Pompey Takeover Saga

[slickmick]

Not finding a buyer for PFC as a unit

 

 

Which I'm sure the administrator and Chainrai are now realising.

I think that plug will be pulled very soon. The Football league will not step in despite what Android is saying.

[Islander]

Respect to the manager and players:

 

http://www.portsmouth.co.uk/sport/Grant-I-will-help-fund.6161978.jp

 

Quote from Avram: 'You cannot do anything without the kitman, the scouts or the masseur.

 

Hmmm so we read in the papers...

[Whitey Grandad]

You're right, the judge did suspend the WUO rather than dismiss it. But what would it take for the case to go back to court? They are insolvent as they stand at the moment, if the admin gets money from the PL on an advance basis that will keep them going for some time. What now is the trigger for the administrator pulling the plug?

I was wondering that. Did I see that Crystal Palace spent 2 years in administration before Simon Jordan stepped in? What is the trigger point for giving up? Is it entirely up to the administrator to decide?

[Kingsland Red]

I was wondering that. Did I see that Crystal Palace spent 2 years in administration before Simon Jordan stepped in? What is the trigger point for giving up? Is it entirely up to the administrator to decide?

 

Presumably all income streams drying up.

I would not have thought the administrator would run the set up for long having all responsibility for trading since admin.

I would expect massive playing staff cuts if they lose the semi final.

[dubai_phil]

I was wondering that. Did I see that Crystal Palace spent 2 years in administration before Simon Jordan stepped in? What is the trigger point for giving up? Is it entirely up to the administrator to decide?

 

IF the administrator can run the club as self funding (including his fees) then technically it could go on and on and on and on and on.

 

But with an 80 mil debt? Hmmmm

 

With a charge over the stadium?

 

Which Chanrai could then sell for his money back to a property developer?

 

Hmmmm

[Gorgiesaint]

Respect to the manager and players:

 

http://www.portsmouth.co.uk/sport/Grant-I-will-help-fund.6161978.jp

 

Quote from Avram: 'You cannot do anything without the kitman, the scouts or the masseur.

 

Hmmm so we read in the papers...

 

Haha thats what I thought when I read it - do they have any Thai girls on the payroll? or are they just on Avram's payroll?

 

I do wonder what the administrator makes of this though. Surely, he is trying to cut the waste from the business in an attempt to sell it - Avram & the players clubbing together to keep someone in a job which isn't essential might actually hinder his chances of selling the club.

[dellboypete]

Taxman lacking sympathy as Portsmouth lose points

 

Revenue dropped a winding-up petition against Portsmouth in the High Court this week, having challenged Balram Chainrai’s right to take the club into administration, but the taxman is determined to play hardball over their debt — which is understood to be higher than the widely publicised figure of £12.1 million — having run out of patience with the football industry over its financial excesses.

Despite its acquiescence in the High Court, Revenue has warned Portsmouth in the starkest possible terms that their debt must be repaid in full. No offer to the taxman will be made until the club is under new ownership — with Andrew Andronikou, the administrator, admitting yesterday that “there is a long way to go to find the appropriate people to take the club forward” — but Andronikou has been warned that Revenue, in aggressive mood, will not accept anything less than 100 pence in the pound.

http://www.timesonline.co.uk/tol/sport/football/article7066198.ece

 

 

A bit further down the article it confirms that they could well be deducted more points next season as well (what a shame :partyman:....................

 

While their overwhelming priority is to recover public money, senior officials at Revenue believe that they are in a position to make life extremely unpleasant for Portsmouth if the club do not co-operate fully.............(loved that bit!)

 

...........If Revenue votes down a Company Voluntary Agreement, the mechanism by which Portsmouth hope to use to exit administration, the club face the threat of a further points deduction, almost certainly in the Coca-Cola Championship, which becomes the npower Championship next season.

 

:butthead:

[krissyboy31]

I was wondering that. Did I see that Crystal Palace spent 2 years in administration before Simon Jordan stepped in? What is the trigger point for giving up? Is it entirely up to the administrator to decide?

 

Cashflow, I would have thought. AA isn't going to expose his company to making a loss on the venture, therefore if the money runs out, then he'll pull the plug (hence trying to do anything to get his hands on next season's parachute money).

[Eastcowzer]

Should we start the 'relegation confirmed' sweepstakes?

 

I reckon that, somewhat comically, their relegation will be confirmed at the end of their match against spurs on the 27th.

