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

Best of Vital Network

Vital Boxing - Joshua v Klitschko?

Login to post a comment

Recent Newcastle United Articles

Match Day Officials v Norwich (28/9/16)

The Football League have now announced the Match Day officials that will take charge of the game against Norwich City this Wednesday.

Most Successful English Trophy Hauls

Well the new season is definitely upon us as we go into October, and amongst the 10 most successful English sides in football history - there are a number who are unlikely...

Ref In The Spotlight

The championship may be a notch or two down in quality of football but the refereeing standard is many notches below that.

Rafa Has To Stick With Sels

Sels has played nine league games and kept four clean sheets, only conceding seven goals all season.

Archived TOTT Articles

TOTT articles from

Site Journalists

Ken Waugh
no email
Profile
TNMW
Editor email
Profile
Ian Smith
no email
Profile
Rexn
no email
Profile
BowburnMag
no email
Profile

Current Poll (see more polls)

Newcastle v Norwich
Suggested By:
Newcastle win75%
Norwich win25%
Draw0%
ScoopDragon Publishing Entire League Network of Sites

League Table

# Team P W D L Pts. GD
1 Norwich 9 6 2 1 20 6
2 Huddersfield 9 6 1 2 19 4
3 Brighton 9 5 2 2 17 6
4 Reading 9 5 2 2 17 0
5 Newcastle 9 5 1 3 16 10
6 Birmingham 9 4 4 1 16 4
7 Barnsley 9 5 0 4 15 6
8 Wolves 9 4 3 2 15 3
9 Brentford 9 4 2 3 14 6
10 Bristol City 9 4 2 3 14 5
11 Sheff Wed 9 4 2 3 14 -1
12 Leeds Utd 9 4 1 4 13 -1
13 Fulham 9 3 4 2 13 -2
14 Ipswich 9 3 3 3 12 0
15 Forest 9 3 2 4 11 -2
16 Q.P.R. 9 3 2 4 11 -4
17 Aston Villa 9 1 6 2 9 0
18 Burton 9 2 3 4 9 -2
19 Preston 9 3 0 6 9 -4
20 Blackburn 9 2 2 5 8 -6
21 Cardiff 9 2 2 5 8 -7
22 Derby County 9 1 3 5 6 -6
23 Rotherham 9 1 3 5 6 -12
24 Wigan 9 1 2 6 5 -3
Latest F1 News
Latest Vital Boxing News

Recent Newcastle United Results (view all)

Newcastle United Fixtures (view all)

Sep 28 2016 7:45PM : Norwich City (H)
Sky Bet Championship
Oct 1 2016 3:00PM : Rotherham United (a)
Sky Bet Championship
Oct 15 2016 3:00PM : Brentford (H)
Sky Bet Championship
Oct 18 2016 7:45PM : Barnsley (a)
Sky Bet Championship
Oct 22 2016 3:00PM : Ipswich Town (H)
Sky Bet Championship
Oct 25 2016 7:45PM : Preston North End (H)
Capital One Cup

Vital Members League Table

RankNamePoints
1.Toon_NoMatterWot111
2.PieMag63
3.officemonkey50
4.Pellet42
5.Mcnamee6741
6.keggy_keagal35
7.The Owl23
8.billybobcat20
9.McCreery19
10.Rytoon14