Pompey Takeover Saga

[trousers]

Cllr John Ferrett ‏@John_Ferrett

#pfc administrator holds gun to council's head & says 'give money or club gets it'. Portsmouth #LibDems hand over money no questions asked

 

Paul Hutchinson ‏@HutchyPaul

@John_Ferrett If Club dies so does the city , 5 Month loan with no risk , whats your problem, thank god youre not in control of PCC.

 

Cllr John Ferrett ‏@John_Ferrett

@HutchyPaul would be helpful to see business plan in order to assess risk. Is that too much to ask as elected representative?

 

[trousers]

Goose ‏@vespersutton

@John_Ferrett why ask for things to be delayed. No sense at all. Shameful!!

 

Cllr John Ferrett ‏@John_Ferrett

@vespersutton do you think councillors should make decisions without being in possession of the facts?

 

Goose ‏@vespersutton

@John_Ferrett have you not had ample time to get the facts or ask questions.its now or never for pfc.surely even you can see that.

 

Cllr John Ferrett ‏@John_Ferrett

@vespersutton haven't seen the business plan but expected to ok loan of 1.45m of public money, whilst cutting social care & sure start

 

 

[Viking Warrior]

How comes the cheating bastards continue to have parachute payments? How many years would that be

As for the Loan I would be pretty ****ed off if I was an employee of PCC and they are being made redundant as they have to cut costs yet PCC can find money for lost causes .

Edited 27 February, 2013 by Viking Warrior

[Colinjb]

How comes the cheating bastards continue to have parachute payments? How many years would that be

As for the Loan I would be pretty ****ed off if I was an employee of PCC and they are being made redundant as they have to cut costs yet PCC can find money for lost causes .

 

I believe they are approaching the end for those now.

[Deano6]

The Council report from today's meeting where the loan was approved gives an interesting update on the figures I came up with a couple of days ago.

 

The purchase price, as someone highlighted above me, is:

 

• Fratton Park £3.12m
  
• CVA £0.76m
  
• Special Creditors £0.09m
  
• Football Creditors – Other Clubs £1.25m
  
• Football Creditors – Non Playing Staff £0.38m
  
• Football Creditors – Players £7.96m
  

Total £13.56m

 

As the Labour councillor kindly told us in the News comments, this is a huge increase on the original Trust plan of £7.68m, which consisted (page6):

 

• Fratton Park £2.75m
  
• CVA £0.85m
  
• Special Creditors nil
  
• Football Creditors – Other Clubs £1.75m
  
• Football Creditors – Non Playing Staff £0.33m (capped at this amount)
  
• Football Creditors – Players £2.0m (plus additional £3.0m should plucky Pompey be promoted to the Premier League by June 2022)
  

Total £7.68m

So FP valuation has gone up £400k (nice one Keith Harris!), other clubs are getting £500k less and players are now getting the extra £6m the PST thought they could sweet talk them out of (nice one PFA!).

 

 

The new figure of £13.5m is pretty close to what I estimated (I know ), except I found a reference in the Sept 2012 PKF creditors report saying that Football Creditors amounted to £11.4m, rather than the £9.6m they have here - I hope they haven't forgotten someone!

 

 

The other two items that aren't included are

1. Chinny's floater (thanks to whoever coined that in the last few days ) of around £2m, which we're all ignoring for now
   
2. PKF and Pinsent Mason's fees. We heard at the start of the week that these could be as high as £3.5m, although likely less. We see in the Council report today (last page) that these will actually be £1.74m and will come from the cash balances in the club of £4.14m (a figure also seen in the recent PKF 12 month report).
   

 

 

 

So, how much is there to fund this takeover of £13.5m?

 

• Again the Council report tells us the PST and HNW have raised £3.815m, of which proof of funds of £2.0m have been provided.
  
• An "additional loan from the Trust’s development partner" (Robinson) of unspecified amount.
  
• Then there is the council loan of £1.45m.
  

