For as long as I’ve been alive, Cardiff City have talked about a new start, a dream, transparency, keeping the faith and the end of its problems … and then of course, we get the reality and crisis until a rescue or takeover is mounted and we’re promised the very same things.
However, Cardiff City Football Club, despite having to resolve its jumbo-sized debts courtesy of the regimes of Sam Hammam and Peter Ridsdale who both spent unwisely with other people’s money, do finally seem to be on the verge of something exciting and which could have the necessary stability behind it.
Time will tell if this is another phoney chapter or the greatest era yet in modern times with the club as today’s EGM needed just 15 minutes to formally approve the investment of T.G. and Vincent Tan while formally saying goodbye (and informally saying good riddance!) to Peter Ridsdale, Keith Harris and Alan Flitcroft.
THE SPECIALS sing Dawning of a New Era in homage to T.G. and Cardiff City of course!
In came a new Board with T.G. as Chairman, Vincent Tan is onside too along with Steve Borley, Alan Whitely and Paul Guy. Gerthin Jenkins was confirmed at new Chief Executive and we have a new Finance Director too.
In what will be seen as a marker and statement of intent, T.G. said how proud he was to head the club and that it will be 2 nations united (Malaysia and Wales) but that he is aiming for a Top Two place as he couldn't put himself through the play-offs again. He promised an exciting future but emphasised how the club must control its finances.
Time will tell if these fine words are backed up by investment for a major promotion assault but for now, let's just be thankful Ridsdale has gone and the club can look forward. That'll do for me!
Nothing ever runs smoothly at Cardiff City, it’s always a soap opera, so fans shouldn’t really have been surprised but found themselves shocked at today’s news that the players had not been paid. This in a week when the fourth placed Bluebirds play two critical home games against Leicester City (Tuesday) and Swansea City (Saturday) which is hardly a morale booster.
According to reports, Finance Director Alan Flitcroft dashed to the club’s training facility to inform manager Dave Jones that the squad will be paid in a couple of days. It all lends credence to HMRC’s claims that the club were trading insolvent and had run out of funds.
However, at that same hearing, the club stressed that a Malaysian investment was close and it looks like T.G. is riding to the rescue. He is quoted today as saying that, ““They will be paid and, even if it’s a day or two late, it is only due to international transfer of funds.”
The big name players on thousands of pounds per week can probably cope adequately with this and not even notice a blip but you wonder if it impacts on squad members. Either way, it’s a talking point and distraction that they could do without.
The signs are highly encouraging from T.G. that he will come good, the messages from within the club remain upbeat too but times and experiences should really have taught all City fans to believe it when we see it … and it ain’t a done deal yet.
Last week, Cardiff City Football Club appeared to be at death’s door with no way out.Could it possibly be true that salvation may be close?
Rumours appear to be gathering pace that the Malaysians are ready to make their move and oversee some sweeping changes.
The rumor mill has it that following successful talks with Steve Borley in Malaysia last week, real action and intent will roll out this week and will feature;
Data Chan Tien Ghee (T.G.) will fly into U.K. to spend at least 3 days finalising a deal later this week.
Vincent Tan, a multi-millionaire, will be backing T.G. which is exciting news.
They will invest significant money by the end of the week, £6M has been the widely touted figure.
They believe promotion is still acheieveable this season and will be backing Dave Jones.
However they are not back Peter Ridsdale and want his departure as soon as possible.Whether still in situ or not by the weekend, The Malaysians do not wish him to be at Sunday’s home game with Watford – a real show of change.
Steve Borley will be asked to run the club until the end of the season which he has agreed which has to include talks with creditors, concluding agreements and payments over winding up orders and more.
What’s uncertain from these rumours are whether the Malaysians are backing the short-term only or here for the ride but fears that the club could hit the floors within days and not meet its next wage bill could certainly be overcome by this news.
Potentially, this is all good news, every bit of it very welcome.Please let it be true and not more agony for Bluebird followers worldwide.
The Cardiff City Fans Demo was attended by over 2,000 fans and was peaceful, powerful, respectful and telling. Young and old, an excellent cross-section of support from fans who felt the urge to visibly show their care for City and their unhappiness and digust at the mismanagement of the Board and its Cheif Exec and Chairman Peter Ridsdale.
Setting off from Canton, it was like going to an away game, atmosphere-wise. They were plenty of chants, even more banners and a coffin bearing the legend, "RIP CCFC".
Here's links to many photos, vidoes and stories of the event.
In a manner that shows how the club are out of control and clueless, Peter Ridsdale decided to issue an official club statement condemning tomorrow's planned demo, deriding its organiser and telling Cardiff City fans that if they don't really care about Cardiff City, then join the march!
Ridiculous, insulting and benath contempt.
How funny though that 1 hour later, Ridsdale and the club decided to remove it!
