Confimred new owners of Raeding Footbal Club

[THE HUMAN BISCUIT]

If the US group is refusing to extend Madejski's rent free period in the penthouse to five years they are being pretty damn inflexible themselves.

He built the hotel. He's an old man who gave 20 great years to the club. Of course he should be allowed to stay. The Americans can promise all they want about spending this and that on the Academy etc but actions speak louder than words and any truly honourable purchaser would not be wasting good football time kicking an old man out of his penthouse! What are they planning to do in there once he's gone!?

[philM]

If they want to rent the penthouse out I wouldn't think they could get much over £1000 per night, and so with a 50% occupancy they would only make around £180,000 a year in revenue. Can't see why that would be such a deal breaker if they are already planning to spend £40M immediately. It's only £720k for the extra 4 years, so a couple of % on the price.

[Elmer Park]

I don't doubt 10539.4's integrity and have no reason to think his story isn't true but given the complicated nature and heavy cost of every other part of any takeover it's odd that any potential buyer would allow SJM staying in the hotel penthouse to be a deal breaker.

[10539.4 Miles Away]

In (very much) my own opinion, I suspect its more to do with the fact the new owners would probably like to be able to use the penthouse themselves or for their guests within 5 years of owning the club and hotel rather than it being just about lost revenue.

[Uke]

Been debating whether or not to post this in an open forum for some time, a few people on here know my IRL and know I have absolutely nothing to gain by making stories up and I have never claimed to be ITK, I live on the other side of the world but am Reading born and bred, have been a Reading supporter for a long time and on here in various guises for far longer than I care to admit.

I have heard (from what I believe to be) a very reliable source that the US offer is for £40 million. It is enough to pay the debts, invest in the team and buy the hotel but it has been blocked by JM over his rent free period

The US offer gives JM 1 year rent free and to be president. JM is holding out for 5 years of free living in the penthouse!

The offer is committed to getting us back to the Premier League and investing in team and building a £20M academy.

As I say, I have absolutely no reason to make things up, I personally believe this is the best deal for the club and whilst I (and I am sure all Reading fans) will be grateful to JM for what he has done I think its crazy that these conditions have blocked what would be a great deal for the club. I sincerely hope that JM sees the light.

Don't disbelieve you

But the US bid involves Samuelson

And I wouldn't sell him your auntie!

[philM]

In (very much) my own opinion, I suspect its more to do with the fact the new owners would probably like to be able to use the penthouse themselves or for their guests within 5 years of owning the club and hotel rather than it being just about lost revenue.

If they wanted to I'm sure they could knock through a few rooms and build a better penthouse, if they're not fretting about lost revenue.

[multisync1830]

If the US group is refusing to extend Madejski's rent free period in the penthouse to five years they are being pretty damn inflexible themselves.

He built the hotel. He's an old man who gave 20 great years to the club. Of course he should be allowed to stay. The Americans can promise all they want about spending this and that on the Academy etc but actions speak louder than words and any truly honourable purchaser would not be wasting good football time kicking an old man out of his penthouse! What are they planning to do in there once he's gone!?

There is no need to be rent free for any period irrespective of what he may or may not have done- it's a business transaction and sentiment shouldn't be a factor.

The cost of maintaining the flat also needs consideration. A fair rent could be accommodated at a reasonable 2-4k pm (say). He can afford that and the hotel at least covers it's costs

I suspect the 1 or 5 year factor is more about getting him out rather than getting something for free.

I would be quite interested in which 'American offer' this is as the one I heard wasn't anywhere near as generous.

[kwik-silva]

True sentiment shouldn't be a factor, but if you're buying a football club off a bloke and pretty much the only condition is he wants to stay in his apartment I'd probably let him.

[winchester_royal]

Rolfcopter at the idea that a group is willing to pay 15m over asking price but not willing to give away a penthouse for free for 5 years.