Giving the Robinson loan no value (it will have to be paid back in any case), they have £5.3m. This will allow them to pay off Chinny (assuming they win the court case), the CVA and special creditors - which amount to £4.0m - but leaves them with just £1.3m left over to pay £9.6m football creditors.

 

 

So, what other funds are available to them to make up this shortfall? Well, cash within the club, after deducting PKF fees, amounts to £2.4m, leaving them just shy of £6m to find.

 

 

Which brings us to Parachute Payments...

 

As I detailed in my previous post, by my reckoning Pompey are due £7.0m more parachute payments. We know £1.5m of that is not available as it's going to go straight back to pay the Council. So this leaves them £5.5m to pay the remaining £6.0m football creditors. And all this assuming zero cash in the bank, as that has all been spent too.

 

 

Now here's my wranglings (yes I got there eventually). The Council report states:

 

Parachute payments are expected to increase by £4m (from £7.0m to £11.0m)

 

The City Council has a first ranking over the August 2013 parachute payment which as a minimum is expected to be £3.3m but which is expected to receive an uplift to £5.5m

 

So...why are the Premier League increasing the Parachute Payments they are contractually obliged to pay them by an additional £4.0m??

To be very clear, this is not an acceleration, but an increase that no reports previously anticipated, with an additional £2.2m coming in August and the rest at a later date.

 

 

 

As a footnote, I see the council report also reveals "Players wages have reduced by £1.15m per annum and appear to be comparable to other League 2 Clubs (players’ salaries now average circa £1,250 per week)". This implies an annual playing budget next year of around £1.25m. It also implies they started the season with an annual player budget of £2.4m, despite Appleton complaining that Chainrai had limited him to just £1.5m and that he had put together his squad on a shoestring.

[stevegrant]

How comes the cheating bastards continue to have parachute payments? How many years would that be

4, like everyone else gets

[Viking Warrior]

Does this vote need to go to the full council for ratification. . That's the normal process when sub committees approve reports unless the 9 white knights have delegated responsibility

[Viking Warrior]

Thanks Steve but did saints get 4 years of parachute payments . Or did we lose them when we went into administration ?

[stevegrant]

Thanks Steve but did saints get 4 years of parachute payments . Or did we lose them when we went into administration ?

No and no. The rules were different back then, the payments were only for two years.

[TopGun]

Does this vote need to go to the full council for ratification. . That's the normal process when sub committees approve reports unless the 9 white knights have delegated responsibility

 

It's not a sub-committee. It's the cabinet who have responsibility for approving finance. Think of it as the government and Parliament. The full council could do a vote of no confidence but it won't happen.

[TopGun]

The Council report from today's meeting where the loan was approved gives an interesting update on the figures I came up with a couple of days ago.

 

The purchase price, as someone highlighted above me, is:

 

• Fratton Park £3.12m
  
• CVA £0.76m
  
• Special Creditors £0.09m
  
• Football Creditors – Other Clubs £1.25m
  
• Football Creditors – Non Playing Staff £0.38m
  
• Football Creditors – Players £7.96m
  

Total £13.56m

 

As the Labour councillor kindly told us in the News comments, this is a huge increase on the original Trust plan of £7.68m, which consisted (page6):

 

• Fratton Park £2.75m
  
• CVA £0.85m
  
• Special Creditors nil
  
• Football Creditors – Other Clubs £1.75m
  
• Football Creditors – Non Playing Staff £0.33m (capped at this amount)
  
• Football Creditors – Players £2.0m (plus additional £3.0m should plucky Pompey be promoted to the Premier League by June 2022)
  

Total £7.68m

So FP valuation has gone up £400k (nice one Keith Harris!), other clubs are getting £500k less and players are now getting the extra £6m the PST thought they could sweet talk them out of (nice one PFA!).

 

 

The new figure of £13.5m is pretty close to what I estimated (I know ), except I found a reference in the Sept 2012 PKF creditors report saying that Football Creditors amounted to £11.4m, rather than the £9.6m they have here - I hope they haven't forgotten someone!

