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Pompey Takeover Saga


Fitzhugh Fella

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An article in today's Times suggests that PFC will incur a minus 10 point penalty from the Premier League at the end of this season, and a minus 27 point penalty at the start of next season imposed by the Football League. Has anyone else read this? It just gets from bad to worse.

 

:D

 

Wouldn't surprise me tbf, they need a proper investigation into the finances there as so much dodgy **** has gone on - surley on par with Luton.

 

Is there an online link?

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Rehash of old news really but some of the comments by supporters are worth a gander imo.....i do like the 'on the to do list' comment by Jacobs....

 

http://www.portsmouth.co.uk/newshome/Fresh-fears-for-Pompey-fans.5889215.jp

 

 

:lol: at the comments. All the classics are in there...

 

"It'll be fine, support the team PUP" :rolleyes:

 

"A steward told me..."

 

But this one; this one is golden:

 

Remember when you set up the first direct debit? Any company? Mortgage, utility bills, council tax, etc, how many were paid out first time? even second time for some. This could all be down to setting up problems, let`s see what happens Jan, then start to worry.

 

PMSL!!! AAAhhhhh!! Hahahahaha. :lol:

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I was told this morning that their entire accounts department has been laid off, could this be perhaps in preperation for administration?

 

Let's look at the facts.

 

1) they have no money

2) they have to pay out lots of money

 

I say "yes, soon" unless they find someone to solve 1).

Edited by Pancake
helping with thread merging
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I really dont understand the situation at Pompey, why would a new (apparently "Rich") owner let his investment slip into the **** heap like this? It seems unlikely they will go into admin to me tbh. Do prem teams get a points penalty if they go into admin?

 

the new owner, from what i can tell, isn't in it for the good of the club - he wants to make a quick buck and has now become aware that in order to do that he needs to put lots of money in.

 

I mean you'd have to be stupid to invest any money into that club at the moment. Looks destined for relegation, low crowds, loans taken out left right and centre.

 

They're sailing very close to the wind, not just in terms of admin, but complete liquidation imo.

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http://www.skysports.com/story/0,19528,11661_5754744,00.html

 

Thought he was one of their better players but seems he hasn't been getting a game

 

That's very bizarre, he HAS been playing regularly.

The longer Pompey go without going into admin, the more loans they take out, the less chance of investment, the more chance of a higher points deduction, the more chance of getting relegated again etc.

This is funny as f*ck.

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I really dont understand the situation at Pompey, why would a new (apparently "Rich") owner let his investment slip into the **** heap like this? It seems unlikely they will go into admin to me tbh. Do prem teams get a points penalty if they go into admin?

 

They get -9 points.

 

I remember when they nearly went into admin earlier on in the season I'm sure the Premier League said they'd help them out so they wouldn't go into admin! :confused:

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the new owner, from what i can tell, isn't in it for the good of the club - he wants to make a quick buck and has now become aware that in order to do that he needs to put lots of money in.

 

I mean you'd have to be stupid to invest any money into that club at the moment. Looks destined for relegation, low crowds, loans taken out left right and centre.

 

They're sailing very close to the wind, not just in terms of admin, but complete liquidation imo.

 

This is how I understood his intentions as well. But, it begs the question, if you are about to enter into a major transaction to take controlling shares of any company with the view to making a quick profit, why didn't you check it out properly before hand.

 

Surely it is plain for everyone to see that there is absolutely no chance of buying Pompey, (or any football club for that matter) and offloading it 6 months down the line for a profit. The whole concept is flawed, which you would imagine any intelligent business person seeing right from the off.

 

Perhaps he should have given Mike Ashley a call for advice if that was his plan..!

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yes, they got a £1.8m loan (from where I don't know) to do though.

 

One of the papers (quoted on the Pompey takeover thread in the lounge) said that this loan was from the same source as the £15M they got earlier in the season - to wit, a businessman from Singapore. All very bizarre, I have to say - but damn funny with it!

 

Edit: just checked and the loaner's name is Balram Chainrai.

Edited by Fowllyd
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:lol: at the comments. All the classics are in there...

 

"It'll be fine, support the team PUP" :rolleyes:

 

"A steward told me..."

 

But this one; this one is golden:

 

Remember when you set up the first direct debit? Any company? Mortgage, utility bills, council tax, etc, how many were paid out first time? even second time for some. This could all be down to setting up problems, let`s see what happens Jan, then start to worry.

 

PMSL!!! AAAhhhhh!! Hahahahaha. :lol:

 

Now that is just priceless! Think I'll keep on giggling at that one all day...

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I really dont understand the situation at Pompey, why would a new (apparently "Rich") owner let his investment slip into the **** heap like this?

 

Ive been thinking about this, and thinking about the link between some of the people that are lending them money and the previous owners.

 

Say you owned 100% of a company that looked like it was about to go tits up. You knew that if it did, you were going to get NOTHING from it, you would lose everything. Money is owed to the Bank too. So say you got together a few associates. Say you sold the company to one of them for a £1 or so. They knew what they were buying. The new 'owner' then negotiated to pay off the bank loans with future money that was coming in. The Banks are now happy, the only outstandings are some tax and player cash still owed - small change when thinking of the overall worth of the business. Say you and some of your associates then "lend" the said company some "money", vast amounts, all drawn up properly as loan notes. So now you have a shell company owned by someone you know, and lost of different investors who you also know through various ventures - all of whom will be considered creditors if the company goes bust.

 

So, the company goes go into administration. The Administrators manage to sell it off for a small percentage of its actual worth - but the important thing is that is actually sold, something that no-one could manage wih the business before. The "investors" get back X% of their "investment"....

