Madejski comments on club ownership

[Ian Royal]

I do think he's learned a lesson re TSI - he just wanted out and he didn't make as much effort as he should have done to ensure RFC was in safe hands - this time around, he'll be a lot more cautious I reckon.

How though? You can check that the person is who they say they are, isn't a convicted fraudster and has access to funds. I guess you can also ask to see a properly thought out business plan. After that what can you do except try to assess their intentions? Do you really think Anton didn't start out with good intentions?

I was responding to Ian Royal who said that this time around he will make efforts to ensure the club was in safe hands.

Just the Everton business would have made me very cautious with regard to TSI - I think SJM saw them as a way out, they appeared to have money, they were going to buy him out 100% and he was desperate for some money. This time around, I think, if nothing else he'll ensure that the legalities state that if a new owner doesn't buy him out within the timescales stated, he'll be able to buy back any shares already purchased for a fraction of what he sold them for, or something.

I think you'll find I didn't say "this time". It's exactly what he tried to do last time.

[Ian Royal]

How have his his fingers been burned - he did got paid for half the club, so not seeing how he's lost out.

if Mr 51% say's he's not paying another rouble into the club, the remaining shareholder has no alternative to foot the bill for the losses or allow the company to be liquidated...say what you like against the Chairman but's he's the only person in the room who can prevent the club going bust.

Or he can plug the losses the same way he did the three years before Zingaravich came along.

[SPARTA]

How have his his fingers been burned - he did got paid for half the club, so not seeing how he's lost out.

if Mr 51% say's he's not paying another rouble into the club, the remaining shareholder has no alternative to foot the bill for the losses or allow the company to be liquidated...say what you like against the Chairman but's he's the only person in the room who can prevent the club going bust.

Or he can plug the losses the same way he did the three years before Zingaravich came along.

Low interest loans to the club (not sure he can afford to do that this time), and annual summer sales of the clubs best player(s). I remember Brian McDermott's relief at investment coming into the club, and admitting how it was always so hard losing your best player every summer, and even harder to build a side to push for the top six. Now we're heading back to it, and as I mentioned earlier, with the added annual £2.5m cost of a Cat 1 academy - so that could be two top players sold each summer, until, hopefully, a new wealthy owner is found.

[Ian Royal]

He didn't really put more money back in then, he didn't reclaim the money he'd already put in, that's about it.. Anyway, the idea that it's Madjeski plows money in, sells up quick or we get liquidated is plain silly.

[Cypry]

Low interest loans to the club (not sure he can afford to do that this time), and annual summer sales of the clubs best player(s). I remember Brian McDermott's relief at investment coming into the club, and admitting how it was always so hard losing your best player every summer, and even harder to build a side to push for the top six. Now we're heading back to it, and as I mentioned earlier, with the added annual £2.5m cost of a Cat 1 academy - so that could be two top players sold each summer, until, hopefully, a new wealthy owner is found.

Thing is, the urgency to sell isn't there right now - what would be the point in selling a club currently sitting in the playoff positions? In the event that we squeak promotion, the value of the club (and the amount it could be sold for) would rocket overnight.
In some ways, the fact that the club wasn't sold for a knockdown price in the last couple of months is a comfort, it must mean that the cash flow situation isn't quite as dire as some have hypothesised....

I'd be very surprised if SJM is still in charge come August...

[multisync1830]

How have his his fingers been burned - he did got paid for half the club, so not seeing how he's lost out.

if Mr 51% say's he's not paying another rouble into the club, the remaining shareholder has no alternative to foot the bill for the losses or allow the company to be liquidated...say what you like against the Chairman but's he's the only person in the room who can prevent the club going bust.[/quote]
Or he can plug the losses the same way he did the three years before Zingaravich came along.

the losses are inflated by AZ's brief but expensive stay. (although he did put in 20m apparently) However I assume you are basically agreeing with me in that case

[multisync1830]

He didn't really put more money back in then, he didn't reclaim the money he'd already put in, that's about it.. Anyway, the idea that it's Madjeski plows money in, sells up quick or we get liquidated is plain silly.

Do you think the club makes a profit?

[paddy20]

Low interest loans to the club (not sure he can afford to do that this time), and annual summer sales of the clubs best player(s). I remember Brian McDermott's relief at investment coming into the club, and admitting how it was always so hard losing your best player every summer, and even harder to build a side to push for the top six. Now we're heading back to it, and as I mentioned earlier, with the added annual £2.5m cost of a Cat 1 academy - so that could be two top players sold each summer, until, hopefully, a new wealthy owner is found.

Thing is, the urgency to sell isn't there right now - what would be the point in selling a club currently sitting in the playoff positions? In the event that we squeak promotion, the value of the club (and the amount it could be sold for) would rocket overnight.
In some ways, the fact that the club wasn't sold for a knockdown price in the last couple of months is a comfort, it must mean that the cash flow situation isn't quite as dire as some have hypothesised....

I'd be very surprised if SJM is still in charge come August...

Or if we don't make play-offs our present value will drop. It works both ways. It seems we are looking for a premium price without the premium goods

[Royal Lady]

I'm not a critic of Madejski, far from it but i'm not an apologist for him either. Yes, he spouts a load of nonsense but he's been doing that for 17 years. It's just Madejski being Madejski.

I do however think that the club is more than just a business to him and he wants to safeguard his legacy by handing over to the right people. I genuinely believe he thought TSI were the right people. We all know he's not the right person to run the club long term, he's said so himself on enough occasions but I think having him back at the helm is a positive thing in the current climate as we know that he will make decisions that he believes are right for the club. He brings stability to the club and if searching for a new owner means we have to endure 2 years of mid table stability, then so be it, it's better than pissing it all away in a mad rush for the exit.

