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Oct 3, 2017 8:59:31 GMT
Post by bonitared on Oct 3, 2017 8:59:31 GMT
I’m not a bankruptcy expert but was in finance.
My understanding,which may be wrong,is that the most recent Salford accounts showed a company heavily in debt,obviously.
As such,it is only a going concern because of the support of MK. I think he gave an undertaking,verbally,that his support would continue through 2017 which it effectively has.
If transfer fees come in then I guess that he could take the cash,if he had put money in as loans which needed repaying. Or the fees could be used to pay wages
I think the point at which the club cannot continue is when his support is withdrawn unless there’s another guarantor in place.
He’s not saying a great deal at the moment !
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Oct 3, 2017 9:05:00 GMT
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Post by chang on Oct 3, 2017 9:05:00 GMT
If the reason we handed out all the long term deals to our best players so they have a higher resale value then that is classic and a slap in the face to the supporters.
I'm hoping it isn't true.
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Oct 3, 2017 9:07:39 GMT
Post by bonitared on Oct 3, 2017 9:07:39 GMT
No,I can’t believe that he did that.
I don’t have a high regard for him,but I certainly don’t think he’d do that
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Oct 3, 2017 9:21:02 GMT
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Post by dentonred on Oct 3, 2017 9:21:02 GMT
If the reason we handed out all the long term deals to our best players so they have a higher resale value then that is classic and a slap in the face to the supporters. I'm hoping it isn't true. Been happening in football for years, we are reverting to the selling club blueprint |
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Oct 3, 2017 10:16:09 GMT
Post by Carnster on Oct 3, 2017 10:16:09 GMT
If the reason we handed out all the long term deals to our best players so they have a higher resale value then that is classic and a slap in the face to the supporters. I'm hoping it isn't true. To be fair, we don't produce our own talent, we don't have any money or finance coming in from supporters. We don't own our ground. The only real viable way for the club to make money if none of the first things change is to buy low and sell high as much as it p1sses me off. |
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Oct 3, 2017 10:36:53 GMT
Post by Chico on Oct 3, 2017 10:36:53 GMT
I'm not a bankruptcy expert, but perhaps someone can answer this question. Your business is struggling and you've decided to pull out. Do you a) declare the business bankrupt OR b) liquidate all your assets and then declare the business bankrupt? Bonitared, the new contracts now make sense because he can sell those players for cold, hard cash rather than lose them for nothing when the administrator takes over. I hadn't thought of that before. Info on winding up a company is here: www.gov.uk/liquidate-your-companySo, hypothetically, if Marwan did want to liquidate the company rather than transfer ownership, he could could pay off all of the club’s liabilities, transfer the assets to a new company run by the trustees, and close the company. That’s the generous route. Alternatively, he could asset strip the company to cut his losses (the Gordon Gekko route) – and/or put it into administration (the sensible route). Of course, if there was a buyer, he could also sell it. |
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Oct 3, 2017 11:32:46 GMT
Post by yorkie1973 on Oct 3, 2017 11:32:46 GMT
Reading the accounts from 2016, there is an increase in long term creditors of about £1.2m year-on-year. It does suggest the Doc loaning the club money. Selling assets (i.e. players) now would relieve that burden and ultimately leave him free to dispose of the club (via whichever route he chooses) without the large debt.
After the high of this season, this feels like a roller-coaster ride to new depths.
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Oct 3, 2017 12:15:45 GMT
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Post by tony13 on Oct 3, 2017 12:15:45 GMT
Thanks for the answer, Chico.
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Oct 3, 2017 12:45:41 GMT
Post by gunner on Oct 3, 2017 12:45:41 GMT
No,I can’t believe that he did that. I don’t have a high regard for him,but I certainly don’t think he’d do that Unfortunately I do & I said at the time he started to extend all the contracts that I could see the writing on the wall, I hope I am wrong but I expect him to sell & recover some of his personnel loses. My opinion the whole re-branding issue has been a smoke screen to help his exit. I cannot believe a guy with is so called business acumen would take the history of Salford & re-brand Manchester & then claim he lost the support of the fans. I hope I am wrong, I have never been a fan of his style, however I recognize he saved the club at the eleventh hour, hopefully he will leave our club with a future not a stay of execution, fingers crossed. |
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Oct 3, 2017 13:08:30 GMT
Post by JJR on Oct 3, 2017 13:08:30 GMT
Sadly we appear to be in a downward spiral. The debt is seemingly increasing and never likely to be overcome, (playing strength diminishing hence lower attendances etc) there's just the two options, administration or sale of the club. Unless a benefactor is found, v unlikely. MK can now sit outside it and watch developments. A win win for him.
The big issue was Salford RLFC took the RL franchising seriously and built a new ground. Castleford and Wakefield just ignored the RL mandate and are now in a much better position.
Assume the financial state of play will be revealed when the Trust is finally agreed by the RL and announced.
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Oct 3, 2017 13:18:23 GMT
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Post by dixon13 on Oct 3, 2017 13:18:23 GMT
Sadly we appear to be in a downward spiral. The debt is seemingly increasing and never likely to be overcome, (playing strength diminishing hence lower attendances etc) there's just the two options, administration or sale of the club. Unless a benefactor is found, v unlikely. MK can now sit outside it and watch developments. A win win for him. The big issue was Salford RLFC took the RL franchising seriously and built a new ground. Castleford and Wakefield just ignored the RL mandate and are now in a much better position. Assume the financial state of play will be revealed when the Trust is finally agreed by the RL and announced. Not all he has cracked is self up to be.He should have had something set up before he announced anything.Some wag said at meeting last night that one the business involved is persons chip shop in Broughton. |
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Oct 3, 2017 13:50:19 GMT
Post by bonitared on Oct 3, 2017 13:50:19 GMT
That was someon fish ing.
No Trust needs a pudding
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Oct 3, 2017 13:59:26 GMT
Post by boggles61 on Oct 3, 2017 13:59:26 GMT
Agree with all above but really don't understand what he is actually proposing , he has said he is appointing a board of local businessmen to form a board of trustees to run the club , thats fine but unless these people are prepared to take on the debt then he simply can't walk away from the club entirely , he can stop putting money in fair enough but given he entered a 25yr CVA agreement to which he has cleared nothing then he can't disappear, he can wind it up ? Did he put any PG'S in place for the debt ?
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Oct 3, 2017 14:10:09 GMT
Post by bonitared on Oct 3, 2017 14:10:09 GMT
Agree with all above but really don't understand what he is actually proposing , he has said he is appointing a board of local businessmen to form a board of trustees to run the club , thats fine but unless these people are prepared to take on the debt then he simply can't walk away from the club entirely , he can stop putting money in fair enough but given he entered a 25yr CVA agreement to which he has cleared nothing then he can't disappear, he can wind it up ? Did he put any PG'S in place for the debt ? Isn’t it the Salford club 2013 responsible for the old debt. i suspect he’s not big on personal guarantees . |
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Oct 3, 2017 14:12:58 GMT
Post by boggles61 on Oct 3, 2017 14:12:58 GMT
So who owns Salford 2013 ? Koukash if so then same applies unless he can transfer debt he's stuck with it or wind's it up .
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