 

Methinks it COULD be this week-end if Wigan and Wolves pick up points, and the 'hully-gully's can beat the 'you-know-who's'.

Perchance a draw might even do it. 'One can only hope', as Pandora said.

Perhaps the ex-Saints demolition gang, (Dowie, Flowers & Wigley) will do their best to oblige.

[JackFrost]

"But after members of the playing staff made enquiries about helping keep some of those axed, Grant has joined the movement."

 

LOL

 

I seem to remember reading only 2 players offered to even negotiate a pay cut

[slickmick]

Cashflow, I would have thought. AA isn't going to expose his company to making a loss on the venture, therefore if the money runs out, then he'll pull the plug (hence trying to do anything to get his hands on next season's parachute money).

 

 

Be interesting to see if Chainrai is true to his word and continue to pay running costs.

[Gravesend Saint]

Be interesting to see if Chainrai is true to his word and continue to pay running costs.

 

But if Chainrai IS true to his word why is AA desperate to secure an advance on the parachute payment in order to keep the club running? Because AA knows Chainrai won't come through.

[Doctoroncall]

But if Chainrai IS true to his word why is AA desperate to secure an advance on the parachute payment in order to keep the club running? Because AA knows Chainrai won't come through.

 

Lets have a Plan B just in case, so he's smarter than Storrie!

 

Is AA holding out until the summer for player sales to beginning? As it's a World Cup year, transfers generally occur later than normal but I think this is when the money will run out. Assuming he gets the £5m (foreign TV due in May) and £16m (early parachute payments) income but he cannot recoup anything like he wants from the player sales to keep the club going so pop go the skates.

[Chez]

Respect to the manager and players:

 

http://www.portsmouth.co.uk/sport/Grant-I-will-help-fund.6161978.jp

 

Quote from Avram: 'You cannot do anything without the kitman, the scouts or the masseur.

 

Hmmm so we read in the papers...

yes but does that kitman have to earn quite so much money?

[Frank's cousin]

What are folks opinions on the chances of them having a CVA in place by next season? The taxman wont take less that 100% so thats 12mil + for straters - then really depends on what the others will accept I guess, but either way lets assume for a moment that th advance payments from the PL are to keep them going for this seaosn, and that teh parachut payment will cover some operating cost for next season... can anyone see their creditors accepting less than 30p in the pound which in effect means a new owner is going to have to stump up at least 25 mil to get a CVA in place and avoid more points deductions next season? And thats before they think about actually investing in getting teh club back on a recovery rout? Sure they will generate revenue from player sales come relegation, but that will only increasethe demands of the creditors and will unlikely be useable for operating costs next season... indeed thats an interesting question... this is a mess... creditors will demand sales asap to maxmise their return, but potential bidders will want some assets left surely?

 

Any chance of a sort of financial summary of what an investor would need to bring to the table factoring in PL advances, parachute payment, players slaes and creditor demands - operating costs for this seaosn and next (to sustain a side) thus providing a picture of what is needed?

[Foxstone]

What are folks opinions on the chances of them having a CVA in place by next season? The taxman wont take less that 100% so thats 12mil + for straters - then really depends on what the others will accept I guess, but either way lets assume for a moment that th advance payments from the PL are to keep them going for this seaosn, and that teh parachut payment will cover some operating cost for next season... can anyone see their creditors accepting less than 30p in the pound which in effect means a new owner is going to have to stump up at least 25 mil to get a CVA in place and avoid more points deductions next season? And thats before they think about actually investing in getting teh club back on a recovery rout? Sure they will generate revenue from player sales come relegation, but that will only increasethe demands of the creditors and will unlikely be useable for operating costs next season... indeed thats an interesting question... this is a mess... creditors will demand sales asap to maxmise their return, but potential bidders will want some assets left surely?

 

Any chance of a sort of financial summary of what an investor would need to bring to the table factoring in PL advances, parachute payment, players slaes and creditor demands - operating costs for this seaosn and next (to sustain a side) thus providing a picture of what is needed?

 

Apologies if I have overlooked this on any of the previous 20,000+ posts but is Gaydamak a secured or an unsecured creditor?

It might be interesting if its the latter as to what he does.