 

 

The other two items that aren't included are

1. Chinny's floater (thanks to whoever coined that in the last few days ) of around £2m, which we're all ignoring for now
   
2. PKF and Pinsent Mason's fees. We heard at the start of the week that these could be as high as £3.5m, although likely less. We see in the Council report today (last page) that these will actually be £1.74m and will come from the cash balances in the club of £4.14m (a figure also seen in the recent PKF 12 month report).
   

 

 

 

So, how much is there to fund this takeover of £13.5m?

 

• Again the Council report tells us the PST and HNW have raised £3.815m, of which proof of funds of £2.0m have been provided.
  
• An "additional loan from the Trust’s development partner" (Robinson) of unspecified amount.
  
• Then there is the council loan of £1.45m.
  

Giving the Robinson loan no value (it will have to be paid back in any case), they have £5.3m. This will allow them to pay off Chinny (assuming they win the court case), the CVA and special creditors - which amount to £4.0m - but leaves them with just £1.3m left over to pay £9.6m football creditors.

 

 

So, what other funds are available to them to make up this shortfall? Well, cash within the club, after deducting PKF fees, amounts to £2.4m, leaving them just shy of £6m to find.

 

 

Which brings us to Parachute Payments...

 

As I detailed in my previous post, by my reckoning Pompey are due £7.0m more parachute payments. We know £1.5m of that is not available as it's going to go straight back to pay the Council. So this leaves them £5.5m to pay the remaining £6.0m football creditors. And all this assuming zero cash in the bank, as that has all been spent too.

 

 

Now here's my wranglings (yes I got there eventually). The Council report states:

 

 

 

 

 

So...why are the Premier League increasing the Parachute Payments they are contractually obliged to pay them by an additional £4.0m??

To be very clear, this is not an acceleration, but an increase that no reports previously anticipated, with an additional £2.2m coming in August and the rest at a later date.

 

 

 

As a footnote, I see the council report also reveals "Players wages have reduced by £1.15m per annum and appear to be comparable to other League 2 Clubs (players’ salaries now average circa £1,250 per week)". This implies an annual playing budget next year of around £1.25m. It also implies they started the season with an annual player budget of £2.4m, despite Appleton complaining that Chainrai had limited him to just £1.5m and that he had put together his squad on a shoestring.

 

Top post.

[TopGun]

Double post.

Edited 28 February, 2013 by TopGun
As above.

[trousers]

The Council report from today's meeting where the loan was approved gives an interesting update on the figures I came up with a couple of days ago.

 

The purchase price, as someone highlighted above me, is:

 

• Fratton Park £3.12m
  
• CVA £0.76m
  
• Special Creditors £0.09m
  
• Football Creditors – Other Clubs £1.25m
  
• Football Creditors – Non Playing Staff £0.38m
  
• Football Creditors – Players £7.96m
  

Total £13.56m

 

As the Labour councillor kindly told us in the News comments, this is a huge increase on the original Trust plan of £7.68m, which consisted (page6):

 

• Fratton Park £2.75m
  
• CVA £0.85m
  
• Special Creditors nil
  
• Football Creditors – Other Clubs £1.75m
  
• Football Creditors – Non Playing Staff £0.33m (capped at this amount)
  
• Football Creditors – Players £2.0m (plus additional £3.0m should plucky Pompey be promoted to the Premier League by June 2022)
  

Total £7.68m

So FP valuation has gone up £400k (nice one Keith Harris!), other clubs are getting £500k less and players are now getting the extra £6m the PST thought they could sweet talk them out of (nice one PFA!).

 

 

The new figure of £13.5m is pretty close to what I estimated (I know ), except I found a reference in the Sept 2012 PKF creditors report saying that Football Creditors amounted to £11.4m, rather than the £9.6m they have here - I hope they haven't forgotten someone!

 

 

The other two items that aren't included are

1. Chinny's floater (thanks to whoever coined that in the last few days ) of around £2m, which we're all ignoring for now
   
2. PKF and Pinsent Mason's fees. We heard at the start of the week that these could be as high as £3.5m, although likely less. We see in the Council report today (last page) that these will actually be £1.74m and will come from the cash balances in the club of £4.14m (a figure also seen in the recent PKF 12 month report).
   