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Ive been thinking about this, and thinking about the link between some of the people that are lending them money and the previous owners.

 

Say you owned 100% of a company that looked like it was about to go tits up. You knew that if it did, you were going to get NOTHING from it, you would lose everything. Money is owed to the Bank too. So say you got together a few associates. Say you sold the company to one of them for a £1 or so. They knew what they were buying. The new 'owner' then negotiated to pay off the bank loans with future money that was coming in. The Banks are now happy, the only outstandings are some tax and player cash still owed - small change when thinking of the overall worth of the business. Say you and some of your associates then "lend" the said company some "money", vast amounts, all drawn up properly as loan notes. So now you have a shell company owned by someone you know, and lost of different investors who you also know through various ventures - all of whom will be considered creditors if the company goes bust.

 

So, the company goes go into administration. The Administrators manage to sell it off for a small percentage of its actual worth - but the important thing is that is actually sold, something that no-one could manage wih the business before. The "investors" get back X% of their "investment"....

 

And if the investors took over the club for £0, but did get 70% or so of the company then they get 70% of whatever is paid for their share?

 

But no, the investors in Saints lost everthing when we went into admin. It makes no sense.

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One of the papers (quoted on the Pompey takeover thread in the lounge) said that this loan was from the same source as the £15M they got earlier in the season - to wit, a businessman from Singapore. All very bizarre, I have to say - but damn funny with it!

 

Edit: just checked and the loaner's name is Balram Chainrai.

 

Read: http://www.saintsweb.co.uk/forum/showpost.php?p=523668&postcount=3887

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And if the investors took over the club for £0, but did get 70% or so of the company then they get 70% of whatever is paid for their share?

 

But no, the investors in Saints lost everthing when we went into admin. It makes no sense.

 

Im not saying the investors took over the club, if you notice all of the investments have been as loans by 3rd or 4thy parties who are not considered to be owners or board members. This loan is no different from a Bank loan - its a loan that will be paid off if/when the club is chipped up and sold.

 

Maybe those loans for 15Million were actually for a much much smaller amount, but written up as 15Million...

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Im not saying the investors took over the club, if you notice all of the investments have been as loans by 3rd or 4thy parties who are not considered to be owners or board members. This loan is no different from a Bank loan - its a loan that will be paid off if/when the club is chipped up and sold.

 

Maybe those loans for 15Million were actually for a much much smaller amount, but written up as 15Million...

 

Ah. Understood. Surely that has to be illegal though?

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let's not forget that the nasty press have to shoulder a lot of the blame as well.

They keep writing stuff about the club, reporting the facts and other annoying things like that.

The Sun in particular have it in for them, I remember them suggesting that Al Fahim had no money and that Storrie would be charged, they also continue to print the league table, it's really out of order.

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I was told this morning that their entire accounts department has been laid off, could this be perhaps in preperation for administration?

 

What a nice Christmas present that would be.

 

Perhaps the Saints Megastore could start selling framed copies of the winding up order, just what every aints fan wants on his wall.:smt040

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my source was a skate who got the information from Pompey Online message board, information that was subsequently denied, apparently.

 

This is worth five minutes of your time though:

http://www.twohundredpercent.net/?p=4014

 

Interesting reading - ta for posting it. And the first comment below the article itself gives a neat, succinct summary of the Skates' current position.

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lol ..just been on there official site ... Job Site are advertising for an accounts assistant 16-17k.

Do you suppose they get a discount on advertising there own jobs lol ?

 

maybe thats why Primus has retired. He fancies an office job

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I like this bit :

 

Meanwhile, back with Fahim, “As a chairman and shareholder, I want to know who is (Al-Faraj) and what plans he has for the club. I have never even met him.” You might imagine Fahim would have done all that stuff before selling him 90% of the club, but never mind.

 

:D

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It is a strange situation that is hard to unravel from the outside.

 

The most generous analysis IMO is this:

 

Faraj took a punt for a small outlay and gambled that he could obtain enough short-term finance to see them through the season, ensure Prem survival and sell on once they had got their cost base down.

 

There are plenty of other scenarios one could guess at that seem more plausible though...!

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Interestingly though there is that comment that teh Premier league wont let it happen - because its a PR disaster and surely indicative of teh pervers nature in which teh finds are divided. But seems to me teh real guity party must surely be teh manger you signed up all those expensive players and teh Chief exec who approved it - surely they dont still love Harry at FP? and yet Mr Storey is also still there... bizzarre...

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Interestingly though there is that comment that teh Premier league wont let it happen - because its a PR disaster and surely indicative of teh pervers nature in which teh finds are divided. But seems to me teh real guity party must surely be teh manger you signed up all those expensive players and teh Chief exec who approved it - surely they dont still love Harry at FP? and yet Mr Storey is also still there... bizzarre...

 

The manager can line up the deals but he can't sign the cheque.

 

Much as I loathe Redknap he can only get away with what the owner/cheif exec allows him to. As was demonstrated when he was with us.

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Interestingly though there is that comment that teh Premier league wont let it happen

The Premier League are almost certainly hoping Pompey survive financially until the end of the season but get relegated, so then they can wash their hands of the whole situation and put the ball in the Football League's court instead.

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One question for those saying that the Premier League would bail them out to prevent them going into admin: If that did happen and therefore Pompey avoided a 9 pt penalty, what would happen if they then managed to escape relegation? Wouldn't the team who DID get relegated feel obliged to sue the Premier League for taking actions which led directly to them being relegated? Would the Premier League really risk another trip to the law courts after the whole Sheffield Utd vs West Ham nonsense?

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