Port Vale bidder asks city council for loan
THE businessman poised to buy Port Vale has asked Stoke-on-Trent City Council for another loan, it has emerged.
Entrepreneur Keith Ryder's £1.4 million purchase of the club includes an £800,000 payment to the council for its rights to the Vale Park freehold.
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Keith Ryder
But The Sentinel has learned the deal would involve the city council receiving only £250,000 now, effectively loaning Mr Ryder, above, the rest of the cash – potentially over 11 years.
Ruling Labour members will meet in private tonight to decide whether the council should support Mr Ryder's bid. Creditors will vote on the takeover on Thursday.
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Sources have confirmed the council has been in negotiations to secure better terms ahead of a final decision.
Mr Ryder is understood to be attempting to raise as much up-front cash as possible to try to reduce the £550,000 shortfall figure ahead of schedule.
Administrator Begbies Traynor have also asked the Professional Footballers' Association to cover the cost of players' wages for the next month to ease the burden on taxpayers.
The council placed Vale in administration as the club's biggest creditor over a £1.85 million debt dating back to a 2006 loan. It is also funding administration and club running costs.
Council leader Mohammed Pervez said the council could lose up to £1.4 million in total.
But administrators insist the figure will be lower and the city council will get back the £200,000 paid so far for running costs and administration.
Administrator Bob Young, below, said: "It is the best possible deal. It will see the return of the £200,000 the council has put in for running costs and it will ensure a decent return on capital – either immediately or in the fullness of time.
"We have already orchestrated a meeting between the club and Keith Ryder to talk about greater community use of Vale Park.
"It is the best return for taxpayers and in saving the club."
The city council stepped in to save Vale and protect the money it is owed after the club faced a winding up petition from HM Revenue and Customs, over an unpaid bill of almost £190,000.
Mr Ryder's bid is described by administrators as the "biggest and best" of five received and fans gave their endorsement last week.
But any decision by the city council to authorise another loan could prove politically contentious against a backdrop of huge losses resulting from the original deal.
Labour, who hold 34 of 44 council seats, will have their decision confirmed at a full council meeting including Conservative and independent councillors on Wednesday.
Mr Pervez said: "I'm not in a position to comment on the structure of the preferred bid as the discussions are still continuing.
"A special meeting of the full council will take place to talk through the details. It is important elected members make an informed decision."
Comments
by Vale_For_Real
Tuesday, April 24 2012, 9:43PM
“RegenMan1 said
"Perhaps Mr Chaudry knows a failing business when he sees one and bid at a sensible price?"
Or perhaps he's a posturing publiicty addict who never had any intention of putting money in our club.
Perhaps he just used the club and all the supporters who fell for his line to fuel his own ego trip then walked away the second it turned real.
Mr Young was disappoiinted about the size of even the top 2 bids for the club and I'm told that Mr Chaudry's bid was far and away the smallest of the 5 bids so who knows how pitiful his bid really was, if anyone finds out please post the amount.”
by RegenMan1
Tuesday, April 24 2012, 8:02PM
“Vale_for_Real
Perhaps Mr Chaudry knows a failing business when he sees one and bid at a sensible price?
Marge 56
Confidentiality agreement or not, it's my council tax were talking about, not the councillors personal money pot. I'd rather have a referendum – home helps and bath hoists for the elderly or support a failed business for a minority of hobbyists.
I pay for my leisure activities out of my own pocket, why am I also paying for Port Vale fans leisure activities as well?”
by Alsager Civic
Tuesday, April 24 2012, 4:56PM
“am i understanding the situation correctly. As far as i can see, Vale took a 'motgage' against their ground for 2m with the council then couldn't pay it back.
Would it not be in the councils and the taxpayers interest for the council to sell the freehold to the highest bidder?
If Mr Ryder truly has the clubs best interests at heart, he will buy it. If tesco buy it, at least jobs would be created in the north of the city. And the taxpayer may just see the money they paid to the council used in a way that benefits them”
by Dizzy1960
Tuesday, April 24 2012, 2:49PM
“Good deals for the community is a no no, but deals done behind closed doors that will manipulate the people for greed will surely get the thumbs up. For years this LabRat controlled city and it's people have been kept in the dark over illegal goings on within our council and it's about time we woke up to reality.
Stoke City were never land owners of the Victoria Ground, only Licencor's and can be confirmed in the Charges Register 5 of Title Deed SF387791. When an UNDERHAND deal was done between Stoke-on-Trent City Council and the football club on the 12th June 1946.
Out of the £1.4m Keith Ryder is paying for the club, £800,000 is for the FREEHOLD of Vale Park. So how much did St Modwen pay Stoke-on-Trent City Council for the FREEHOLD of the Victoria Ground? Stoke-on-Trent City Council claimed to me that they had no association with the Old Vic after 1939. Therefore, why was there a transfer of land from our council to St Modwen in 2008?
Never trust a LabRat, ConArtist or Dimwit, who'll continue to manipulate you to benefit themselves. Boothen and Oakhill representative Andy Platt and Central MP Tristram Hunt are also aware of these illegal acts and failed to respond to my requests for justice. Which goes to show that you should never trust a Platt, because he'll just turn out to be a PRAT. As for HUNT, I'll let you come to your own conclusion.
But nothing will change in this city unless we make a stand for democracy and protect our future generations against these manipulative individuals we call representatives.
Apark@Stoke4LUZ
honi soit qui mal y pense”
by Vale_For_Real
Tuesday, April 24 2012, 10:20AM
“stokeandvale said
"What do the Vale bring to Burslem?
NOWT! Not thousands of away supporters to boost the saturday trading?
So why do the S-O-T Taxpayers have to give millions to them?
They are now a leach on the hardworking taxpayer. I would prefer to save the local libarys, swimming baths, play schools etc."
Hard to know how to start with your daftness.
Its all supporters and all Vale staff and all of the none-football customers who boost local trading, not just away supporters, and its all week round not just Saturday.
And for "play schools" the Vale provide a home for a big Sure Start Children Centre and it doesnt cost the council any rent and that on its own has got be worth £50000 every year to the council.”
by ValiantFosse
Tuesday, April 24 2012, 9:59AM
“StokeandVale, Blinkered view I think. Surely better to have half a loan back than none at all. The council are not paying the players wages, the gates do that. Not subsidised by the tax payer like Stoke either.”
by stokeandvale
Tuesday, April 24 2012, 9:31AM
“What do the Vale bring to Burslem?
NOWT! Not thousands of away supporters to boost the saturday trading?
So why do the S-O-T Taxpayers have to give millions to them?
They are now a leach on the hardworking taxpayer. I would prefer to save the local libarys, swimming baths, play schools etc.
I just dont think it fair to give them money so they can give the players £800 a week (average player wage) when almost all the taxpayers dont earn anywhere near that.”
by rchdly
Tuesday, April 24 2012, 9:30AM
“Fredthefrib: Have you canvassed ALL City council tax payers for that opinion? I'm sure most of them would be happier to see Mr Ryder in discussions with the Council trying to come to some agreement over repayment of an existing loan, rather than letting the club go bust and taking any chance of repayment with it.
Well done to The Sentinel for reverting back to type as a two-bit local rag and printing an inflammatory story devoid of all the facts.”
by JAMESJ2010
Tuesday, April 24 2012, 8:57AM
“Is it a sign of things to come when My Ryder wants the freehold of the Vale Ground?
At what point would the Council grant planning consent for redevlopment of the site?”
by Paulweller
Monday, April 23 2012, 11:01PM
“I'd heard a comedian was interested in buying The Fail. Ricky Tomlinson - come on down!”