The Administration Thread

[Oldben]

Business isn't about morality, technically it perhaps should be.

In reality I don't see any reason why mm would sell the club for £1.

A few years ago Arsenal offer Luiz saurez a transfer fee and the then manager Arsene Wenger said he'd pay just £1 pound more to sign him on a take it or leave it deal, strangely they didn't sign the player.

And at least that deal offered, 40 million plus £1.

https://www.google.com/amp/s/www.thesun.co.uk/sport/football/9445234/arsenal-luis-suarez-bid-liverpool-transfer/amp/

For mm to sell the player for just £1 wouldn't make much sense to him, to most derby fans it would make sense.

There's an argument that it makes sense for the council to buy derby and rent the club to ck.

It makes logical sense and is profitable I'm the long term for Derby council to do that.

I think that most people know that local authorities are run on sound business sense.

I was hoping that ck takes over the msd debt rather than pays the debt off, and that the debt was something that mm personally owed to msd. Then it might be a simple matter to tell mm, you give dcfc pride Park in exchange for not having to pay off the debt owed against pride Park.

 

[EtoileSportiveDeDerby]

1 hour ago, Oldben said:

Business isn't about morality, technically it perhaps should be.

In reality I don't see any reason why mm would sell the club for £1.

A few years ago Arsenal offer Luiz saurez a transfer fee and the then manager Arsene Wenger said he'd pay just £1 pound more to sign him on a take it or leave it deal, strangely they didn't sign the player.

And at least that deal offered, 40 million plus £1.

https://www.google.com/amp/s/www.thesun.co.uk/sport/football/9445234/arsenal-luis-suarez-bid-liverpool-transfer/amp/

For mm to sell the player for just £1 wouldn't make much sense to him, to most derby fans it would make sense.

There's an argument that it makes sense for the council to buy derby and rent the club to ck.

It makes logical sense and is profitable I'm the long term for Derby council to do that.

I think that most people know that local authorities are run on sound business sense.

I was hoping that ck takes over the msd debt rather than pays the debt off, and that the debt was something that mm personally owed to msd. Then it might be a simple matter to tell mm, you give dcfc pride Park in exchange for not having to pay off the debt owed against pride Park.

 

 MM said he would give the club away providing the righ custodian is there..

Now he's got us by the balls and squeezing hard.

Local authorities, business sense? Next time you go to PP, check out the vaccinodrome, next door, that place is a bottomless pit of money. 

[jono]

7 hours ago, CBRammette said:

So who will make MM see reason? Can anyone? I find it hard to believe we have got to this point and he still seems to be the issue. How does he sleep at night?

We are forgetting that Mel does need to a deal over the stadium and that only happens with an ongoing club. Without the club who is going to pay MSD their mortgage payments or settle the 20,000,000 owed by Mel secured on what is currently his asset. 

[RipleyRich]

The Stadium was always going to be a difficult issue to resolve, so this is where my thoughts are right now and my immediate concerns.

CK`s exclusivity expires tomorrow. What then? Can others step and start the process again? more delays!

The funding runs out tomorrow. Is CK confident enough or willing to gamble on funding something he may never own?

If CK is unwilling to fund, can loans be secured? But this only means more debt to be satisfied by any new owner.

And finally, if a sale is delayed by the Stadium and there is no sign of an imminent closure, how long has the Club got before the EFL pull the plug? The season ends tomorrow, L1 is done bar the play offs, they will soon be planning for next season and if there is any doubt about Derby being able to start next season at what point do they load the gun?

 

[jimtastic56]

Poor little Wycombe won 2-0 in the 1st leg of the play offs last night. I will never forget how Couhig backed Gibson to try and hold up our takeover. I hope MK Dons can turn it round in the 2nd leg.?

[PistoldPete]

25 minutes ago, jono said:

We are forgetting that Mel does need to a deal over the stadium and that only happens with an ongoing club. Without the club who is going to pay MSD their mortgage payments or settle the 20,000,000 owed by Mel secured on what is currently his asset. 

Mel doesn’t owe £20 m though. DCFC owe that to MSD although it is secured against the stadium which is his asset. 
 

we need to get  a stadium deal to get MSD out of the equation. 

