Sevco fans are amongst the most gullible in Europe; I get tired saying that, but it’s a truism that you simply can’t escape from.
Tonight, as we head into a new week, another one in which the club will go through the charade of the “managerial hunt” whilst waiting to see whether Murty can win the fabled “three games in a row” the biggest using of all is being prepared in their future.
It’s the one where the fans are being asked to buy more shares whilst rendering those they already have worthless. It’s the one where they try to ignore the various obstacles that surround this. It’s the one where they pretend King isn’t facing a court order to buy those very same shares.
It’s the one where they try not to notice that hand in their pockets again.
When Charles Green was readying his share issue, he did the rounds of London finance houses and made big predictions about how much cash it would raise. The idea was to find “institutional investment”. You’ll notice that there’s none of that here. You’ll notice how there’s no big talk about bringing top talent to the table. It’s all low-key. It’s all small scale. It’s all about stabilising the financial position short-term instead of investing for the long.
King doesn’t even hide what this share issue is intended for; to pay off the director’s who’ve given loans. Nothing for running costs. Nothing for future investment. No-one has questioned it. No-one has said “if you give the directors back their £16 million, how much is left over for players, infrastructure, scouting …?” The answer is zero, of course.
The current crop of shareholders wants bought out. The first step is to turn their loans into equity. The second is to sell that back to the fans. There’s actually a hidden danger in this for Sevco supporters and especially the RST. If they reach the 30% threshold they will, of course, be legally obliged to make an offer for the rest of the shares.
Which might be exactly what King is waiting for. He can then punt his to them at a profit and vanish into the ether. King might be gone long before then of course.
But the simple truth is they are about to be asked to vote for a share issue which will devalue their current shares to the point of utter worthlessness, in order to purchase more which will be equally worthless. And many of them will do this, even knowing that.
Good for them. They realise perhaps that it’s the fans who will have to pay for all this in the end, but others will stumble into this expecting war chests and a stable financial position. They are the ones King is shooting for, the genuine mugs.
If I were a Sevco shareholder I would prepare for pain.
I would vote against the board’s ridiculous motion – Resolution 11 in case they need the fine details – and urge other shareholders to do the same. It will create problems in the short term, there is no doubt about that at all, but those problems are coming anyway. Better to face up to them now.
But I suspect between the media campaign which is inevitable and pressure from King himself they will get the result they want this time.
Whether simply getting the votes means the share issue gets off the ground or not is a different matter; there’s a long way to go regardless, but the ground is being laid for the big scam either now or in the future.
Remember, not even King lies about everything.
When he said that the fans would have to dig deep to give the club any chance he was not kidding.
We agree with him on that. We always did.