Administration?

[MW]

Yes

[wyn davies]

If administration happened obviously a firesale would ensue would that be good for us or are we better putting the (so called first team) players on gardening leave to p*ss them off or will MA not allow admin to happen as bigger losses will occur.

[Teasy]

Its all already been answered, just read back through.

 

 

What riles me most is that he tied up his capital in 'moving' this debt at the expense of investing in the squad.

 

He didn't have an option with most of it, the clause in the loan deal meant it had to be paid then and there.  The only advantage being it saves us about 8m pounds a year in interest which could have been a big plus had he not massively mismanaged the club into relegation.

[Parky]

Its all already been answered, just read back through.

 

 

What riles me most is that he tied up his capital in 'moving' this debt at the expense of investing in the squad.

 

He didn't have an option with most of it, the clause in the loan deal meant it had to be paid then and there.  The only advantage being it saves us about 8m pounds a year in interest which could have been a big plus had he not massively mismanaged the club into relegation.

 

Stockholm syndrome. 

[ChezGiven]

Most of it? 42m of it iirc.

[Parky]

Most of it? 42m of it iirc.

 

[Teasy]

Its all already been answered, just read back through.

 

 

What riles me most is that he tied up his capital in 'moving' this debt at the expense of investing in the squad.

 

He didn't have an option with most of it, the clause in the loan deal meant it had to be paid then and there.  The only advantage being it saves us about 8m pounds a year in interest which could have been a big plus had he not massively mismanaged the club into relegation.

 

Stockholm syndrome. 

 

Thinking he massively mismanaged the club is a real sign of loyalty towards Ashley like isn't it?  Or didn't you read that far before responding?

 

The rest are facts, no matter how much I hate him I'm not going to ignore them, you be delusional if you want, I'm not joining you no matter how bad it gets.

[Teasy]

Most of it? 42m of it iirc.

 

Right yeah 42m is most of the 70m he initially paid off.  The other 30m was paid to balance the deficit in the 2008 accounts in order for the auditors to sign off on those accounts.

[Parky]

Most of it? 42m of it iirc.

 

Right yeah 42m is most of the 70m he initially paid off.  The other 30m was paid to balance the deficit in the 2008 accounts in order for the auditors to sign off on those accounts.

 

He didn't pay it off though did he? He just lent the club the money.

[ChezGiven]

And the debt is currently at 110m according to some, so that's 68m of debt he 'moved' which didnt need to be paid of immediately.

 

He stated that he had focused on the debt, so he couldnt invest in the squad as much as he wanted.

 

Teasy, you dont need to pay off all your debt for an auditor to sign off the accounts, otherwise Man U would be fucked If there were other debts, they were just normal debts and not like the signed loan agreement with Shepherd and the stadium expansion creditor.

 

 

[Guest Mani]

i can't understand how we would go into administration, we are no longer a plc.  As tight as mike ashley is with his wallet, he is still worth around 600 to 400 million pounds minimum.

 

So if he owns the club and it's running out of money,he really has no choice but to finance it further since he cannot acquire a buyer at the moment.

[Parky]

i can't understand how we would go into administration, we are no longer a plc.   As tight as mike ashley is with his wallet, he is still worth around 600 to 400 million pounds minimum.

 

So if he owns the club and it's running out of money,he really has no choice but to finance it further since he cannot acquire a buyer at the moment.

 

I guess it doesn't bear thinking about, but he could wrap it up. (Makes no sense, but we're dealing with MA here).

[ChezGiven]

First sentence wrong.

 

Second sentence possibly.

 

Third sentence wrong.

[ChezGiven]

That was to Mani but its a good generic response to Parky too.

[Parky]

That was to Mani but its a good generic response to Parky too.

 

[Guest Mani]

First sentence wrong.

 

Second sentence possibly.

 

Third sentence wrong.

 

why is the first sentence wrong?  We are privately owned now if im not mistaken. 

[ChezGiven]

Being a PLC or privately owned is irrelevant to whether a business can go into administration.

[Guest Mani]

Being a PLC or privately owned is irrelevant to whether a business can go into administration.

 

I never said that a non plc cannot go into administration.

 

That facts are Mike Ashley is still a very wealthy man,  he may have lost alot of money during the downturn but he is still worth around half a billion if not more.

 

So if a club is owned by a man who is not in any major debt, the chances are it's not gonna go into administration anytime soon.

[ianovthetoon]

Being a PLC or privately owned is irrelevant to whether a business can go into administration.

 

I never said that a non plc cannot go into administration.

