The Administration Thread

[kevinhectoring]

5 hours ago, duncanjwitham said:

It's a term that seems to have been used in a similar way, by almost every single administrator of a football club in the last decade:

Wigan: https://www.skysports.com/football/news/11682/12033740/wigan-athletic-preffered-bidder-selected-by-administrators-of-stricken-club

Wigan again (different bidder): https://www.belfasttelegraph.co.uk/sport/football/wigan-administrators-reach-agreement-with-preferred-bidder-for-club-39576862.html

Bolton: https://www.manchestereveningnews.co.uk/news/greater-manchester-news/bolton-wanderers-preferred-bidder-accepted-16423526

Coventry: https://www.coventrytelegraph.net/sport/football/football-news/coventry-city-fc-administrator-selects-4317423

Aldershot Towen: https://www.bbc.co.uk/sport/football/23097932

Port Vale: https://www.independent.co.uk/sport/football/football-league/wildes-named-leading-bidder-for-port-vale-8213969.html

Portsmouth: https://www.theguardian.com/football/2012/oct/18/portsmouth-supporters-trust-bid

Hearts: https://www.bbc.co.uk/sport/football/23710037

Dunfermline: https://www.bbc.co.uk/sport/football/23198170

Bamboozled us they have. They have given CK exclusivity and given away their right to speak to other bidders because they put themselves under pressure to name a ‘preferred bidder’.  Eggs in one basket, element of competition discarded. And they seem to have got nothing in return. They have given him an option on the club !! 
WHAT HAVE THEY BEEN DOING FOR 7 MONTHS ? 

Btw the terminology may be driven by the EFL (‘tell us your Pb and we’ll vet them’.) We shouldn’t be distracted by that, each of these situations is completely different 

@i-Ramwe know you think Q is playing a blinder (despite a small mountain of evidence to the contrary) but please let us know what your wife thinks 
 

[IslandExile]

You can see what's happened over this god awful period in the club's history......

We're now all focused on accountancy matters. Where's Kirchner get the money? Why's Ashley trying to save a few quid? Who owns the property like corner flags if Kirchner isn't buying the ground?

Anyone else looking forward to it just being about football again?

(Ironically the football has been monumental this season and, to be fair, we talk about that too. Just seems like the obsession is with knowing the financial details of everything - and yeah, it's understandable. My point is it's another negative)

[kevinhectoring]

5 hours ago, Carnero said:

I have seen a dcfc "journalist" called Salem Hafez, who seemed pretty clued up about the BZI deal, suggesting that Kirchner may well have links to Dubai money (which fits with the golf tournament his company Slync.io sponsors).

Kirchner probably doesn’t have much in the bank. But if slync.io is worth much more than 1bn on IPO that will do fine. I really hope this story of ‘links with ME money’ is wrong 

[Crewton]

6 minutes ago, kevinhectoring said:

Eggs in one basket, element of competition discarded.

The 'competition' has had nearly 7 months to step up to the plate and yet hasn't been able to come up with an acceptable offer. Sooner or later, as the saying goes, it's time to poo or get off the pot.

[SFox1993]

6 minutes ago, kevinhectoring said:

Kirchner probably doesn’t have much in the bank. But if slync.io is worth much more than 1bn on IPO that will do fine. I really hope this story of ‘links with ME money’ is wrong 

Why ?

Would you turn down a huge shirt sponsor deal if it helped rebuild our none existent squad next season?

[Grumpy Git]

I can see it playing-out now. EFL accept our plan to suspend the 15 point deduction based on paying 35% of non-football debts over two years.

We stay-up this year after Reading lose all their last six games and Derby pip them on GD for 21st spot.

The season after next, Rooney's Slync.io Rams buoyed by a fresh line-up of ex-internationals and aspiring youth, go on a storming run and at the final whistle on the last game of the season are firmly sat in second spot with a 14 point cushion over Everton in third.

