Birmingham Future In Doubt ? Alan Phillips Has Had Enough!

[Phil]

I wouldn't be wasting my time wondering whether he's "telling the truth or more half truths".

 

If Charles Phillips has listened to an offer like that and been so impressed by it that he wants to make it public knowledge, then Charles Phillips should never have been allowed any financial responsibility beyond continuing to store a few coins in his childhood piggy-bank !!

 

How the hell is a loss-making next-to-bottom team for the past 3-&-a-bit months (and currently out-of-favour with its stadium-landlord) going to make £25,000 profit in the next 3-&-a-bit months so that the "going halves" new investor can have his rescue money returned to him on time ? !!

 

I've seen plenty of financial cluelessness with speedway but that might well be the new number-1

 

SKY payment each club receives. ?

[Lord Skid]

Nice quote that the RIDERS owe the Club money, that's a new spin on things.

[oldace]

 

SKY payment each club receives. ?

 

 

It is expecting one hell of a turnaround from a business that's lost in excess of £400,000 in just over 2 years to turn a £25,000 profit in 3 months

[Phil]

 

 

It is expecting one hell of a turnaround from a business that's lost in excess of £400,000 in just over 2 years to turn a £25,000 profit in 3 months

 

I know what you mean.

 

 

I have no knowledge on this but just a question... Could any sky or sponsorship money be ring fenced to pay this investor back first ? How much do they get from sky? 100k ? Which presumably some is paid at the end of season ?

 

 

Feel so sorry for the riders who have got homes and families to support, They should be paid first !!!!

[arthur cross]

Several points to sort out here in separate chunks ...

 

Official update on Birmingham :

Charles informs us:

He has found an investor who will lend £25,000 to the club subject to this being repaid at the end of the season from anticipated income of £75,000 (which does not include any possible turnstile money).

If this investor lends £25,000 to Birmingham Speedway Limited, Charles will put £25,000 of his personal money into Birmingham Speedway Limited.

I am informed that the debts of the club amount to £50,000 and that these two investments would therefore cover these.

SKY payment each club receives. ?

The new Sky deal that started this year isn't as generous to the Elite clubs in lump-sum money as used to be the case in the 2009-2013 deal ... and given that the Sky money from that previous deal used to be vital for financially propping up quite a few of the clubs, it's hard to see how the lesser money that's maybe still to arrive from any new Sky deal can be set aside, ready to pay back the "going halves" investor, while everything else (turnstile-money, sponsorship, etc) is enough to keep the day-to-day bills of a next-to-bottom club ticking along (even allowing for the reduced riders' wages compared to previous seasons by having the fast-track reserves).

 

 

Charles has agreed that he will not request the fighting fund be used, either to bolster club funds or to pay off any of the debts this season.

He has also agreed that whatever is raised by the fighting fund he will match and put in the Supporters Club account. If the club folds at any time before the start of next season or is sold to another party, the funds raised by the supporters either return to them or go to the new owners (the decision of those who donated) and Charles matching donation will remain with the Supporters Club. However, if the club re-opens next season with Charles as promoter, the fighting fund goes to Birmingham Speedway Limited, as do his matching funds.

Is there going to be a schedule of dates/amounts on which Charles is required to match whatever's been added to the fighting fund since the last matching-point (for example, once a month or every £5,000) ? ... having steered the Brummies into their current dire situation, surely he's got to understand he's got to show he's keeping pace with the fundraising rather than just promising to match it eventually.

 

 

Alan Phillips would have no further interest in the club and Charles would be sole promoter. However, he would bring in someone with promoting experience to look after the day to day running of the club, leaving Charles to concentrate on ways of increasing sponsorship and improving attendance.

If Charles decided at the end of this season that he no longer wished to be involved, he would continue running as long as it took to find a buyer.

Following Tim Stone's sudden death in 2008 grinding Newport's season to a halt, the BSPA will not allow Charles (or anyone else) to be a sole promoter of any club ... there have to be a minimum-of-2 and a maximum-of-3 co-promoters accepted by the BSPA so if someone with promoting experience is being brought in to look after the day-to-day running of the club, that person will have to be an official co-promoter rather than just Charles's useful assistant.

 

 

The riders have not been paid for the last home meeting, nor the last 5 away meetings. Charles informs us that the contributory points money from those 5 away tracks has not yet been received by Birmingham Speedway. Charles also informs us that some riders owe money to the club and that some sponsors have not paid their bills.

