General Consortium Takeover - News and Rumours

[Manorlounger]

I thought it was the council (landowner) will grant a 200 year lease to Prop Co. Next step is the lease/licence between OUFC and PropCo. Scotchers is convinced we will have a peppercorn rent and benefit from stadium revenues, though quite how generous the benefit is remains to be seen. If the same people control OUFC and PropCo, then they can agree what they like, but we've all seen what happens when there are different owners of club and ground.

This clarifies the relationship between club and stadium:

Stadium FAQs

Since the announcement of Oxford United’s preferred new site for a new stadium at Stratfield Brake there have, understandably, been a number of questions from supporters regarding the proposed development.

www.oufc.co.uk

 

[MarkG]

This clarifies the relationship between club and stadium:

Stadium FAQs

Since the announcement of Oxford United’s preferred new site for a new stadium at Stratfield Brake there have, understandably, been a number of questions from supporters regarding the proposed development.

www.oufc.co.uk

So do you think OUFC will own the stadium and footprint, and PropCo the rest of any commercial property?
Or will PropCo own it all, and how will that tie in with the stadium being an asset of OUFC?
Is it for instance accountancy wording that a long lease of stadium from PropCo is an asset?
Also what brought the existence of PropCo to your attention? Other than regular company searches for current directorships of the key directors and investors.

 

[Paul Cannell]

I thought it was the council (landowner) will grant a 200 year lease to Prop Co. Next step is the lease/licence between OUFC and PropCo. Scotchers is convinced we will have a peppercorn rent and benefit from stadium revenues, though quite how generous the benefit is remains to be seen. If the same people control OUFC and PropCo, then they can agree what they like, but we've all seen what happens when there are different owners of club and ground.

I think we're both sort of right. Reading between the lines in the FAQ referenced above the Propco is looking to lease the whole Shooting Brake from the council(s) for 250 years, and under the Propco lease (above) it will (I surmise): sub-lease the stadium for the entire term to OUFC / the Opco and lease equal or better facilities (not necessarily in the same locations subject to agreement) to the existing council lessees - the sports clubs etc.

I can't see that the council(s) would sell the land to the Propco as they have duties of care and what not.

I don't know how these sub-leases would be protected from a predatory takeover of the Propco but I'm not suggesting it can't be done; this would be the instrument that protects the Opco in the event of a sale of the Propco.

As you say the actual terms of the lease to the Opco remain to be seen - but my understanding is there's a precedent in D.C. United where something like what scotchers describes appears to have been done.

I'm not itk, just trying to piece together the various things I've read. I think these were the principles outlined in the first proposal.

 

[Paul Cannell]

That lease will come from the councils if agreed. Various parties have to agree to cancellation their current leases first.

Yes. I tried to be clearer in the post above.

 

[Barrywedge]

I'm sorry but in lay man's terms who is the majority shareholder and who is Chairman I'm lost?

 

[Orkney Islands Yellow]

I'm sorry but in lay man's terms who is the majority shareholder and who is Chairman I'm lost?

Mark's post sums it up, the three companies which hold the majority of the share are owned by Geicke, Bakrie, and Thohir (by proxy). Tiger is still the chairman which is a position who can be held by anyone regardless of shareholding.

Mark's post: Post in thread 'Consortium Takeover - News and Rumours' https://yellowsforum.co.uk/threads/consortium-takeover-news-and-rumours.5875/post-535956

Hopefully the board will do us the courtesy of a formal announcement explaining all this in layman's.

 

[MarkG]

Mark's post sums it up, the three companies which hold the majority of the share are owned by Geicke, Bakrie, and Thohir (by proxy). Tiger is still the chairman which is a position who can be held by anyone regardless of shareholding.

Mark's post: Post in thread 'Consortium Takeover - News and Rumours' https://yellowsforum.co.uk/threads/consortium-takeover-news-and-rumours.5875/post-535956

Hopefully the board will do us the courtesy of a formal announcement explaining all this in layman's.

There could also be a situation under the uk control rules that for instance one of the owners has loaned the company more than the others that the loan counts more than shareholdings.