10 minutes after the game Kieran Magiure spots an aritmetical error in Quantuma's "Great British Financial Plan", and it transpires that only 34.99% of the debts were cleared. EFL instantly deduct us 15 points and we lose both PO semi-finals 1-0 to Peterborough.

Edited April 7, 2022 by Grumpy Git

[roboto]

21 minutes ago, Gee SCREAMER !! said:

I think without getting into the nitty gritty of his incoming and outgoings, seeing a gross profit within the public domain that would equate to the management of accrued debt and the covering of some nice loan fees and free transfer wages for at least 15 players going forward would help everyone relax about us not being in the same scenario in 2 years. 

I'll get the answer if we get more points deducted to be honest.

https://thegolfnewsnet.com/golfnewsnetteam/2022/01/24/2022-slync-io-dubai-desert-classic-purse-winners-share-prize-money-payout-125058/

The guys company paid out $8m in prize money to some guys hitting a small ball around a field with a metal bar for a weekend. I'm pretty sure he has some assets to use in some form or another. The fact it isn't widely in the public domain shouldn't be a huge problem. With the nature of the Slync.io business, it's safe to assume he's probably got some crypto trading happening in the background. Can we be the first team to pay players in Dogecoin?

[RadioactiveWaste]

I prefer the term magic beans to crypto currency,it helps my visualisation of the crypto trading space.

My blue magic beans became 34% more valuable Im so glad I transferred my red magic beans before red magic bean coin tanked.

[kevinhectoring]

9 hours ago, DarkFruitsRam7 said:

The fact that he’s been chosen as the preferred bidder means he must have enough though. I’m just intrigued as to the source of that money.

Seems likely that he holds a massive stake in a company that will IPO for a massive amount - that should be enough for Q and the EFl and for us. Goldman are one of his backers so he’s in the big league

[CBRammette]

17 minutes ago, Grumpy Git said:

I can see it playing-out now. EFL accept our plan to suspend the 15 point deduction based on paying 35% of non-football debts over two years.

We stay-up this year after Reading lose all their last six games and Derby pip them on GD for 21st spot.

The season after next, Rooney's Slync.io Rams buoyed by a fresh line-up of ex-internationals and aspiring youth, go on a storming run and at the final whistle on the last game of the season are firmly sat in second spot with a 14 point cushion over Everton in third.

10 minutes after the game Kieran Magiure spots an aritmetical error in Quantuma's "Great British Financial Plan", and it transpires that only 34.99% of the debts were cleared. EFL instantly deduct us 15 points and we lose both PO semi-finals 1-0 to Peterborough.

Thank you for some humour. Its more miserable on here than last week!

[kevinhectoring]

16 minutes ago, SFox1993 said:

Why ?

Would you turn down a huge shirt sponsor deal if it helped rebuild our none existent squad next season?

If we were a PL club I’d think being owned by a global consortium could benefit us by expanding global reach. But we’re not Chelsea, we’re facing a season at least in div 1. Where I think (for better or for worse) sole ownership is strong ownership 

but of course the sponsorship would be good 

[duncanjwitham]

25 minutes ago, kevinhectoring said:

Bamboozled us they have. They have given CK exclusivity and given away their right to speak to other bidders because they put themselves under pressure to name a ‘preferred bidder’.  Eggs in one basket, element of competition discarded. And they seem to have got nothing in return. They have given him an option on the club !! 
WHAT HAVE THEY BEEN DOING FOR 7 MONTHS ? 