[BramcoteRam84]

2 hours ago, Oldben said:

Business isn't about morality, technically it perhaps should be.

In reality I don't see any reason why mm would sell the club for £1.

A few years ago Arsenal offer Luiz saurez a transfer fee and the then manager Arsene Wenger said he'd pay just £1 pound more to sign him on a take it or leave it deal, strangely they didn't sign the player.

And at least that deal offered, 40 million plus £1.

https://www.google.com/amp/s/www.thesun.co.uk/sport/football/9445234/arsenal-luis-suarez-bid-liverpool-transfer/amp/

For mm to sell the player for just £1 wouldn't make much sense to him, to most derby fans it would make sense.

There's an argument that it makes sense for the council to buy derby and rent the club to ck.

It makes logical sense and is profitable I'm the long term for Derby council to do that.

I think that most people know that local authorities are run on sound business sense.

I was hoping that ck takes over the msd debt rather than pays the debt off, and that the debt was something that mm personally owed to msd. Then it might be a simple matter to tell mm, you give dcfc pride Park in exchange for not having to pay off the debt owed against pride Park.

 

I wouldn’t have an issue with Mel digging his heels in over the stadium if he had paid off his £36m tax bill. But then it wouldn’t be an issue and we wouldn’t be in administration had he done that. It comes down to the overall value of the club and to pay the creditors what’s required to avoid points deductions and pay Mel £20m the value is too high. Exactly the reason he couldn’t sell the club himself.

He has made the club virtually unsellable and he’s still playing us all regarding the ground.

[FlyBritishMidland]

8 hours ago, CBRammette said:

So who will make MM see reason? Can anyone? I find it hard to believe we have got to this point and he still seems to be the issue. How does he sleep at night?

The first question is a really good one.  And is relevant to where we are today.  I have a theory, and it might be unpopular, but I know Stephen Pearce has had a lot of stick but is it right?  Think about it, Mel reduces the number of people on the board - those meant to challenge and help him see reason - such that it’s really him having total control.  He interferes with the football side by going in the dressing room, drones, etc.  If he’s doing that in a part of the business he’s not an expert in what was he doing in those areas he knew a bit about?

Both Quantuma and CK have praised SP.  For all we know he may have advised MM but it fell on deaf ears.  It was SP who was thrown in front of the media when the money from the fake sheikh didn’t appear.  I think MM is a total control freak.  Perhaps the only SP did was be too much of a “yes man”?  It might be interesting to hear from him when it’s all over.  Just a theory!!

[RipleyRich]

7 minutes ago, PistoldPete said:

Mel doesn’t owe £20 m though. DCFC owe that to MSD although it is secured against the stadium which is his asset. 
 

we need to get  a stadium deal to get MSD out of the equation. 

And I`m sure CK doesn`t want to be paying MSD`s interest rates!

[Archied]

21 minutes ago, PistoldPete said:

Mel doesn’t owe £20 m though. DCFC owe that to MSD although it is secured against the stadium which is his asset. 
 

we need to get  a stadium deal to get MSD out of the equation. 

What a mess ,, how the hell did he manage that , it’s like me getting a loan secured on somebody else’s house that I don’t own 

[RamBeauIV]

26 minutes ago, RipleyRich said:

The Stadium was always going to be a difficult issue to resolve, so this is where my thoughts are right now and my immediate concerns.

CK`s exclusivity expires tomorrow. What then? Can others step and start the process again? more delays!

The funding runs out tomorrow. Is CK confident enough or willing to gamble on funding something he may never own?

If CK is unwilling to fund, can loans be secured? But this only means more debt to be satisfied by any new owner.

And finally, if a sale is delayed by the Stadium and there is no sign of an imminent closure, how long has the Club got before the EFL pull the plug? The season ends tomorrow, L1 is done bar the play offs, they will soon be planning for next season and if there is any doubt about Derby being able to start next season at what point do they load the gun?

 

We'll know for sure after tomorrow.  If CK starts paying the bills after tomorrow, then we'll be OK. If the Council would announce their commitment to buy PP, then that will allay our fears.

