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The Administration Thread


Boycie

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If the EFL is withholding £7m, and that season tickets/attendance would likely raise a similar amount, well that covers half of what the supposed bid has been from Appleby/Kirchner/Ashley/Binnie Family, and that the club will likely be run on a shoestring budget for the foreseeable. Throw in a stadium realistically valued at £30m+ available at a knocked down price, it's not as big a gamble as some make it out to be, especially if Morris can be persuaded to chip in a little towards the Dell debt.

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1 hour ago, PistoldPete said:

Yes but these are being paid as we go (apart from any bonuses). When player contracts finish in the summer our wage bill will be small apart from Rooney and co.  Wigan were allowed to go into a new season in admin. I don't see how withholding money in case we fail is really doing anything useful.. in fact it only makes it more likely that we will fail. 

The administrators have struggled this season to provide funds to ensure we complete the season, why should funding be any different next season if we are in the same situation?

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33 minutes ago, MackworthRamIsGod said:

They know damn well their isn't a credible buyer amongst the interested parties and unless someone changes their stance massively, it will only end one way, the biggest club in England to have gone into liquidation.

Thats not correct. There are credible buyers who are interested - what they're not willing to do is stump up Quantuma's/Morris' inflated asking price for a club in an absolute state.

The only 'buyers' who previously agreed to Morris' asking price (Alonso & Bin Zayed) were the very opposite of credible. Whilst its a grim waiting game for us fans, I can understand why prospective buyers are digging in waiting to see if Morris drops his price for PP. No chance of this being resolved before June.

Edited by LeedsCityRam
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1 hour ago, duncanjwitham said:

I could be wrong on this, but I think that's a one-off arrangement that was put in place because of COVID. I've certainly never heard of it being applied before.

The bigger issue might be accepting card payments.  Credit Card companies are not going to take the risk of letting people spend £400+ on a season ticket for a club that's potentially about to implode.  They'll be on the hock if we do go bust and people try to claim the ticket money back on their cards.

Not posted on here for a while, mainly because i don't want get into virtual bun fight with people who are guessing what is going off.

However to note i have had a voucher this week to use on a matchday ticket in lieu of the Brentford covid postponement.

i thought i had asked the club to keep it at the time (pre administration), but even if i hadn't i am surprised it has not counted as a admin credit.

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2 minutes ago, Macintosh said:

If the EFL is withholding £7m, and that season tickets/attendance would likely raise a similar amount, well that covers half of what the supposed bid has been from Appleby/Kirchner/Ashley/Binnie Family, and that the club will likely be run on a shoestring budget for the foreseeable. Throw in a stadium realistically valued at £30m+ available at a knocked down price, it's not as big a gamble as some make it out to be, especially if Morris can be persuaded to chip in a little towards the Dell debt.

I sort of agree and (as a fan) wonder why we are such an unattractive proposition for a buyer. Outside of the prem we are one of a small number of clubs capable of generating a sufficient yearly income to cover the majority if not all of our expenditure. Throw in a good season with the possibility of success and the support will remain as solid as ever (even in L1).

But I am a fan and not a buyer, and I understand that in business you try tp get the lowest price possible....but it still baffles me why Q are struggling to sell the Club and that we may "disappear" as a result.

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6 minutes ago, atherstoneram said:

The administrators have struggled this season to provide funds to ensure we complete the season, why should funding be any different next season if we are in the same situation?

Because most of this seasons Season Ticket revenue was used the previous year during Covid....mine for example was "free" because I had paid for the 20/21 season but could never attend. This year we could reasonably sell 15k season tickets and get the full revenue.

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3 minutes ago, Eatonram said:

I sort of agree and (as a fan) wonder why we are such an unattractive proposition for a buyer. Outside of the prem we are one of a small number of clubs capable of generating a sufficient yearly income to cover the majority if not all of our expenditure. Throw in a good season with the possibility of success and the support will remain as solid as ever (even in L1).

But I am a fan and not a buyer, and I understand that in business you try tp get the lowest price possible....but it still baffles me why Q are struggling to sell the Club and that we may "disappear" as a result.