[Chin Strain]

What are folks opinions on the chances of them having a CVA in place by next season? The taxman wont take less that 100% so thats 12mil + for straters - then really depends on what the others will accept I guess, but either way lets assume for a moment that th advance payments from the PL are to keep them going for this seaosn, and that teh parachut payment will cover some operating cost for next season... can anyone see their creditors accepting less than 30p in the pound which in effect means a new owner is going to have to stump up at least 25 mil to get a CVA in place and avoid more points deductions next season? And thats before they think about actually investing in getting teh club back on a recovery rout? Sure they will generate revenue from player sales come relegation, but that will only increasethe demands of the creditors and will unlikely be useable for operating costs next season... indeed thats an interesting question... this is a mess... creditors will demand sales asap to maxmise their return, but potential bidders will want some assets left surely?

 

Any chance of a sort of financial summary of what an investor would need to bring to the table factoring in PL advances, parachute payment, players slaes and creditor demands - operating costs for this seaosn and next (to sustain a side) thus providing a picture of what is needed?

 

In order to get their 'Golden Share' they have to clear the footballing debts (£10.5m + Sols £1.7m). Unless HMRC get 100% of their debt (currently around £18m) they'll vote against the CVA. My understanding is that if they get their £18m, evertone else by default must be paid in full due to creditors being treated equally, so that's not going to happen. As long as HMRC have over 25% of the debt, that's a points deduction for next season (15 I think)

 

The supposed £20m tv money advance, and any players sold and leased back, will go straight into the administrators pocket to cover wages and creditors.

 

So, if they make it to next season they'll only have one parachute payment to come (£16m), all players will have been sold, and a points deduction will be in place. They'll probably still have several players on large contracts that they can't shift.

 

As far as I see it, and as you've mentioned, the worst possible thing for the football club is for the PL to forward TV income and allow them to sell players, as those are pretty much the only reason anyone would try and make a deal. Of course, that's best for the creditors as the administrator gets that income, rather than the new owner.

 

The only thing I'm unsure about is whether any new buyer is actually entitled to the remaining parachute money, or will the PL retaiin it? Even if the new buyer (if there is one) gets it, that'll be gobbled up in running costs if they still have big earners.

 

Somebody may find a way of making it work if they can pick the club up for next to nothing, run it on a shoestring for a year, pick up the £16m and walk away with the club on the way to L2.

 

Pretty big 'if' though.

 

Edit: forgot to mention....they're toast.

Edited 18 March, 2010 by Chin Strain
Toast

[sidthesquid]

They will get next to nothing for their players at the end of the season, because a) half of them are loans/out of contract anyway, b) they aren't much use anyway & c) they are on such huge wages for basically CCC grade players that no-one would take them on (Remember Rasiak, probably worth £2 mill but we couldn't even give him away) and will probably be forced to 'pay them off'.

Mr Android has probably got to put them in as a net cost rather than asset to try as he tries to move them on.

[Chin Strain]

They will get next to nothing for their players at the end of the season, because a) half of them are loans/out of contract anyway, b) they aren't much use anyway & c) they are on such huge wages for basically CCC grade players that no-one would take them on (Remember Rasiak, probably worth £2 mill but we couldn't even give him away) and will probably be forced to 'pay them off'.

Mr Android has probably got to put them in as a net cost rather than asset to try as he tries to move them on.

 

I reckon there's money for Wilson (though nowhere near the £3.5m quoted), Belhadj and Boateng. However, buy the time you factor in firesale, paying up contracts and agents, that will erode a large amount - £10m absolute max IMO.

 

Utaka and the other high earners are net losses.

[Chin Strain]

Apologies if I have overlooked this on any of the previous 20,000+ posts but is Gaydamak a secured or an unsecured creditor?

It might be interesting if its the latter as to what he does.

 

Bit of an unknown. I reckon he may have first call on tv money.....and AA did say in the fans meeting on 6th that he didn't know if anyone had security over that money - slightly concerning!

[View From The Top]

Apologies if I have overlooked this on any of the previous 20,000+ posts but is Gaydamak a secured or an unsecured creditor?

It might be interesting if its the latter as to what he does.

 

At some stage AA did say that he was a secured creditor.

[rallyboy]

Worryingly I can now see them starting next season without penalties - but panic ye not, they won't have got away with it!...

 

The big-hearted Prem could pay off the taxman using their vital future income, to protect the league from tax hassles, not for the benefit of the club - huge funds could be pumped through the company to creditors, not into it.

 

A new owner will have to clear football debt and that will be an expensive price for a company that just lost its main revenue stream and comes with restructured debt baggage.

'No one will buy them' we all shout!

