Administration

[royalgrumpy]

The club have been relying on loans for at least the last 8 months just to pay the wage bill. Obviously you can't run any business like that in the long-term, and ultimately it's going to catch up with you. The rumours around December and January about not being able to pay the wage bill were correct in this respect. I'm not privy to just how bad things are, but there are genuine concerns now for the clubs future, however far away the reality of administration may or may not be.

[tidus_mi2]

If JM isn't putting any money into the club where are the loans coming from? Only 2 sources I can think of are BZ or banks. If it's banks then surely they must have been guaranteed that expenditure is going to be slashed in the summer (which we all expect), in which case why is there a big worry of administration? No bank would loan us millions of pounds if they didn't feel confident they'd get their money back.

It's gonna suck but I can't see administration happening.

[winchester_royal]

If JM isn't putting any money into the club where are the loans coming from? Only 2 sources I can think of are BZ or banks. If it's banks then surely they must have been guaranteed that expenditure is going to be slashed in the summer (which we all expect), in which case why is there a big worry of administration? No bank would loan us millions of pounds if they didn't feel confident they'd get their money back.

It's gonna suck but I can't see administration happening.

Exactly, it's just going to like it was 4 years ago where we were running at a loss each year and thus having to 'cut our cloth accordingly'. Think people need to dial down the rhetoric a little tbh, most clubs have to run without a benevolent owner behind the scenes, we'll be fine.

[AthleticoSpizz]

exactly

....and even if we aren't


Follow the Portsmouth model (and to a certain degree the Leicester one too)


Sold down the line, cheated all of their creditors (twice), sunk to the low of the lows ( a team comprised of loanees and nobody paid more than £2999 pw) ...and yet

Large crowds and great passionate support....that is all that matters.......f11ck the rest of the monetary and directorship stuff.....just start enjoying your football again


Could we see ourselves with crowds of 15k plus in Div 2?..................these days, yes, just maybe

[Scutterbucketz]

I was talking to a friend of mine earlier today and her accountant husband is currently working closely with the club to try and sort the mess out. He specialises in insolvency and it's pretty much nailed on that we will go into administration. I haven't seen The Sun article but there is a lot of talk of a winding up order being issued (if it hasn't been already) due to a massive tax bill, so there is no other option.

[AthleticoSpizz]

as we used to say on hand held placards

"BRING IT ON"

[Martin41]

So 13 pages in , and we still know nothing.
Except my friend knows a man who knows a man, who knows........probably nothing!!!
Amazing how many people know someone who knows something!!!!

[winchester_royal]

I bet the club are loving this. Each time someone comes up with some ridiculous story about administration it serves to dampen fans' expectations that little bit further.

We still have 3 more seasons of parachute payments we can borrow against if it comes to that, as well as a number of very sellable assets. There is absolutely no danger of us not being able to pay a tax bill.

[Norfolk Royal]

The club have been relying on loans for at least the last 8 months just to pay the wage bill. Obviously you can't run any business like that in the long-term, and ultimately it's going to catch up with you. The rumours around December and January about not being able to pay the wage bill were correct in this respect. I'm not privy to just how bad things are, but there are genuine concerns now for the clubs future, however far away the reality of administration may or may not be.

You can't really say that you are not privy to just how bad things are but there are genuine concerns for the club's future.

If you don't know, by your own admittance, how bad things are then the concern cannot really be genuine because you are basing it on no real hard information.

That's not to say the concern might be genuine in a purely emotional sense.

[AthleticoSpizz]

I bet the club are loving this. Each time someone comes up with some ridiculous story about administration it serves to dampen fans' expectations that little bit further.

We still have 3 more seasons of parachute payments we can borrow against if it comes to that, as well as a number of very sellable assets. There is absolutely no danger of us not being able to pay a tax bill.

bring on the Hallelujah chorus

[Norfolk Royal]

I was talking to a friend of mine earlier today and her accountant husband is currently working closely with the club to try and sort the mess out. He specialises in insolvency and it's pretty much nailed on that we will go into administration. I haven't seen The Sun article but there is a lot of talk of a winding up order being issued (if it hasn't been already) due to a massive tax bill, so there is no other option.

