The Administration Thread

[Millenniumram]

19 minutes ago, Carnero said:

Go on then, tell me what exactly you think will be liquidated and to a total value of greater than £30m.

The Binnies bid included the stadium, which we believe will cost £20m. That leaves only 10m to the creditors

[Rev]

2 hours ago, RipleyRich said:

Ashley made a fortune out of Newcastle.

Sold the club for a massive profit and hived off land that he is now developing.

That will be his plan for DCFC but he needs to buy it at the right price to make it worth his while.

The state MM has left the club in has made it virtually un-saleable. The debt massively outweighs its value, it has no assets and the cost to buy it out of administration is likely to be too much for a business opportunity.

This I believe is why the Binnies have walked. They cant see a return on more than £30m. The immediate investment required on top of the purchase cost is huge, and the eventual division, and how long the club may be in that division, have a massive impact on payback and ongoing investment.

Dont forget how long the club  was for sale before administration. MM has dug a massive hole and left the club to rot.

He paid £150m for Newcastle, subsidised their losses of around £15m a year for a decade or so, and sold up for £303m. 

How did he make a fortune?

[Tamworthram]

25 minutes ago, Millenniumram said:

By the way, if we get liquidated and have to start again fan owned, can we make an agreement not to buy Pride Park under any circumstances? Build our own ground and leave that bamford Morris saddled with a stadium no-one can use. He doesn’t deserve a penny after what he’s done.

Build our own stadium? I’m sure if we have a whip round we could easily raise enough money (not) unless you’re thinking of tiny stadium.

I get your anger but we’d just be cutting our nose off to spite our face. 

[kevinhectoring]

3 hours ago, StrawHillRam said:

Chel-ski aren’t in H&F are they?

Stamford Bridge is in Fulham I’d say   

[Archied]

6 minutes ago, Tamworthram said:

Build our own stadium? I’m sure if we have a whip round we could easily raise enough money (not) unless you’re thinking of tiny stadium.

I get your anger but we’d just be cutting our nose off to spite our face. 

Maybe a quick whip round and cash in hand offer for Stamford bridge might work

[IslandExile]

37 minutes ago, Millenniumram said:

By the way, if we get liquidated and have to start again fan owned, can we make an agreement not to buy Pride Park under any circumstances? Build our own ground and leave that bamford Morris saddled with a stadium no-one can use. He doesn’t deserve a penny after what he’s done.

If we get liquidated, the Phoenix club will be playing in the Ilkeston Sunday Morning Pub League. I don't think we'll be able to afford the rent for Pride Park, let alone build a stadium. We'll have to play on some Recreation Ground.

[kevinhectoring]

6 minutes ago, Rev said:

He paid £150m for Newcastle, subsidised their losses of around £15m a year for a decade or so, and sold up for £303m. 

How did he make a fortune?

Not always easy to tell.
Do you know how much loan interest he was paid during his ownership? (Was interest cost included in the losses?)  And did the £303 include loans repaid to him? 

[Carnero]

19 minutes ago, Millenniumram said:

The Binnies bid included the stadium, which we believe will cost £20m. That leaves only 10m to the creditors

The original bid was £28m excluding the stadium (hence I originally put £28-30m). Far in excess of liquidation value. Therefore there must be better offers on the table. No need for bedwetting.

[GenBr]

1 hour ago, IslandExile said:

Why do you say that?

After Kirchner went, there were reportedly three interested parties:

- Binnies 

- Appleby 

- Ashley 

But around the time of the Administrators' deadline for bids, it seemed like there were only two bids submitted; the Appleby consortium were unable to raise the cash.

 

Was it ever confirmed how many bids there were?

"It is still not clear how many bids were lodged, but Sky Sports News understands a number of late enquiries were made by parties other than the three who had already expressed clear interest in a takeover."

Some of these other mystery groups could have bid for all we know, no?

When Kirchner got rejected he was trying to make out he was our only option as well. Seems to be a consistent response when these people dont get their own way.

13 minutes ago, Rev said:

He paid £150m for Newcastle, subsidised their losses of around £15m a year for a decade or so, and sold up for £303m. 

How did he make a fortune?

https://www.google.com/amp/s/www.chroniclelive.co.uk/sport/football/football-news/newcastles-profits-under-mike-ashley-16168415.amp

This article from 2019 says Newcastle made cumulative profits of £80 million since 2010. That figure probably took a hit with Covid, but i'd expect it didnt wipe all of it away.

 

 

[Carnero]

19 minutes ago, Rev said:

He paid £150m for Newcastle, subsidised their losses of around £15m a year for a decade or so, and sold up for £303m. 

