CaliMag

Thanks Midds

As Ashley would be the major creditor, administration would seem an odd move financially. But Ashley could probably take his losses at Newcastle, which would be close to £250m, and set them against profit at his other companies, such as Sports Direct. Ashleys tax liability would then be reduced and his loss not so great. Oh. s***. Breathing a little easier after having a quick word with a mate. Do explain! Since Sports Direct is now a public company (he owns just over 50%) his only income from it comes in the form of dividends (which he shares with all share holders). That being the case, if he files his income taxes as a person rather than a company isn't his right to say "I made loads of money here and I lost even more over there. So I owe no taxes."? Did he actually make loads of money through Sports Direct though? I thought their profits were down 91%. I heard that as well. There is still a profit though and that would be taxed. Also When Ashley sold half of Sports Direct he pocketed 900m in cash - which he did not immediately reinviest. That money will be earning interest in the millions. It is a safe assumption that, NUFC aside, his income would be in the tens of millions and his tax bill would be in the millions. Now comes along his NUFC debacle and a chnace to eliminate any taxes...

Well... you always have to read my posts in a very calm voice. Also, there is always a time to panic.

As Ashley would be the major creditor, administration would seem an odd move financially. But Ashley could probably take his losses at Newcastle, which would be close to £250m, and set them against profit at his other companies, such as Sports Direct. Ashley’s tax liability would then be reduced and his loss not so great. Oh. s***. Breathing a little easier after having a quick word with a mate. Do explain! Since Sports Direct is now a public company (he owns just over 50%) his only income from it comes in the form of dividends (which he shares with all share holders). That being the case, if he files his income taxes as a person rather than a company isn't his right to say "I made loads of money here and I lost even more over there. So I owe no taxes."?

If the timing and the paperwork is not done exactly right it would mean starting the season with just the academy and no window to get replacement players in. We would get battered EVERY game... not very enjoyable.

That is what Leeds did.

As Ashley would be the major creditor, administration would seem an odd move financially. But Ashley could probably take his losses at Newcastle, which would be close to £250m, and set them against profit at his other companies, such as Sports Direct. Ashleys tax liability would then be reduced and his loss not so great. Oh. s***. Can he actually use tax losses from one company to offset against profits from a totally different company? Good question. In the States he could.

The trick is nobody knows what the tipping point is for Ashley on his tax bill. His accountants have probably already worked this out and this is why Ashley wont budge.

Can anyone explain this to me please? I still don't understand why he'd prefer to take the relative pennies on offer from administration over the £60m offered by Shepherd. I am no expert on British Tax Law, however I knwo that this could easily be done in the States by... 1. NUFC is a seperate entity that has outstanding debts 2. NUFC goes into administration and sells most of its assets in an effort to settle those debts. 3. Fire sale of salable items occurs (like players and properties like SJP, the training ground, parking areas, etc). Not necessarily all salable items would be sold but liabilities (read as players) certainly would be. 4. Debts owed may have legal priority to some institutions over others. Example NUFC owes outstanding debt to BT (hasn't paid bills in months), a loan from a bank and loans from Ashley. Ashley gets paid first by prior agreement in original loan. 5. Ashley takes a loss on the loans 6. Ashely counts this loss against profits form his other holdings and assets - the gov't was going to tax him on his profits from Sports Direct, interest earned, etc - say in the order of 20 million pounds, BUT he claims losses of 100m- therefore pays no taxes. Making his actual loss only 80m

Thanks Dave. A well written article. If we do go into administration I hope it happens as soon as possible.

I am more inclined to think that of the two you mentioned it will be Liverpool to drop out rather than Arsenal. Arsenal have had consistancy in an excellent manager and a perrenially young team. They are unable to hold onto the mega-stars they produce, but they keep producing them... and those that stay invariably get better. Since losing Viera and Henry they don't really have a single player that they rely on for winning. Liverpool on the other hand have Gerrard and Torres which they do rely upon and unlike Arsenal of 6 years ago - they haven't won the league. If Gerrard is out for a portion of the season due to prison or injury, tehn it will be hard for them. Also he isn't getting any younger or better. And Liverpool, like most of the premiership, have questionable finances. Arsenal isn't.

I actually thought you were all talking crap until I looked it on on Lee Ryder's blog... WTF is going on? Why would teh team be acting like this at a friendly? If it was ebcause of banter from the opposing players about being failures in the Chapionship or sommat then we have a long season ahead of us with this thin-skinned crew.

Pre-Beckham, the Galaxy actually won stuff, but since then its been a disaster - the fans who were booing insist on a conenction and feel slighted by the Milan thing. I personally disagree. Hiring Ruud f*cking Gullit was a bigger mistake. Getting rid of Alexei Lalas was a step in the right direction.

Crouchies girlfriend reminds me of an interview with Willie Nelson (an American Country MUsic Star for you bairns)... he was asked what he learned from becoming a success as a mucisian and he replied: "Yeah, I learned that money makes girls really horney."

I could not agree more.

Fuck me gently with a chainsaw. I keep logging on hoping this thread will go away.

NO! NO! NO! FUCKING NO!

As things stand now, Ashley will keep the club and will run thsi club on the cheap. We'll sell our salable players to lower the wage bill and offset our massive income loss (Beye, Martins, Bassong, S Taylor, etc), have the Chuckle borthers or Kinnear as managers, have the lowest team morale in the league and be resting our hopes on our academy juniors and reserve team - who will lose the vast majority of the league games. Relegation is very a real possibility. You think there's a 75% chance of us getting relegated? f*** me man And if you read through the thread you'll see that I was at a 7 since January and only moved up to an 8 after losing to Fulham last season. - People laughed at me then as well back at the New Year.

Yup. Its a win win for Ashley.

As things stand now, Ashley will keep the club and will run thsi club on the cheap. We'll sell our salable players to lower the wage bill and offset our massive income loss (Beye, Martins, Bassong, S Taylor, etc), have the Chuckle borthers or Kinnear as managers, have the lowest team morale in the league and be resting our hopes on our academy juniors and reserve team - who will lose the vast majority of the league games. Relegation is very a real possibility.

Just read The SUN, does not seem too promising.

Aye, we're f*cked.

The SUN http://www.thesun.co.uk/sol/homepage/sport/football/2533306/Good-Beye-and-good-riddance.html

I am inching up to a 7.5 as it now looks that Ashley's stubborness is going to do us in. As said before I'll go to a full 8 if the season starts with us in the same sad state of affiars.

Heard we're taking a look at Brett Emerton.