However, for your entertainment, here it is:
CARDIFF CITY STATEMENT Fri 05 Mar 2010 Cardiff City Football Club Limited
Adverts have been taken out by Annis Abraham in the local media asking for our supporters to march prior to this coming Saturday's home match against Middlesbrough. In this advert he is asking the Club to answer questions with regard to the Club's finances. Annis has a small number of shares and attended last week's EGM. Following the EGM, a presentation was made which addressed each of those questions. Annis already has the answers. Maybe the true reason that Annis wants our supporters to march is so that you can destabilise the Club. Then what? Are you prepared for the consequences? We are currently seeking external investment. Will a march against the current management or the Club assist that? The answer is simple. No. This Club has made tremendous progress over the last five years. A new stadium, an FA Cup Final appearance, the highest league finish since 1971 and positive net assets for the first time for many years. We have short-term cash challenges like many football clubs. Over the last five years we have had to be self sufficient. We have not had external investment topping up the football club's financial needs. Now we have the new stadium and with positive net assets we have a chance to attract external investment. This will not be forthcoming if they see our supporters demonstrating in the streets, you will merely drive such investors away. Then what? If anyone agitates for change they have to have an alternative. Annis has no alternative. If he has or if anyone else has, then let them come to put such proposals to us. My door is always open. It is now time for all Cardiff City supporters to decide whether they want this Club to thrive and move forward or to throw away everything that has been achieved over the last five years. On many occasions Annis has made it clear to me personally that he never wanted to leave Ninian Park. Maybe we have a different vision for the future of this football club. Anyone who wants to have constructive dialogue can meet with me or my colleagues at any time. We only have the best interests of Cardiff City at heart. I hope that this is a mutually shared objective. Anyone thinking of joining this march should look themselves in the mirror and ask if they really care about Cardiff City Football Club and its future. If the answer is yes, then come straight to the ground, enjoy the match and support the Club. If the answer is NO, then join the march.
Ridsdale: I love you and need you to bail me out. Jones: As long as you pay me £800,000 as year, I love you too
After a private spat which became public news, CardiffCity boss Dave Jones, coach Terry Burton and Chairman Peter Ridsdale shook hands on their differences yesterday.
The trio along with defender Mark Kennedy became involved in a furious row with Ridsdale entering the changing room after City’s calamity-ridden 3-0 defeat at Preston last weekend – apparently, a regular event – but The Riddler took over Dave Jones’ slating of the team and allegedly did so himself.Ridsdale was swiftly berated by his manager and staff in no uncertain terms.
Not sure about you but I can’t understand why Jones allowed Ridsdale in the ‘inner sanctum’ of the team dressing room at any time.
However each party had their say yesterday and have moved on.One problem resolved, one million more remain then!
Peter Ridsdale may have thought his problems were over after surviving a vote of no confidence at Wednesday's E.G.M. (although I'm sure he didn't really!!!) but the supporters heat will be turned up another notch or two before next weekend's home game with Middlesbrough as supporters are being invited to meet in the car parks behind the Admiral Napier and Wetherspoon's pubs in Canton and match en masse to the new stadium in protest in running of this club and Peter Ridsdale being at its helm.
I will definitely be part of it!
While I have my doubts that the demo will achieve anything, I just feel that if fans do not like the way they have been treated (with contempt in my opinion), the way the club is operating (or barely operating!) and have no idea why the Chairman is still with us, then it is important to make your feelings known.
Nobody can accuse City fans of not showing patience in recent weeks and months and giving the Board plus Ridsdale plenty of slack but that has ultimately achieved nothing either.
CARDIFF CITY FOOTBALL CLUB held an E.G.M. today to approve a land sale to raise vital urgent funds to clear a tax demand but they also agreed to answers shareholder questions relating to the current financial situation at the club.
David Sugarman, Cardiff City Supporters Trust Membership Secretary, provided this comprehensive report for CardiffCity.com messageboard users which I've copied here.
Representing Cardiff City Football Club (Holdings) Ltd at today's Extraordinary General Meeting were Chairman Peter Ridsdale, Group Finance Director Alan Flitcroft, Company Secretary Alan Whiteley and board member Steve Borley. Apologies were given for the absence of missing board members Keith Harris and Dato Chan Tien Ghee.
The Chairman opened the meeting at 10am by giving the shareholders some background information regarding the House of Sport land sale proposal, which was the only official item on the agenda. While doing so, he confirmed the board would take questions from shareholders later in the meeting regarding the club's current financial situation, and he then invited any questions specific to the land sale proposal.
A shareholder asked if the price of the land in respect of the proposed deals with Borley Engineering Services Ltd and PMG Developments PLC had been valued independently. Peter Ridsdale confirmed that it had and stated that the council were fully satisfied that the best value on the deals had been achieved.
Shareholder Mike Roderick asked if the deal regarding the House of Sport was in the best interests of the football club as it appeared to him that a valuable future income stream was being sold off in order to service current debts.
Steve Borley explained that the value of the land where the House of Sport is to be situated was deemed to be nominal by two independent valuations due to the club's commitment to the council to build the facility. He said the House of Sport was never intended to be a money-earner for the club, but was instead one of the community benefits that formed an essential part of the original planning agreement with the council. Borley stated that the club desperately needs its own indoor training facility in order to satisfy the Football Association's criteria for Academy status, as the Vale has recently sold the indoor facility the club has been renting for the Academy players to the WRU. He added that the club was therefore in danger of losing Academy status if the House of Sport facility isn't built within the next eighteen months. He said he had been heavily involved in the club's youth structure since first becoming a director back in 1997 and he was desperate to ensure that the Academy continues to flourish.
Borley said that having his company build the House of Sport discharged a £3.5 million obligation the club could not afford at present. He admitted that his company's business plan in relation to the facility had been put together quickly in order to help ease the club's current cash-flow problems. He then assured the shareholders there was no financial benefit to him personally or for his company in building and running the House of Sport. With that in mind, he invited any shareholders present to join him as a partner in the project if they believed it would be a money-making scheme.
Alan Whiteley told the meeting that the club has an agreement with Borley Engineering Services Ltd to purchase the House of Sport at build cost within a period of twelve to eighteen months following practical completion of the facility.
Peter Ridsdale echoed Steve Borley's sentiments about the House of Sport being an obligation as opposed to a profit-making vehicle for the club, and said he felt it was very much in the club's best interests to pass that obligation on to Borley Engineering Services Ltd at this current point in time. He said the rental costs the club will have to pay BESL in order to use the facility once it is built will mirror the fees City are currently paying to use a similar facility at the Vale. Ridsdale added that the club's players and staff will be able to use a considerably better facility once the House of Sport is built, but on very similar financial terms.
