Writer: Ross Molyneux
Date:Monday March 30 2009
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.
Date:Monday March 30 2009
Forthcoming Friendly Cup Chosen For TV (Thursday July 24 2014)
Mbiwa Still Linked With Loan Move (Thursday July 24 2014)
French Exodus Continues (Wednesday July 23 2014)
Liam Sweeney and John Alder (Monday July 21 2014)
Ben Arfa Saga Is A Real Shame (Thursday July 17 2014)
Janmaat Gets His Confirmation (Thursday July 17 2014)
Surely It's Too Late For Grenier? (Thursday July 17 2014)
French Riviere On Tyne (Thursday July 17 2014)
NUFC Edge Closer to Striking A Deal (Wednesday July 16 2014)
Toon on TV (Monday July 14 2014)
|10.||Kim Jong Un||65|
|10. Man City||0||0||0||0||0||0|
|11. Man Utd||0||0||0||0||0||0|
|Irvine Hails Strike Duo
» WBA : 26/07/2014 20:08:00
|Sacramento 1-3 Albion
» WBA : 26/07/2014 20:03:00
|Chambers Set For Arsenal?
» Southampton : 26/07/2014 19:51:00
|Unofficially Official: Another Arsenal Signing
» Arsenal : 26/07/2014 19:49:00
|Koeman Happy With Bournemouth Showing
» Southampton : 26/07/2014 19:44:00