 

[Witney Yellow]

Looks like a few things are already happening...
I was at the training ground tonight for an under 16s friendly match.
Lots of pre season work already going on with existing pitches being dug up and drainage being installed.
I was told by several sources that there are plans to replace with some high quality pitches and also a floodlit 4G pitch.
Exciting times ahead!
Also, I was pleased to see Mr Robinson there watching the first half of the under 16s game.

 

[Witney Yellow]

Looks like a few things are already happening...
I was at the training ground tonight for an under 16s friendly match.
Lots of pre season work already going on with existing pitches being dug up and drainage being installed.
I was told by several sources that there are plans to replace with some high quality pitches and also a floodlit 4G pitch.
Exciting times ahead!
Also, I was pleased to see Mr Robinson there watching the first half of the under 16s game.

....and is that a new welcome sign at the front gate???

 

[captainox]

Recent ifollow interviews mentioned the commencement of work at the training ground. Another substantial investment

 

[Scotchegg]

Recent ifollow interviews mentioned the commencement of work at the training ground. Another substantial investment

It does make me laugh when people say that the board won't do anything until planning is agree on the stadium. The money that is being invested throughout the club is incredible, and all of which is for the medium to long term.

Of course the stadium is important, but these guys are not amateurs and are here for the long haul.

 

[Marked Ox]

Looks like a few things are already happening...
I was at the training ground tonight for an under 16s friendly match.
Lots of pre season work already going on with existing pitches being dug up and drainage being installed.
I was told by several sources that there are plans to replace with some high quality pitches and also a floodlit 4G pitch.
Exciting times ahead!
Also, I was pleased to see Mr Robinson there watching the first half of the under 16s game.

The floodlight 4G pitch will potentially be a money earner as well.

 

[OX14]

The floodlight 4G pitch will potentially be a money earner as well.

Could OUFC ladies play their home games on it instead of using court place farm I wonder?

 

[Orkney Islands Yellow]

Could OUFC ladies play their home games on it instead of using court place farm I wonder?

That would be great if they could. Plus all the teams could use it when the ground's frozen. Not sure how fans would watch the ladles though unless they build a small stand too.

 

[MarkG]

It does make me laugh when people say that the board won't do anything until planning is agree on the stadium. The money that is being invested throughout the club is incredible, and all of which is for the medium to long term.

Of course the stadium is important, but these guys are not amateurs and are here for the long haul.

Have you ever heard of sunk costs?

It’s a concept that makes you ignore what you’ve already spent and just look at future costs and revenues.

A club owner like Ian Lenagan might have invested £8m but took a pay back of whatever it was £1m. Better losing seven than eight.

We could be in a situation where the owners pull the plug completely. Ignore what they’ve invested , but look at what future costs will be.

 

[Scotchegg]

Have you ever heard of sunk costs?

It’s a concept that makes you ignore what you’ve already spent and just look at future costs and revenues.

A club owner like Ian Lenagan might have invested £8m but took a pay back of whatever it was £1m. Better losing seven than eight.

We could be in a situation where the owners pull the plug completely. Ignore what they’ve invested , but look at what future costs will be.

I accept that with the level of wealth the board collectively have, throwing several million at Oxford United is the same as me buying a scratchcard.

However, it's not how much is being spent but where its being spent that's important. Investing in the training ground is an unnecessary expense unless you expect to use it for many years to come. Investing in the youth set up is another unnecessary gamble, especially with the difficulty in bring players through under the ridiculous squad limitations.

If the board only wanted to have a little fun with their train set while waiting for the stadium deal then you'd think that they'd go for high profile players and immediate success to boost their egos while they can. Their money, time and effort is largely going unseen, which gives me confidence that they are looking at the long term interest of the club over short term glory.

 

[frenchconnection]

could the traing ground be a back up plan in case stratfield plans fail?

 

[Orkney Islands Yellow]

could the traing ground be a back up plan in case stratfield plans fail?

Even more remote than Grenoble Road

 

[frenchconnection]

Even more remote than Grenoble Road

yes but anywheres better than the kassam?

 

[PottersRightBoot]

All very low key and all very interesting. These chaps seem to have no discernible egos, which I find quite comforting.

Has anybody done any further research about any further punts this group of investors have had in Oxford and Oxfordshire ; particularly with reference to the university?