Steve Borley said the rental figures he had used in his company's business plan had been obtained by comparing costs at other equivalent facilities. He said he could have cut costs and reduced the rental figures, but that would have meant the club's future players using a substandard facility, which would not be beneficial for their development. He added that some of the figures quoted in the press have been exaggerated with regard to the rental fees as the club won't be using it all year round.
Former-Chairman and shareholder Tony Clemo asked what would happen to the £450,000 Borley Engineering Services Ltd was proposing to pay for the House of Sport plot.
Peter Ridsdale stated the money would be wiped off the debt the club already owes to BESL for work the company has carried out on the new stadium project. He added the deal would significantly ease the club's current cash-flow problems as it would bring in direct funds through the second £1.8 million land deal with PMG Developments PLC.
A vote was then taken on the House of Sport land sale proposal. The Chairman revealed that proxy votes sent in by shareholders not in attendance at the meeting had amounted to approximately 22 million share votes for, and none against. He then asked for a show of hands. All of the shareholders present at the meeting voted in favour of the proposal bar two, so the motion was carried.
Tony Clemo asked when the accounts for the year ending 31 May 2009 are likely to be made available to shareholders and added a request for an Annual General Meeting to pass those accounts and the accounts for the year ending 31 May 2008.
Peter Ridsdale stated that the publication of the 31 May 2009 accounts is likely to be delayed due to an issue over the valuation of the land banks and stadium assets. However, he said he expected that issue to be resolved soon and the accounts to be published accordingly. Alan Flitcroft explained that the club is no longer required to hold an AGM under the provisions of the Companies Act 2006. However, the Chairman gave an undertaking to explore the possibilities of holding an AGM to pass the accounts, and in response to a request from another shareholder he also gave an undertaking to send the 2008 and 2009 accounts to all shareholders through the post.
Peter Ridsdale then gave a lengthy presentation outlining how far he and the board believe the club has come since 2005, when the Chairman first got involved with Cardiff City. He said when he arrived in South Wales, the club had debts of more than £30 million, was losing more than £9 million a year, was battling against relegation, the new stadium project was a pipedream and crowds were averaging 11,400.
Since then, he said the club's achievements have included four mid-table finishes in the Championship, an FA Cup final, the building and completion of a new stadium, the building of a new training facility at the Vale upon which the club has agreed a 15-year lease, and average crowds at present of 20,400.
The Chairman stated the board's business strategy in 2005 was: 1) to build the stadium, 2) to keep the club in the Championship, and 3) to sell players and assets in order to achieve the first two goals.
He said the board's business strategy in 2010 and going forwards is: 1) to seek new investment and funding, 2) to sell the club to new owners, and 3) to continually review overheads and costs until either of the first two goals are achieved.
Ridsdale suggested that five Championship clubs are currently receiving Premiership parachute payments, thirteen are being subsidised by wealthy individual owners and six are attempting to be self-sufficient. He said those six clubs are Cardiff, Doncaster, Plymouth, Preston, S****horpe and Swansea.
The Chairman pointed to the three main reasons as to why he believed the club had encountered serious cash-flow problems since the summer months:
1) The board had anticipated two major player sales during the close-season but only one deal had been struck (he later admitted that Joe Ledley was the second player the club had expected to sell)
2) The majority of the money the club had received from Birmingham City for Roger Johnson was immediately reinvested in the squad
3) The directors had been given assurances that new investment ranging between £2 and £6 million would be coming into the club, but so far only £500,000 has materialised
He added that the above issues had come against a backdrop of the club having to find money to build and fit out the stadium, meet repayments on loans to former directors, make repayments on the debt owed to PMG and make repayments to the Langston Corporation.
In answer to a question from a shareholder, the Chairman stated the only future income stream that had effectively been mortgaged at the new stadium was the catering contract which is being handled by Compass. However, he said that the royalties Compass pay the club is still well in excess of the money the club earned from the catering facilities at Ninian Park.
Ridsdale concluded his presentation by saying that the current cash-flow situation is a short-term issue as opposed to along-term problem. He admitted that mistakes have been made by the board, and he issued an apology for those mistakes, but he assured the shareholders that the directors are fully committed to tackling the current problems and they are confident they will be able to do so. The Chairman then opened up the meeting to questions from the floor.
Tracey Marsh of the Supporters' Trust asked how much money the Platinum Ambassadors season ticket scheme had raised and how that had been spent.
Alan Flitcroft responded that the scheme had raised a total of approximately £2.6 million a sum that was smaller than the season ticket sales from the same period in 2008/09. He said that since the scheme had been launched, the club had paid out £2.3 million in wages and a similar amount in taxes. He admitted the season ticket income had largely been spent on those areas, although he stated the situation was far more complex as the club had also raised money through various other means and had spent money on other running costs during the same period.
After Keith Morgan of the Supporters' Trust had clarified several technical points in relation to the financial figures quoted in Peter Ridsdale's presentation, shareholder Annis Abraham then called for a vote of no confidence in the Chairman. He also asked Steve Borley if Ridsdale has his backing as regards his position at the club. The vote of no confidence was seconded by shareholder Sam Murphy.
The Chairman stated that if any shareholder wishes to stage a vote of no confidence in either him or any other board member, they need to call a General Meeting for that specific purpose and obtain the backing of at least 5% of the company's shareholders in order to table such a resolution, as required by the company's constitution. Steve Borley then asked Annis Abraham what he thought he was trying to prove by asking such a question. Abraham stated that he wanted to know if the Chairman had his backing and the backing of the other major shareholders, such as Paul Guy and Mike Hall. Borley confirmed that the Chairman does indeed have his backing.