Yes. You know he might get it wrong, but you also know he'll make an effort to make sure that Reading is in safe hands.

And if you have to have a man in charge who can't afford to run a football club, you'd have to go a long way to find a better man to have than Madejski.

So sorry Ian - I assumed you were talking about what SJM would do now he's back at the helm, as I also thought From Despair To Where was alluding to.

[winchester_royal]

http://www.readingchronicle.co.uk/sport/football/articles/2014/02/09/97491-sir-john-madejski-reveals-nobody-in-the-frame-to-take-over-reading-fc/

Well said John.

[Uke]

Or if we don't make play-offs our present value will drop. It works both ways. It seems we are looking for a premium price without the premium goods

Great insight!

However, no one will buy anything until they know what they are buying

If we want a quick sale we need to fall down to mid-lower table as soon as possible* to guarantee we are a Championship team (with high salaries)





* Insert Adkins "joke" here

[Ian Royal]

He didn't really put more money back in then, he didn't reclaim the money he'd already put in, that's about it.. Anyway, the idea that it's Madjeski plows money in, sells up quick or we get liquidated is plain silly.

Do you think the club makes a profit?

No. I know that foottball clubs can make regular losses building up massive debt and even after winding up notices are given not get liquidated. We have some great playing assets we can sell a wage bill we can reduce and other saleable assets. We're in no immediate danger even with madejski running us without added investment like he did before anton showed up.

[Ian Royal]

I'm not a critic of Madejski, far from it but i'm not an apologist for him either. Yes, he spouts a load of nonsense but he's been doing that for 17 years. It's just Madejski being Madejski.

I do however think that the club is more than just a business to him and he wants to safeguard his legacy by handing over to the right people. I genuinely believe he thought TSI were the right people. We all know he's not the right person to run the club long term, he's said so himself on enough occasions but I think having him back at the helm is a positive thing in the current climate as we know that he will make decisions that he believes are right for the club. He brings stability to the club and if searching for a new owner means we have to endure 2 years of mid table stability, then so be it, it's better than pissing it all away in a mad rush for the exit.

Yes. You know he might get it wrong, but you also know he'll make an effort to make sure that Reading is in safe hands.

And if you have to have a man in charge who can't afford to run a football club, you'd have to go a long way to find a better man to have than Madejski.

So sorry Ian - I assumed you were talking about what SJM would do now he's back at the helm, as I also thought From Despair To Where was alluding to.

I'll assume you aren't being deliberately dense and spell it out even clearer.

Madejski did his best to sell to someone who had our best interests at heart and would be a safe pair of hands when he sold to anton. He'll do the same in selling the club this time too. He's not perfect, he may make a mistake or circumstances may change after the sale, but that will be what he'll try to achieve and it's always been what he's tried to achieve.

[royalgrumpy]

He didn't really put more money back in then, he didn't reclaim the money he'd already put in, that's about it.. Anyway, the idea that it's Madjeski plows money in, sells up quick or we get liquidated is plain silly.

Do you think the club makes a profit?

No. I know that foottball clubs can make regular losses building up massive debt and even after winding up notices are given not get liquidated. We have some great playing assets we can sell a wage bill we can reduce and other saleable assets. We're in no immediate danger even with madejski running us without added investment like he did before anton showed up.

Wasn't the previous annual black hole around £5m a year? Now we can add £2.5m to that for the Cat 1 academy. We'll be fine selling a number of high earners this summer, but what about the next summer, and the summer after that, and the summer after that? If we're fortunate enough to have players here of that value that we can sell, we can plug that hole, but when we haven't, what then? You can't expect the academy to produce a top player every summer. They don't anywhere else, so don't hope for it here.

[SCIAG]

Wasn't the previous annual black hole around £5m a year? Now we can add £2.5m to that for the Cat 1 academy.

That assumes that we were spending absolutely nothing on the academy before the EPPP.

[royalgrumpy]

Wasn't the previous annual black hole around £5m a year? Now we can add £2.5m to that for the Cat 1 academy.

That assumes that we were spending absolutely nothing on the academy before the EPPP.

True, but the cost of running the academy previously was nowhere near the £2.5m it is now. I'd have to dig out the difference, but it is quite considerable. The point remains we still face a significant annual black hole, greater than it was previous to Anton's so called investment.

[winchester_royal]

They're not going to downgrade the academy. They will sooner sell all the crown jewels. Like it or not we're going to become a club increasingly reliant on youth development over the next few years.

[Royal & Ancient]

I seldom post on here these days and, no doubt, will get shot down again.
Sir John,in the interview, did not look at all well and was very hesitant. Not the man I knew, and,indeed,talked me back into becoming a season ticket holder again,in the eighties.Should he, Heaven forfend, fall"off the perch" what disaster planning is in place?

[SPARTA]

I seldom post on here these days and, no doubt, will get shot down again.
Sir John,in the interview, did not look at all well and was very hesitant. Not the man I knew, and,indeed,talked me back into becoming a season ticket holder again,in the eighties.Should he, Heaven forfend, fall"off the perch" what disaster planning is in place?

That is a something we have talked about about recently. He's not a young man any more and anything can happen. When he goes his share is more than likely left with his daughter (or is it daughters?), very possibly overseen by long-time close friend and CEO of his other businesses, Nigel Howe. The shares would almost certainly be sold as soon as possible, and then we can fall into the hands of just about anyone. In the 20 odd years I have been a supporter of Reading Football Club, Sir John Madejski has always been there. It will be a very sad day when he leaves us, both as a chairman/owner and as a person.

[Uke]

They're not going to downgrade the academy. They will sooner sell all the crown jewels. Like it or not we're going to become a club increasingly reliant on youth development over the next few years.

Is this necessarily a bad thing?