Almost certainly the most important part of Charles's overall statement, except it misses one vital aspect ... are Birmingham up-to-date with sending the "away money" from their home meetings to the clubs who've visited them ? !! ... if not, are those away monies included in the £50,000 total debt quoted or, much worse, are they the type of debt lurking in the background that yet's to emerge ?

 

For those not familiar with the "away money" rule, within a couple of weeks after each meeting the home side must send the away team a payment that reflects how many points (tacticals not included) the away team's scored with graded amounts per point for heat-leaders, second-strings and reserves ... the rule is particularly important for each club's cashflow when a pair of meetings between two clubs are several weeks apart because otherwise, for example, a team that's done its away fixture in April would be waiting until the home fixture in June for the turnstile money that's got to pay its riders for both the April away wages as well as the June home wages.

 

Often, if two teams have a pair of fixtures against each other just a few days apart, they'll agree to tally-up the away monies once those meetings have both been done and then there's just one smaller payment that needs to be made by the lower-scoring club over the two meetings ... for example, if there's a 52-38 home win followed by a 48-42 home win, rather than 38 away-points being paid in one direction and 42 away-points being sent the other way, all that's needed is for the loser of the 2nd-meeting to send the small amount that correctly reflects it's got the bigger away-bill.

 

And if you're a next-to-bottom team like Birmingham, you're not going to have many situations where someone else needs to send you the bigger away-bill from a pair of meetings ... instead, it's normally going to be you tidying-up that bigger away bill while the other club can justify it's already paid you even if it's not actually sent any money by confirming it's simply awaiting your tidy-up.

 

So Charles's claim that 5 away tracks haven't yet contributed to the Brummies needs to be put alongside further info from him about how up-to-date Birmingham are with their away contributions from the meetings at Perry Barr !!

 

 

Charles also stated that if Birmingham Speedway Limited goes into liquidation, the assets would be seized and sold off to cover debts. This would leave any prospective new promotion with the expense of starting from scratch ie air fence, tractors etc.

Charles has accepted that there is a lack of trust in him and has offered to host a Q&A with as many supporters as are interested at which he has said he will provide evidence of all he has claimed and where he would be prepared to introduce the person who would take on day to day running of the club. He would not be prepared to invest his money without the (moral) support of the Brummies fans and he needs to be assured that you would turn up to meetings.

Good that he's accepted there's a lack of trust in him but that situation's only going to improve if he puts something positive in front of all the dismayed Brummie fans like as early as possible a match-up from his own money to go alongside any initial fighting fund donations.

 

But he's got a long way to go if he can't see the irony of the same paragraph saying he accepts there's a lack of trust in him but that the "going halves" investor needs to be assured the fans will still turn up to meetings despite the bloke they understandably don't trust still being half-involved !!

Edited July 3, 2014 by arthur cross

[raymondbudd]

Thanks for sharing the above, it is highly appreciated.

 

As for the content, as Oldace points out the turnaround required is unrealistic and my general busisness nose suggests any serious investor would run for the hills. I'd suggest that my feeling is correct on the basis that Tony Mole a proven promoter has done the same.

 

The bottom line is that Speedway is a sport in serious decline, its a wider issue than just Birmingham Speedway. As such unless this trend either stops or turns around, no serious investement will be forthcoming.

[stevebrum]

 

SKY payment each club receives. ?

 

 

I thought the SKY money was a fraction of what clubs used to receive??

[Whisperer]

Until all of the debts to riders, clubs, officials, insurance, BSPA, SCB and any other internal speedway dues are paid the outgoing promotion will never be in a position to stage a meeting again. Young Mr Phillips would be well advised to send his £25,000 to the BSPA so that they can pay some of the bills that he and his father haven't. Where do you think the £25,000 might have come from ffs? Has the man no moral responsibility to the people he already owes? If I was Ben Barker I'd be knocking on young Phillip's door for my wages out of that £25,000!!!!!

 

DON'T get caught again by being gullible!

 

It's an open secret that the club was sold to Tony Mole before the AGM and then Alan decided to give it another go openly declaring that he had the funds in place to see Birmingham through to 2015. Only a few weeks ago another bold statement that the club had no debt's, well I know 3 suppliers who had not been paid for weeks when that statement was made and no doubt Chris Simpson will confirm he was owed at that time too. The Phillips' have been in denial for too long and as desperate as people are to keep Birmingham open it cannot be in collusion with the buffoons who have taken it to the precipice.

