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New buyers put off by £20 million hole in accounts

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The Beautiful Game said:
Because they said they would pay it back. Was obvious at the time they wouldn’t really though. Charlie even said at the time they’ve paid a club debt with clubs money so there’s no obligation to. As usual though they’ve lied and misled so it looks far more shady than it needs to
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They are still saying they have put the money back in? What’s Charlie has said there seems the most accurate description of what’s happened.
I agree no idea why they didn’t just come out and say it from the start.
 
Secret Visage said:
As GOM has pointed out seemingly last night (I went to bed as had enough) these are the 2018-19 trading results, so this item has now gone, providing it was in the statutory accounts on submission.

2019-20 and 2020-21 going forward, in terms of accounts are seperate and the club itself should be capable of carrying on, barring the impact of Covid-19.

The sale of the club will be hampered, if Madrox wants this £20.5m paid to them, which would be disingenuous, imo. Should they restrict their valuaton of the club to the £12.7m share purchase, with the capital input by Madrox (said to be £7.5m), plus the FPP loan of £9m, then that is where a deal can still be done. Again, IMO, anyone incoming with the financial backing to do a deal to circa £30m can get the club, add in maybe a small premium due to Madrox on promotion(s). This is where FPP already have a clear advantage and if they want us, they can get us.

Where I'm a little bit in the dark on this is why this £20.5m has ben removed in 2018/19. Gut instinct tells me it's at the insistence of FPP in terms of them agreeing to the loan, otherwise it could have stayed in for 2019/20 and been reduced by any additonal funds incoming from Madrox, said to be £2.5m and that figure would be down to £18m.
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They bought for 10m. Any money invested or loaned has not created value so it has no reason to find it's way to the value. The clubs worth appears to be what was paid, not what it would take to find SD a profit.
 
sksk3021 said:
Yes but they told us that months ago. I’m not sure why they would. I’m by no means an expert on this type of thing but it seems possible it could be to do with a sale.
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The same sale which all of the reports overnight say this is actually preventing from going through?
 
sksk3021 said:
They are still saying they have put the money back in? What’s Charlie has said there seems the most accurate description of what’s happened.
I agree no idea why they didn’t just come out and say it from the start.
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They have said theyve paid in £11m to the club. £9m of that was the FPP loan. As usual their comments are being bent to suggest stuff that isnt there.
 
Fact Hunt said:
Given the issues that football has just now, I still think Ashley has done remarkably well to get the £300 million (or whatever it is). In order for the M*gs to create more money they are first going to have to build a bigger stadium, which will be expensive....
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All correct, yes. If the new owners are prepared to extend the capacity it will be a singular demonstration of ambition beyond anything Ashley did with the infrastructure of the club.

Apologies, he did paint the brick work on the exterior base of the Gallowgate stand black last summer. I can only imagine a painter and decorator owed him a few quid?
soapster said:
and makes it so different and therefore not the same
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That depends on whether Donald does preside over the financial ruin of the club. If so obviously would be the correct choice of words.
 
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Father Jack Hackett said:
Just let this sink in lads and lasses. We're at out lowest ever ebb, we're potless and, if this is true, these fellas have taken £20m of our club's money, sold anything that isn't screwed down, have scared away potentially our biggest chance of really doing something in a lifetime and are wanting a king's ransom for the club.
All whilst spending £100k trying to get us out of this God forsaken league, having failed last season.
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Nice summary. A lot of the article is supposition but the biggest concern was that FPP were interested in buying the club but this scared them off - Donald was peddling that nonsense that FPP were interested in investing in him rather than the club.
 
[QUOTE="Ericsgate, post: 31647383, member: 42657"

In the end the government will have to intervene as more than 50% of football clubs are not sustainable in a post Covid world of lower gates and less TV money tricking down the pyramid.
[/QUOTE]
Why should the government get involved? If and when the world gets back to anything near normality, there are going to be a lot more deserving businesses than football clubs, many of which have been badly run for decades (That sadly must be the one league we would be top of.)
 
We shall see if Donald and his mate now have the nerve to put in very many appearances at the SoL when football resumes. When they announced that they had appointed a CEO I thought that it was very likely that we would see and hear a lot less from them in the future. However following the publication of this story I think that its almost certain.

Every cloud .. I suppose
 
riffraff said:
I’d say the bulk of the squad being out of contract is good news even without taking the covid caused lack of gate money into account.
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I agree in a certain way, marra. However it's who replaces them that worries me. As long as we continue to recruit the way we have for donkeys years we're screwed. Our only hope as it stands is that this Rodwell fella proves a shrewd appointment.
 
maghater said:
[QUOTE="Ericsgate, post: 31647383, member: 42657"

In the end the government will have to intervene as more than 50% of football clubs are not sustainable in a post Covid world of lower gates and less TV money tricking down the pyramid.
Click to expand...
Why should the government get involved? If and when the world gets back to anything near normality, there are going to be a lot more deserving businesses than football clubs, many of which have been badly run for decades (That sadly must be the one league we would be top of.)
[/QUOTE]

I was not suggesting that the government would provide finance per se.

I’m just imagining a scenario, say that 30 clubs file for administration due to insolvency. They cannot all be deducted points and relegated. Relegated to what? There might not be a league system to support it.

Government intervention may be along the lines of relaxing insolvency laws or perhaps providing bridging loans stipulations on reducing longer term cost structures. In the end football is a fundamental part of British society there might be political interest in preserving it?

Free market capitalism as we knew it is temporarily broken as we knew it. I personally think that temporary is a number of years as I do not see this as a V shaped recession.
 
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