Admin (theoretically speaking)

[Rodley]

Given McCabe is heavily subsidising the club and there seems little or no hope of a takeover in the short/medium term, is administration an option for him to get out of the club?

I'm pretty appalling with financial matters beyond managing myself, but on a simplistic level if he's chucking millions into the pot season after season, would there come a point when administration would be a route out to cut his losses? Notwithstanding the huge personal financial loss of writing off the money owed of course.

 

[Sheff de party]

im no expert, but i dont think he'd do that. hes run this club out of love and enjoyment. he'd also want to build a legacy, be remembered as a great benefactor for the club. with anti-McCabe sentiment at an all time high following relegation and missing out on promotion, i dont see him jumping ship leaving us in a financial mess with a 10 point deduction. im sure he'd sell to someone he was confident could and would take the club forward, but i dont see him throwing us to the administrative wolves.

 

[stannyblade]

why do that when say the new owners pay 10p in pound but find themselves in alsorts of shite and -10 points.

If its only him owed surely he would just do a deal with the new owner like our tax dodging mate in S6 did

 

[Bladesman]

Not sure he would risk his reputation doing that to be honest.

 

[Trafford]

Administration wouldn't cut his losses, it would cut / destroy the value of his investment. I also thought that he had capitalised the majority of his loans, on which basis he is in a far worse position than if he still had loans outstanding - I think that it was the existance of loans rather than equity that saved the S6 Chairman

 

[davidpinder]

Can't see it i have been involved when a company has gone into admin and the administrators basically come in spend the money and liquidate it. He can then kiss good buy to any money invested. If he runs out of money then thats a different story.