How did he make a fortune?

Free advertising ?

[Curtains]

53 minutes ago, Millenniumram said:

We would if liquidation would serve the creditors better. The BBC article suggests the Binnie bid was the only one on the table.

Liquidation is end of DCFC . That doesn’t serve creditors 

[Curtains]

52 minutes ago, Carnero said:

I really don't know what some of these people think would be liquidated, perhaps they dont actually understand what it means. There's basically nothing to liquidate come the end of the season - only the player registrations of Bielik, Bird, Knight & Sibley (liquidation value £10-15m max).

No way would administrators turn down £28-30m offers without there being better offers already on the table.

A lot of bedwetting going on.

Correct 

[atherstoneram]

3 minutes ago, Curtains said:

Liquidation is end of DCFC . That doesn’t serve creditors 

No but the phoenix club starts with a clean sheet.

[GenBr]

47 minutes ago, Millenniumram said:

By the way, if we get liquidated and have to start again fan owned, can we make an agreement not to buy Pride Park under any circumstances? Build our own ground and leave that bamford Morris saddled with a stadium no-one can use. He doesn’t deserve a penny after what he’s done.

Yeh i hope we dont give him a penny if we get liquidated and he can keep his big white elephant of a stadium and use it for nothing. Hope it completely ruins him.

Dont think we'd be able to run pride park anyway. We'd end up like Darlington with a stadium to expensive for us to run.

[Bobby]

4 hours ago, CBRammette said:

Perhaps watch the other club in Hammersmith & Fulham

2 other clubs! Fulham and QPR

[Curtains]

3 minutes ago, atherstoneram said:

No but the phoenix club starts with a clean sheet.

A Phoenix club wouldn’t want PP and that snookers Mel. 
 

We won’t be liquidated I’m sure of that. 

[Rev]

15 minutes ago, kevinhectoring said:

Not always easy to tell.
Do you know how much loan interest he was paid during his ownership? (Was interest cost included in the losses?)  And did the £303 include loans repaid to him? 

From the articles I've read, he didn't charge interest on any loans. 

According to The Athletic, he washed his face on dispersal of Newcastle, rather than made a massive profit.

[Bobby]

4 hours ago, Crewton said:

Exactly. Their statement is nonsense and displays a lack of knowledge of the club. If anything, since the end of transfer activity, the squad value has been increased because, as you say, KB is getting back to full fitness and value and,if they'd have got their fingers out, they could have secured players like Ebosele, Cashin, Ebiowei and Lawrence on extended contracts. Taking on board a further 15 point penalty rather than stumping up another, say, £5M, does not make economic sense either.

Fact is, they just didn't want to pay the minimum price that was needed. They wanted a community asset on the cheap so that they could make a fast buck, like all Americans I've ever dealt with.

Lawrence is a footballer controlled like all of them by an agent, you couldn’t offer him a contract on what he’s currently earning as you can’t afford it, no way will his agent allow him to take a pay cut of the extremes he would have to to fit into what will be your new wage structure.

[Rev]

14 minutes ago, GenBr said:

Was it ever confirmed how many bids there were?

"It is still not clear how many bids were lodged, but Sky Sports News understands a number of late enquiries were made by parties other than the three who had already expressed clear interest in a takeover."

Some of these other mystery groups could have bid for all we know, no?

When Kirchner got rejected he was trying to make out he was our only option as well. Seems to be a consistent response when these people dont get their own way.

https://www.google.com/amp/s/www.chroniclelive.co.uk/sport/football/football-news/newcastles-profits-under-mike-ashley-16168415.amp

This article from 2019 says Newcastle made cumulative profits of £80 million since 2010. That figure probably took a hit with Covid, but i'd expect it didnt wipe all of it away.

 

 

That article states he didn't take a penny of that profit, in either dividend or interest repayments on his loans, which were interest free.

[atherstoneram]

59 minutes ago, Carnero said:

I really don't know what some of these people think would be liquidated, perhaps they dont actually understand what it means. There's basically nothing to liquidate come the end of the season - only the player registrations of Bielik, Bird, Knight & Sibley (liquidation value £10-15m max).

No way would administrators turn down £28-30m offers without there being better offers already on the table.

A lot of bedwetting going on.

I certainly know what liquidation means and entails. If there is basically nothing to liquidate at the end of the season that equally means there is basically nothing to buy. Unfortunately we don't have a given right to survive and i am not the one bed wetting.The ones seem bed wetting are the ones hoping the creditors will accept what they are offered.