Administration?

[Parky]

Are there any benefits for Ashley personally if he were to put us into administration?   

 

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!

 

In simple terms, he couldn't set the capital loss on the sale of his 100% stake in NUFC against trading profits of his other companies like Sports Direct.

 

The only time the capital loss on the sale of NUFC would be of any use to him is if he were to sell loads of his other investments at a massive profit, which is unlikely given the recent performance of Sports Direct etc.

 

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."?

 

I read that and then your sig Cali. Sheeeeet.

[dustynrg]

In some ways, selling the mercenaries (ALL of them) - starting again and perhaps having Shearer in charge and getting some players with heart in, wouldn't be the worst scenario of all time. OK we wouldn't go up this season or even next but we'd be rid of ALL the bastards, the mismatched players, the lying Managing Director and the non speaking owner. We might even enjoy the football.

 

I know this is clichéd but I'm pretty sure Leeds fans will have thought something similar at the time.

 

Aye but they still get a full house nearly every home game. They're still alive and they have more stability than they did.

[CaliMag]

I read that and then your sig Cali. Sheeeeet.

 

Well... you always have to read my posts in a very calm voice.

 

 

Also, there is always a time to panic.

[Dave]

Are there any benefits for Ashley personally if he were to put us into administration?   

 

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!

 

In simple terms, he couldn't set the capital loss on the sale of his 100% stake in NUFC against trading profits of his other companies like Sports Direct.

 

The only time the capital loss on the sale of NUFC would be of any use to him is if he were to sell loads of his other investments at a massive profit, which is unlikely given the recent performance of Sports Direct etc.

 

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%.

[midds]

Are there any benefits for Ashley personally if he were to put us into administration?   

 

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!

 

In simple terms, he couldn't set the capital loss on the sale of his 100% stake in NUFC against trading profits of his other companies like Sports Direct.

 

The only time the capital loss on the sale of NUFC would be of any use to him is if he were to sell loads of his other investments at a massive profit, which is unlikely given the recent performance of Sports Direct etc.

 

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."?

 

You're asking the wrong person tbh. I'll link him the thread and I'll get back to you with his replies. 

 

All I know is, he's a very intelligent bloke who's got a lot of experience in financial matters like this. If he's got it wrong then he's got it wrong but I trust what he says. 

[Parky]

Are there any benefits for Ashley personally if he were to put us into administration?   

 

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!

 

In simple terms, he couldn't set the capital loss on the sale of his 100% stake in NUFC against trading profits of his other companies like Sports Direct.

 

The only time the capital loss on the sale of NUFC would be of any use to him is if he were to sell loads of his other investments at a massive profit, which is unlikely given the recent performance of Sports Direct etc.

 

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."?

 

You're asking the wrong person tbh. I'll link him the thread and I'll get back to you with his replies. 

 

All I know is, he's a very intelligent bloke who's got a lot of experience in financial matters like this. If he's got it wrong then he's got it wrong but I trust what he says.  

 

Cheers Midds.

[CaliMag]

Are there any benefits for Ashley personally if he were to put us into administration?   

 

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!

 

In simple terms, he couldn't set the capital loss on the sale of his 100% stake in NUFC against trading profits of his other companies like Sports Direct.

 

The only time the capital loss on the sale of NUFC would be of any use to him is if he were to sell loads of his other investments at a massive profit, which is unlikely given the recent performance of Sports Direct etc.

 

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...

[CaliMag]

You're asking the wrong person tbh. I'll link him the thread and I'll get back to you with his replies. 

 

All I know is, he's a very intelligent bloke who's got a lot of experience in financial matters like this. If he's got it wrong then he's got it wrong but I trust what he says.  

 

Thanks Midds

[James]

Ashley doesn't need to put the club into administration.

 

Unlike other footballing examples, he can afford to service the debt and the bills.

As he can afford this, he could negotiate higher priced sales than an administrator could as it is not an open firesale. He can the use these sales to pay off the debt to himself, rather than pay off Barclays etc.

No fee has to be paid for the administrator.

No points deduction is needed, therefore the club has a higher valuation than the administrators can get for it.

