Newcastle United - Administration talk quashed
UK time is: 12:51:53
Vital Login
Social Login

Choose your club

Other Sites

Network Navigation

Vital Partners

'If It's Football, It's Vital'

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.

Use your social login to comment on front page articles. Login using you Facebook, Twitter, Google or LinkedIn accounts and have your say!

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.

The Journalist

Writer: Ross Molyneux Mail feedback, articles or suggestions

Date:Monday March 30 2009

Time: 11:10PM


Have Your Say

Log in...
with your social network     OR     with your Vital account

Recent Newcastle United Articles

Ball Success For 'Around The World' (Monday October 12 2015)

Krul Blow (Sunday October 11 2015)

Anxious Wait On Krul (Sunday October 11 2015)

January AC Milan Move For Sissoko? (Friday October 9 2015)

Further NUFC TV Times (Thursday October 8 2015)

Getting Shirty For Sir Bobby (Wednesday October 7 2015)

Janmaat Concern! (Tuesday October 6 2015)

Armstrong Staying With Coventry (Monday October 5 2015)

Archived Newcastle United Articles

List All TOTT Articles
Have your say
Click here to suggest an article
Click here to suggest a poll
ScoopDragon Premier League Network Sites

Vital Members League (view all)

1. Toon_NoMatterWot 46
3. keggy_keagal 26
4. Odin 20
5. billybobcat 18
6. officemonkey 18
7. daftladguy 15
8. thecorner 14
9. Rytoon 13
10. billycasper 12

League Table (view table)

Team P W D L GD Pts
14. Stoke 8 2 3 3 -2 9
15. AFC Bournemouth 8 2 2 4 -2 8
16. Chelsea 8 2 2 4 -5 8
17. WBA 8 2 2 4 -5 8
18. Aston Villa 8 1 1 6 -5 4
19. Sunderland 8 0 3 5 -10 3
20. Newcastle 8 0 3 5 -11 3

Newcastle United Fixtures (view all)

Breaking League News

McCarthy Heads To Adams Park
Southampton : 13/10/2015 12:37:01
BFG - Chambers Can Be One Of The Best
Arsenal : 13/10/2015 12:31:01
Sacking Jose Mourinho Will Be a Historical Mistake
Chelsea : 13/10/2015 12:14:01
Sinclair - We'll Turn This Around
Aston Villa : 13/10/2015 11:07:00
Mulumbu Fit To Return
Norwich : 13/10/2015 10:00:01

Current Site Poll (view all polls)

Man City MotM
Suggested By:  Site Staff
Krul 15%
Janmaat 0%
Mbemba 0%
Coloccini 0%
Mbabu 0%
Sissoko 0%
Anita 0%
Gouffran 14%
Wijnaldum 0%
Mitrovic 57%
Perez 0%
Sub - Lascelles 14%
Sub - Tiote 0%
Sub - Thauvin 0%