What did we get for £50m debt?

[dingledog]

yer all reading too much into the accounts in my opinion, there put together for the benifit of HMRC and companies house by a reight good set of accountants that McCabe engages......

And that is indeed the truth.

 

[alcoblade]

Noone is debating that any debt has to be repaid, What im stating is that the £22m against assets is a debt of the PLC and not the Club. They are two Seperate entities.

Tell Southahmpton and the authorities that. They didn't realise and relegated Southampton who tried and failed with that argument.

We are £48M in debt. Like every club that's in debt, they've got something in return. We've got a hotel etc. and time may prove this a good investment. None the less, it can't be spun any other way that we have a £48M debt.

UTB

 

[raul]

Some people just read and understand what they want to. Those who don't actually understand the figures properly will believe what they want, those who are trying to explain it i'd just give up, you're fighting a losing battle.

Bit harsh Soton, MAQ is doing his best.....

 

[boo radley]

Trevor Birch with a statement on RS.

 

[Rustyblade]

Trevor Birch with a statement on RS.

Hey, Boo. You don't say.

 

[bricktop]

I'm not an expert in the field of finance so forgive me if this comes across as being a bit wide of the mark, but this is a theoretical scenario that i would like to put to you to see what your thoughts are.

Its not the level of debt, but how much interest are we paying on it, per annum?

If we was paying 5% (which is the lowest level i can think that we might potentially be paying and i suspect it may be a lot higher) on £26m per annum owed to the Scarborough property group, that gives us a figure of at £1.3m going out of the club to the Scarborough property group, at 10% we are looking at £2.6m going out per annum nice little earner for someone, eh?

I also would think the activities of the Sheffield United plc are by and large ringfenced from the wider activities of the Scarborough Property Group. If the developments that have taken place at the Lane with regards to building a shiny new hotel are done by Sheffield United plc in conjunction with the Scarborough Property Group, then if it is a success then the property group takes an equal share of the profits, but if it fails and runs in to serious trouble its quite easy for the property group to cut its losses and pay its share, but Sheffield United plc will also have to take a large hit, and taking in to consideration that Sheffield United plc's main asset is a skint football club, then in theory stuff like winding up orders, administration and bankruptcy could be a lot closer than anyone thinks.

I'm not saying any of this is the truth, as like i said i'm no expert in the world of finance, but what happens if the hotel development goes bust?

 

[Micalijo]

Brownie - spot on.

Good summary in my opinion.

To confirm, plc owns SUFC Ltd. Plc owns 50% of Realty (which I think is in serious shit) and Scarborough owns the other 50%. McCabe or Scarborouigh own a majority of plc.

It is a tangled web of greed and bull but if Realty is in the shite I think it is, SUFC Ltd is not sheltered from it.

 

[JohnDenver]

What is interesting is that we went UP to the Prem with a debt of around £11M if memory serves. Promised land my arse.

We must have been in pretty good financial nick when we were relegated. We didn't spend that much in the Prem - the splurge came afterwards.

Say what you like about McCabe pulling the plug. About the potential of our assets to fund the debt. About whether the tarmac behind the Kop looks nice.

What I think we can all agree on is that Robbo's reign has royally fucked us up.

 

[boo radley]

Hey, Boo. You don't say.

This wasn't a statement about him being on RS.

IT was the answer to the opening thread question - Duh

 

[Rustyblade]

This wasn't a statement about him being on RS.

IT was the answer to the opening thread question - Duh

I'm real sorry, mister Arthur.

 

[jacknat]

Right, time to tot it up.
I reckon we've got:
1) A nice new corner stand
2) A nice new hotel
3) A year in the sun
4) Some very highly paid players in the Championship
5) A tv screen from Darlington
6) A Chinese football club that seems to be in a spot of bother
7) Some nice new academy bits and bobs

Is there anything else?
Given Pompey are not that much more in debt and have several years in the Prem and an FA Cup to show for it, I reckon we've been a bit short-changed.

i reckon you sit at home waiting for bad things to happen...just in general

cheer up mate life is for living...you worry too much