Administration

7 posts   •   Page 1 of 1
Forbury Lion
Hob Nob Subscriber
Hob Nob Subscriber
Posts: 9603
Joined: 14 Apr 2004 08:37
Location: https://youtu.be/c4sX57ZUhzc

Administration

by Forbury Lion » 11 Jul 2008 17:15

If I was chairman I could see how it may make financial sense to load the club with debts, siphon out money as payments to shareholders (me) and repayment of loans plus interest to investors (me) and then making the most of limited liability afforded to shareholders have the club go into administration, points deduction and then buy it back a debt free club from the administration people for less than you earn't from it.

Reminds me of Leicester a few seasons ago.

User avatar
Ian Royal
Hob Nob Legend
Posts: 35156
Joined: 15 Apr 2004 13:43
Location: Playing spot the pc*nt on HNA?

Re: Administration

by Ian Royal » 11 Jul 2008 17:47

is that a reference to leeds as well?

User avatar
Streets
Member
Posts: 824
Joined: 22 May 2008 16:40
Location: HNA? Prediction League Winner 07/08

Re: Administration

by Streets » 12 Jul 2008 09:42

I hope to God we never find out.

User avatar
Dirk Gently
Hob Nob Super-Addict
Posts: 12622
Joined: 08 Sep 2005 13:54

Re: Administration

by Dirk Gently » 12 Jul 2008 11:57

Except that this is something that JM would never do. For all his faults he fundamentally believes that all debts should be paid in full and runs his businesses that way - for instance a few years ago when Exeter were in trouble and football clubs were reducing what they would accept from Exeter we were they only club to insist on payment in full.

Because of JM's principle that a debt is a debt I can't see him ever knowingly taking advantage of insolvency laws like numerous other chairmen have.

working class hero
Member
Posts: 747
Joined: 14 Apr 2004 21:59

Re: Administration

by working class hero » 12 Jul 2008 14:42

Dirk Gently Except that this is something that JM would never do. For all his faults he fundamentally believes that all debts should be paid in full and runs his businesses that way - for instance a few years ago when Exeter were in trouble and football clubs were reducing what they would accept from Exeter we were they only club to insist on payment in full.

Because of JM's principle that a debt is a debt I can't see him ever knowingly taking advantage of insolvency laws like numerous other chairmen have.


A debt is a debt when someone else owes you money.

A debt may be an opportunity if you owe someone else. A big difference.


Forbury Lion
Hob Nob Subscriber
Hob Nob Subscriber
Posts: 9603
Joined: 14 Apr 2004 08:37
Location: https://youtu.be/c4sX57ZUhzc

Re: Administration

by Forbury Lion » 12 Jul 2008 18:53

working class hero A debt may be an opportunity if you owe someone else. A big difference.
Someone once told me...... If you owe the bank £10,000 you jump when they say jump, If you owe the bank £10 million they jump when you say jump.

Tinrib
Member
Posts: 394
Joined: 14 Apr 2004 11:53
Location: Paranoimia

Re: Administration

by Tinrib » 16 Jul 2008 17:26

Forbury Lion If I was chairman I could see how it may make financial sense to load the club with debts, siphon out money as payments to shareholders (me) and repayment of loans plus interest to investors (me) and then making the most of limited liability afforded to shareholders have the club go into administration, points deduction and then buy it back a debt free club from the administration people for less than you earn't from it.

Reminds me of Leicester a few seasons ago.



You are Ron Noades AICMFP

7 posts   •   Page 1 of 1

Who is online

Users browsing this forum: No registered users and 87 guests

It is currently 26 Aug 2025 14:32