'd be prepared to forgo any interest in order to save costs and provide more money to run things (I'm sure I could live without the £30 a year interest or whatever it'd be).  No idea how many others would but it wouldn't hurt to have the option (like one of those "tick here to donate a certain percentage on top of your payment to charity" buttons you get on some websites).

 

hmmm, cheers, I'll put that forward.

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Guest PJ87

Guest PJ87

Posted
Posted

Names of the backers and businesses involved will start coming out very shortly, as it is everyones working on getting the financial aspects finalised, which are almost all complete but as I said earlier, things change once you announce, people such as yourselves ask questions that havent been thought of or give ideas which mean a few tweaks etc.

 

What it does mean though is that we all get a financial product that should be spot on and have all the questions answered. The big businesses are then happier to be associated with a product which does exactly whats needed.

 

 

Ant n Dec will surely be in there with a million or two I reckon.

 

Would Chezza Cole be allowed to invest, as technically she may have an affiliation to Chelsea, with Ashers playing for them?

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TRon

TRon

Posted
Posted

The Sun claiming that NUST has snubbed a meeting with Ashley

 

http://www.thesun.co.uk/sol/homepage/sport/football/2734647/Fans-not-in-Toon-with-Mike.html

 

MIKE ASHLEY has been left stunned after the Toon fans who want to buy the club snubbed the chance to meet him.

The Newcastle United Supporters Trust hope to raise £100million to take over on Tyneside and were invited to have a face-to-face chat with the St James' Park owner and his team.

 

But the Ashley camp cannot understand the logic of them not wanting to look at the finances and get an understanding of how the Premier League club is run.

 

A source close to Ashley said: "Mike and Derek Llambias have no problem in meeting with anyone to discuss the situation at the club.

 

"But to hear they were not interested was strange. They need to see what really goes on.

 

"If they did that, they would see that taking on a club and financing it is anything but straightforward."

 

 

 

Read more: http://www.thesun.co.uk/sol/homepage/sport/football/2734647/Fans-not-in-Toon-with-Mike.html#ixzz0XCK48RMK

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