Supporters club donate £40k to multi-millionaires

[Max Fowler]

I have never heard our owners or any other owners at our level say they expect to earn or get their money back from their club. If you were paying attention you will have noted that the owners stated aim is to try and break even and they are still a long way off doing so. it's costing them £millions to sustain it. If the owners are all in it for a return why did Kent Teague write off £2 million worth of share holding last year?

https://www.freeths.co.uk/2021/05/24/fr ... -the-club/

Do you think a load of rich Americans stuck a load of dosh into a 4th tier English soccer club just for shitsandgiggles?

Kent had to write the loan off to entice the new investors in, otherwise it wouldn't have been economically viable for them.

[Dunners]

I'll ask again - isn't the "donation" / "investment" / call it what-you-will really just a paymnet in lieu of rent on the premises that the SC occupies? - If so, it looks like it works out at about £800 a week - I've no idea if that's a reasonable rent for the space they have, perhaps someone in the know would elucidate ?

Also, is there a tax or VAT rule that makes it advantageous to treat the rent received as a donation rather than a flat rent.

My take, for what it's worth: While no rent is contractually payable, the SC is beholden to the club for the premises so will no doubt feel compelled to show its appreciation in some way. And £800 a week for a unit of that size in that location is a good deal.

[StillSpike]

I'll ask again - isn't the "donation" / "investment" / call it what-you-will really just a paymnet in lieu of rent on the premises that the SC occupies? - If so, it looks like it works out at about £800 a week - I've no idea if that's a reasonable rent for the space they have, perhaps someone in the know would elucidate ?

Also, is there a tax or VAT rule that makes it advantageous to treat the rent received as a donation rather than a flat rent.

My take, for what it's worth: While no rent is contractually payable, the SC is beholden to the club for the premises so will no doubt feel compelled to show its appreciation in some way. And £800 a week for a unit of that size in that location is a good deal.

Thanks - that's kind of my take on it.

Here at Raith Rovers, as I mentioned upthread, there are a number of supporters groups who have premises within the stadium and run wee bars for their members. They pay no rent, but make "donations" to the club of their surpluses. Repairs and decor etc are the supporters' groups' responsibility. This works to everyone's satisfaction normally.

Recently, however, and due to the Club's new-found enthusiasm for rapists, some of the groups have been making noises about witholding their "donations" as they don't want their money going to a sex case - or, indeed, plugging the gap in the Club's finances that the whole debacle has created. The problem they'll be likely to face, however, is while they don't have to hand over their "donations", the Club doesn't have to allow them to use the facilities they currently enjoy. It's a knotty one.

I don't think it can be properly called a donation, or a gift, if there's little or no choice in the giving of it.

[Top of the JES]

The only people who might ever get a return investing in a football club are owners of clubs in the Premiership

Tell that to Barry Hearn.

He didnt make money out of the football side he made money on the property.

[Max B Gold]

I'll ask again - isn't the "donation" / "investment" / call it what-you-will really just a paymnet in lieu of rent on the premises that the SC occupies? - If so, it looks like it works out at about £800 a week - I've no idea if that's a reasonable rent for the space they have, perhaps someone in the know would elucidate ?

Also, is there a tax or VAT rule that makes it advantageous to treat the rent received as a donation rather than a flat rent.

My take, for what it's worth: While no rent is contractually payable, the SC is beholden to the club for the premises so will no doubt feel compelled to show its appreciation in some way. And £800 a week for a unit of that size in that location is a good deal.

There must be an agreement we could get someone to post up. That would enable us to pick it apart without the fear of being told we don't know what we are talking about.

[Top of the JES]

I'll ask again - isn't the "donation" / "investment" / call it what-you-will really just a paymnet in lieu of rent on the premises that the SC occupies? - If so, it looks like it works out at about £800 a week - I've no idea if that's a reasonable rent for the space they have, perhaps someone in the know would elucidate ?

Also, is there a tax or VAT rule that makes it advantageous to treat the rent received as a donation rather than a flat rent.

My take, for what it's worth: While no rent is contractually payable, the SC is beholden to the club for the premises so will no doubt feel compelled to show its appreciation in some way. And £800 a week for a unit of that size in that location is a good deal.

Thanks - that's kind of my take on it.

Here at Raith Rovers, as I mentioned upthread, there are a number of supporters groups who have premises within the stadium and run wee bars for their members. They pay no rent, but make "donations" to the club of their surpluses. Repairs and decor etc are the supporters' groups' responsibility. This works to everyone's satisfaction normally.

Recently, however, and due to the Club's new-found enthusiasm for rapists, some of the groups have been making noises about witholding their "donations" as they don't want their money going to a sex case - or, indeed, plugging the gap in the Club's finances that the whole debacle has created. The problem they'll be likely to face, however, is while they don't have to hand over their "donations", the Club doesn't have to allow them to use the facilities they currently enjoy. It's a knotty one.

I don't think it can be properly called a donation, or a gift, if there's little or no choice in the giving of it.

LOSC withheld payment of any donation to the club during the Beelzebub reign - they donated to staff whose wages were being witheld instead.

[Top of the JES]

I have never heard our owners or any other owners at our level say they expect to earn or get their money back from their club. If you were paying attention you will have noted that the owners stated aim is to try and break even and they are still a long way off doing so. it's costing them £millions to sustain it. If the owners are all in it for a return why did Kent Teague write off £2 million worth of share holding last year?

https://www.freeths.co.uk/2021/05/24/fr ... -the-club/

Do you think a load of rich Americans stuck a load of dosh into a 4th tier English soccer club just for shitsandgiggles?

Kent had to write the loan off to entice the new investors in, otherwise it wouldn't have been economically viable for them.

It's pretty much an ego trip for them, they know they won't make money back but it's affordable to them wheras investing in major American sports teams isnt.the pipe dream is for Orient to go through the leagues but unless we moved to a larger ground income will always be limited. Kent didn't have to write anything off he donated £2 million of his shares back to Eagle so they could be divied up among the new shareholders.

[Max Fowler]

I’m just a simple plumber, I don’t understand. He didn’t write anything off?

[Top of the JES]

I’m just a simple plumber, I don’t understand. He didn’t write anything off?

Better Luck with the plumbing...........


https://www.insider.com/leyton-orient-i ... ney-2018-3

https://www.leytonorient.com/news/2021/ ... investors/

[Orient_Man_And_Boy]

At the 2019 AGM (the afternoon before promotion), when asked about his investment in the club, KT said “It is my gift to you.”

[Max Fowler]

If it’s a gift, someone needs to update the accounts because LOFC still owed £9m to the investment vehicle at the last reckoning…..