CRISIS! Players not paid this month!

Boggersbelief wrote:

Breadman wrote:And for the record, I've worked for a couple of UK businesses which have been taken over by foreign investors and we all got paid throughout the entire take-over process.

So this has got nothing to do with any potential take-over.

It's a cash flow issue.

And it's cash flow issues that send businesses bust.

We all know that you are a doom monger.

Doesn't mean I'm wrong though, does it?

Someone tweet Heskey and say, hes not getting paid again, he might not turn up tonight then.

Breadman wrote:

Boggersbelief wrote:

Breadman wrote:And for the record, I've worked for a couple of UK businesses which have been taken over by foreign investors and we all got paid throughout the entire take-over process.

So this has got nothing to do with any potential take-over.

It's a cash flow issue.

And it's cash flow issues that send businesses bust.

We all know that you are a doom monger.

Doesn't mean I'm wrong though, does it?

I can confirm that you are very wrong

No you can't.

Boggersbelief wrote:Apparently the players are furious. Fucking arseholes. No wins in god knows how long, they should feel lucky that they can't get sacked.

The fuckwits.

I'm going to text Mavies and see if he wants to kip on my settee when he gets evicted from his mansion.

Madine didnt get his overtime.

Boggersbelief wrote:

Breadman wrote:

Boggersbelief wrote:

Breadman wrote:And for the record, I've worked for a couple of UK businesses which have been taken over by foreign investors and we all got paid throughout the entire take-over process.

So this has got nothing to do with any potential take-over.

It's a cash flow issue.

And it's cash flow issues that send businesses bust.

We all know that you are a doom monger.

Doesn't mean I'm wrong though, does it?

I can confirm that you are very wrong

OK Boggers. I trust you and your contacts - they're a lot more reliable than your predictions that's for sure. 

So if you absolutely know for sure that this is a cashflow issue and nothing more, will you therefore confirm that: 

• meaningful negotiations are actually underway with interested parties - and what is their identity
  
• there is some sort of contingency plan in place to bridge the cashflow shortfall should negotiations not conclude shortly
  
• this whole thing is not a crisis management PR spoiler to manage expectations and disguise our slide into administration?
  

If you know for sure it's not a problem, then you must know the answer to these questions too...

What do I know but I think this is a bit more than just a cash flow problem.

As far as I understand it, we took on the Quick Quid type loan to cover the cash flow issue, so why is there a problem?

It can only mean to my mind that either we've had to pay a large unexpected amount out to someone or the loan facility as been withdrawn.

Neither of which would be good news.

Birch doesn't actually say anything about the club sorting this out from within, so I think he is probably finding the wages external to the club - namely the PFA.

Things are looking bad to me - wouldn't surprise me if the players are asked to take pay cuts or rip up their contracts. Maybe even some fire sale of players which can be done in advance of the window in certain circumstances I believe.

Administration is now clearly on the horizon imo.

Sluffy wrote:
It can only mean to my mind that either we've had to pay a large unexpected amount out to someone or the loan facility as been withdrawn.

Perhaps ED was propping up the cashflow, now he's stopped. 

And when he told Gartside he was going to stop, Phil had a stroke.

Wouldn't have any sympathy for the players even if we were top of the league, but it's never good news that a club hasn't paid it's staff, overpaid arseholes or not.

It really is a right mess this, Ive had a gut feeling that we would go like Portsmouth for quite a long time TBH.

My guess - We lose £1 million a month, our owner presumably covered that before, now there's a takeover on the cards and he's made the pretty sizeable contribution in wiping the debt he doesn't want to put another penny into the club - and why should he? Anything he does will just eat into his buy off from new owners.

I don't know anything about finance, but that would be a cashflow problem? Which won't be solved until new owners pick up the bill.

bwfc1874 wrote:

I don't know anything about finance, but that would be a cashflow problem? Which won't be solved until new owners pick up the bill.

That's the theory 74. Certainly a possibility.

Hence me asking Boggers if we actually have new owners in the pipeline etc.

bwfc1874 wrote:My guess - We lose £1 million a month, our owner presumably covered that before, now there's a takeover on the cards and he's made the pretty sizeable contribution in wiping the debt he doesn't want to put another penny into the club - and why should he? Anything he does will just eat into his buy off from new owners.

I don't know anything about finance, but that would be a cashflow problem? Which won't be solved until new owners pick up the bill.

You can't just say "Er, you know what? I've put quite a lot of money into this business and I've decided I'm not putting any more in" and stop paying your staff.

As Manda said earlier, you have a moral and legal responsibility to pay anyone who works for you under contract and as things stand, ED is the one liable.

If you stop paying them simply because you don't fancy it, you're breaking the law.

There's more to this.

My money's on a big bill to HMRC a la Rangers.

And they don't mess about: "Not paying? Ok then, expect a visit from the Administrator next week."

bwfc1874 wrote:My guess - We lose £1 million a month, our owner presumably covered that before, now there's a takeover on the cards and he's made the pretty sizeable contribution in wiping the debt he doesn't want to put another penny into the club - and why should he? Anything he does will just eat into his buy off from new owners.

I don't know anything about finance, but that would be a cashflow problem? Which won't be solved until new owners pick up the bill.

Sorry but it doesn't work like that.

In law a business is not allowed to keep on trading if it is insolvent (unable to pay its debts when they are due).

If Davies doesn't want to pay the wages from his pocket then he has no other choice other than flog a few more of the clubs assets off (or secure a loan against them) to keep the club afloat.

The more he does that, then the less the club is worth to anyone wanting to buy it.

If Davies doesn't do something quickly now someone owed money by the club (maybe the taxman, or Quick Quid, etc) will push for Administration in order to get their money back (the sooner they do it the better as the more in debt the club goes, the more people it owes money too and the less left in the pot to divide out to everyone it owes).

If someone was really interested in buying the club right now (and I've already said that I doubt there is) then the longer they wait, the more desperate the clubs plight and the cheaper the club becomes to buy.

Bloody hell. I only went to pick the lad up from school and we've gone bust (ok not quite ) bloody hell

As a realistic figure, how much would our assets be worth if they were ready to be sold off, Lostock and barrel? Would any developer, cowboy, tax evader pay that £180 Million and then would ED be relieved of any moral responsibility to pay his staff? Or, even if ED, stood aside and let admin happen, would he benefit tax/investment wise for the foreseeable future? Just enquiring as this is such a clusterfuck, it seems that we have been drained of cash in a very short time.

There will be a fire sale in January (or before). They'll get what they can for ANYONE on the books. Won't see a penny for them if they wait for administration.

Bollotom2014 wrote:As a realistic figure, how much would our assets be worth if they were ready to be sold off, Lostock and barrel? Would any developer, cowboy, tax evader pay that £180 Million and then would ED be relieved of any moral responsibility to pay his staff? Or, even if ED, stood aside and let admin happen, would he benefit tax/investment wise for the foreseeable future? Just enquiring as this is such a clusterfuck, it seems that we have been drained of cash in a very short time.

I've no idea about the value of the assets but one thing I do know is that the land and buildings would be subject to planning regulations and constraints.

For instance a developer could not just buy the club, knock things down and build houses on the land without the required planning permissions.

The assets may therefore not be as worth as much to a potential buyer not interested in the football club itself, as the book value may show.

Thanks for that, Sluffy, but I'm at a loss to think that our £180 Million at a million a month is 15 years. And if it was more per month within that time, why was it not flagged up or acted upon. I'm thinking that someone somewhere is guilty of something serious. But then, I'm just a simple serviceman. Keeping my fingers crossed.