But we all know that even though the business is shot to bits, an idiot who can't be bothered to read the small print always rides into town and then discovers the debts on his second day in charge.

 

So as long as any irregularities go away, which they could if the Prem hand HMRC their

£18M, they could start next season on 0.

 

BUT unable to compete on transfers or wages for a very long two or three years.

 

Minimum investment to try and keep the club in the football league - £40M?

Amount required to take those 390 loyal supporters back to the promised land - £150M?

Number of redundant staff Utaka could pay on his own? - 400.

 

The sums still don't stack up - buyer beware.

[Gingeletiss]

Apologies if I have overlooked this on any of the previous 20,000+ posts but is Gaydamak a secured or an unsecured creditor?

It might be interesting if its the latter as to what he does.

 

I suspect, given the wording of the courts decision, that he is un-secured, but HMRC have allowed this farce to go the course, they are in quite a strong position now.

[sidthesquid]

I reckon there's money for Wilson (though nowhere near the £3.5m quoted), Belhadj and Boateng. However, buy the time you factor in firesale, paying up contracts and agents, that will erode a large amount - £10m absolute max IMO.

 

Utaka and the other high earners are net losses.

 

That's my point - you might get a few £1-2 mill sales, but for each of those there is a Utaka or a Mullins who are going to cost that much to persuade them to walk. I reckon if they offloaded the entire squad they would be lucky to break even

[andysstuff]

Worryingly I can now see them starting next season without penalties - but panic ye not, they won't have got away with it!...

 

The big-hearted Prem could pay off the taxman using their vital future income, to protect the league from tax hassles, not for the benefit of the club - huge funds could be pumped through the company to creditors, not into it.

 

A new owner will have to clear football debt and that will be an expensive price for a company that just lost its main revenue stream and comes with restructured debt baggage.

'No one will buy them' we all shout!

But we all know that even though the business is shot to bits, an idiot who can't be bothered to read the small print always rides into town and then discovers the debts on his second day in charge.

 

So as long as any irregularities go away, which they could if the Prem hand HMRC their

£18M, they could start next season on 0.

 

BUT unable to compete on transfers or wages for a very long two or three years.

 

Minimum investment to try and keep the club in the football league - £40M?

Amount required to take those 390 loyal supporters back to the promised land - £150M?

Number of redundant staff Utaka could pay on his own? - 400.

 

The sums still don't stack up - buyer beware.

 

won't work as you need to treat all unsecured creditors equally. If you pay off the HMRC in full, you need to pay them all off.

[Gingeletiss]

In order to get their 'Golden Share' they have to clear the footballing debts (£10.5m + Sols £1.7m). Unless HMRC get 100% of their debt (currently around £18m) they'll vote against the CVA. My understanding is that if they get their £18m, evertone else by default must be paid in full due to creditors being treated equally, so that's not going to happen. As long as HMRC have over 25% of the debt, that's a points deduction for next season (15 I think)

 

 

I've raised this before, so it needs a bump. IF all the footballing debts are paid up in full, the the unsecured share of debt owed to HMRC will increase. There is no way if and when! they exit administration, that they will get their 'golden share' for next season, short of paying the tax man his dues, and he wants it all.

[Chin Strain]

The big-hearted Prem could pay off the taxman using their vital future income, to protect the league from tax hassles, not for the benefit of the club - huge funds could be pumped through the company to creditors, not into it.

 

The PL are more likely to funnel money to the football creditors. There's no way they'll send it to the taxman - that's way beyond their remit.

 

Any money that goes to unsecured creditors through the club will have to be spread equally amongst the unsecured creditors, once the secured creditors have their money back. Unless someone buys the club for the value of the debt then HMRC won't get 100% of the monie owed, so CVA without 75% support beckons....and points deductions follow.

[redkeith]

If the PL bring in this extra 2 years half payment for the relegated teams, I can see how it could help sell the skates.

 

Assuming, as seems likely that the Skates are allowed to factor/mortgage next years parachute payements (16m) and maybe even the proposed £5m that each championship club will get.

 

That would still leave them with 1 and two half years parachute payments to come ( 16 +8 + , which could be used by a new owner to try to get back to the PL, or it could be used to repay the monies used to by the Skates from the administrator and just kepp them ticking over on gate receipts.