Shareholder Mike Roderick asked if the anticipated investment which had apparently failed to arrive before Christmas had been delayed because the Chairman had been unprofessional and had not made the potential investors aware of the club's true financial position.
Peter Ridsdale stated that neither he nor the club's other representatives have had any meaningful meetings with potential investors without revealing the club's full financial liabilities. He maintained that he had informed one potential investor of the HMRC winding-up order on the same day that he had first learned about it.
Responding to an earlier question from Keith Morgan, the Chairman stated the club had made significant operating losses in recent seasons in its attempt to stay in the Championship, as losing its Championship status would have been a disaster. He confirmed that an operating loss will again be made during the current season on the basis that the club has spent substantial funds in order to fit out the new stadium. When pressed by a shareholder, Ridsdale refused to put a figure on this season's losses on the grounds that the relevant accounts have yet to be audited or published.
Geraint Jones, Secretary of the Supporters' Trust, asked Peter Ridsdale to list the club's short-term creditors. He also asked what those creditors are owed and how the club intends to service those debts. The Chairman responded that he was unable to give a list of short-term creditors as the information was confidential and commercially sensitive. However, he said he fully understood the concerns of the shareholders with regard to that situation. He stated that the directors are acutely aware of the requirement to pay all of the club's creditors and they are doing everything within their powers to make sure cash is available to meet those debts. He added that £2.3 million has recently been paid to the Inland Revenue and more money will be paid to them next week.
Shareholder Steve Perry asked if the club faces a further winding-up order in April from a firm owed a figure of approximately £700,000 in relation to services provided at the new stadium.
Alan Flitcroft confirmed that there is currently a petition for a winding-up order against Cardiff City Stadium Ltd (a wholly-owned subsidiary of Cardiff City Football Club (Holdings) Ltd), and that order has been adjourned until April. Flitcroft said he hoped the club would be able to reach a satisfactory arrangement with the company concerned before the matter goes back to court.
A shareholder asked if director Keith Harris is paid a six-figure salary by the club.
Peter Ridsdale stated that Harris is not paid a six-figure salary by the club. He said he believes that, to date, Harris has not been paid any fees at all by the club, and if he has they are certainly not in six figures.
Phil Nifield of the Supporters' Trust asked the board to confirm or deny if the club is currently under a Football League transfer embargo, and if it is to state when that embargo was put in place.
The Chairman confirmed that the club is currently under such an embargo and will be until such a time that the current tax situation is satisfactorily resolved. He said the embargo initially came into effect during the autumn.
Phil Nifield asked why the club was promoting the Platinum Ambassadors season ticket scheme by promising fans that the squad would be strengthened in January with the proceeds when the club was in fact under a transfer embargo.
Peter Ridsdale stated that at the time of the season tickets launch, the board was fully expecting money to come into the club in the form of new investment which would have enabled the tax debts to be cleared and the season ticket cash to be spent on new players. He said that investment hadn't materialised, and therefore the club hadn't been able to clear the tax debt as expected.
Alan Flitcroft stated that he wasn't going to attempt to kid anyone and confessed that of course he had known when the season ticket campaign was launched that the club owed HMRC a significant amount of money. He said the messages the club was putting out about backing manager Dave Jones during the January transfer window were based on commitments that had been given to the board by potential investors. As those commitments were not honoured, the board couldn't spend the season ticket money as they had wanted to. He admitted he was embarrassed by the situation and apologised to the shareholders for it.
On the subject of investment, the Chairman stated that before the General Meeting had started he had asked his colleagues if they felt the club would be more likely to attract the new investment they are currently working to secure if he were to go than if he were to stay. Ridsdale said the board's view is that new investment is more likely to happen if he stays than if he goes. He added that if their answer had been the opposite, he wouldn't have been present at the meeting.
A shareholder asked what the annual cost of servicing the club's long-term debts is.
Alan Flitcroft said the club is committed to paying £1 million a year to Langston, £1 million a year to PMG and approximately £720,000 in director's loans. He said that while these are obviously significant sums, he feels they are affordable within the club's current budget.
The same shareholder asked if the club was likely to have sell players this coming summer.
Peter Ridsdale confirmed that the club almost certainly will have sell players during the next close-season, just as it has done in previous years.
Dave Sugarman of the Supporters' Trust asked if Dato Chan Tien Ghee is a director of the club and, if he is, why hasn't his directorship been registered at Companies House.
Alan Whiteley confirmed that Dato Chan is a director, but he said the form which was sent to Companies House in order to register him as such was rejected because it was filled out incorrectly. Whiteley added that an amended form is in the process of being registered.
Dave Sugarman then asked if any of the club's directors have been awarded bonuses in relation to the completion of the new stadium and, if so, how much were those bonuses.
Alan Whiteley stated that three directors were paid bonuses in recognition of the work they had put into the scheme. He said Peter Ridsdale had been awarded a bonus of £100,000, while he and Steve Borley had been awarded bonuses of £50,000 each.
A shareholder asked how long the Chairman felt the club could survive without further investment.
Peter Ridsdale said the club has money coming in from various income streams every day of the week. He stated that if the directors didn't think the club could survive long-term, they wouldn't be sitting in a meeting like this one but would instead be busy taking other action. He added that it was only because the board believed in the financial viability of the club that they had set up the General Meeting in order to help take things further forward.
The Chairman then refused to answer a question from shareholder Mike Roderick in connection with WH Sports Group Ltd, the liquidated consultancy company through which he was initially paid fees by the club. He merely stated that he was happy that his affairs in connection with WH Sports were being appropriately managed.
Tony Clemo asked what sort of form the board believes a potential takeover might take in view of the fact that almost all of the shares from the 2007 issue have now been subscribed to.
