UPDATE FROM SWFC...just for you SAM
Fri Jan 08, 2010 8:39 am
Owls hope for an average attendances of 31,500 by 2014.
05 January 2010
By Rob Waugh
AMBITIOUS Sheffield Wednesday believe average gates will increase to 31,500 over the next five years – even without promotion to the Premier League, according to leaked investment proposals.
A prospectus drawn up by American investment brokers to advertise the club for a proposed takeover also reveals the Owls' bankers – the Co-op – have agreed to write-off £10m of debt to help push through new ownership. As a result, the cash-strapped club's outstanding debt with the bank would drop from £22m to £12m before being reduced further to £6m after a new share issue.
The planned takeover, outlined by brokers Inner Circle Sports, does not envisage major spending on players but instead projects how relatively modest increases in the wage bill would be funded by significant increases in crowds and commercial revenue over the next five years.
Tell us what you think by joining the ongoing debate at the bottom of the page >>
That approach would seem to rule out Alan Shearer becoming manager despite speculation yesterday that he was interested in the current Hillsborough vacancy. Wednesday would not comment but it is understood that recent poor results have increased the urgency to appoint a new manager and this is now likely to happen in the short term regardless of the ongoing investment process.
The takeover would be funded through a £20m share issue which would give the new owners an 86 per cent stake in the club.
The deal would involve the creation of a company to acquire the new shares with the £20m funded by outside investment of £8m and a new £12m revolving credit facility – essentially a loan – from the Co-op Bank.
The £20m would then go towards paying off the remaining outstanding £12m debt to the Co-op and a further £6m to the bank to pay off half of the £12m borrowed to fund the takeover. Another £1.2m would go towards paying off two, unidentified, loan-note holders.
If the deal went through as planned, Wednesday would be under new ownership and with just £6m owing to the Co-op Bank.
But major further investment in the playing side is not then proposed. Instead, wages are projected to grow from £6.4m in the current season to £10.6m by 2013-14 although a large part of that increase would be front-loaded if the intention was to push for the top six of the Championship in the next two seasons.
The prospectus, which was compiled in the autumn before the club sacked manager Brian Laws, says: "To improve SWFC's chances of finishing in the top six of the Championship over the next two seasons, management believes 11 new players need to be added to the squad for the 2010-11 season."
As a result, "net player wages will increase £3.1m to £9.5m... SWFC will need to spend an estimated £2m in net transfer fees."
The increase in wages would see a major overhaul of players with only 14 to be retained next season and 11 new ones coming in. Part of the overhaul would be funded by a £1.7m reduction in the current wage bill, with eight (unidentified) players' contracts expiring without being renewed this summer.
Most of any increased spending will be self-funded with revenue projected to increase from £11m to £24m in the next five years.
The most eye-catching aspect is anticipated crowds, based on the club being in the top half of the Championship, which would rise to 31,500 with 21,000 season ticket holders by 2013-14.
The attractive Boxing Day fixture against Newcastle aside, Wednesday have recently been struggling to attract 20,000 crowds with the club also giving away hundreds of free tickets.
Owls chairman Lee Strafford has consistently stressed the need to increase crowds at Hillsborough to support the proposed business plan. The club has suggested an investment deal is close and face-to-face talks with a North American group of investors are due to take place in the next fortnight.
A club spokesman said: "The document in question was produced by Inner Circle Sports LLC last autumn for the attention of potential investors. The central themes in the document are consistent with those communicated by the club over the past year.
"The projections assume investment is made into the club but is not explicit as to the full level of funds invested over the whole period of the projections. The detail around playing squad investments are being discussed confidentially with potential investors in separate documents.
"Despite recent on-field problems, the long term potential for Sheffield Wednesday remains strong and the board are focused on securing the right partners to assist us in achieving these goals
05 January 2010
By Rob Waugh
AMBITIOUS Sheffield Wednesday believe average gates will increase to 31,500 over the next five years – even without promotion to the Premier League, according to leaked investment proposals.
A prospectus drawn up by American investment brokers to advertise the club for a proposed takeover also reveals the Owls' bankers – the Co-op – have agreed to write-off £10m of debt to help push through new ownership. As a result, the cash-strapped club's outstanding debt with the bank would drop from £22m to £12m before being reduced further to £6m after a new share issue.