[James]

Or to rephrase that, Mike Ashley could afford to put the club through an "unofficial" administration. Take all the benefits of such a process without incurring the costs.

[Dave]

Could this rumour be a last desperate attempt by Ashley to force a bidder to pay a bit more? 'Give me what I want or I'll flog the players, put the club into administration and fuck up this season before it's even started. And you might not get the club in the end anyway.'

 

?

[thomas]

Not too sure how well that would work.  Pretty certain someone out there would take it a chance on it at a cut rate price and hope to repair damage by January. 

[Dave]

There would be no guarantee of them getting it though, and the damage could already be done.

 

Just a suggestion, anyway.

[Dave]

'Them' as in someone interested now I mean.

[UV]

So if we did go into administration, we'd start the season on -10 points, have no players, no manager or owner still, and Ashley could (depending on the sums) cut his losses and f*** off?

 

Well that would be just great. Quite possibly the end of the club as a serious entity altogether.

on the bright side there must be a reason why he didnt do that weeks a go

 

He's still collecting the money from season ticket sales.

Season ticket money paying off loan to Ashley > 1 month of player wages taken from the overdraft

 

I'm still not buying into the likelihood of administration, but...  even though there's been hardly anything coming out of the club they've been quick off the mark recently to rubbish (or pre-empt) negative stories in the press with a club statement (Kinnear, low ST sales, Robson game), it will be interesting to see what they have to say about this. If they ignore it, it may be even more telling.... 

[Parky]

Not offloading the player wages immediately means two things, either he's letting the club drown or they actually are in negotiations and it is a request of a buyer (god knows).

[madras]

Not offloading the player wages immediately means two things, either he's letting the club drown or they actually are in negotiations and it is a request of a buyer (god knows).

aldso it's hard to sell a company when the assets are being offloaded.

[Parky]

Not offloading the player wages immediately means two things, either he's letting the club drown or they actually are in negotiations and it is a request of a buyer (god knows).

aldso it's hard to sell a company when the assets are being offloaded.

 

We'll see what kind of assets they are soon enough.

[Dokko]

Lets all join in prayer and hope for Ashley to slip and break his neck.

 

Amen.

[Parky]

Lets all join in prayer and hope for Ashley to slip and break his neck.

 

Amen.

 

Got to be one of the most hated men in England.

[Dokko]

Lets all join in prayer and hope for Ashley to slip and break his neck.

 

Amen.

 

Got to be one of the most hated men in England.

 

North East England, reckon the rest of the Country as pissing themselves.

 

 

[Stu]

People from a certain town south of the Tyne want a public holiday for Mike Ashley

[Guest toonlass]

People from a certain town south of the Tyne want a public holiday for Mike Ashley

 

Their whole lives are a public holiday. What would they do on Ashley monday? Sit around collecting their dole, supping on White Lightening (or its even cheaper equivalent) smoking their packets of Superkings, while their bairns are knicking off grannies in the Bridges? Sounds like any other day on Wearside tbh.

[afar]

I’ve got to admit, although I haven’t up until now contemplated the thought that we could go into administration this season, I feel this is really the most likely scenario right not.

 

Ashley I don’t think has contemplated it yet either  but reality is starting to bite him in the bum and he’s going to have to make a tough decision soon. We are clearly not being sold for a price that Ashley thinks is realistic. The decision simply is whether he takes Shepherd’s low price for the club, gives up on the sale and concentrates on getting us back up to raise the club’s value again or just cutting his losses by asset stripping before putting the club into the hands of the receivers.  I’m assuming the latter is a route that Ashley will favour, pride may stop him accepting the Shepherd offer and even though he’s a gambling man can’t see him taking the risk of gambling that we’ll go straight back up. So the only question that really remains is when he’ll pull the plug ?

 

[dustynrg]

Is there anyone else interested in us though? I mean the Profitable lot were never really bidding, the Malaysians were pretend (apparently) the Austrians were friends of Llambias, is FFS the only one left? Are the Americans still in the picture? If they have signed an agreement we just don't know. The fact Freddie is quiet means something.