ADMINISTRATION!!! (a possibility, says the Sunday Express)

[Parky]

Haven't read the article or the thread, but can someone give me an idea of why Ashley would want to do this?

 

Anyone?

 

All the club debt is to ashley. When a business goes into administration, its because the debt is preventing the business from operating (if the underlying business is fine). If the underlying business is fucked, it goes bankrupt but with revenues and customers and sales and TV money etc, then the problem may be that servicing the debt turns us into a permanent loss-maker. There are basically two types of business insolvency, cash-flow (you dont have the readies to pay debt) and balance sheet (you have negative net assets).

 

Administration is used to manage the debts under more favourable terms, this might be useful if the revenue stream falls off. Ashley can appoint one without going to court but the creditors of NUFC can apply to have one appointed. The administrator must act in the interests of all the creditors and attempt to rescue the company as a going concern.

 

As for the broader 'why' i cant find any reasons to want to start next season on -15 points.

 

The underlying (revenue) of the business is clearly ok while we are in the PL.

[Guest neesy111]

ashley is sole owner of the club, if the club owe's anything then ashley should be liable from his other businesses

[Skirge]

Its utter bollocks man, and debt the club have is owed to Ashley,, I thinbk though if we do stay up he will look to sell as soon as he can.

[Guest toonlass]

I thought Llambias said in February that we didn't owe anyone any money?

[relámpago blanco]

I thought Llambias said in February that we didn't owe anyone any money?

Aye exactly you go into administartion as your creditors launch an Administration petition, theres only ashley who we owe moiney to, do you think he'd do that?  I bet some people on here probably think he would.

[thomas]

So ...

 

 

The end is not so nigh?

[Happy Face]

I thought Llambias said in February that we didn't owe anyone any money?

 

That was Kinnear...."Financially we're very sound. We don't owe a bean as far as the club are concerned"

 

Llambias contradicted him when he said how we still have years of paying off fees agreed before Ashley arrived at the club.....“We won’t clear the debt for those players as it will take us until 2011”.

[Parky]

The only thing I can think of were those stories that MA was putting his hand in his pocket every month for running costs.

[OzzieMandias]

Haven't read the article or the thread, but can someone give me an idea of why Ashley would want to do this?

 

Anyone?

 

There isn't any reason Ashley would want to do this. The story is shite, pure and simple.

[Happy Face]

Haven't read the article or the thread, but can someone give me an idea of why Ashley would want to do this?

 

Anyone?

 

There isn't any reason Ashley would want to do this. The story is shite, pure and simple.

 

 

I know nowt about how it works, so these are genuine questions, for someone who knows more to answer.

 

In his last 2 years at the club, Shepherd spent £65M.  Most of it to foreign clubs.  Do the above FA rules or similar apply?

 

If it was all spread over (say) 5 years, we might be about half way through on avarage so it could be as much as £30M still to pay (total finger in the air stuff).  If there are rules like the above that cover UEFA, it's not a consideration, but if there aren't, writing off that debt would be a huge incentive for administration.

 

Then there's player contracts.  Can they be terminated under administration?

 

Gretna made players redundant...

 

http://news.bbc.co.uk/sport1/hi/football/teams/g/gretna/7312756.stm

 

Barton 2012

Duff 2011

Smith 2012

Geremi 2010

 

Those four will have cost the best part of £15m in wages by the time their contracts run down.  No club would match those wages or pay a significant fee, not to mention Butt, Ameobi or Xisco.

[dustynrg]

http://www.telegraph.co.uk/sport/football/leagues/premierleague/newcastle/5076835/Newcastle-United-say-relegation-from-Premier-League-wont-mean-administration.html

 

Newcastle United say relegation from Premier League won't mean administration

The Newcastle United hierarchy have angrily denied "upsetting" suggestions that the club could enter administration if relegated from the Premier League this season.

 

 

By Rob Stewart

Last Updated: 2:34PM BST 30 Mar 2009

 

 

The top brass at St James' Park insisted that the relegation-threatened club was financially healthy enough to withstand the blow of dropping out of the top flight and falling into the Championship.

 

Derek Llambias, the Newcastle managing director who runs the club for owner Mike Ashley, has hit out at weekend reports suggesting the club could follow the likes of Leeds United into administration.

 

"It's ridiculous, unfair and unfounded, and it's upsetting because there is no truth in it," Llambias said. "We're in a situation fighting relegation where we need everybody behind us.

 

"There is absolutely no truth in the story whatsoever. It's ridiculous, it's usually based on a rumour and I don't know where these things are hatched."