Alan Whiteley said a takeover may take the form of existing shareholders selling their stakes to a new investor, or a new share issue may need to be set up, in which case the shareholders would have to pass the resolution at a specially-convened General Meeting. Peter Ridsdale added that the club is currently talking to four groups of potential investors, and those groups include people who have said they are interested in both types of takeover.
A shareholder made a statement that he believed a vocal minority at the meeting were pursuing their own agendas and did not represent the feelings of the majority of shareholders. Another shareholder then asked how far the talks with potential investors regarding a takeover had progressed.
The Chairman said he couldn't answer that question with any degree of certainty as the board had received written commitments from potential investors in recent months which hadn't been honoured. Therefore, he said he didn't feel in a position to make any definitive statements about the progress on new investment. However, he added that there are two interested parties who he believes are very strong possibilities for future investment, both of which he has spoken to again this week.
Ridsdale said he is totally committed to finding new owners for the club as a matter of urgency so that he can hand over control to them, which he said would no doubt please some of the people in the room. He stated he believes the club can only continue to compete at the top end of the Championship or get promoted to the Premiership if new investment comes in, and the board is determined to deliver such investment in order to avoid a situation whereby the club goes backwards. He added that he and his colleagues are spending many hours each day trying to ensure that new investment does come into the football club as soon as possible.
Keith Morgan asked if proper due diligence has been carried out on the potential investors. He pointed to the recent situation that had arisen with supposed investor Ben Steele, who had subsequently proved to be something of a timewaster as far as the club was concerned.
The Chairman confirmed that the people the club is currently talking to are known to be genuine. He admitted the situation with Steele had been unfortunate, but pointed out that it was Steele himself who had been building himself up in the press. Ridsdale said he felt the board had a duty to the shareholders to investigate anybody who expressed an interest in investing in the club, and he was confident that the groups who are currently in talks with the club are serious in their intentions.
A shareholder then suggested that a number of people in the meeting had come along merely to stir up trouble and he implored the supporters who would later be speaking to the press to talk in positive terms about the club. He said the fans should get behind the current board for the next few months and hope they can turn things around for the club. His comments received an ovation from a fair percentage of those present.
Peter Ridsdale wrapped up the meeting, which had lasted almost exactly two hours, by thanking the shareholders for their attendance. On behalf of the board, he apologised for the current cash-flow problems and the Platinum Ambassadors season ticket situation. He admitted mistakes have been made and stated that he and his colleagues are fully committed to solving the issues which have resulted from those mistakes. He closed by saying the board is also fully committed to finding new investment which will help to take the club on to the next level.
The meeting ended at 12:03pm.
Dave Sugarman Membership Secretary Cardiff City Supporters' Trust
Cardiff City's failure to invest funds from the sale of season tickets to fans on new players was raised at the National Assembly today by Plaid AM Leanne Wood in questions to Alun Ffred Jones, the Sports Minister.
"Do you share my concern that fans of Cardiff City Football Club were promised that if they bought their season-tickets early for next season the funds would be invested in new players - the so-called Golden Ticket - but that the management reneged on the offer? Many fans believe that they were misled by Peter Ridsdale", she asked and added, "Do you also share fans' concerns about the future of Cardiff City, one of Wales' top football clubs, because of very significant financial challenges faced by the club that have been highlighted in the media? I'm aware that a number of football clubs across the UK appear to face similar financial issues."
The Minister responded: "I am not in a position to comment on the situation with Cardiff City Football Club. The fans who have been loyal and raucous to the team deserved to be told the true story. Though the stories this morning about the general state of football clubs in the UK and the huge debts they have racked up give great cause for concern."
Peter Ridsdale warmed up for today's Cardiff City shareholders' meeting with an interview on Radio 5 Live. "We haven't borrowed a penny from the bank since I came here: we've been self-sufficient and we don't have a bank overdraft," said the Cardiff chairman. It was PR Pete at his best.
Sure, Cardiff do not have an overdraft. But they do have a few mortgages to their name. Like the one that means the proceeds from potential transfers of about a dozen players, including Joe Ledley and Stephen McPhail, would not go to the club. The lenders on that mortgage are the former Wales rugby international Michael Hall and his business associate Paul Guy, both of them non-executive directors at Cardiff's stadium company. Presumably that is Ridsdale's idea of self-sufficiency. Indeed, Cardiff have hocked more of their assets to Hall and Guy, with all stocks, shares and credit balances as security, and all their property (at least that which isn't leased from the local council). Then there is this season's Football League merit award and television money, due at the season's end but which was advanced from Barclays last October (but not borrowed: Ridsdale has not had "a penny from the bank"). Even the jumbotron screen at Ninian Park was registered in a mortgage with Barclays.
And finally there is the "unsecured redeemable loan stock" (the word "loan" is key here), which is now believed to require a £10m settlement in December or increase in £1m increments each year it remains unpaid.
The taxman has a high court application to wind up Cardiff City, insisting "viable businesses" are routinely given time to pay. Ridsdale says it is only a "short-term cash issue". Obviously he knows best. Why else would he have earned £1m in 2007 while Cardiff made a £4.7m loss?
Sorry there’s been a lack of updates this past week but work, annual tax returns, family life, nights out and the woes of CardiffCity’s gigantic problems have taken their toll.It wasn’t all bad though – the night out was epic and I got a sizeable tax rebate I didn’t expect at all – wahey!
So what’s been happening?
RIDSDALE, MONEY and MELTDOWN
CardiffCity is never anything but a soap opera but, even by their often remarkable and farcical ups and downs, the last week will be hard to better … or should I say, worsen.
We all know Peter Ridsdale PROMISED us a parade of new players and GUARANTEED (via the official website) the advance 2010/11 season ticket money would be used to do that with over 11,000 fans paying in £3M for it.