If he specialises in insolvency why is he working with the club now to sort the thing out when it has not been declared insolvent?

[winchester_royal]

I was talking to a friend of mine earlier today and her accountant husband is currently working closely with the club to try and sort the mess out. He specialises in insolvency and it's pretty much nailed on that we will go into administration. I haven't seen The Sun article but there is a lot of talk of a winding up order being issued (if it hasn't been already) due to a massive tax bill, so there is no other option.

If he specialises in insolvency why is he working with the club now to sort the thing out when it has not been declared insolvent?

And why, when he works in a particularly sensitive section of a profession that has become obsessed with risk management and information protection, would he be blabbing about it to all and sundry?

Or maybe, just maybe, it's more bullshit.

[72 bus]

If he specialises in insolvency why is he working with the club now to sort the thing out when it has not been declared insolvent?

Because in business you sort of know a bit in advance if you are likely to be insolvent at some point ?

[winchester_royal]

You can't go insolvent when you have future parachute payments that add up to being greater than the club's current level of debt still to come into the club (even if we lose this year's to Vibrac) and also have the ability to raise short term cash by sellinga number of assets that are both relatively liquid and valuable...

We will have to reduce costs over the next few months so that we become self sufficient again, but that's as bad as it gets.

[sandman]

Look I know a bloke,who knows a bloke, who knows a bloke, who knows another blokes Cousins Uncle and whilst I obviously can't reveal too much he says that we are in some deep shit here.

[Norfolk Royal]

If he specialises in insolvency why is he working with the club now to sort the thing out when it has not been declared insolvent?

Because in business you sort of know a bit in advance if you are likely to be insolvent at some point ?

I see, so the accountant is a sort of specialist in possible future insolvencies?

[AthleticoSpizz]

basically....who cares


What will be, will be.

(holds hand on chest and remembers Division 4 on a grassless pitch at EP under failing spotlights on a dank "power cut" Sunday afternoon)....oxf*rd loved it!


Get away from this SKY TV over-cashed and over-hyped mentality....

we may fall, but we will rise

just get back to enjoying the actual game

[Royal Rother]

If he specialises in insolvency why is he working with the club now to sort the thing out when it has not been declared insolvent?

Because in business you sort of know a bit in advance if you are likely to be insolvent at some point ?

I see, so the accountant is a sort of specialist in possible future insolvencies?

In fairness that is pretty much exactly how it works.

If you believe yourself to be insolvent and in danger of not being able to pay your debts at some stage, you are duty bound to call in advisors. If you do not do so and the business goes down, the Directors can be held personally liable for the debts incurred between the time you should have called them in and when you did.

If the club is struggling to pay the debts it probably does make sense for the directors to call in the advisors so they have covered themselves. The fact that they believe they have potentially £20m of saleable assets (with virtually zero encumbrance) and future guaranteed (unearned?) income, and that the major creditors are the shareholders / directors does not negate the onus and responsibility to take advice from insolvency experts, because there may not be any further loans forthcoming from BZ and SJM and until the cash referred to above is in the coffers, they may NOT be able to pay the bills.

Insolvency experts would take the lead in negotiating the terms of payment with the creditors.

Nutshell job there (and not from a position of huge expertise in the field), but basically factual. It would just be doing it by the book.

[Scutterbucketz]

^ wot he said.

And he was hardly telling everyone. He told his wife, who is a very old friend of mine. She knows I like Reading, so she told me.

I never come on here claiming to have inside info, but believe what you want.

We have a £20million tax bill and we could pay it using future parachute payments, just as long as the club can be run for nothing for the next 3 years.

[Norfolk Royal]

So HMRC is the main creditor. That's a game changer then.