Lincoln City News

Monday, 23 January 2012

So what is the new business model at Lincoln City?

After watching the press conference the answer for me is.....we still don't know.
Nothing has been stated to what will actually change. How will the company earn more money, how will we cut down on wastage, decrease our overheads and will we continue to actively seek external investment, and if so are we going to spend money in doing this? There were no probing questions as to what has actually changed in the day to day running of the club to warrant it being labelled as a new business model.
Just as important to me, why were there no questions along these lines asked?

It has transpired, as many predicted, that the actual cash amount of the 'investment' wasn't quite the £500k plus that the headlines had us fans believe. The actual cash amount that has been used to buy up shares in the club is £410k, this is still a huge amount of money though.
But whilst it is a lot, worryingly Chairman Bob Dorrian then stated that without further investment into the club we will be in the same predicament this time next year!
the phrase good money after bad springs to mind.

So, this much talked up new business model doesn't appear to be much different then the previous model. If it has been designed to bring stability and stop the club spending more then it will earn, then it has failed before it has been fully implemented. As a business that doesn't spend more money then it earns does not need further investment just to keep its self afloat......

We have been reassured that this new holding company Lincoln City Holdings Ltd, will bring short to medium term security to the club, from what I have just heard it is only a short term stop gap.......the worries are over for now, but unfortunately not for long I fear.



No comments:

Post a Comment