[dubai_phil]

What are folks opinions on the chances of them having a CVA in place by next season? The taxman wont take less that 100% so thats 12mil + for straters - then really depends on what the others will accept I guess, but either way lets assume for a moment that th advance payments from the PL are to keep them going for this seaosn, and that teh parachut payment will cover some operating cost for next season... can anyone see their creditors accepting less than 30p in the pound which in effect means a new owner is going to have to stump up at least 25 mil to get a CVA in place and avoid more points deductions next season? And thats before they think about actually investing in getting teh club back on a recovery rout? Sure they will generate revenue from player sales come relegation, but that will only increasethe demands of the creditors and will unlikely be useable for operating costs next season... indeed thats an interesting question... this is a mess... creditors will demand sales asap to maxmise their return, but potential bidders will want some assets left surely?

 

Any chance of a sort of financial summary of what an investor would need to bring to the table factoring in PL advances, parachute payment, players slaes and creditor demands - operating costs for this seaosn and next (to sustain a side) thus providing a picture of what is needed?

 

 

I did the maths about 10 pages back FC.

 

The only assumption was "They are toast"

 

Simply - 3 to 4mil per month MIN in running costs March & April (Then most of May June & July paying wages with no income)

8,000 max matchday tickets per home game

TV payment of 5mil

Parachute loan after interest of 10mil

"Prizemoney" for coming last in the PL

Season Ticket Sales in CCC

Player Sales in firesale

High earners on long contracts stuck with (see Saga, Rasiak, Thomas et al)

 

It really doesn't look good for them limping into the CCC without a buyer let alone worrying about the CVA.

[Joensuu]

The big-hearted Prem could pay off the taxman using their vital future income, to protect the league from tax hassles, not for the benefit of the club - huge funds could be pumped through the company to creditors, not into it.

This 'Premiership will bail them out' rumour is nonsense. It stems from the club being able to secure a 4-6month loan against future parachute payments. Quite simply, a lender will give Pompey c. £12-13m now, and will expect repayment of £16m in full in July/August. There is no way the Premiership themselves will gift or loan any money whatsoever; as Scudamore told the skate supporters a few months back, the Premiership is not a bank, it doesn't have loads of money in reserve.

 

It's find a rich idiot or go bust time in Skatesville.

[angelman]

The PL have washed their hands of Pompey. The 9 points all but guarantees relegation and if not more poop hits the fan between now and May, then the problem goes elsewhere and the PL doesn't have to worry.

[hypochondriac]

Worryingly I can now see them starting next season without penalties - but panic ye not, they won't have got away with it!...

 

The big-hearted Prem could pay off the taxman using their vital future income, to protect the league from tax hassles, not for the benefit of the club - huge funds could be pumped through the company to creditors, not into it.

 

A new owner will have to clear football debt and that will be an expensive price for a company that just lost its main revenue stream and comes with restructured debt baggage.

'No one will buy them' we all shout!

But we all know that even though the business is shot to bits, an idiot who can't be bothered to read the small print always rides into town and then discovers the debts on his second day in charge.

 

So as long as any irregularities go away, which they could if the Prem hand HMRC their

£18M, they could start next season on 0.

 

BUT unable to compete on transfers or wages for a very long two or three years.

 

Minimum investment to try and keep the club in the football league - £40M?

Amount required to take those 390 loyal supporters back to the promised land - £150M?

Number of redundant staff Utaka could pay on his own? - 400.

 

The sums still don't stack up - buyer beware.

 

Are the prem allowed to pay one creditor (HMRC) without paying the others? And as Chanrai is secured creditor does he not have first pickings?

[View From The Top]

Are the prem allowed to pay one creditor (HMRC) without paying the others? And as Chanrai is secured creditor does he not have first pickings?

 

The secured creditors, Baloo and Gunrunner, get paid off and then the rest.

[Gemmel]

Are the prem allowed to pay one creditor (HMRC) without paying the others?

 

Nope is my understanding

[Saint_John]

Apologies if I have overlooked this on any of the previous 20,000+ posts but is Gaydamak a secured or an unsecured creditor?

It might be interesting if its the latter as to what he does.

 

This article in the Guardian says "unsecured loans".

http://www.guardian.co.uk/football/2010/mar/02/links-portsmouth-twisted-chain-ownership

 

"Gaydamak Jr remains a key player because he claims to be owed more than £30.5m in unsecured loans. He still owns five key pockets of land around the stadium, including that on which the club's offices sit."

 

As he owns the land around the ground it is sort of makes his loans almost "secured", as no one can do anything with the Club without the Offices etc.

