Can we assume MM is a rich man

[Curtains]

If so why doesn’t he pay off the club debts and cut his losses by selling cheaper.

Genuine question!

[MrPlinkett]

We don't know he wont?

I can understand him trying to recoup some of his losses but this might be the next step. I hope if he does though its not just to anyone, we need to know they arent another 3 amigos, and will be in it for the good of Derby County.

[Curtains]

Just now, MrPlinkett said:

We don't know he wont?

I can understand him trying to recoup some of his losses but this might be the next step. I hope if he does though its not just to anyone, we need to know they arent another 3 amigos, and will be in it for the good of Derby County.

If course but Derby would be a good investment if the debts were lower. 

I struggle to understand what Mel wants from this sale. 

I honestly think he could do without the hassle. 

If I were him I wouldn’t be worried about a few million 

[one_chop]

Didn't Wolves get sold for a quid ?

[Curtains]

1 minute ago, one_chop said:

Didn't Wolves get sold for a quid ?

Not sure. 

I find this whole thing bizarre really. 

If Mel wants to sell well he needs to cut his losses .

Simply put he needs to sell cheaper as a going concern ie cut the debts 

[Comrade 86]

12 minutes ago, Curtains said:

If so why doesn’t he pay off the club debts and cut his losses by selling cheaper.

Genuine question!

Possibly because buying high and selling low is not how rich men become rich in the fist place. 

[Curtains]

Just now, 86 Hair Islands said:

Possibly because buying high and selling low is not how rich men become rich in the fist place. 

But money isn’t everything surely.

He won’t be poor will he ?

[Woodley Ram]

he was pre owning Derby, his pockets are a lot emptier now.  People should remember how much of his cash he has put into the club

[richinspain]

I suppose it's like all good gamblers, knowing when to stick and when to twist.

[Curtains]

1 minute ago, Woodley Ram said:

he was pre owning Derby, his pockets are a lot emptier now.  People should remember how much of his cash he has put into the club

I do remember  but he could lose more if he carries on like this. 

How much does this effect his personal fortune !

 

[Comrade 86]

5 minutes ago, Curtains said:

But money isn’t everything surely.

He won’t be poor will he ?

You're missing the point buddy. I'd like to think he could bail us out too, but such actions are counterintuitive to the types of individual who amass great wealth in the fist place. It also speaks to abject failure and that might be a tougher pill to swallow than the financial kick to the nads.

[Curtains]

Just now, 86 Hair Islands said:

You're missing the point buddy. I'd like to think he could bail us out too, but such actions are counterintuitive to the types of individual who amass great wealth in the fist place. It also speaks to abject failure and that might be a tougher pill to swallow than the financial kick to the nads.

Well yes I did understand the point but sometimes people have to swallow their pride. 

I’m not having a go at Mel but there becomes a point where the show has to move on. 

[Tyler Durden]

You'd have thought that Morris would have wised up by now that the only people interested in the club have been a couple of chancers who have totally wasted his time so the asset he's trying to sell isn't an attractive proposition at the price he's trying to punt it at. 

[Curtains]

1 minute ago, Tyler Durden said:

You'd have thought that Morris would have wised up by now that the only people interested in the club have been a couple of chancers who have totally wasted his time so the asset he's trying to sell isn't an attractive proposition at the price he's trying to punt it at. 

This 

[CBRammette]

None of us know and if we did would be bound by client confidentiality anyway. We also dont know about Mel's health which may be another factor in how/why the sale is going ahead and being handled or structured in a certain way. I wish Mel all the best personally.  The uncertainty on the club is frustrating and worrying for us all but unless one of us has a few million lying around that would help there is little we can do

[Curtains]

2 minutes ago, CBRammette said:

None of us know and if we did would be bound by client confidentiality anyway. We also dont know about Mel's health which may be another factor in how/why the sale is going ahead and being handled or structured in a certain way. I wish Mel all the best personally.  The uncertainty on the club is frustrating and worrying for us all but unless one of us has a few million lying around that would help there is little we can do

How sad for Derby County then 

[CBRammette]

Just now, Curtains said:

How sad for Derby County then 

It is heartbreaking to see the state everything is in

[Van der MoodHoover]

There's 3 types of debt. There's the debt TO mel, in respect of all the money he's put in over the years. He can write this off.

There's debt which is owed to others in respect of money borrowed and spent. Mel is possibly guarantor for this debt and after any sale he would not want to be "on the hook". Perfectly standard and natural. I assumed that this was the 40m being quoted as part of the deal.

Now the Wail are trying to stir the pot by talking about possible future sums owed. These sound like contingent debts - money might or might not be payable. For example add ons under player purchases. Mel will not have any responsibility for these once he has sold - the buyers due diligence should identify the potential range and affect the price.

The numbers bandied around in the alonso deal suggested Mel was only looking for about 5m for himself so he can't cut the price much more.

Worst case is obviously if the club is truly unsellable and Mel refuses to underwrite further debt, even if he is prepared to write off all the debt owed to him plus the stuff already accrued that he is guaranteeing.

[Curtains]

4 minutes ago, Van der MoodHoover said:

There's 3 types of debt. There's the debt TO mel, in respect of all the money he's put in over the years. He can write this off.

There's debt which is owed to others in respect of money borrowed and spent. Mel is possibly guarantor for this debt and after any sale he would not want to be "on the hook". Perfectly standard and natural. I assumed that this was the 40m being quoted as part of the deal.

Now the Wail are trying to stir the pot by talking about possible future sums owed. These sound like contingent debts - money might or might not be payable. For example add ons under player purchases. Mel will not have any responsibility for these once he has sold - the buyers due diligence should identify the potential range and affect the price.

The numbers bandied around in the alonso deal suggested Mel was only looking for about 5m for himself so he can't cut the price much more.

Worst case is obviously if the club is truly unsellable and Mel refuses to underwrite further debt, even if he is prepared to write off all the debt owed to him plus the stuff already accrued that he is guaranteeing.

What do you mean by not want to be “on the hook “ mate 

I would of thought ultimately that’s his responsibility as a guarantor knows the risks .

Edited May 15, 2021 by Curtains
Added

[Tyler Durden]

I know this is a crap analogy but I inherited a property when my parents passed away, was very run down and need of serious renovation work, put it on the market no one was interested in it at the price I wanted.....so waiting for a buyer to materialise which never happened I was paying gas, water, electricity, council tax on an empty property straight out of my own pocket.

Eventually decided to pay thousands of pounds to get new kitchen, bathroom, boiler etc put it back on the market for a higher price got a buyer within few weeks BUT I had to offset this against the money I spent on utility bills and renovations otherwise I would have been in the same situation another year down the line.

Surely Morris must see this and realise he has to offset some more of his money to make the club appear a more attractive proposition or be in the same position in 12 months time?