Jump to content

El DerbyCo


roboto

Recommended Posts

So one thing that's puzzling me. Mel Morris has been bankrolling us for the last 7 years and the press like to mention that he's spent between £100m & £200m of his own wealth to do that.

So if that's the case, how do we apparently have debts ? I assume that Mel has lent the money to the club, not gifted it ?

So is he trying to sell the club for £40m plus the debts to him or has he borrowed money rather than used his own money ?

Edited by SamUltraRam
Link to comment
Share on other sites

3 minutes ago, SamUltraRam said:

So one thing that's puzzling me. Mel Morris has been bankrolling us for the last 7 years and the press like to mention that he's spent between £100m & £200m of his own wealth to do that.

So if that's the case, how do we apparently have debts ? I assume that Mel has lent the money to the club, not gifted it ?

Certainly up until 30 June 2018 the money was put in the club via equity.

If reports are true, somehow, despite being owed £80m for the ground, we have managed to accumulate huge debts in the space of 35 months.

Link to comment
Share on other sites

1 minute ago, G STAR RAM said:

Certainly up until 30 June 2018 the money was put in the club via equity.

If reports are true, somehow, despite being owed £80m for the ground, we have managed to accumulate huge debts in the space of 35 months.

I assume the media reports are talking about the MSD loans that one of the holding companies took out so that the football club had enough cash to be able to operate during the pandemic.

Link to comment
Share on other sites

9 minutes ago, G STAR RAM said:

What is your understanding of debt in the company?

Ive seen this mentioned by the Daily Mail but nobody has managed to explain what debt we have yet?

Exactly, so do we have 'actual' debts or is it mainly owed to Mel Morris - in which case, how much is he prepared to write off ?

 

Eg, Buy a new sports car for £100k, spend £1000's on it for servicing etc then when you try to sell it, it's book value is £50k but the dealer offers you £30k - you take the hit I suppose. You've had fun but it's cost you lots of cash

Edited by SamUltraRam
Link to comment
Share on other sites

2 minutes ago, Carnero said:

I assume the media reports are talking about the MSD loans that one of the holding companies took out so that the football club had enough cash to be able to operate during the pandemic.

If reports are to be believed we have £40m borrowed against an £80m asset (the ground) plus the lease on the training ground.

Obviously the reported interest on these loans sounds ridiculously high.

However, if the purchase price has been adjusted down to £2.5m to reflect these debts, you would assume that any credible prospective buyer would have the funds to clear down these loans.

Link to comment
Share on other sites

2 minutes ago, SamUltraRam said:

Exactly, so do we have 'actual' debts or is it mainly owed to Mel Morris - in which case, how much is he prepared to write off ?

Mel (or another of the companies that he controls) actually owed the club £75m at the time of the last accounts.

So unless he has put more than that amount in to the club in the last 3 years then I cannot see that we could have any sizeable debts to MM or his companies. 

I personally think that the debts are also in companies (with guarantees from the club) but cannot be sure on this.

Link to comment
Share on other sites

4 minutes ago, G STAR RAM said:

If reports are to be believed we have £40m borrowed against an £80m asset (the ground) plus the lease on the training ground.

Obviously the reported interest on these loans sounds ridiculously high.

However, if the purchase price has been adjusted down to £2.5m to reflect these debts, you would assume that any credible prospective buyer would have the funds to clear down these loans.

Yep, the media have been known to occasionally embellish the facts for the sake of a good story.

Link to comment
Share on other sites

35 minutes ago, G STAR RAM said:

If reports are to be believed we have £40m borrowed against an £80m asset (the ground) plus the lease on the training ground.

Obviously the reported interest on these loans sounds ridiculously high.

However, if the purchase price has been adjusted down to £2.5m to reflect these debts, you would assume that any credible prospective buyer would have the funds to clear down these loans.

we don't own the ground

Link to comment
Share on other sites

1 minute ago, Barney1991 said:

I’ve read the athletic story again and it seems whoever alonsos silent partner is who probably actually has the money might be thinking of getting the club without Alonso. Wonder who this is 

Yeah that 'silent' partner is supposedly the OSO group guy Oktohari. I pointed out a while ago when it was being reported that the 60-70mill figure for the club seemed high for a guy (Oktohari) that's worth around 200mil. That would be a significant chunk of his worth on a loss making football club. But now it's reported that it's only the 5mill plus the debt of 40mill which makes more sense as they are now trying to get away with not paying the debt off in one go. 

Still smells like Oktohari or Alonso arnt spending any serious money and just using oktoharis money as a front to get the club in a "leveraged buyout" kinda way. Maybe that's why the EFL reportedly want him to pay the debt off straight away as they are worried he is an asset stripper or doing a leveraged buy out.....just a thought but I could be totally wrong too 

Link to comment
Share on other sites

10 minutes ago, Spanish said:

we don't own the ground

Yes I know but the deal supposedly includes the ground if reports are to believed.

Take on £40m debt and receive an £80m asset in exchange.

I dont see why this transaction is supposedly so unattractive to buyers.

There must be more to this than we are being told.

 

Link to comment
Share on other sites

12 minutes ago, G STAR RAM said:

Yes I know but the deal supposedly includes the ground if reports are to believed.

Take on £40m debt and receive an £80m asset in exchange.

I dont see why this transaction is supposedly so unattractive to buyers.

There must be more to this than we are being told.

 

we only get the ground back by forgiving the loan.  Given that this may be reducing in line with Mel's monthly contribution we may owe money in return, PP worth 80 loan now reduced to 60 maybe.  Just impossible to even guess when the financials are so overdue

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account.

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...