Btw the terminology may be driven by the EFL (‘tell us your Pb and we’ll vet them’.) We shouldn’t be distracted by that, each of these situations is completely different 

@i-Ramwe know you think Q is playing a blinder (despite a small mountain of evidence to the contrary) but please let us know what your wife thinks 
 

Don't know why I'm still doing this, but it's not just football clubs using that terminology:

Bon Marche: https://www.insidermedia.com/news/yorkshire/preferred-bidder-named-for-bonmarche

Arjo UK: https://www.printweek.com/news/article/arjo-uk-admins-now-working-with-preferred-bidder

Blipfoto: https://www.thedrum.com/news/2015/03/18/blipfoto-administrators-selects-preferred-bidder-following-liquidation

McGill and Co: https://projectscot.com/2019/02/administrators-hopeful-of-mcgill-sale-after-preferred-bidder-appointed/

Stratford Hherald: https://www.holdthefrontpage.co.uk/2020/news/deal-to-save-under-threat-weeklies-in-offing-as-preferred-bidder-chosen/

Alpha Steel: https://senedd.wales/media/yqyp551w/dat20080605-e2-english.pdf

Forthplus: https://www.leonardcurtis.co.uk/wp-content/uploads/2021/11/Update-to-customers-24.11.21.pdf

At some stage, you have to make a commitment and try and get a deal over the line, and that is going to entail giving one party exclusivity for a period of time.  Despite what you seem to think, it's not just a case of the admins doing the entire thing and someone rocking up and handing over the cash at the last minute.  There are agreements to be made with various parties, which involve the kind of thing you can't agree until you have a willing buyer and know what they are willing to put in.  If you're forever discarding all that work because another bidder has gazumped the previous one, you'll never get anywhere.

[Gee SCREAMER !!]

8 minutes ago, RadioactiveWaste said:

I prefer the term magic beans to crypto currency,it helps my visualisation of the crypto trading space.

My blue magic beans became 34% more valuable Im so glad I transferred my red magic beans before red magic bean coin tanked.

Live footage of the admin satisfying the EFL accountants team of the financial forecast

[DarkFruitsRam7]

10 minutes ago, kevinhectoring said:

Seems likely that he holds a massive stake in a company that will IPO for a massive amount - that should be enough for Q and the EFl and for us. Goldman are one of his backers so he’s in the big league

But does that give you £50+ million of personal wealth to play around with?

[RamuelLJackson]

3 hours ago, Curtains said:

https://www.bbc.co.uk/programmes/p0bzszsj
 

Worth a listen

    Gerald Krasner and Simon Stone and Simon Long 

Really informative and will take minimum of 2 Months to do 

That's a long programme

[kevinhectoring]

7 minutes ago, duncanjwitham said:

Don't know why I'm still doing this, but it's not just football clubs using that terminology:

Bon Marche: https://www.insidermedia.com/news/yorkshire/preferred-bidder-named-for-bonmarche

Arjo UK: https://www.printweek.com/news/article/arjo-uk-admins-now-working-with-preferred-bidder

Blipfoto: https://www.thedrum.com/news/2015/03/18/blipfoto-administrators-selects-preferred-bidder-following-liquidation

McGill and Co: https://projectscot.com/2019/02/administrators-hopeful-of-mcgill-sale-after-preferred-bidder-appointed/

Stratford Hherald: https://www.holdthefrontpage.co.uk/2020/news/deal-to-save-under-threat-weeklies-in-offing-as-preferred-bidder-chosen/

Alpha Steel: https://senedd.wales/media/yqyp551w/dat20080605-e2-english.pdf

Forthplus: https://www.leonardcurtis.co.uk/wp-content/uploads/2021/11/Update-to-customers-24.11.21.pdf

At some stage, you have to make a commitment and try and get a deal over the line, and that is going to entail giving one party exclusivity for a period of time.  Despite what you seem to think, it's not just a case of the admins doing the entire thing and someone rocking up and handing over the cash at the last minute.  There are agreements to be made with various parties, which involve the kind of thing you can't agree until you have a willing buyer and know what they are willing to put in.  If you're forever discarding all that work because another bidder has gazumped the previous one, you'll never get anywhere.