 

That facts are Mike Ashley is still a very wealthy man,  he may have lost alot of money during the downturn but he is still worth around half a billion if not more.

 

So if a club is owned by a man who is not in any major debt, the chances are it's not gonna go into administration anytime soon.

 

Problem is, St James Holdings essentially owns the club, and is a company in it's own right. Ashley should keep it afloat but has no legal obligation to do so, meaning that he could still put us in to administration should he choose to do so. One thing's for certain - if it ultimately benefitted Mike Ashley, that's the route he would take.

[Parky]

Being a PLC or privately owned is irrelevant to whether a business can go into administration.

 

I never said that a non plc cannot go into administration.

 

That facts are Mike Ashley is still a very wealthy man,  he may have lost alot of money during the downturn but he is still worth around half a billion if not more.

 

So if a club is owned by a man who is not in any major debt, the chances are it's not gonna go into administration anytime soon.

 

What is Sports Directs debt?

[ChezGiven]

Being a PLC or privately owned is irrelevant to whether a business can go into administration.

 

I never said that a non plc cannot go into administration.

 

That facts are Mike Ashley is still a very wealthy man,  he may have lost alot of money during the downturn but he is still worth around half a billion if not more.

 

So if a club is owned by a man who is not in any major debt, the chances are it's not gonna go into administration anytime soon.

 

You said you didnt understand how we could go into administration as we were no longer a PLC, hence directly implying that there was a relationship between being a PLC and going into admin. There isnt.

 

The fact that Administration comes about through a creditor petitioning a court and that Ashley is the creditor of the club is the more relevant piece.

[Guest Mani]

Being a PLC or privately owned is irrelevant to whether a business can go into administration.

 

I never said that a non plc cannot go into administration.

 

That facts are Mike Ashley is still a very wealthy man,  he may have lost alot of money during the downturn but he is still worth around half a billion if not more.

 

So if a club is owned by a man who is not in any major debt, the chances are it's not gonna go into administration anytime soon.

 

You said you didnt understand how we could go into administration as we were no longer a PLC, hence directly implying that there was a relationship between being a PLC and going into admin. There isnt.

 

The fact that Administration comes about through a creditor petitioning a court and that Ashley is the creditor of the club is the more relevant piece.

 

You're the only one that's implying that intepretation, not me.  Maybe you forgot to read the rest of my post, your taking one single sentence out of context with the whole post.

 

What I was saying was that the man is worth around half a billion so why would the club go into admin if he can afford to further finance the club.

 

Whether he wishes to further finance the club or not is another matter.  I personally don't see what he has to gain by letting the club go into admin. 

[Guest taff2727]

he came he conquered.no point arguing over it.

[Parky]

Being a PLC or privately owned is irrelevant to whether a business can go into administration.

 

I never said that a non plc cannot go into administration.

 

That facts are Mike Ashley is still a very wealthy man,  he may have lost alot of money during the downturn but he is still worth around half a billion if not more.

 

So if a club is owned by a man who is not in any major debt, the chances are it's not gonna go into administration anytime soon.

 

You said you didnt understand how we could go into administration as we were no longer a PLC, hence directly implying that there was a relationship between being a PLC and going into admin. There isnt.

 

The fact that Administration comes about through a creditor petitioning a court and that Ashley is the creditor of the club is the more relevant piece.

 

You're the only one that's implying that intepretation, not me.  Maybe you forgot to read the rest of my post, your taking one single sentence out of context with the whole post.

 

What I was saying was that the man is worth around half a billion so why would the club go into admin if he can afford to further finance the club.

Whether he wishes to further finance the club or not is another matter.  I personally don't see what he has to gain by letting the club go into admin. 

 

Sports Direct.

"Net debt at the end of the year stood at £430m, which will not trouble the company's banking covenants, and the target is set to get that down below £400m next year, partly by ditching its dividend. A payout of 4.5p per share was made last year -- this year shareholders will have to make do with just the interim payment."

[Slugsy]

Administration will depend on a number of things not least:

 

1. What exactly people are offering for the club - regardless of what people think its worth, what are people offering?

2. How much the club is sucking up cash each month at present

3. What is the realisable fire sale value of the assets of the club in adminstration bearing in mind, Ashley is the bank and will get first dibs on any value.

 

I would have expected the club to be worth more as a going conern than in adminstration but the debt clouds the issue, as does these on-going contract costs as does what people are actually offering and how much cash is being sucked up each month the business continues to operate in 'limbo'.

 

Initial thought is that adminstration is a ridiculous notion, but I wouldn't discount anything with that man.