by RoyalBlue »
05 Sep 2008 18:26
Hoop Blah Franchise FC Yorkshire Royal The Coates family are worth 300 million quid and their main current business makes an awful lot of money. If you do some research into how the club is setup and who owns what you will find some interesting stuff out. So although the chairman is helping bankroll the club, it is his money (or his company's money), not loans. They sell an awful lot more merchandise, season tickets etc than Reading do.
Would you like to take a few minutes to explain exactly how this is a different setup to RFC - excpet of course that Mad John hasn't 'bankrolled' massive spending. If Mad John backs away now and takes his last remaining loan, the Club is still stable financially. If the Coates do the same, are Stoke similarly stable ?
If Madejski was to walk away today and call in his outstanding loans the club would need to find something like £25m. I'm not sure how the club could do that and remain financially stable.
I doubt that would be a wise move from his point of view, unless he was planning to leave the Reading area in a hurry and not come back for some time!
Also, I'm not sure how easy it would be for him to extricate himself where he is at the same time the person calling in the loan and the majority shareholder/director of the business that he is calling in the loans from.
I know the above is hi-jacking the thread but I didn't start it!