The planned takeover, outlined by brokers Inner Circle Sports, does not envisage major spending on players but instead projects how relatively modest increases in the wage bill would be funded by significant increases in crowds and commercial revenue over the next five years.
Tell us what you think by joining the ongoing debate at the bottom of the page >>
That approach would seem to rule out Alan Shearer becoming manager despite speculation yesterday that he was interested in the current Hillsborough vacancy. Wednesday would not comment but it is understood that recent poor results have increased the urgency to appoint a new manager and this is now likely to happen in the short term regardless of the ongoing investment process.
The takeover would be funded through a £20m share issue which would give the new owners an 86 per cent stake in the club.
The deal would involve the creation of a company to acquire the new shares with the £20m funded by outside investment of £8m and a new £12m revolving credit facility – essentially a loan – from the Co-op Bank.
The £20m would then go towards paying off the remaining outstanding £12m debt to the Co-op and a further £6m to the bank to pay off half of the £12m borrowed to fund the takeover. Another £1.2m would go towards paying off two, unidentified, loan-note holders.
If the deal went through as planned, Wednesday would be under new ownership and with just £6m owing to the Co-op Bank.
But major further investment in the playing side is not then proposed. Instead, wages are projected to grow from £6.4m in the current season to £10.6m by 2013-14 although a large part of that increase would be front-loaded if the intention was to push for the top six of the Championship in the next two seasons.
The prospectus, which was compiled in the autumn before the club sacked manager Brian Laws, says: "To improve SWFC's chances of finishing in the top six of the Championship over the next two seasons, management believes 11 new players need to be added to the squad for the 2010-11 season."
As a result, "net player wages will increase £3.1m to £9.5m... SWFC will need to spend an estimated £2m in net transfer fees."
The increase in wages would see a major overhaul of players with only 14 to be retained next season and 11 new ones coming in. Part of the overhaul would be funded by a £1.7m reduction in the current wage bill, with eight (unidentified) players' contracts expiring without being renewed this summer.
Most of any increased spending will be self-funded with revenue projected to increase from £11m to £24m in the next five years.
The most eye-catching aspect is anticipated crowds, based on the club being in the top half of the Championship, which would rise to 31,500 with 21,000 season ticket holders by 2013-14.
The attractive Boxing Day fixture against Newcastle aside, Wednesday have recently been struggling to attract 20,000 crowds with the club also giving away hundreds of free tickets.
Owls chairman Lee Strafford has consistently stressed the need to increase crowds at Hillsborough to support the proposed business plan. The club has suggested an investment deal is close and face-to-face talks with a North American group of investors are due to take place in the next fortnight.
A club spokesman said: "The document in question was produced by Inner Circle Sports LLC last autumn for the attention of potential investors. The central themes in the document are consistent with those communicated by the club over the past year.
"The projections assume investment is made into the club but is not explicit as to the full level of funds invested over the whole period of the projections. The detail around playing squad investments are being discussed confidentially with potential investors in separate documents.
"Despite recent on-field problems, the long term potential for Sheffield Wednesday remains strong and the board are focused on securing the right partners to assist us in achieving these goals
Re: UPDATE FROM SWFC...just for you SAM
Fri Jan 08, 2010 8:58 am
With Ady keeping you up dated you will never miss home now Sam 
. Ady have you seen Cardiff play ?
. Ady have you seen Cardiff play ?
Re: UPDATE FROM SWFC...just for you SAM
Fri Jan 08, 2010 9:04 am
The only bit i could understand is that we need 11 new players!!! 
Its all IFS AND BUTS!!! I don't believe anything till its signed and sealed.Weve been through all these false hopes for years! 
Its all IFS AND BUTS!!! I don't believe anything till its signed and sealed.Weve been through all these false hopes for years!
Re: UPDATE FROM SWFC...just for you SAM
Fri Jan 08, 2010 9:05 am
ILL SHUT DOOR ON MI WAY OUT
Re: UPDATE FROM SWFC...just for you SAM
Fri Jan 08, 2010 10:13 am
Whose running the Co-op Bank Peter Ridsdale? Christ I think I'll get an account there if they are into wiping out £10m of debt and providing a new loan of £12m.
Talk about an understanding Bank
Talk about an understanding Bank