Of more concern was another quote from yesterday, "but the EFL are seeking clarity over issues such as spending levels for next season". The EFL will be re-negotiating CK's Business Plan w.r.t. salary caps etc., so just hope this doesn't prove another sticking point. 

[hintonsboots]

4 minutes ago, Archied said:

What a mess ,, how the hell did he manage that , it’s like me getting a loan secured on somebody else’s house that I don’t own 

This is football the normal rules of business and morality don’t apply. Even the EFL our governing body don’t fall into line with UK law. It’s the only sport where participants can tell the ref to F off ….. since the demise of Alex Higgins anyway.

[EtoileSportiveDeDerby]

4 minutes ago, Archied said:

What a mess ,, how the hell did he manage that , it’s like me getting a loan secured on somebody else’s house that I don’t own 

Does it surprise you, MM was out of his depth trying to run the club. When you see this mess and Pearce is still there "trying to help" it really beggars belief. What was he doing when all those companies were set up passing debts, loans, mess from one balance sheet to another.

[jono]

30 minutes ago, PistoldPete said:

Mel doesn’t owe £20 m though. DCFC owe that to MSD although it is secured against the stadium which is his asset. 
 

we need to get  a stadium deal to get MSD out of the equation. 

But if the club folds completely, then the debt goes and it’s back to Mel. Mel needs to deal because if it he doesn’t then he will have to cough up. Of course we need a stadium deal but the value of it drops hugely without a DCFC playing league football. He can play with fire but his fingers can be burned as much as anyones. 

[Tamworthram]

27 minutes ago, Archied said:

What a mess ,, how the hell did he manage that , it’s like me getting a loan secured on somebody else’s house that I don’t own 

That was my original thought but in your scenario, the owner of that other house has freely offered their property as collateral for your loan. Think of it this way: You (DCFC) operate from a property I (Mel) own. You need a loan but you don’t have any assets so I offer the property as security. My motive might be because if you go bust I’ll be left with a building I will struggle to sell or rent to someone else.
 

Maybe you could argue that if Mel hadn’t offered the stadium as security (which I assume he didn’t have to) then the club wouldn’t have been able to obtain the loan and we may have gone into liquidation a while ago. If this is true then I’m sure part of his motive was personal benefit rather than just a favour to the club.
 

Before everyone piles in, I’m no longer a Mel admirer and this isn’t meant to be a hoorah for anything he’s done but I’m struggling (and believe me I’ve tried) to get my head around how the circumstances could be any different to the above.

Edited May 6, 2022 by Tamworthram

[NottsRam77]

13 minutes ago, jono said:

But if the club folds completely, then the debt goes and it’s back to Mel. Mel needs to deal because if it he doesn’t then he will have to cough up. Of course we need a stadium deal but the value of it drops hugely without a DCFC playing league football. He can play with fire but his fingers can be burned as much as anyones. 

He can afford to lose 20m more than we can afford to lose our home.

its just a case does he need to lose 20 or lose face more…. I thought he was meant to be a fan ?

[Rich84]

21 minutes ago, Archied said:

What a mess ,, how the hell did he manage that , it’s like me getting a loan secured on somebody else’s house that I don’t own 

I see it more like it's getting a loan for a car secured against your house, at the time Mel owned both assets, if you wrote the car off (admin in this case) the loan is still secured against the house, but the house has been passed on to avoid inheritance tax.

[The Scarlet Pimpernel]

The issue for us fans is timing. We are all desperate to retain as much of the squad as possible. That can only happen I would suggest if the deal is secured or at least binding contracts to buy the club are entered into by this weekend. Players won't quite rightly hang around much longer. 

[PistoldPete]

47 minutes ago, RipleyRich said:

And I`m sure CK doesn`t want to be paying MSD`s interest rates!

I'm sure you are right about that. Maybe the EFL could help us with a loan like they did all the other clubs? 

[EtoileSportiveDeDerby]

28 minutes ago, EtoileSportiveDeDerby said:

Does it surprise you, MM was out of his depth trying to run the club. When you see this mess and Pearce is still there "trying to help" it really beggars belief. What was he doing when all those companies were set up passing debts, loans, mess from one balance sheet to another.

And I nearly forgot, not paying Saint John ambulance debt. That to me was the clincher, you cannot sink lower.