Sure, it’s not a ‘football term’, it’s mostly used in the context of government contracts (PFI originally) as well as major private procurements. Some private equity and other M&A people use it but most just refer to exclusivity. I’m on about the substance tho not the terminology but the terminology reflects how feckless Q is

What I’m saying is this. Q’s strategy should have been to agree a binding and detailed MOA with one party whilst others were still at the table. The MOA would have reduced wriggle room as regards the interface with third parties. So for example it might have said: “you will proceed if HMRC agree 25%. “.   Etc etc 
 

It’s fine when the detailed and binding MOA is signed to grant exclusivity for say 3 weeks to get to full documentation. I suspect we have a much longer wait. And Q’s announcement suggests many issues are outstanding and parameters have not been agreed.
 

It’s risky and I fear it’s done to stop the clamour

[kevinhectoring]

26 minutes ago, DarkFruitsRam7 said:

But does that give you £50+ million of personal wealth to play around with?

Dunno but quite possible Goldman would lend him 50m against his stake in S 

[nogbad van 50]

2 hours ago, Turk Thrust said:

Is this correct? No one seems to have picked up on it. I haven’t heard of this before. Anyone checked the rules?

There you go Col
 

“Implications for creditors

Under the new rules, unsecured creditors must receive a minimum of:

25p in the pound, paid on takeover of the clubs’ assets by the purchaser, or

35p in the pound, paid within three years.

Failure to meet this requirement will result in a further 15-point penalty the following season.

Whilst unsecured creditors will welcome this measure, it may put off would-be purchasers. It is also currently unclear how this minimum repayment rule will relate to the ‘prescribed part’ – the ring fenced fund set aside for unsecured creditors of any company out of the net floating charge realisations.

Creditors will also welcome the abolition of the requirement to exit administration by Company Voluntary Arrangement (CVA). Instead, the club’s share in The Football League may now pass to the purchaser, subject to certain requirements. This certainty of continuation in the league should reduce the insolvency period and the associated costs. It should also deliver a better overall return for creditors by increasing the number of potential purchasers, rather than a CVA process largely controlled by the club’s previous owners.

The controversial ‘Football Creditors Rule’ remains unchanged, despite running contrary to normal principles of insolvency law, including the pari
passu rule that all unsecured creditors should be paid an equal percentage of their debt. The Football Creditors Rule bypasses the statutory order of priority by requiring full repayment of debts to clubs and players for transfers and wages, before any other unsecured creditors.  The justification for the rule is that it ensures the continuation of business in league football.  Other creditors will, however, take some comfort from the new minimum returns required for unsecured creditors.”

[Guest]

51 minutes ago, kevinhectoring said:

Seems likely that he holds a massive stake in a company that will IPO for a massive amount - that should be enough for Q and the EFl and for us. Goldman are one of his backers so he’s in the big league

In terms of the history of Derby County this analysis is quite worrying. Robert Maxwell's stakes in companies dwarfed anything that Chris Kirchner has so far acquired. Maxwell was much higher in the global 'big league' as you put it than CK and he too was backed by Goldman Sachs with loans of £50m. He moved in such grand circles that on the day he went overboard he was due to meet no other than the Governor of the Bank of England for 'a chat.' We all know what happened next. Derby County survived because fortunately Maxwell had moved on not long before due to the perceived abuse he had been subjected to from the Derby County fanbase remember the banner - 'Fat Cheques - Not Fat Czechs.' Fortuitously, all we lost was the £5m transfer money Liverpool paid for Mark Wright and Dean Saunders - Maxwell trousered it for himself.

I do wish you would stop coming up with these gems Kevin, they can be somewhat distressful for us senior citizens.

Edited April 7, 2022 by Brailsford Ram

[Ghost of Clough]

3 hours ago, 24Charlie said:

Quantuma's job is to get the best deal for the creditors (and probably Quantuma themselves) not DCFC. The EFL have stated that they want to see the best deal for The Club, the fans and the community.

These positions conflict so we may yet not have a ratified deal once the EFL look at it.

Quantuma also can't choose someone they believe could put us back into administration.