Administration

[Park Life 71]

I don't understand how is going into administration would benefit Ashley at all. I'm no financial guru, but it just wouldn't make any sense at all.

 

I know nowt about how it works, so these are genuine questions, for someone who knows more to answer.

 

In his last 2 years at the club, Shepherd spent £65M. Most of it to foreign clubs. Do the above FA rules or similar apply?

 

If it was all spread over (say) 5 years, we might be about half way through on avarage so it could be as much as £30M still to pay (total finger in the air stuff). If there are rules like the above that cover UEFA, it's not a consideration, but if there aren't, writing off that debt would be a huge incentive for administration.

 

Then there's player contracts. Can they be terminated under administration?

 

Barton 2012

Duff 2011

Smith 2012

Geremi 2010

 

Those four will have cost the best part of £15m in wages by the time their contracts run down. No club would match those wages or pay a significant fee, not to mention Butt, Ameobi or Xisco.

 

Question is why doesn't MA just pay those debts?

 

His Paper worth is roughly £800m ish even in the current market.

 

I assume we're not paying any interest on those debts, therefore it wouldn't make sense to may them now, unless we got a discount for it.

 

But if (if we follow HP's jist) these are causing cash flow issues, it makes sense to pay them up (at a guess).

[Happy Face 29]

I don't understand how is going into administration would benefit Ashley at all. I'm no financial guru, but it just wouldn't make any sense at all.

 

I know nowt about how it works, so these are genuine questions, for someone who knows more to answer.

 

In his last 2 years at the club, Shepherd spent £65M. Most of it to foreign clubs. Do the above FA rules or similar apply?

 

If it was all spread over (say) 5 years, we might be about half way through on avarage so it could be as much as £30M still to pay (total finger in the air stuff). If there are rules like the above that cover UEFA, it's not a consideration, but if there aren't, writing off that debt would be a huge incentive for administration.

 

Then there's player contracts. Can they be terminated under administration?

 

Barton 2012

Duff 2011

Smith 2012

Geremi 2010

 

Those four will have cost the best part of £15m in wages by the time their contracts run down. No club would match those wages or pay a significant fee, not to mention Butt, Ameobi or Xisco.

 

Question is why doesn't MA just pay those debts?

 

His Paper worth is roughly £800m ish even in the current market.

 

I assume we're not paying any interest on those debts, therefore it wouldn't make sense to may them now, unless we got a discount for it.

 

We wouldn't have paid interest if they'd staggered payments for Nolan or Taylor either, but they're boastful of having paid the full fee up front.

[ewerk 31195]

We wouldn't have paid interest if they'd staggered payments for Nolan or Taylor either, but they're boastful of having paid the full fee up front.

 

It makes no sense to me.

[Park Life 71]

Ok, paying for players upfront consolidates/simplifies the books for a sale as do getting the operating costs down. I can understand that, but going into voluntary admin makes no business sense for MA alone, unless there is a cash call from someplace else (bank??).

Edited March 30, 2009 by Park Life

[Happy Face 29]

Ok, paying for players upfront consolidates/simplifies the books for a sale as do getting the operating costs down. I can understand that, but going into voluntary admin makes no business sense for MA alone, unless there is a cash call from someplace else (bank??).

 

Inter Milan?

 

Deportivo La Coruna?

 

Real madrid?

 

.....Chelsea?