With Judgment Day approaching, our beloved Chairman issued a press statement on the official website admitting no players will be signed giving an excuse that he expected additional investment that did not materialize.
It went down like the proverbial lead balloon and strong rumours emerged that he offered to resign with some Directors accepting it, others no longer backing him.
A Press Conference was hastily called increasing the anticipation but he pulled a rabbit out of the hat as he announced he was staying on, he half-heartedly sort of apologized to any fans who thought he had mislead them, said he wasn’t a liar, squirmed when unable to answer the questions fans wanted answered and then walked out.
He also tried to block the E.G.M. fans and shareholders want and for which two of his Directors have promised we will have.
Reasons why Ridsdale have stayed range from the club cannot afford to pay him off, he showed a letter of intent for investment if he stayed, he has contacts that may help and that nobody else on the current Board wanted the job he does.
Whatever it is, it’s not healthy as he’s lost all respect and trust from fans.Nobody will ever believe anything he says again.His reputation is also once more in tatters … maybe this time, forever too.
On Friday, the club announced they had likely sold some land around the stadium to raise £1.8M.Ridsdale was joyous about that without acknowledging that thanks to his incompetence and stupidity, yet another future income stream will be gone (have we got any left as every concession has been hocked already it seems).
Saturday saw the club win a game with the last kick on a bitterly cold day which diluted post-game protests but upto 400 fans were chanting for him to go, show his face, enquire where the money had gone and more.Ridsdale apparently made his escape through a ladies toilet window into a getaway taxi.
D-Day is February 10th and that’s when City must resolve an outstanding £2.7M tax bill or face a Winding Up order.At this stage, it’s very uncertain whether the club have the funds hence the land sale.
When asked if it would be paid, Risdale told the press conference, “wait until February 10th”.What an arrogant fool showing no understanding of concerned Cardiff City supporters.
WHAT’S HAPPENED TO THE INVESTORS?
While supporters cannot even be told where their £3M has gone, potential investors who maybe haven’t given a penny have been treated royally.
The Malaysians – have they put money in or not? Is T.G. still a Director or not (and was he ever anyway as Companies House don’t know it) – are strongly believed to still be on the scene but remain as anonymous as ever. When will they act?
The Americans – were they ever serious or genuine? – may or may not have been connected to Dell Computers but don’t appear to be connected to Cardiff City.
And then there is the farce that was Ben Steele, another nail to Ridsdale’s coffin.The simplest of checks or enquiries would have found him out but Ridsdale courted him to ridiculous levels when ultimately ended with him having the most wonderful of freebies at the club’s and our expense.
Based in St David’s Hotel, the best seats and hospitality at the game, wined and dined around Cardiff before a final giveaway – they only ended up in bloody Kiwi’s, Cardiff City Centre’s Parachute Club where a now fairly inebriated Steele made a general pest of himself by all accounts seeking, shall we say, company.
Legend has it Ridsdale has been unable to contact him since.
SO WHAT NEXT?
There will be more twists and turns but I fear that can’t be an ultimate Happy Ending … I just vainly hope I’m proved wrong.
AT LEAST THERE’S FOOTBALL
And City grabbed a last gasp winner over Doncaster to leave them 4th and 5 points clear of sides chasing a Top 6 spot.We are short on numbers but definitely not on quality.Cardiff and Ridsdale’s final gamble may be reaching the play-offs and promotion.
As things stand, no promotion and no takeover (both are the likeliest outcomes) will mean a chaotic summer with next term’s season ticket money already spent meaning the club will have to try to survive rather than push on.It can only mean a fire sale of the stars … nobody will say that but what else could it be?
A touring freak show, The Circus of Horrors, has been travelling around South Wales this week but they must be embarrassed by being outclassed by the high farce at Cardiff City.
After the club issued yesterday's nauseous club statement that 11,000 fans who bought season tickets 8 months early at Christmas under Dave Jones' pledge and Peter Ridsdale's guarantee that it would bring new players to the club could no longer be honoured, the last flickering embers of trust, respect and credibility had gone.
Overnight, this morning and through to lunchtime, strong rumours emerged that Peter Ridsdale, fully aware of the negative impact of that statement, had offered his resignation. Shortly after, a 2pm press conference was announced.
Incredibly, Ridsdale appeared to say he was continuing as Chairman with the Board and shareholders supporting him and he was committed to sorting out the current problems. He apologised if supporters felt they were misled by him. The man must have the skin of a rhino!
The full press conference, with Ridders doing his usual politician act of saying what he wanted in abundance but with little substance and avoiding straight answers to direct questions, can be heard here:
Why he called it, I don't know because it has only served to further infuriate the Cardiff support. The fact the Board have supported him means the anger will spread to others. Paul Corkery of the Supporters Trust summed up the mood and feeling perfectly in this responses interview.
So evening settled, anger still seething and we didn't think the day could get any sillier but up popped Dave Sugarman on the Cardiff City messageboard with a message from Sam Hammam asking us to stay calm. This from a man who caused mutli-millions of debt at this club and still takes £80k a month out of it to get another £16M back. One poster caught my mood when he responded, "If Hammam is asking for calm, I'd better get my gun"!
But to round it off, a messageboard appeal by the man expected to have become acting Chairman and the one man on the Board that fans have some trust in, Steve Borley who also asked for calm. Borley's ill advised message follows but it predictably went down like a lead balloon.
And still nobody can confirm if the tax bill can be paid by Feb 10th. A typical day with the City then!