 

Get real folks do you really trust the fox to look after your chickens?

Edited July 3, 2014 by Whisperer

[oldace]

Until all of the debts to riders, clubs, officials, insurance, BSPA, SCB and any other internal speedway dues are paid the outgoing promotion will never be in a position to stage a meeting again. Young Mr Phillips would be well advised to send his £25,000 to the BSPA so that they can pay some of the bills that he and his father haven't. Where do you think the £25,000 might have come from ffs? Has the man no moral responsibility to the people he already owes? If I was Ben Barker I'd be knocking on young Phillip's door for my wages out of that £25,000!!!!!

 

 

 

 

That is often the case when a seemingly benevolent director pumps "his own" money into keeping a business going. Of course it can often be the case that the vast salaries and dividends paid to the director to give him his "own money" are a large part of why the business is almost insolvent

[Star Lady]

I'll probably be hated by Brummies fans for this but I wouldn't trust either Mr Phillips as far as I could throw them.

 

I sincerely hope a solution will be found but in all honesty I cannot see either of them being part of a solution.

[Lord Skid]

Funniest part of the whole situation is that, the BSPA know all along what is going on, and just let it carry on week after week, exactly the same situation as Bowden at Plymouth, and many, many more before them, the BSPA will only pay the riders basic points money, any other part of the deal, they can go and whistle for, but make no mistake Birmingham are not the only Club up s*** creek, how stupid can Riders be, to keep riding, week after week for no money, and please don't say the Captain has so sign every Meeting to say all monies are in order, as who deals with that, oh yes, I forgot, the BSPA, ahh well, last one out, please turn the lights off.

[bluejam]

I'll probably be hated by Brummies fans for this but I wouldn't trust either Mr Phillips as far as I could throw them.

 

I sincerely hope a solution will be found but in all honesty I cannot see either of them being part of a solution.

 

You won't be hated by any Brum supporter SL .There's a huge mistrust and Mr Phillips junior is very aware of that.There are rumours that BSPA may revoke his promoters licence.

Edited July 3, 2014 by bluejam

[SpeedwayTShirts]

Delighted to hear there may be light at the end of the tunnel for the Brummies if only a glimmer. If and that's a big IF all debts are paid off to enable the club to return to racing ASAP I along with I would expect many suppliers wouldn't be offering any further credit and would require payment on the night in future from Charles and his new promotion team (as per most other tracks).

Having said that they would have mine and my teams full support and I greatly appreciate the efforts being made to keep the club alive.

Seeing the tears at Belle Vue really hit home and the faithful fans deserve a positive future. You can't take out poor attendances on the fans who actually do turn up week in week out.

[John Leslie]

I'll probably be hated by Brummies fans for this but I wouldn't trust either Mr Phillips as far as I could throw them.

 

I sincerely hope a solution will be found but in all honesty I cannot see either of them being part of a solution.

 

A newcomer buys a club, falls out with people, gets rid of experienced speedway administrators, alienates sections of the supporter-base, then puts his son in charge as promoter........nope, that's never gone wrong before has it?

 

At least the GRA own the stadium, so the grandstand shouldn't burn down.

 

Wish Tony Mole had been able to buy it and sort the club out properly. I really feel for the Birmingham supporters, especially Brian Buck, and all the riders and other staff. Let's hope the season can be rescued and Birmingham can survive the year and have a proper sort out for 2015.

[Ommer Mon]

 

A newcomer buys a club, falls out with people, gets rid of experienced speedway administrators, alienates sections of the supporter-base, then puts his son in charge as promoter........nope, that's never gone wrong before has it?

 

At least the GRA own the stadium, so the grandstand shouldn't burn down.

 

Wish Tony Mole had been able to buy it and sort the club out properly. I really feel for the Birmingham supporters, especially Brian Buck, and all the riders and other staff. Let's hope the season can be rescued and Birmingham can survive the year and have a proper sort out for 2015.

 

I agree totally with John Leslie. It's an absolute tragedy for the fans and Brian Buck in particular. He and Tony Mole put in an enormous amount of effort to see the Brummies get back on track including the massive planning battle against the University.

 

I really feel for all the Brummies (having gone through it at Cradley) and I hope it gets sorted out successfully.

[Nigel]

Blaming the fans for the problems would be like Tesco blaming its customers for its drop in profits.

 

Phillips is disliked by a large section of Brummies fans, who last November where shouting....... GO ....PLEASE GO....PLEASE .Go .....Go now.

