The question that MyFc keeps avoiding

[Dewsbury SAFC]

If you read through the operator agreement between My Football Club Ltd and My Football Club Society Ltd, the former has the right to terminate the agreement if the Society's membership drops below 15,000. This would imply that the break-even turnover for MyFC Ltd is 15,000 x 7.50 = £112,500 or somewhere around there. Any revenue they receive above that (21% of member fees above the 15k mark, EA Sponorship money, MyFC merchandise etc) is profit.

[PatMan]

Originally Posted By: Yorkshire Fan

There's a web team, plus the legal side needs taking care of. (They didnt actually say they had 7 people, they were just saying what the collective £7.50's would pay for)

Or its a good solicitor, and a guy with a flair for web-design... £75k each!!
Blimey, dont even think about the fact that a solicitor could understand HTML and do it all himself!!

[Hirsty]

Originally Posted By: American FLEET FAN No1

Originally Posted By: Hirsty

Well lets join Gillingham, Dartford, Stone Crossing, and all stations to Charing Cross ( but not calling at St Johns or Charlton !) and just have one big Kent FC and p*ss even more people off !!

How very dare you, Hirsty.....You missed out Greenhithe(For Bluewater)!

Sorry mate...I was a bit short on time, so couldn't give a mention to all the Stations !!

Cheers,

[George Reilly's Hairpiece]

Maybe a question one of the members can answer...

 

During this due dilligence process, who are the representatives of myfootballclub conducting the financial review? You would hope that it doesn't involve any directors of My Football Club Limited, as surely there would be a conflict of interest.

[low_key]

Deloitte I would imagine

[JohnB]

First off please note that I don't agree that the operating costs for My Football Club Ltd as are as extortionate as some people have been suggesting. I have worked in the computing industry for most of my life, and was President of a forum based non profit for a couple of years. I have a good idea of the costs involved.

 

However, I am more than happy with MFC Ltd people being involved with the Due Diligence phase. After all, as you say they have an interest in it. However, I don't see it as a conflicting interest

 

Due Diligence is primarily about financial stability of the club. MFC Ltd are unlikely to want to be associated with a club that is weak financially - but they will want to be associated with a club that is strong financially. The interests are convergent, rather than conflicting.

 

Having said that - I do expect them to refer to outside auditor and accountancy reports when they come back to us

[alholmes]

I beleive that due dilligence is being carried out by primarily by Michael Fiddy of DLA Piper law firm and Deloitte and Touche.

 

Wether any are directors of MFC Ltd i dont know but most are members of MYFC.

[George Reilly's Hairpiece]

Originally Posted By: JohnB

However, I am more than happy with MFC Ltd people being involved with the Due Diligence phase. After all, as you say they have an interest in it. However, I don't see it as a conflicting interest

Due Diligence is primarily about financial stability of the club. MFC Ltd are unlikely to want to be associated with a club that is weak financially - but they will want to be associated with a club that is strong financially. The interests are convergent, rather than conflicting.

Having said that - I do expect them to refer to outside auditor and accountancy reports when they come back to us

My Football Club Society Limited would not want to be involved with a financially instable club. My Football Club Limited have less issue with that as their income stream is not influenced by the club chosen. Their aim is to make money as a profit making organisation and it is there interest to get a club on board sooner rather than later.

[American FLEET FAN No1]

Originally Posted By: JohnB

First off please note that I don't agree that the operating costs for My Football Club Ltd as are as extortionate as some people have been suggesting. I have worked in the computing industry for most of my life, and was President of a forum based non profit for a couple of years. I have a good idea of the costs involved.

However, I am more than happy with MFC Ltd people being involved with the Due Diligence phase. After all, as you say they have an interest in it. However, I don't see it as a conflicting interest

Due Diligence is primarily about financial stability of the club. MFC Ltd are unlikely to want to be associated with a club that is weak financially - but they will want to be associated with a club that is strong financially. The interests are convergent, rather than conflicting.

Having said that - I do expect them to refer to outside auditor and accountancy reports when they come back to us

Sorry, but I thought you found a club that was financially weak, then step in and take it over. Unless you a Russian Millionaire!

[Kentish Expat]

One premise of the club being sought was either no debt or a manageable debt.

[George Reilly's Hairpiece]

Originally Posted By: Kentish Expat

One premise of the club being sought was either no debt or a manageable debt.

Another was that the club has the potential to reach the Premiership. So, with that in mind, how realistic was either premise?

[Kentish Expat]

I suppose you could say that every club has the potential to reach the Premiership (apart from Gillingham and, on this season's form, Southampton)

[American FLEET FAN No1]

The way to "manage"(which is not the same as pay off!) a debt is to refinance(Take another loan out?)the debt, which in my personal understanding is, you just transfer the payments over to a third person! Instead of owing "A", you owe "B". It will be interesting to see who "B " is going to be if this happens! This will not be Addressed for three years!

