Jump to content

Abu Derby County


tinman

Recommended Posts

  • Replies 10.1k
  • Created
  • Last Reply
1 minute ago, oldtimeram said:

Why can't he fund the wages?  Why does he need to take loans?  I don't understand why this is the case if he is as wealthy as reported?

Morris can't be broke surely? 

If it’s a limited company and the loans are linked to the company, then he will not have to pay em back if the club  goes into administration/liquidation They just become added to the list of creditors. I do not expect we will by the way for one moment 

Link to comment
Share on other sites

4 minutes ago, oldtimeram said:

Why can't he fund the wages?  Why does he need to take loans?  I don't understand why this is the case if he is as wealthy as reported?

Morris can't be broke surely? 

You surely don’t think that a multi millionaire has all his money in a current account at HSBC. His money will be tied up in shares, investments etc and not readily available. Asset rich, cash poor.

Link to comment
Share on other sites

11 minutes ago, oldtimeram said:

Yes but surely he knew this when he bought the club, he'd need to put in place contingencies to free up cash for wages, signings etc?

That’s not how it works. He owns Derby County, which is a business. Derby County as a business will have its own profit/loss and cash flow plans and will hold an amount of cash as working capital. Mel does not pay the wages, or sign players. The football club do that which he happens to be the sole shareholder.

if the club need more working capital as the cash flow forecast has not come to fruition (like now) then Mel as sole shareholder will take an action, to provide cash. So he could issue new shares and sell them to himself, provide a loan, or as owner instruct the club to raise working capital/improve cash position by selling a player or releasing a player who is on high wages.

22 minutes ago, oldtimeram said:
Link to comment
Share on other sites

16 minutes ago, oldtimeram said:

Yes but surely he knew this when he bought the club, he'd need to put in place contingencies to free up cash for wages, signings etc?

How would he know when he bought the club that we’d now be in a pandemic with the impact on cash flow that is having?

Link to comment
Share on other sites

18 minutes ago, oldtimeram said:

Yes but surely he knew this when he bought the club, he'd need to put in place contingencies to free up cash for wages, signings etc?

Of course he should have - after all, we knew a pandemic was on its' way and fans wouldn't be attending matches.

Link to comment
Share on other sites

35 minutes ago, abertawe_ram said:

Celebrating the payment of players' wages like a goal is a new one for me! Weird times. 

If we coupe rollow it up with a good result and maybe a couple or loans/freebies to help us out at cb and st then I might just pass out from overexcitment 

Shall we start a Mexican wave ?

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...