 

 

 

So, how much is there to fund this takeover of £13.5m?

 

• Again the Council report tells us the PST and HNW have raised £3.815m, of which proof of funds of £2.0m have been provided.
  
• An "additional loan from the Trust’s development partner" (Robinson) of unspecified amount.
  
• Then there is the council loan of £1.45m.
  

Giving the Robinson loan no value (it will have to be paid back in any case), they have £5.3m. This will allow them to pay off Chinny (assuming they win the court case), the CVA and special creditors - which amount to £4.0m - but leaves them with just £1.3m left over to pay £9.6m football creditors.

 

 

So, what other funds are available to them to make up this shortfall? Well, cash within the club, after deducting PKF fees, amounts to £2.4m, leaving them just shy of £6m to find.

 

 

Which brings us to Parachute Payments...

 

As I detailed in my previous post, by my reckoning Pompey are due £7.0m more parachute payments. We know £1.5m of that is not available as it's going to go straight back to pay the Council. So this leaves them £5.5m to pay the remaining £6.0m football creditors. And all this assuming zero cash in the bank, as that has all been spent too.

 

 

Now here's my wranglings (yes I got there eventually). The Council report states:

 

 

 

 

 

So...why are the Premier League increasing the Parachute Payments they are contractually obliged to pay them by an additional £4.0m??

To be very clear, this is not an acceleration, but an increase that no reports previously anticipated, with an additional £2.2m coming in August and the rest at a later date.

 

 

Not wishing to blow my own trumpet too loudly but I was wondering the same back in post #85,328

[trousers]

http://www.twohundredpercent.net/?p=22103

[Deano6]

Not wishing to blow my own trumpet too loudly but I was wondering the same back in post #85,328

 

Was that while you were going on about baking your gonads with 4 and 20 blackbirds?

 

If people don't want to read my ramblings, it essentially says this..

 

[dubai_phil]

May be worth googling around to see whether the newly negotiated TV packages for the PL (especially the Overseas rights value which will make a major jump in income for PL teams NEXT season) have also had an impact on the older outstanding Parachute payments due to all ex PL clubs in the past 4 years.

[hutch]

I'm pretty sure you're right Phil. There are no fixed amounts in the PL rules, and payments, from memory, are defined as something like "portions" of the "distribution".

 

I don't see any issue for the PFA to be concerned about. The PDT have absolutely no intention of paying back the loan. They know PCC would not dare foreclose.

 

And somebody asked earlier what PDT stands for?

 

The PDT is the Property Developers Trust, a special purpose hybrid consortium set up with the sole intention to bankrupt Portsmouth Football Club over a period of three years, and to then convert Fratton Park into a sought after vacant development site. The Trust is believed to be controlled by fans of Tottenham Hotspur Football Club.

[Doctoroncall]

£4m in bank will pay PKF and their lawyers. Kanu su[posedly came to an agreement and is part of the football creditors now. The £2m floating charge is another matter.

 

Some of that money is PP included in the £11.7m income.

[hutch]

Did the Council vote to approve to actually hand over the cash yesterday, or did they vote to agree to change the conditions under which the loan will be made?

 

Can anybody throw any light on the “Deed of Assignment” and “Intercreditor Agreement”, which have a few references in the PCC papers? Are these signed agreements or drafts on the table for signature?

 

The “Deed of Assignment” is pretty clear and would deal with PP money going direct to PCC from the PL. It would need (at the moment) to be signed by PKF and PCC, and would need the formal approval of the PL. Signature ought not to be a problem but approval might be.

 

The term “Intercreditor Agreement” seems to imply more than one creditor. Assuming PCC is one, who would the other(s) be? PFA? REL? Have they signed anything?

[Sevvy]

http://www.newsnow.co.uk/A/631954924?-11209:804

 

Harris back in last ditch attempt to upset the PDT,

[qwertySFC]

There are more twists and turns to come yet me ole Nutjobs - Nothing is guaranteed until Justice "closing down" Sales - Oh and has a date actually been set ?