 

Phillips has alienated the fans causing a drop in crowd numbers IMO and they are unlikely to recover until the regime is changed IMO

 

And the return of Phil Morris would bring a few fans back and please many.

 

 

PR blunders and mismanagement, they messed up 2013 and now 2014..... couldn't run the proverbial P*** up in a brewery

 

 

Lies, dammed lies and statistics (debts) ....................... ohh i feel better now!

 

Edit......

 

I would like to know what sort of salaries the Philips have been paying themselves, bet they aren't in arrears?

Edited July 3, 2014 by Nigel

[ABS]

Funniest part of the whole situation is that, the BSPA know all along what is going on, and just let it carry on week after week, exactly the same situation as Bowden at Plymouth, and many, many more before them, the BSPA will only pay the riders basic points money, any other part of the deal, they can go and whistle for, but make no mistake Birmingham are not the only Club up s*** creek, how stupid can Riders be, to keep riding, week after week for no money, and please don't say the Captain has so sign every Meeting to say all monies are in order, as who deals with that, oh yes, I forgot, the BSPA, ahh well, last one out, please turn the lights off.

And when they make a stand, they get banned - ask Hans A

[Trees]

Oh god I was thinking it was sounding promising but obviously not!!! :-(

[orion]

Blaming the fans for the problems would be like Tesco blaming its customers for its drop in profits.

 

Phillips is disliked by a large section of Brummies fans, who last November where shouting....... GO ....PLEASE GO....PLEASE .Go .....Go now.

 

Phillips has alienated the fans causing a drop in crowd numbers IMO and they are unlikely to recover until the regime is changed IMO

 

And the return of Phil Morris would bring a few fans back and please many.

 

 

PR blunders and mismanagement, they messed up 2013 and now 2014..... couldn't run the proverbial P*** up in a brewery

 

 

Lies, dammed lies and statistics (debts) ....................... ohh i feel better now!

 

Edit......

 

I would like to know what sort of salaries the Philips have been paying themselves, bet they aren't in arrears?

Brum have always lost money due to poor crowds no matter who is running the club or what league they are in ...Phillips put out a side that was the best team out in the uk last year and still no fans turn up .

 

Fans will never support Speedway in Brum in enough numbers

[Starman2006]

Official update on Birmingham :

Charles informs us:

He has found an investor who will lend £25,000 to the club subject to this being repaid at the end of the season from anticipated income of £75,000 (which does not include any possible turnstile money).

If this investor lends £25,000 to Birmingham Speedway Limited, Charles will put £25,000 of his personal money into Birmingham Speedway Limited.

I am informed that the debts of the club amount to £50,000 and that these two investments would therefore cover these.

Charles has agreed that he will not request the fighting fund be used, either to bolster club funds or to pay off any of the debts this season.

He has also agreed that whatever is raised by the fighting fund he will match and put in the Supporters Club account. If the club folds at any time before the start of next season or is sold to another party, the funds raised by the supporters either return to them or go to the new owners (the decision of those who donated) and Charles matching donation will remain with the Supporters Club. However, if the club re-opens next season with Charles as promoter, the fighting fund goes to Birmingham Speedway Limited, as do his matching funds.

Alan Phillips would have no further interest in the club and Charles would be sole promoter. However, he would bring in someone with promoting experience to look after the day to day running of the club, leaving Charles to concentrate on ways of increasing sponsorship and improving attendance.

If Charles decided at the end of this season that he no longer wished to be involved, he would continue running as long as it took to find a buyer.

The riders have not been paid for the last home meeting, nor the last 5 away meetings. Charles informs us that the contributory points money from those 5 away tracks has not yet been received by Birmingham Speedway. Charles also informs us that some riders owe money to the club and that some sponsors have not paid their bills.

Charles also stated that if Birmingham Speedway Limited goes into liquidation, the assets would be seized and sold off to cover debts. This would leave any prospective new promotion with the expense of starting from scratch ie air fence, tractors etc.

Charles has accepted that there is a lack of trust in him and has offered to host a Q&A with as many supporters as are interested at which he has said he will provide evidence of all he has claimed and where he would be prepared to introduce the person who would take on day to day running of the club. He would not be prepared to invest his money without the (moral) support of the Brummies fans and he needs to be assured that you would turn up to meetings.

Thats a good post and a good start, i think you Birmingham fans should embrace it. It will give you a lifeline, then further discusions can take place during the Winter. Well done Charles, whoever Charles is..