United going into administration rumour

[creswell blade]

Ive heard a few blades mention that united are going into administration, i dont believe it myself but just wondered if anyone else had heard anything

 

[creswell blade]

guess thats a big fat no then

 

[Highbury_Blade]

The vast majority of blades debt is owned by McCabe. It would make no sense whatosever for us to go into administration.

 

[Balham]

Going into administration is the option taken when a club can't pay its debts and is the option taken when a creditor feels that they won't get their investment back. The club then agrees a fraction to repay the money owing and takes a 10 point hit.

United's debt is almost solely to Kevin McCabe*. If we went into Administration, it would be because McCabe would make the decision. Is he really going to write off 75%+ of his money? I don't think so.

* with the exception of a £13.7m loan from Santander, which is secured against the Tévéz money so would be fully repaid whatever.

 

[creswell blade]

like i say it was just a rumour i heard. it wouldnt make sense to me either but just wondered if you fellas had heard anything

 

[Crouchy]

Is he really going to write off 75%+ of his money? I don't think so.

He may have to - but he would just capitalise the loan to do so. There is almost no chance of administration under McCabe - the money is owed to him and he controls the club. Apart from anything else, administration would cost us 10 points. That would not improve his chances of getting any of his money back.

 

[sheffielder]

I can't believe people are still talking about this shite. Brilliant, if McCabe is willing to take 10p in the pound and put the club into admin I might just pop down to see the bank manager haha

 

[JohnDenver]

I can't believe people are still talking about this shite. Brilliant, if McCabe is willing to take 10p in the pound and put the club into admin I might just pop down to see the bank manager haha

In all seriousness, how else will McCabe maximise the value of his assets without getting us up the leagues?

United and McCabe are in something of a death embrace at the moment.

 

[Balham]

He may have to - but he would just capitalise the loan to do so. There is almost no chance of administration under McCabe - the money is owed to him and he controls the club. Apart from anything else, administration would cost us 10 points. That would not improve his chances of getting any of his money back.

Yes - but am I right in thinking that if he capitalises the loans then the investment would remain on the books, just in the form of share capital rather than long term liabilities?

 

[sheffielder]

In all seriousness, how else will McCabe maximise the value of his assets without getting us up the leagues?

United and McCabe are in something of a death embrace at the moment.

Unless he is willing to take a cut on what he wants for the club he is stuck with it. I understand he did reject an offer for the club which mean't he had £17m of debts paid last year but the club was bought for nothing.

In a way I do feel a little bit sorry for him. I think Wilson was the first manager he actually chose himself without any outside influence, old Terry etc and unfortunately until the end of next season we will still have some big wage earners unless we can sell/ditch quinn, monty and Monty. So it might be we play kids and have to wait another year until we can strengthen properly.

Unfortunately, until then it he is stuck with us, but I don't think he minds that half as much as people think

 

[Crouchy]

Yes - but am I right in thinking that if he capitalises the loans then the investment would remain on the books, just in the form of share capital rather than long term liabilities?

Yes. His personal tax affairs would dictate the way in which he approaches any hypothetical loan write off - so it's possible he could have the club write it off rather than capitalise it.

 

[raul]

In all seriousness, how else will McCabe maximise the value of his assets without getting us up the leagues?

United and McCabe are in something of a death embrace at the moment.

Would he not, as major creditor, get one nice, shiny freehold out of the deal to rent the ground to whoever took over @ £whatever a year for however long, plus the right to park how ever many events he wants on there (not Sheffield Eagles)?

 

[super_pig]

probably started on Radio Sheffield

 

[JohnDenver]

Would he not, as major creditor, get one nice, shiny freehold out of the deal to rent the ground to whoever took over @ £whatever a year for however long, plus the right to park how ever many events he wants on there (not Sheffield Eagles)?

I guess it's possible but whatever deal he can negotiate can only be improved by us being in a higher league. Only he knows what he's willing to accept and how much he's willing to invest in order to better recoup his spend.

 

[SwissBlade]

Unless its the taxman who we owe money too then I'd say it's bollocks.

IF we haven't paid the tax man and we've continued to keep big earners on big contracts, then we deserve all we get!

 

[Kev Gee]

Cant see that happening. I think if anything McCabe would take the freehold, then charge us rent first.