 

 

However if you are thinking about the CVA vote, remember there are 2 parts to the vote and there is NO way I can see that Junior will not be classified as "Associated". So IMO they will not get a CVA.

 

http://www.fasimms.com/cva.html

"75% of unsecured creditors by value must approve a CVA. Remember this is 75% voting on the day. 50% of non-associated creditors by value must also vote in support".

[Doctoroncall]

Any chance of a sort of financial summary of what an investor would need to bring to the table factoring in PL advances, parachute payment, players slaes and creditor demands - operating costs for this seaosn and next (to sustain a side) thus providing a picture of what is needed?

 

Income:

foreign TV payment: £5m

PL prize money: £2m

fa cup prize (minus pl bonus): £1m

Next season's parachute (minus int): £13m

Tickets sales: £1m

ST sales: £3.5m

 

 

Out goings:

salaries/month: £4m (should drop with player sales and out of contract players after June)

monthly running costs: £0.5m

admin charges: £1.5m

extras (hotels, coaches etc): £1m

 

Ignoring the costs of buying the club, up to June before players can be sold they would be £1.5m in credit with season ticket money ring fenced and potential player sales to come. So they need to sell players to finance a season in the CCC or find a buyer.

 

To buy the club: min £40m

Ground + players: £12m (min to chainrai)

Gaydamak (if a secure creditor): £15m min

Footballing debts: £7m

unsecured creditor share out: £6m

 

All sums done on the back of a napkin mind and I'm sure there are plenty who would dispute the above figures.

Edited 18 March, 2010 by Doctoroncall

[Lets B Avenue]

How can Grant pay anyones wages when he's not being paid himself? Or was that another fiction Storrie?

[Dimond Geezer]

How can Grant pay anyones wages when he's not being paid himself? Or was that another fiction Storrie?

 

He's probably loaded :smt102

[ecuk268]

 

However if you are thinking about the CVA vote, remember there are 2 parts to the vote and there is NO way I can see that Junior will not be classified as "Associated". So IMO they will not get a CVA.

 

http://www.fasimms.com/cva.html

"75% of unsecured creditors by value must approve a CVA. Remember this is 75% voting on the day. 50% of non-associated creditors by value must also vote in support".

 

They were saying on the radio last night that HMRC are owed more than 25% of the debt and are taking a hard line and would be unlikely to agree to a CVA.

[landford.saint]

They were saying on the radio last night that HMRC are owed more than 25% of the debt and are taking a hard line and would be unlikely to agree to a CVA.

 

Rather poor thinking by me but, is it in Poopeys interest to acrue more debt.

 

To get CVA 75% must vote in favour of acceptance. HMRC are not likely to agree less than 100% of what they are owed. At present their debt is about 18 million of 60 million owed, therefore about 30%. If Poopey could get more total debt, say to 80million, HMRC percentage drops to less than 25% so they on their own cant block CVA.

I know I've got a twisted mind, but its too long listening to you lot.

[SOTONS EAST SIDE]

Pompeys debtors grew last night as AA failed to realise that after working out they're debts on the back of a fag packet , that BENSON & HEDGES were not owed money by the club!! lol :smt040

[View From The Top]

Rather poor thinking by me but, is it in Poopeys interest to acrue more debt.

 

The administrator is charged with reducing debt and would be liable for acrued debt (I think:confused:).

[rallyboy]

a genuine challenge to the handful of educated blue few on here - show us a rough workable budget to take your club forward for the next year incorporating restructuring and clearing the debt.

We've all had a look for 431 pages and none of us can get the figures to stack up, are we missing something?

 

I remember surveying Saints financial results five years ago and the loss of Prem money made the future look bleak.

Luckily I was wrong and apart from the small matter of the two relegations, administration, and a few weeks staring desperately into the abyss, we were financially bouyant throughout the whole post-Prem, pre-Markus period, it was fun, fun, fun, all the way.

 

I believe the likes of Leeds, Norwich and Charlton also adjusted really well and found bouncing straight back to the Prem to be a piece of p'ss.

So, what's the master plan, how much do you think a new owner will have to write off to steady the ship?

[FloridaMarlin]

Just one of the many worms wriggling around in the financial can which Andy Android urgently wants to get to the bottom of is the question of where and how the thick end of £500,000 disappeared in the club shops.

 

Discrepancies (brought to his attention by one of the shop employees) between invoices for incoming stock and payments show this amount to have disappeared into a black hole.