 

Llambias added: "We'd have to restructure our own business plan like everybody else. But our finances are strong, and there would be no threat of administration.

 

"Mike has been affected by the credit crunch - why should he be different to anybody else? The club is not for sale and we've made it clear. It's not where we want to go."

 

Meanwhile, Newcastle manager Joe Kinnear, linked with a boardroom role over the weekend, is "desperate" to return to work following triple heart bypass surgery.

 

"I'm just desperate to be back and do what I can for Newcastle," Kinnear said. "I still think we have enough quality players to see us through this.

 

"Obviously I look forward to next season, and I want to say that what's happening now will never happen again. Whatever happens I will have an input. It's as simple as that.

 

"If I can't do certain things, I will be speaking to staff and players at the club and working at the training ground during the week. I'll still have a major say to the players too. We'll work it that way."

 

[Guest neesy111]

http://www.telegraph.co.uk/sport/football/leagues/premierleague/newcastle/5076835/Newcastle-United-say-relegation-from-Premier-League-wont-mean-administration.html

 

Newcastle United say relegation from Premier League won't mean administration

The Newcastle United hierarchy have angrily denied "upsetting" suggestions that the club could enter administration if relegated from the Premier League this season.

 

 

By Rob Stewart

Last Updated: 2:34PM BST 30 Mar 2009

 

 

The top brass at St James' Park insisted that the relegation-threatened club was financially healthy enough to withstand the blow of dropping out of the top flight and falling into the Championship.

 

Derek Llambias, the Newcastle managing director who runs the club for owner Mike Ashley, has hit out at weekend reports suggesting the club could follow the likes of Leeds United into administration.

 

"It's ridiculous, unfair and unfounded, and it's upsetting because there is no truth in it," Llambias said. "We're in a situation fighting relegation where we need everybody behind us.

 

"There is absolutely no truth in the story whatsoever. It's ridiculous, it's usually based on a rumour and I don't know where these things are hatched."

 

Llambias added: "We'd have to restructure our own business plan like everybody else. But our finances are strong, and there would be no threat of administration.

 

"Mike has been affected by the credit crunch - why should he be different to anybody else? The club is not for sale and we've made it clear. It's not where we want to go."

 

Meanwhile, Newcastle manager Joe Kinnear, linked with a boardroom role over the weekend, is "desperate" to return to work following triple heart bypass surgery.

 

"I'm just desperate to be back and do what I can for Newcastle," Kinnear said. "I still think we have enough quality players to see us through this.

 

"Obviously I look forward to next season, and I want to say that what's happening now will never happen again. Whatever happens I will have an input. It's as simple as that.

 

"If I can't do certain things, I will be speaking to staff and players at the club and working at the training ground during the week. I'll still have a major say to the players too. We'll work it that way."

 

 

Basically if we get relegated, a firesale of players on big wages will happen while keeping a core group of players and buying young players

 

although i don't want relegation, relegation will allow these youngsters we're buying to have a proper chance at the club and have first team football

[Happy Face]

 

Basically if we get relegated, a firesale of players on big wages will happen while keeping a core group of players and buying young players

 

although i don't want relegation, relegation will allow these youngsters we're buying to have a proper chance at the club and have first team football

 

Who's going to match what we pay Barton, Duff, Smith, Geremi or Butt?

 

 

Will they take a pay cut for the benefit of NUFC?

[ikri]

 

Basically if we get relegated, a firesale of players on big wages will happen while keeping a core group of players and buying young players

 

although i don't want relegation, relegation will allow these youngsters we're buying to have a proper chance at the club and have first team football

 

Who's going to match what we pay Barton, Duff, Smith, Geremi or Butt?

 

 

Will they take a pay cut for the benefit of NUFC?

 

There have been a few rumours of teams interested in Barton, Geremi & Smith (fuck knows why).  They may all be willing to take wage cuts in order to play for a team in the Premiership.

[Teasy]

 

Basically if we get relegated, a firesale of players on big wages will happen while keeping a core group of players and buying young players

 

although i don't want relegation, relegation will allow these youngsters we're buying to have a proper chance at the club and have first team football

 

Yeah, to be honest I think when it comes to getting rid of most of our high earners we'd need to go the fire sale route whether we stay up or go down.  Since nobody's going to give us good money for Geremi, Duff, Smith or Butt, we might get £4-5 million for the lot if we hold out for the best deals possible, so we'll likely end up giving all but Smith away and selling Smith for a few million.  Barton's the only one we could possibly get good money for.  Of course Viduka, Owen and Gonzales will be gone for free either way.  I suppose really the fee's are pretty unimportant in comparison to the £30 million a year we'd save in wages.