[thefunkygibbons]

"The term “Intercreditor Agreement” seems to imply more than one creditor. Assuming PCC is one, who would the other(s) be? PFA? REL? Have they signed anything? "

 

An intercreditor agreement is a contract between more than one creditor that sets out who has priority in the case of default

 

In most businesses the bank first, other secured creditors next and then everyone else. Of course, the law about employees, tax payments also intervene

 

However, I would expect a big argument behind the scenes with each party saying they will not put their money in unless they are top creditor

[bridge too far]

It's not a sub-committee. It's the cabinet who have responsibility for approving finance. Think of it as the government and Parliament. The full council could do a vote of no confidence but it won't happen.

 

I believe the Council's Overview and Scrutiny Committee could 'call in' the decision - see Wiki for explanation

 

http://en.wikipedia.org/wiki/Overview_and_Scrutiny

 

But I think it would depend on the political composition of the O & S Committee as to whether that would actually happen.

 

I also believe, very strongly, that the decision should be audited as a matter of urgency.

[trousers]

http://www.newsnow.co.uk/A/631954924?-11209:804

 

Harris back in last ditch attempt to upset the PDT,

 

"It (Harris's bid) has only got support from the eyes of Professional Footballers’ Association and HM Revenue and Customs, which are one of the club’s main creditors."

 

Don't think I've seen that in print before? (HMRC supposedly endorsing the Harris bid). Now that could cause a few tensions in the Mordaunt bedroom... (Sorry for the potentially distressing mental imagery)

[trousers]

http://www.newsnow.co.uk/A/631954924?-11209:804

 

Harris back in last ditch attempt to upset the PDT,

 

"Mr Harris’ group argued the council should be offering it cash as it also has a bid on the table.

 

However, the message wasn’t seen by councillors until after the meeting, and by that time there had already been an unanimous vote in favour of supporting the fan’s trust.

 

Coincidentally The Football League sent an email to the council’s chief financial officer Chris Ward during the meeting confirming the trust’s bid was the only one being considered."

 

Hmmm.... I wonder how one message got through to the meeting bit the other didn't...

[qwertySFC]

Loan , Help , Assistance , will be paid back - Call it what you like but the perception is this;

 

From the Sun

 

http://http://www.thesun.co.uk/sol/homepage/sport/football/4816642/Portsmouth-survival-hopes-boosted-by-city-council-loan.html

[trousers]

There are more twists and turns to come yet me ole Nutjobs - Nothing is guaranteed until Justice "closing down" Sales - Oh and has a date actually been set ?

 

Birch is due to submit the Trust's 'business plan' to the court today so one assumes a date will be set shortly after

[trousers]

So, in summary, the Trust have basically got lucky by virtue of the unexpected £4m increase in this season's parachute payment distribution. Without that windfall their "robust" business plan would have been as robust as a blancmange.

 

Lucky for them....lucky for us

Edited 28 February, 2013 by trousers

[qwertySFC]

With so many fingers in the pot - If the PDT go ahead next year I can still see the accusations flying around about - Free this & free that, how come this how come that , I'm a share holder I was not asked about this, free hospitality - it's going to happen - They will be constantly having to justify the freebies , be seen as "free loaders" when it kicks off - Can't wait

[Winchester Red]

If Chinney, HMRC and the PFA are all in favour of the Harris bid, then that's about 95% of the creditors.

 

Says something about the law of the land when the preferences of so many of the people being shafted has no bearing on the decision

[Kingsland Codger]

Aren't the PCC answerable to the District Auditor or whatever this organisation is called nowadays?

 

Ah, yes ... the Audit Commission http://www.audit-commission.gov.uk/about-us/ ... Our primary focus will always be safeguarding the interests of taxpayers.

 

But does the Audit Commission have any teeth?

[saint si]

Another influential group that might be interested: http://www.taxpayersalliance.com/

[Highfield Saint]

The Council report from today's meeting where the loan was approved gives an interesting update on the figures I came up with a couple of days ago.