I have just read the post from the lone Gunman passing on a message from Sam and believe he is right. I urge supporters to be calm because the eyes are on us and the last thing we need is to give the impression we are too hot to handle. I understand the frustrations and anger amongst the fans but we need to show our passion is a positive thing and not negative. There are guenuine interest in the club and we need your help to foster it. we need to get behind the team the manager and the club in the same way we did on the Leicester game where I believe you were responsible for the 3rd and 4th goals. I called for calm before that game and thank you for the response. I never dreamt in my lifetime I would ever see a fixture list where the 2 games after saturday would be Newcastle and Chelsea. I urge you to keep the faith
This list of recent quotes from our less than glorious leader should have him hanging his head in shame ..... but he's proved that he doesn't have the morals. Never mind Pete, you'll soon get to know how fans feel about it.
This compilation provided by Paul Evans aka The Other Bob Wilson
“They’re [HMRC] just rattling our cage. We’ve held our hands up and given them the cash and as far as we’re concerned that’s the end of the matter. There is no issue. We’ve paid them quite a lot of money. There is a small amount outstanding and we have agreed a payment schedule. We have sufficient funds to satisfy them and everything else we’re doing. We did have an issue, but it’s been resolved. I’m more than happy.”
“TG has put in an amount of money with another amount due this week. I cannot say how much that is, but I will say it is in the millions. I have also met with Vincent Tan. “They have asked for all the numbers regarding the club and we have given them those. They will be considered with due diligence.” These quotes are taken from the Municipal Club meeting at which our Chairman admitted to not telling TG about the first winding up order against the club dated 25 November 2009 – when questioned as to why he hadn’t done this, the reply was along the lines of “he didn’t ask about it”.
On his exorbitant after tax wage “I make no apology and believe I am worth it,”.
“The deal will almost certainly include sponsorship and we are already talking about shirt sponsor, stadium naming rights and an investment. “But I must stress you don’t do things overnight. “It’s a case of them trusting us and getting to know what we are all about”.
“We will be bringing in new players this month, I can guarantee that. I would go so far as to say that come January 31, we will be holding a press conference to parade the players we have brought in during the month.”
“And the cash that comes in will go towards bringing in players during the New Year transfer window.”
From Dave Jones (not that I blame him at all)
"I've asked the Chairman that if anybody buys a season ticket before December 31st and the club get promoted, then we should reimburse all the supporters who have bought a ticket. The money will enable us to go and get players in, it's a fanastic offer and a fantastic gesture by the board.”
After weeks, even months, of promising a debt free club, exciting takeovers, major investments with millions pumped into the club, new players, a tax bill being a minor matter, all season tickets money for next year given to Dave Jones and full refunds to fans if City get promoted, the bare-faced lies of Peter Ridsdale left him high and dry to the point where he had to retract it all today.
Publicity Pete who never needed any excuse to get in front of a camera or microphone has gone into hiding for a month and true-to-recent-form, didn't even have the balls to talk to anyone. Instead, he resorted to releasing an out of the blue press statement confirming the club is in crisis. Many of us have realised this for many weeks so it causes extreme anger but others have beemn optimists and thought everythign was alright, they will now be sickened and confused.
Collectively, no fan is going to exucse Ridsdale for what were porky pies of the highest order.
The man has gambled with the club at the expense of a stable future with no Plan B if no takeover, no promotion and no players sales. His luck ran out and his lies have caught him out.
Takeovers? None in the offing although some are still talking while others didn't even have the money.
Major Investments? Nah, none of that either.
New Players? We're not getting any
Season Tickets being used to get new players? It's gone to pay bills and clear debts - this is next season's money already gone by the way!
Full refunds if City get to the Premier this season? Now most unlikely
The club are now looking to sell assets but they have precious few other than players, some land and the stadium itself. Everything else is either not owned or hocked already.
There is no mention yet of whether the tax bill will be cleared and that D-Day is now 13 days away.
And, of course, what happens in the summer and next season when we've no money at all as it's spent already?
Incredibly, Peter Ridsdale intends to stay and claims to have the backing of shareholders and the Board. Well he will when he's appointed most of the hierarchy but only a handful by number can possibly support him. His respect and credibility has gone, he can never be trusted again and Cardiff City supporters will not accept his continued stay at the club.
Time's up Peter now do the right thing.
For the record, here's the press statement.
Over the last few weeks there has been much speculation with regard to the future of this Club, monies owing to the Inland Revenue and regarding incoming transfers. Until now it has not been possible to make a definitive statement about our current position but we felt that it was now appropriate to update our shareholders and supporters.
Since we acquired the Club in January 2007, the progress that has been made has been phenomenal. A new stadium, a new training headquarters, a complete restructuring of our debt and asset position resulting in positive net assets and a significant reduction in overall debt.
On the playing front we have enjoyed not only consolidation within the Championship but we achieved our highest league position finish since 1971 at the end of last season and a first FA Cup Final since 1927, in 2008.
We have undoubtedly raised expectation levels which of itself brings its own pressures and problems. The move to the new stadium ultimately incurred costs that we had not anticipated and whilst the long term health of the Club is stronger than it has ever been we have suffered some short term cash flow problems. In an attempt to negate these issues we sought new investment and during the autumn of 2009 commitments were given regarding investment which if they had been delivered would have solved our cash issues. To date these commitments have not been fulfilled so we have had to resort to other avenues of fund raising. We are currently in the process of raising funds from the sale of assets, which with other cash, will help to secure our future.
With regard to the season ticket offer pre Christmas, this offer to reimburse the ticket price if promoted this season remains a strong one. Nevertheless we had anticipated that if we launched these tickets early and had received new investment pre Christmas or in January this year as promised, we would have been able to invest in new players in the January transfer window. In the absence of the new investment this will not be possible. We have to ensure that other overheads and financial issues are properly addressed. Whilst we apologise for this, we do not apologise for ensuring that the viability and financial health of the Club is the ultimate priority.