[Kentish Expat]

You have a point, but I also think manageable means that the level of debt is such that the club can service it, and will not rapidly, quickly or lethargically fall into arrears

[JohnB]

Originally Posted By: George Reilly's Hairpiece

My Football Club Limited have less issue with that as their income stream is not influenced by the club chosen. Their aim is to make money as a profit making organisation and it is there interest to get a club on board sooner rather than later.

I have enough business understanding to know that is incorrect, even if your Income Stream assumptions are right The income stream has to hang around for a while to generate a decent income. In this case if the club has continual financial problems, the income stream fails as MyFC members will get disillisioned and walk away.

Originally Posted By: American FLEET FAN No1

Sorry, but I thought you found a club that was financially weak, then step in and take it over. Unless you a Russian Millionaire!

Good gods no. You find a club that is basically sound but has minor financial difficulties. Then you offer them money .... Unless you are a Russian billionaire and can afford anything and any one. Even if you are just in it for the money - who wants to be involved with a club that fails after a year?

I remember now why I generally stay away from football forums - lots of sniping and little content.

[George Reilly's Hairpiece]

Originally Posted By: JohnB

I have enough business understanding to know that is incorrect, even if your Income Stream assumptions are right The income stream has to hang around for a while to generate a decent income. In this case if the club has continual financial problems, the income stream fails as MyFC members will get disillisioned and walk away.

I have enough business understanding to know that when a company secures itself the rights to exploit a website for financial gain, plus the rights to the brand names, then the income it gets from the subscriptions will be small change compared to the revenues it can generate from these other sources. Only once the club is in place and the website up and running, will it be able to exploit these opportunities. The club itself is mainly irrelevant.

[Aftershow]

Originally Posted By: Kentish Expat

I suppose you could say that every club has the potential to reach the Premiership (apart from Gillingham and, on this season's form, Southampton)

There is very little prospect of taking a team from the Conference to the Premiership without incurring some level of debt, which the club cannot now take on

[rich32]

Can I ask what Ebbsfleet's average home crowd is? And what this forum's average weekly member count is?

 

How reflective is this forum of the Ebbsfleet fan base?

 

There will always be fans who are dead against an idea...stuck in the middle...or dead for an idea. Every fan has the right to nair their opinion and also act on it by either turning up or not turning up to games.

 

I do suspect though that there will be more Ebbsfleet fans who reguarly turn upto games signing up to myfootballclub than there will be protesting against it on message boards like this.

 

I really hope the concept succeeds. I really hope Ebbsfleet succeeds. If the general voice of the fans understands the game...then both will succeed.

[JohnB]

Originally Posted By: George Reilly's Hairpiece

I have enough business understanding to know that when a company secures itself the rights to exploit a website for financial gain, plus the rights to the brand names, then the income it gets from the subscriptions will be small change compared to the revenues it can generate from these other sources. Only once the club is in place and the website up and running, will it be able to exploit these opportunities. The club itself is mainly irrelevant.

Err - if there are no members on the website, there is no advertising stream to make money out of. A strong club is needed to keep the members on the website.

The dot.com bubble proved that. Everyone invested in interweb businesses with nothing behind them. When they didn't generate income they went bust. Things have moved on from that just about everyone understands that you need a successful product to keep your punters - and in this case the punters are MyFC members. Chose a bad and failing club - and members leave. then you don't get any income at all from all those things you quoted.

That's why there is no conflict of interest in terms of due diligence. Even if your assumption about MFC Ltd having purely commercial goals (which I still don't agree with) are correct.

Having said that - I too believe that Michael Fiddy is involved with the due diligence.

[Mackster]

Originally Posted By: rich32

Can I ask what Ebbsfleet's average home crowd is? And what this forum's average weekly member count is?

How reflective is this forum of the Ebbsfleet fan base?

There will always be fans who are dead against an idea...stuck in the middle...or dead for an idea. Every fan has the right to nair their opinion and also act on it by either turning up or not turning up to games.

I do suspect though that there will be more Ebbsfleet fans who reguarly turn upto games signing up to myfootballclub than there will be protesting against it on message boards like this.

I really hope the concept succeeds. I really hope Ebbsfleet succeeds. If the general voice of the fans understands the game...then both will succeed.

Avg crowd: Just under 1,000

The board & MyFc thought it would be a waste of time to consult the 1,000 odd fans.

Like it or lump is the usual choice given to all football fans, which is a shame because I thought MyFc were trying to be different.