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Various: Mike Ashley in talks with Sheikh Khaled bin Zayed Al Nehayan

Kaizero

by Kaizero
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LoveItIfWeBeatU

LoveItIfWeBeatU

Posted
Posted

If we stay up, Ashley can't just pocket the £100m TV money from the club. It's the clubs money in the club's accounts. The owner can't just empty the bank balance and then sell. I hope he'll let the club operate on the money it has (which is supposedly always his idea how it finances itself). That's one of the reasons the budget this year was so low. In theory there will be £100m or so before expenses available in the Summer.

 

Of course he can - the club is a 100% subsidiary of the holding company that he owns. He could distribute as much money as he wants up to himself at any time.

 

My understanding of running a company is you can't personally just take money out and pay it into your personal bank account without getting absolutely hammered with tax. Now he could pay expenses to his other companies but if it was e.g. £20m to PR firm, £20m to Sports Direct, etc those figures have to be justified to HMRC.

 

As far as selling NUFC, surely when he values the club at £300m that's with £0 in the bank account. I suppose if NUFC bank £100m in the Summer he can ask for £400m.

 

Personally I doubt he'll find a buyer (I hope I'm wrong and we get a good owner/s). I can see him being stuck with NUFC but 'allowing' the club to run as a business so if there's £100m in the bank Rafa's budget would be from that after the usual expenses.

 

Not really. Yes you pay tax on personal distributions but if he wanted to move money up it would likely be ultimately paid to MASH Holdings. The company would pay corporation tax on receipt of that distribution but that wouldn't be overly punitive. I work in corporate law and there are a number of ways that MA could then structure a distribution from topco to himself while not getting too hamstrung by tax issues. MA probably wouldn't elect to distribute anything to himself as he doesn't really have any incentive to do that right now, but that's not to say he couldn't take money out of the club at any time without much in the way of consequence.

 

Fair enough. The £120m (or whatever it is) 'loan' he (MASH Holdings?) paid into NUFC could be repaid back out of NUFC's bank account using the TV money. That wouldn't make much football sense to do that but that's never stopped him before.

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jonny1403

jonny1403

Posted
Posted

If we stay up, Ashley can't just pocket the £100m TV money from the club. It's the clubs money in the club's accounts. The owner can't just empty the bank balance and then sell. I hope he'll let the club operate on the money it has (which is supposedly always his idea how it finances itself). That's one of the reasons the budget this year was so low. In theory there will be £100m or so before expenses available in the Summer.

 

Of course he can - the club is a 100% subsidiary of the holding company that he owns. He could distribute as much money as he wants up to himself at any time.

 

My understanding of running a company is you can't personally just take money out and pay it into your personal bank account without getting absolutely hammered with tax. Now he could pay expenses to his other companies but if it was e.g. £20m to PR firm, £20m to Sports Direct, etc those figures have to be justified to HMRC.

 

As far as selling NUFC, surely when he values the club at £300m that's with £0 in the bank account. I suppose if NUFC bank £100m in the Summer he can ask for £400m.

 

Personally I doubt he'll find a buyer (I hope I'm wrong and we get a good owner/s). I can see him being stuck with NUFC but 'allowing' the club to run as a business so if there's £100m in the bank Rafa's budget would be from that after the usual expenses.

 

Not really. Yes you pay tax on personal distributions but if he wanted to move money up it would likely be ultimately paid to MASH Holdings. The company would pay corporation tax on receipt of that distribution but that wouldn't be overly punitive. I work in corporate law and there are a number of ways that MA could then structure a distribution from topco to himself while not getting too hamstrung by tax issues. MA probably wouldn't elect to distribute anything to himself as he doesn't really have any incentive to do that right now, but that's not to say he couldn't take money out of the club at any time without much in the way of consequence.

 

Fair enough. The £120m (or whatever it is) 'loan' he (MASH Holdings?) paid into NUFC could be repaid back out of NUFC's bank account using the TV money. That wouldn't make much football sense to do that but that's never stopped him before.

 

It could yes - albeit TV money is not paid in one lump sum and given that Ashley is probably looking to present the club in its best financial footing ahead of a sale it would look more attractive keeping it on the balance sheet. It will all be factored into the purchase price on a sale obviously so MA doesn't lose either way.

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Guest firetotheworks

Guest firetotheworks

Posted
Posted

Didn't go to the wire enough for him to fuck off imo. He'll smell the money and stay or he'll sneakily increase the asking price.

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