What is difficult to understand? We have tens of millions of pounds of debts, virtually no players and no major assets. If we got promoted without losing money we'd be one of the very few clubs who managed to do so.

That is why we're not an attractive prospect for investors. The only way they would ever make their money back is promotion to the Prem and if they're going to do that they will need to lose even more money first to make it happen

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13 minutes ago, atherstoneram said:

The administrators have struggled this season to provide funds to ensure we complete the season, why should funding be any different next season if we are in the same situation?

You won’t have players earning stupid amounts, you won’t need as much each month with a far lower wage bill.

 

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2 minutes ago, GenBr said:

What is difficult to understand? We have tens of millions of pounds of debts, virtually no players and no major assets. If we got promoted without losing money we'd be one of the very few clubs who managed to do so.

That is why we're not an attractive prospect for investors. The only way they would ever make their money back is promotion to the Prem and if they're going to do that they will need to lose even more money first to make it happen

Yes, but buying out of administration, in effect "clears" the debt...that is why the punishments are so harsh and other Clubs hate it. The basics (as far as we are led to believe) are that £30m would buy Derby County with the £30m going to creditors at different rates. The buyer at that price could even "own" the stadium but with a £20m "mortgage". Do you think all the Clubs who have built stadiums in the last 30 years have paid up front or had a loan/mortgage? That is the position any new buyer would be in. I stand by the view that it would still be a good deal BUT I have to acknowledge that the obvious lack of a willing buyer could mean I am totally wrong.

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15 minutes ago, Eatonram said:

I sort of agree and (as a fan) wonder why we are such an unattractive proposition for a buyer. Outside of the prem we are one of a small number of clubs capable of generating a sufficient yearly income to cover the majority if not all of our expenditure. Throw in a good season with the possibility of success and the support will remain as solid as ever (even in L1).

But I am a fan and not a buyer, and I understand that in business you try tp get the lowest price possible....but it still baffles me why Q are struggling to sell the Club and that we may "disappear" as a result.

We really aren't even close to running sustainably. We are effectively too big for the Championship - big stadium, massive training infrastructure, expensive academy. It all takes a lot of upkeep and it wipes out the advantage our extra 5k of extra support.

We need an expensive squad because we need to be going for promotion. There is absolutely no prospect of Derby County ever running profitability outside the Premier League - unless there is a major overall of the way English professional football works 

Ultimately, the value in the club is as a Premier League club. The buyer's will be calculating the likely costs of achieving that. I think that the only way we get a buyer is if we are available at a massively discounted price - otherwise buying Ipswich, Sunderland or Preston is a far better option.

 

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10 minutes ago, Eatonram said:

Yes, but buying out of administration, in effect "clears" the debt...that is why the punishments are so harsh and other Clubs hate it. The basics (as far as we are led to believe) are that £30m would buy Derby County with the £30m going to creditors at different rates. The buyer at that price could even "own" the stadium but with a £20m "mortgage". Do you think all the Clubs who have built stadiums in the last 30 years have paid up front or had a loan/mortgage? That is the position any new buyer would be in. I stand by the view that it would still be a good deal BUT I have to acknowledge that the obvious lack of a willing buyer could mean I am totally wrong.

I think it was good deal pre-Christmas (when we're lead to believe Ashley was lined up tto be PB), but tthe EFL wouldn't let that happen as they were scared to deal with Boro/Wycombe so things drifted. Since then we've lost quite a bit of value from the squad and we're now looking far more likely to drop into League One - not sure we're anywhere near as attractive anymore....

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MM and buyer brinkmanship

 

bids are enough to clear football debt or buy the stadium but not both.

 

MM holding out for money towards the stadium (hence the £5m figure I saw in a an article last week) or an agreement to lease

 

buyers saying - we’ll if we dint buy the cub gets wound up you get nothing and don’t own the stadium (as his £20m isn’t the only security MSD hold and will repossess.) so why would we agree to lease it back?

 

they’ll meet somewhere in the middle

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