 

The purchase price, as someone highlighted above me, is:

 

• Fratton Park £3.12m
  
• CVA £0.76m
  
• Special Creditors £0.09m
  
• Football Creditors – Other Clubs £1.25m
  
• Football Creditors – Non Playing Staff £0.38m
  
• Football Creditors – Players £7.96m
  

Total £13.56m

 

As the Labour councillor kindly told us in the News comments, this is a huge increase on the original Trust plan of £7.68m, which consisted (page6):

 

• Fratton Park £2.75m
  
• CVA £0.85m
  
• Special Creditors nil
  
• Football Creditors – Other Clubs £1.75m
  
• Football Creditors – Non Playing Staff £0.33m (capped at this amount)
  
• Football Creditors – Players £2.0m (plus additional £3.0m should plucky Pompey be promoted to the Premier League by June 2022)
  

Total £7.68m

So FP valuation has gone up £400k (nice one Keith Harris!), other clubs are getting £500k less and players are now getting the extra £6m the PST thought they could sweet talk them out of (nice one PFA!).

 

 

The new figure of £13.5m is pretty close to what I estimated (I know ), except I found a reference in the Sept 2012 PKF creditors report saying that Football Creditors amounted to £11.4m, rather than the £9.6m they have here - I hope they haven't forgotten someone!

 

 

The other two items that aren't included are

1. Chinny's floater (thanks to whoever coined that in the last few days ) of around £2m, which we're all ignoring for now
   
2. PKF and Pinsent Mason's fees. We heard at the start of the week that these could be as high as £3.5m, although likely less. We see in the Council report today (last page) that these will actually be £1.74m and will come from the cash balances in the club of £4.14m (a figure also seen in the recent PKF 12 month report).
   

 

 

 

So, how much is there to fund this takeover of £13.5m?

 

• Again the Council report tells us the PST and HNW have raised £3.815m, of which proof of funds of £2.0m have been provided.
  
• An "additional loan from the Trust’s development partner" (Robinson) of unspecified amount.
  
• Then there is the council loan of £1.45m.
  

Giving the Robinson loan no value (it will have to be paid back in any case), they have £5.3m. This will allow them to pay off Chinny (assuming they win the court case), the CVA and special creditors - which amount to £4.0m - but leaves them with just £1.3m left over to pay £9.6m football creditors.

 

 

So, what other funds are available to them to make up this shortfall? Well, cash within the club, after deducting PKF fees, amounts to £2.4m, leaving them just shy of £6m to find.

 

 

Which brings us to Parachute Payments...

 

As I detailed in my previous post, by my reckoning Pompey are due £7.0m more parachute payments. We know £1.5m of that is not available as it's going to go straight back to pay the Council. So this leaves them £5.5m to pay the remaining £6.0m football creditors. And all this assuming zero cash in the bank, as that has all been spent too.

 

 

Now here's my wranglings (yes I got there eventually). The Council report states:

 

 

 

 

 

So...why are the Premier League increasing the Parachute Payments they are contractually obliged to pay them by an additional £4.0m??

To be very clear, this is not an acceleration, but an increase that no reports previously anticipated, with an additional £2.2m coming in August and the rest at a later date.

 

 

 

As a footnote, I see the council report also reveals "Players wages have reduced by £1.15m per annum and appear to be comparable to other League 2 Clubs (players’ salaries now average circa £1,250 per week)". This implies an annual playing budget next year of around £1.25m. It also implies they started the season with an annual player budget of £2.4m, despite Appleton complaining that Chainrai had limited him to just £1.5m and that he had put together his squad on a shoestring.

 

A simple source and application of funds would be as follows

 

Source

 

Funds & equity raised £5.3m

Cash at bank £4.14m

Additional PP's £4.0m

 

Total £13.44m plus original PP's

 

Application

 

As you have described - £13.5m plus fees

 

Seems to work for me or have I missed something?

