Vital Football

Latest Newcastle United News

Administration talk quashed

Administration talk quashed

First some words from Derek Llambias, the Managing Director at SJP:

"It's ridiculous, unfair and unfounded, and it's upsetting because there is no truth in it. We're in a situation fighting relegation where we need everybody behind us.

(If we were relegated) We'd have to restructure our own business plan like everybody else, but our finances are strong, and there would be no threat of administration.

Mike (Ashley) has been affected by the credit crunch - why should he be different to anybody else? The club is not for sale and we've made it clear. It's not where we want to go.'

Now our thoughts - why administration? The stem of the Sunday Express story that broke was that Ashley would put the club into administration should we go down. Quite how that would benefit us remains to be seen, with administration defined as:

"The role of an administrator is to get the company out of trouble and trading again if possible.
Administrators can be appointed to a company that is unable, or is likely to become unable, to pay its debts. They can be appointed by any of the following:

- the courts - on application from a creditor, directors or partners
- the holder of a qualifying floating charge over the assets of the business
- the company or its directors

An administrator's primary goal is to rescue the company as a going concern. If this isn't possible, the administrator will try to get a better result for the creditors than would be possible if the company was wound up. If neither of these is possible, the administrator will sell the company's property to make at least a partial payment to one or more secured or preferential creditors, such as employees or the bank."

Given Ashley is the company`s main creditor, with an alleged £100m worth of loans to the club, in essence he would be asset stripping the club to repay that, potentially from player sales, potentially from property sale. The whole spiel was that he had put the club on an even keel, regardless of division.

Whilst we`ve questioned his motives in the past with the likes of Given, N`Zogbia and Milner all suspiciously sold and budget buys brought in to replace them, surely any move to administration would severely impair the main assets (e.g. playing staff) under IAS 36?

The scenario remains unpalatable either way.



For the very latest Premier League odds

Free £15 bet when you spend £5 on The New Football Pools

Click here to join in the debate on the club forum.

Writer:Ross Molyneux
Date:Monday March 30 2009
Time: 11:10PM

Login to post a comment

Recent Newcastle United Articles

Newcastle v Bristol City - Team Sheets

Newcastle are at St James' Park with Bristol City the visitors for the latest Championship game.

Newcastle v Bristol City - Follow Live On Twitter

Newcastle are at St James' Park with Bristol City the visitors today, this will be a 3pm kick-off.

Rafa And Hughton Neck And Neck

Rafa goes into the 50th game of his Newcastle stint tomorrow against Bristol City on a similar win percentage to Hughton

Gayle's Psychological Boost

Rafa made a thing about Gayle's psychological state in regards to the injury

Archived TOTT Articles

TOTT articles from

Site Journalists

TNMW
Editor email
Profile

Current Poll (see more polls)

Newcastle United v Bristol City
Suggested By:
Newcastle win70%
Bristol City win20%
Draw10%
ScoopDragon Publishing Entire League Network of Sites

League Table

# Team P W D L Pts. GD
1 Newcastle 32 22 3 7 69 37
2 Brighton 32 20 8 4 68 28
3 Huddersfield 32 20 4 8 64 8
4 Reading 33 18 6 9 60 5
5 Leeds Utd 33 18 4 11 58 11
6 Sheff Wed 33 17 7 9 58 10
7 Fulham 32 14 10 8 52 17
8 Norwich 33 15 6 12 51 11
9 Barnsley 33 14 7 12 49 4
10 Preston 33 13 10 10 49 4
11 Derby County 32 13 9 10 48 7
12 Cardiff 33 13 6 14 45 -2
13 Birmingham 34 11 10 13 43 -13
14 Ipswich 33 10 11 12 41 -7
15 Brentford 32 11 7 14 40 0
16 Q.P.R. 33 11 7 15 40 -10
17 Aston Villa 32 8 12 12 36 -8
18 Forest 33 10 6 17 36 -12
19 Burton 34 9 9 16 36 -13
20 Wolves 32 9 8 15 35 -5
21 Bristol City 32 9 5 18 32 -6
22 Wigan 33 7 9 17 30 -10
23 Blackburn 32 7 9 16 30 -13
24 Rotherham 33 4 5 24 17 -43
Vital Football Comment
Latest F1 News
Latest Vital Boxing News
Write for Vital Football

Recent Newcastle United Results (view all)

Newcastle United Fixtures (view all)

Feb 25 2017 3:00PM : Bristol City (H)
Sky Bet Championship
Feb 28 2017 7:45PM : Brighton & Hove Albion (a)
Sky Bet Championship
Mar 4 2017 5:30PM : Huddersfield Town (a)
Sky Bet Championship
Mar 7 2017 8:00PM : Reading (a)
Sky Bet Championship
Mar 11 2017 3:00PM : Fulham (H)
Sky Bet Championship
Mar 18 2017 3:00PM : Birmingham City (a)
Sky Bet Championship

Vital Members League Table

RankNamePoints
1.Toon_NoMatterWot141
2.CuckFan113
3.PieMag87
4.Mcnamee6745
5.keggy_keagal38
6.Finn_the_Dog24
7.billybobcat21
8.officemonkey19
9.daftladguy17
10.McCreery17
The Vital Football Members League