777 Partners / Whatever the hell you like

[jamieni]

Why would a potential new investor want to wait to administration, before making an offer ?

Yes the value would be lower, but equally you are then banking on the club overcoming a minus 9 point start next year with a squad which has undergone a fire sale.

If you go down, your new asset loses an extremely high proportion of its value within 12 months of you acquiring it. And administration makes survival next season highly unlikely IMO.

It makes little sense to me.

Yeah I mean it’s a total lottery. You can’t bank on the team overcoming a 9 point deduction next season and if you go down you might not be back in the PL for a decade.

 

[toffeeblue9]

Serious question though..

What does The Esk actually get out of contributing to articles like that??

He is, actively, scaremongering. Has been for months. Just.. why?

In fairness, there's nothing wrong with his logic. That isn't to say that administration is what will happen, but if you were looking to pick up the asset at as low a cost as possible, his thought process is a fair one.

You, me and most people will look at this as the least favoured option given the consequences it would have in terms of points deductions and people's livelihoods, but that isn't necessarily how an investor would see it.

He's getting an unfair shake of the stick here. We should absolutely hope this doesn't happen, but he's not scaremongering by suggesting it could happen.

 

[ToffeeTim]

Yeah I mean it’s a total lottery. You can’t bank on the team overcoming a 9 point deduction next season and if you go down you might not be back in the PL for a decade.

It's not even just the 9 points

Administration means lots of players will be sold and we won't be able to replace them

Put the two together and I think we'd struggle to finish 19th never mind 17th

 

[PKwalnuts]

Dropping out of the Prem scuppers their investment. For me the danger is by playing the brinkmanship game potential buyers might get it badly wrong.

When you make an investment you look at the longer term. They will assess the risk of admin getting it all cheaper, for what it'll all be worth when recovered. We will go through the pain, and they will ultimately reap their reward. Its a money game now, not a football club.

 

[blueboy72]

Hopefully Bell and Downing can be involved in some way, and as the latest Telegraph article says they will be desperate to be. But while they're rich they're not PL football club so they'll need some backing, and that'll require some compromises.

A financial guy on the echo pod with Matt Jones yesterday said if MSP get involved it will be to get us into BMD clean the club up from a financial point of view and then sell on in a couple of years

 

[Kevsleftpeg]

Well that wouldn't be up to them would it ?

Only Moshiri can put us into administration, then he walks away with zilch.
That ain't going to happen.

The directors can put us into administration and any creditor with a qualifying floating charge can also put us into administration.

 

[maccavennie]

Our own accounts say there’s doubt over us as a going concern. Is it likely? Probably not. Is a possible? Well absolutely. I find it bizarre that people want to ignore this. It’s a genuine risk.

Of course it's possible, anythings possible and I don't see anyone ignoring it. I see people getting wound up by the continued parroting of it as if its the only option out there.

 

[Moomin]

Just so you know, I've thought of this scenario and I am waiting with my £1

Ken Bates MKII

After you spend that £1 you are going to need a lot of money just to keep the club's head above water.

Just look at the last set of accounts and 92% of turnover is spend on wages. Interest payments for the RMF loan is 30 million per year without paying any of it.

Even without the fee's for finch farm and other bills of policing etc that takes us well over 100% of our turnover.

Throw in the interest payments for MSP and 777 and we are probably about 150% of turnover. Plus you have the remaining bill of the construction for the new stadium to build.

If someone bought the club for a quid they would probably have to do a cash injection straight away of 550 million to pay the debts off and in the region of 75 million to pay for the completion of the stadium.

Why would anyone be prepared to pay Moshiri any cash for a money pit???

Some potential buyers are waiting for administration so they can cut a deal with the administrator and get the club at a cheaper price. Unfortunately these people will be prepared to see the club go into administration then fork out 650 million straight away and pick it up for a fraction of the price.

 

[Kevsleftpeg]

Is it possible that if those that we owe money to, who also have an interest in purchasing the club (ie MSP?) could call debts in, and effectively force administration if we cannot repay?

The only people who can put a company into administration are the directors and a qualifying floating charge holder if there is one.

 

[Toffe3m4n]

A financial guy on the echo pod with Matt Jones yesterday said if MSP get involved it will be to get us into BMD clean the club up from a financial point of view and then sell on in a couple of years

Wasn't that meant to be 777's plan as well?

 

[efcfanwirral]

Wasn't that meant to be 777's plan as well?

Its not a bad plan if you've got the money to do it, and you're run like a normal business.

 

[Kevsleftpeg]

Why would a potential new investor want to wait to administration, before making an offer ?

Yes the value would be lower, but equally you are then banking on the club overcoming a minus 9 point start next year with a squad which has undergone a fire sale.

If you go down, your new asset loses an extremely high proportion of its value within 12 months of you acquiring it. And administration makes survival next season highly unlikely IMO.

It makes little sense to me.

Why would the 9 points not be this season of we win on Saturday and Luton don't?

 

[maccavennie]

After you spend that £1 you are going to need a lot of money just to keep the club's head above water.

Just look at the last set of accounts and 92% of turnover is spend on wages. Interest payments for the RMF loan is 30 million per year without paying any of it.

Even without the fee's for finch farm and other bills of policing etc that takes us well over 100% of our turnover.

Throw in the interest payments for MSP and 777 and we are probably about 150% of turnover. Plus you have the remaining bill of the construction for the new stadium to build.

If someone bought the club for a quid they would probably have to do a cash injection straight away of 550 million to pay the debts off and in the region of 75 million to pay for the completion of the stadium.

Why would anyone be prepared to pay Moshiri any cash for a money pit???

Some potential buyers are waiting for administration so they can cut a deal with the administrator and get the club at a cheaper price. Unfortunately these people will be prepared to see the club go into administration then fork out 650 million straight away and pick it up for a fraction of the price.

Look, I've got the £1 so let me just get rhe club first and I'll deal with the rest this afternoon.

But I can confirm under my watch, we won't be going into administration (this afternoon or this weekend)

 

[ToffeeTim]

Why would the 9 points not be this season of we win on Saturday and Luton don't?

I dont know the time frames for when a deduction would still apply this year

I was just thinking it seemed unlikely to happen between now and the end if the season in 9 days.

 

[Exeter_Gently]

After you spend that £1 you are going to need a lot of money just to keep the club's head above water.

Just look at the last set of accounts and 92% of turnover is spend on wages. Interest payments for the RMF loan is 30 million per year without paying any of it.

Even without the fee's for finch farm and other bills of policing etc that takes us well over 100% of our turnover.

Throw in the interest payments for MSP and 777 and we are probably about 150% of turnover. Plus you have the remaining bill of the construction for the new stadium to build.

If someone bought the club for a quid they would probably have to do a cash injection straight away of 550 million to pay the debts off and in the region of 75 million to pay for the completion of the stadium.

Why would anyone be prepared to pay Moshiri any cash for a money pit???

Some potential buyers are waiting for administration so they can cut a deal with the administrator and get the club at a cheaper price. Unfortunately these people will be prepared to see the club go into administration then fork out 650 million straight away and pick it up for a fraction of the price.

I think he's only being tongue in cheek mate, Macca's overdraft deffo would stretch to those numbers you're taking about.