[Minsk]

A simple source and application of funds would be as follows

 

Source

 

Funds & equity raised £5.3m

Cash at bank £4.14m

Additional PP's £4.0m

 

Total £13.44m plus original PP's

 

Application

 

As you have described - £13.5m plus fees

 

Seems to work for me or have I missed something?

 

Taking it purely on that face value it may loo as if it adds up, but...............

 

What about ongoing running costs? They have very little income yet have to fund wages, pay bills, tax, etc, until the start of the next season - 5 months. How are they going to manage to do that? Oh yes, forgot, silly me, this is PFC we are talking about - they don't pay bills, tax, etc..........

 

Edit - oh, and the 2m floating charge? PKF fees? Legal fees? Kanu case? etc?

[qwertySFC]

Taking it purely on that face value it may loo as if it adds up, but...............

 

What about ongoing running costs? They have very little income yet have to fund wages, pay bills, tax, etc, until the start of the next season - 5 months. How are they going to manage to do that? Oh yes, forgot, silly me, this is PFC we are talking about - they don't pay bills, tax, etc..........

 

Edit - oh, and the 2m floating charge? PKF fees? Legal fees? Kanu case? etc?

 

 

I think it's called we will deal with that when we are in court or come to an agreement and pay you 2p of what we owe

[rooney]

When I worked in Banking, our Floating Charges also included a Fixed Charge on Book Debts. including all monies both present and future. If Baloos charge has this also, then I presume it would pick up the parachute payments. This means that Baloo would have to give a Letter of Waiver to Portsmouth Council for their Loan repayment. Can anybody see him doing this?

[TopGun]

Where have the additional £4m PPs come from? Has the PL increased the amount paid to all recently relegated clubs as a result of its new TV deals?

[trousers]

Another influential group that might be interested: http://www.taxpayersalliance.com/

 

But.....the council have a "guarantee" that the loan will be repaid in August....

 

Yes, I know, I know.... the words "Portsmouth Football Club" and "guaranteed payment" in the same sentence is enough to make a grown man spit coffee all over his screen and keyboard...

[trousers]

Where have the additional £4m PPs come from? Has the PL increased the amount paid to all recently relegated clubs as a result of its new TV deals?

 

From what I can make out, yes, the overall pot has increased and it would appear that this is applied retrospectively to any teams still receiving payments. I've certainly learned something new this week as I always assumed that the payments were fixed amounts.

[bridge too far]

Aren't the PCC answerable to the District Auditor or whatever this organisation is called nowadays?

 

Ah, yes ... the Audit Commission http://www.audit-commission.gov.uk/about-us/ ... Our primary focus will always be safeguarding the interests of taxpayers.

 

But does the Audit Commission have any teeth?

 

Yes it does, in theory. Although recently some of its powers have been 'outsourced' to the big four accounting firms. From its website

 

[h=4]" How do I make a complaint about my local authority or council?[/h] In the first instance you should direct your complaint towards the local authority involved. All local authorities will have a complaints department that you can contact.

If your complaint refers to something your council has done that you feel is unfair (that is, you feel you have suffered as a result of inefficient management or maladministration), please contact your Local Government Ombudsman (external link).

Our leaflet: Routemap, Your guide to complaining about local public services in England (PDF document) provides contact details and links of other agencies you can contact who can deal with complaints about public services in England.

 

If your complaint refers to corruption, fraud or misuse of public money at an authority please contact the appointed auditor for that authority.

 

You can also contact our confidential whistleblowing line on 0845 0522 646. Our policy regarding whistleblowing will provide you with information on what will happen with your information."

 

A quick perusal of the council's contracts database doesn't list any contracts awarded for internal audit so I guess any Portsmouth resident unhappy about this latest turn of events would have to complain to the district auditor - Kate Handy,

 

Audit Commission, Collins House, Bishopstoke Road,

Eastleigh, Hampshire SO50 6AD

T 0844 798 4600

F 0844 798 4601

http://www.audit-commission.gov.uk

[Clapham Saint]

When I worked in Banking, our Floating Charges also included a Fixed Charge on Book Debts. including all monies both present and future. If Baloos charge has this also, then I presume it would pick up the parachute payments. This means that Baloo would have to give a Letter of Waiver to Portsmouth Council for their Loan repayment. Can anybody see him doing this?