[yappy]

In all fairness SJM has every right to find the deal that's right for him and the club. The American offer as just described sounds pretty identical to the Thai offer, who I understand are paying off the debt, purchasing the new training ground to keep cat 1 and making money available for players (not ITK, just things that have been said by Fordham, Watts etc). If the Thai consortium are happy for SJM to then have a 5 year rent free period- why wouldn't he favour that offer?

[philM]

Why is he so keen to keep the penthouse that to him it's a deal breaker? He won't be running RFC so why would he want to hang around the bleak stadium, the scruffy car parks and someone else's concrete box of a hotel, when he has a bloody great mansion with enormous landscaped grounds just down the road?

Is the Jazz Cafe really that good at night?

[multisync1830]

In all fairness SJM has every right to find the deal that's right for him and the club. The American offer as just described sounds pretty identical to the Thai offer, who I understand are paying off the debt, purchasing the new training ground to keep cat 1 and making money available for players (not ITK, just things that have been said by Fordham, Watts etc). If the Thai consortium are happy for SJM to then have a 5 year rent free period- why wouldn't he favour that offer?

he gave up that 'right' when he sold 51%

actually on second thoughts no he didn't as he owns 100% of the hotel..

[multisync1830]

True sentiment shouldn't be a factor, but if you're buying a football club off a bloke and pretty much the only condition is he wants to stay in his apartment I'd probably let him.

that's because you have an emotional attachment. These guy's don't know him from Adam so why should they give an oxford?

[multisync1830]

Why is he so keen to keep the penthouse that to him it's a deal breaker? He won't be running RFC so why would he want to hang around the bleak stadium, the scruffy car parks and someone else's concrete box of a hotel, when he has a bloody great mansion with enormous landscaped grounds just down the road?

Is the Jazz Cafe really that good at night?

His big -empty- house was pretty much a folly to his ego. At the hotel he has his personal staff close by and has the opportunity to sit among other people at the bar and chat/ignore as he sees fit. It's also a bit 'cool' to be so near a stadium. A big house is a bit meh

[10539.4 Miles Away]

2am here so I'm off to bed, from conversations I have had (same person) is that the penthouse is not the only block but it is the unworkable bit, when you sell a business (the club and hotel in this case) you would normally move on, leave the board and the premises, he has a very nice big house locally so there's no need to stay in the flat. If he was to move the Americans could take vacant possession of the property (which they would normally expect in this kind of purchase) but they've given JM 1 years grace to move.

[Ian Royal]

Rolfcopter at the idea that a group is willing to pay 15m over asking price but not willing to give away a penthouse for free for 5 years.

This. Besides it's not like we don't have a takeover going through with or without yanks is it. I can't see SJM putting 4 years rent free living well ahead of his legacy to the Reading community, which is exactly how he sees RFC

[multisync1830]

2am here so I'm off to bed, from conversations I have had (same person) is that the penthouse is not the only block but it is the unworkable bit, when you sell a business (the club and hotel in this case) you would normally move on, leave the board and the premises, he has a very nice big house locally so there's no need to stay in the flat. If he was to move the Americans could take vacant possession of the property (which they would normally expect in this kind of purchase) but they've given JM 1 years grace to move.

At least 3 sets of buyers of the hotel have declined to proceed because of the sitting tenent issue

[Royal Ginger]

Give him the penthouse, but cut off the water and electric, turn the roof into a bowling alley and board up the windows. Sorted, let's move on.

[Dick Habbin's hairdo]

Frankly, WTF would anyone - either sitting tenant or potential owner - give a monkey's nuts about a penthouse in a nondescript hotel in the arse of the 'Ding who's only major plus point is that it's 30 minutes from LHR?

[Royal Ginger]

Frankly, WTF would anyone - either sitting tenant or potential owner - give a monkey's nuts about a penthouse in a nondescript hotel in the arse of the 'Ding who's only major plus point is that it's 30 minutes from LHR?

Given that they're likely international buyers, i should think that'd come in quite handy.