 

Not much in the scheme of things, but this is just one of several areas where money apepars to have just evaporated into the ether.

 

At the very least it shows poor accounting systems and lack of auditiing. But then, perhaps their accounting procedures were designed like that.

[dubai_phil]

Just one of the many worms wriggling around in the financial can which Andy Android urgently wants to get to the bottom of is the question of where and how the thick end of £500,000 disappeared in the club shops.

 

Discrepancies (brought to his attention by one of the shop employees) between invoices for incoming stock and payments show this amount to have disappeared into a black hole.

 

Not much in the scheme of things, but this is just one of several areas where money apepars to have just evaporated into the ether.

 

At the very least it shows poor accounting systems and lack of auditiing. But then, perhaps their accounting procedures were designed like that.

 

Oops

 

And so it starts

[Gemmel]

how much do you think a new owner will have to write off to steady the ship?

 

 

 

Chainrai is owed 12 million now – I’m guessing he would take 8

Gaydamak is owed 30 million - I’m guessing he would want nearly 10 or simply keep the land or some of it to remain in line with the other unsecured creditors

HMRC is owed 18, they want 18, but won’t get it and will take the same % in the pound as the rest of the unsecured creditors

Footballing debts remain at 10 Million including Sol and they will be paid in full

Other unsecured debts 5 million

Administration will cost 7 million including wages if a deal is struck within two months.

 

Secured Creditors and Footballing debts = 18 million

Unsecured is around 53… 20p in the pound pays 10.6 million (Assuming Sacha keeps some land and takes some cash)

Admin 7 million

Total just over 35 million, gets you ownership of a champisonship club, that is losing money and likely to have more points deducted, but that will have a minimum of 33 million in parachute payments (possibly up to 50 million if new plans are ratified) They will have the ability to sell players and could raise 10 to 15 million with players going out, plus any additional TV revenue etc.

So a 35 million investment, could return up to 65 million in less than two years. The squad would be threadbare, the additional points / no CVA would mean another relegation , but trust funds etc, wouldn’t care one bit.

 

Probably far too simple, but potentially a deal to be done

Edited 18 March, 2010 by Gemmel

[andysstuff]

Rather poor thinking by me but, is it in Poopeys interest to acrue more debt.

 

To get CVA 75% must vote in favour of acceptance. HMRC are not likely to agree less than 100% of what they are owed. At present their debt is about 18 million of 60 million owed, therefore about 30%. If Poopey could get more total debt, say to 80million, HMRC percentage drops to less than 25% so they on their own cant block CVA.

I know I've got a twisted mind, but its too long listening to you lot.

 

That assumes they make the ongoing payments to HMRC evert month of, what £1.5M?

[Wes Tender]

Avram Grant:-

‘Football needs to be decided on the pitch. You need to give all of the teams an equal chance, which we did not have in this case. The decision was taken a long time ago that Portsmouth would not stay in the Premier League, for one reason or another.

 

So pray tell us Avram, how a team has an equal chance when its club massively overspends to buy players which it cannot afford? Just give me a simple yes or no answer as to whether you think that is fair on those other clubs who have not been so profligate with their spending and are therefore at a disadvantage.

 

I thought that by reputation, Israelis were generally thought to be renowned for their business accumen, but if you believe that somehow a football club does not need to be constricted by the same financial principles that affect other businesses, then perhaps not. Or is it just you that doesn't understand these things? Are you unable to see the other side of the coin too? Those same fans were perfectly happy when the massive overspending bought them the FA Cup, star players in the England squad, a high position in the Premiership, etc. Why should anybody else apart from somebody connected with Portsmouth feel the slightest bit sympathetic towards them?

 

We had to take the medicine like men when we went through this. Stop your snivelling and stick to what you do best, coaching your overpaid players and supporting our local red light industry.

[spyinthesky]

also heard that the club had somewhere in the region of 30+ Mercs on lease from a local dealer. They have had to go into storage until the Administrator sorts out the lease obligations.

Presuming these are club officials cars, rather than players, who qualified for such a motor?

Think Storrie runs a top of the range Merc (still?) and I suppose the kit man must have qualified to run alongside his handsome salary & bonus totalling a reported £70K!!

[OldNick]

 

but that will have a minimum of 33 million in parachute payments (possibly up to 50 million if new plans are ratified)

 

Probably far too simple, but potentially a deal to be done

Surely if this is ratified it would not be instant but come into play in a season or two's time.