 

Post Brumark Investemnts (http://en.wikipedia.org/wiki/Re_Brumark_Investments_Ltd) you can't have a fixed charge over book debts.

 

For Baloo to have the PP they would need to have been specifically assigned - which they haven't.

[hutch]

"It (Harris's bid) has only got support from the eyes of Professional Footballers’ Association and HM Revenue and Customs, which are one of the club’s main creditors."

 

Don't think I've seen that in print before? (HMRC supposedly endorsing the Harris bid). Now that could cause a few tensions in the Mordaunt bedroom... (Sorry for the potentially distressing mental imagery)

it might also suggest that Gordon Taylor has not signed an "Intercreditor Agreement", and is not likely to do so any time soon.

[Patrick Bateman]

I really don't have time to read many posts on this forum, but I am interested in what's happening with the skates. Is anyone kind enough (please) to provide a concise update of what the latest is and what the informed opinion is?

 

Am sure others that are similarly busy will appreciate too, thanks!

[Wurzel]

A simple source and application of funds would be as follows

 

Source

 

Funds & equity raised £5.3m

Cash at bank £4.14m

Additional PP's £4.0m

 

Total £13.44m plus original PP's

 

Application

 

As you have described - £13.5m plus fees

 

Seems to work for me or have I missed something?

 

£13.5m. Allegedly very close to the figure ML purchased Saints for.

Not much dispute over which one was the better value for money

[badgerx16]

The actual rules defining the parachute payments, no fixed amounts but percentages of 'shares' :

 

http://www.premierleague.com/content/dam/premierleague/site-content/News/publications/handbooks/premier-league-handbook-2012-2013.pdf

 

D.27.

Subject to Rules D.28, D.29, E.21, E.30 and E.34, each Relegated Club shall receive

the following fees:

D.27.1. in the first Season after being relegated, a sum equivalent to 55% of 1

share of each of the Basic Award Fund, Overseas Broadcasting Money and

Title Sponsorship Money;

D.27.2. in the second Season after being relegated, a sum equivalent to 45%

of 1 share of each of the Basic Award Fund, Overseas Broadcasting Money

and Title Sponsorship Money; and

D.27.3. in each of the third and fourth Seasons after being relegated, a sum

equivalent to 25% of 1 share of each of the Basic Award Fund, Overseas

Broadcasting Money and Title Sponsorship Money.

[hutch]

Post Brumark Investemnts (http://en.wikipedia.org/wiki/Re_Brumark_Investments_Ltd) you can't have a fixed charge over book debts.

 

For Baloo to have the PP they would need to have been specifically assigned - which they haven't.

I think they need to get rid of Baloo completely in the forthcoming Court case. If they don't I think their Golden Share might be at risk under the terms of the earlier FL conditions.

 

I think their plan is to start off with a clean sheet, debt-free, all paid off with brand spanking shiny new debt.

[fanimal]

Some superb financial analysis above; If Nicola ever wants a team to help him out in business, he knows who to call - Skatebusters!

 

But the whole fragile business plan has more holes than the Mary Rose - not least the price of Nottarf Krap.

 

At this point who would you back? An accountant or a developer both in it for one thing and in the short term; a well meaning but flawed fan or some local politicians? Or a shrewd business man in it for the long haul? As we enter the final furlong I know who i would put my money on.

[redkeith]

So how much are PST, the ethical option, going to increase the CVA by, given the £4,0000,0000 windfall that they have just received ?

[trousers]

http://www.portsmouth.co.uk/sport/pompey/awford-s-warning-as-premier-giants-try-to-raid-pompey-1-4833683

 

[h=1]Awford’s warning as Premier giants try to raid Pompey[/h]

 

[trousers]

Some superb financial analysis above; If Nicola ever wants a team to help him out in business, he knows who to call - Skatebusters!

 

Now there's a cracking idea for the photoshoppers amongst us....