We have had a number of groups of potential investors in discussions with the Club. These parties were looking at both partial investment as well as a potential takeover. Whilst we are still in discussions with some of these parties, others have not demonstrated the financial means to proceed. We will continue to seek investment and believe that this will be forthcoming in the not too distant future. In the meantime we will continue to do the right things to give the Club the financial means to continue the progress that has already been achieved.
There has been some suggestion that the position of the Chairman, Peter Ridsdale is being questioned by some supporters. For the avoidance of doubt, Peter has the full backing of both the Board and majority of shareholders and will continue to lead the Club to finish the job we started.
It would appear that Ben Steele has done it again. No sooner did he show up at Cardiff than he's disappeared ... exactly as I expected. However he allegedly had an all expenses paid stay, was wined and dined and had the best seats in the house all at Cardiff City's expense so who's laughing now?
Peter Ridsdale has shown himself to be an incompetent embarrassment meeting Steele in Guernsey and South Wales and taking his overtures seriously. A quick 5 minute call to Southampton would have told him all he needed, let alone basic checks. Belatedly, the club have now been forced to admit that some potential investors are still in dialogue while others (Steele is understood to be the party referred to) "have not demonstrated the financial means to proceed". What? This from a man claiming to have the £40M in the bank in cash to buy us? Surely not???
A farcical 3 week episode began with Steele doing his talking through the newspapers but never backing it up and having the gall to criticise City fans who queried his worthiness and credentials having googled him and found nothing and being consulted by Southampton fans who found the same problems and were left hugely unimpressed. How he was allowed to play it out all over again at Cardiff City's expense, only the fool that is Ridsdale would have allowed.
However the would be investor/new owner told the South Wales Echo, "“Anybody who Googles my name can see what I am about." Oh yeah??? Where???
Steele was apparently in Cardiff yesterday for a day of talks with Peter Ridsdale and may be at the Leciester City F.A. Cup game later.
However he continued his unusual theme of doing his talkiing through the newspapers upset by internet questions about his motives, whether he has the wealth and his ability.
Got to confess, I don't like the way he has conducted himself, my gut feeling is that he is a chancer (sorry, can't help thinking that) and the only thing we really do know about him is that he made a rather bizarre, farcical some would say, attempt to take on Southampton last year and flew out almost quicker than he arrived. Southampton fans and their Trust were left deeply unimpressed and this is bound to resonate.
However it is fair to say that there are plenty of City fans understandably willing to wait and see what happens next and how this develops, reserving all judgements until then.
Fact is however, if Steele had not run to the papers talking about himself and kept it all confidential, then nobody would be talking about him.
He was in a feisty mood responding to internet and messageboard criticisms, some of which have come from me so my neck and gut feel is on the block! ;>)
“I seem to be getting abuse from a few Cardiff City fans. Why? They don’t know me and don’t know much about me. They ask do I have the money? If I have, where did I get the money? And there are detrimental comments from people who don’t know what’s going on."
“That disappoints me. I was angered by some of the comments made by people who simply don’t know me and don’t seem to want to give me a chance. I have sold an awful lot of cars over many years and I am into property investment and development. It’s not a secret, but I did get a bit wound up after looking on the internet.”
Steele repeated he has the money to buy the club but, for the first time, suggested he will not rush into any deal.
Meantime, Cardiff City claim to still be talking to Malaysians and Amercians, the transfer window shuts firm in 9 days (Peter's parade of new players seems as far away as ever) and the tax winding up order is due to be heard in 18 days.
There's a ticking time bomb and the fuse is getting shorter!!
Simple Simon says Put your hands on your head if you can't be open and honest with fans!
The Cardiff City side show continues unabated as Peter Ridsdale, unwittingly or not, has become embroiled in a race row and decided to give an exclusive interview to The Echo after almost a fortnight of self-imposed silence. The race row is simply laughable but what pees me off most is that he dealt with all that while still not taking a moment to clarify just what the hell is going on at our football club?
"I won't be driven out of Cardiff City" said The Riddler - this from a man who offered to resign, AGAIN, just a couple of weeks ago.
Sister Sunday papers, The Express and Star, both reported remarks from Ridsdale and Dave Jones talking about City fans being anti-English, one report suggesting that theme was against them. The same journo wrote the story for both papers, one was clearly "sexed up" to be controversial - the tone and who made the remarks was changed.
Ridsdale even had the gall to suggest a small section of fans are against him because of his time with Leeds. You what??
There's a million reasons to dislike Ridsdale at present if you're a Cardiff fan, his time at Leeds is comfortably bottom of his charge sheet. Well behind his promises and fantasies, two winding up orders, bringing our club into disrepute, his pledge to 11,000 fans who bought their season tickets 8 months early and for what. I could go on ... and on ... and on.
Shame on Ridsdale for thinking this even matters at present and shame on The Echo for devoting front page and inisde pages for the bilge without bothering to ask one single questions about the real issues and concerns at present.
Reviews the weekend draw at Scunthorpe, previews tomorrow's F.A. Cup replay against Bristol City but, most of all, remains very worried about what is happening at the club and with increasing discontent towards Peter Ridsdale.
National media are now reporting what I had heard at the time but couldn't report.
Berwyn Jay who was sacked at the club's Head of I.T. late last year after admitting to selling stories to News of the World has been arrested by police 'on suspicion of unlawfully procuring data under the data protection act.’. This follows News of the World's expose last Sunday week of Cardiff's tax problem, payment failures and general financial chaos at the club.
There are rumours that Jay was also passing the info to other key people as well as the newspaper so the audit trail is likely to have been easy if true.
As Head of I.T., I wonder if Berywn set up Ridder's hotmail account and password??? Regardless. after already sacking him for leaking insider stories to NotW, Ridsdale and City are shown to be pretty stupid for not reviewing and changing their I.T. security.
