Takeover

[Pragmatist]

If it’s true that we’ve blown through both MSD loans to the point where we are only solvent until the end of February, we must be about to announce some whacking losses… let’s hope the Patels have some cash left after building that Tampa Bay Palace!!!

Not a surprise - we’ve only generated £9m of player sales since last January when a figure at least twice that sum was required to see us through the season.  I don’t think the actual spending  was any different from what was anticipated, although we obviously didn’t offload the wages of the extra players that we didn’t sell. 

The plus-side of that is that we’ve kept the squad in place without decimating it.  There’s a price to doing that.

[CaptainFantastico]

In respect of us maybe having a 20-25% chance of promotion off the back of the decision and given the prize at stake if we do, a sensible decision financially

[SW4Baggie]

If it’s true that we’ve blown through both MSD loans to the point where we are only solvent until the end of February, we must be about to announce some whacking losses… let’s hope the Patels have some cash left after building that Tampa Bay Palace!!!

Not a surprise - we’ve only generated £9m of player sales since last January when a figure at least twice that sum was required to see us through the season.  I don’t think the actual spending  was any different from what was anticipated, although we obviously didn’t offload the wages of the extra players that we didn’t sell. 

The plus-side of that is that we’ve kept the squad in place without decimating it.  There’s a price to doing that.

No as you say, it’s not a surprise that we’ve run through the money we have done given we’ve not only maintained the squad in Jan, but added some significant earners to it. I guess there must have been confidence and assurance from Patel that finance would soon become available.

Let’s wait with baited breath to see what and who exactly Patel has paid, and which debts are still owed in and out of the club.

[MGalea]

It will be interesting to see how he handles the comms around the debt pay off.

Given the levels of financial insight on this board he'd better film himself dropping off the cash at the MSD offices.

[ColliersWoodBaggie]

Is he qualified?

[Pragmatist]

If it’s true that we’ve blown through both MSD loans to the point where we are only solvent until the end of February, we must be about to announce some whacking losses… let’s hope the Patels have some cash left after building that Tampa Bay Palace!!!

Not a surprise - we’ve only generated £9m of player sales since last January when a figure at least twice that sum was required to see us through the season.  I don’t think the actual spending  was any different from what was anticipated, although we obviously didn’t offload the wages of the extra players that we didn’t sell. 

The plus-side of that is that we’ve kept the squad in place without decimating it.  There’s a price to doing that.

No as you say, it’s not a surprise that we’ve run through the money we have done given we’ve not only maintained the squad in Jan, but added some significant earners to it. I guess there must have been confidence and assurance from Patel that finance would soon become available.

Let’s wait with bated  breath to see what and who exactly Patel has paid, and which debts are still owed in and out of the club.

I suppose that Grady and Dike were our most saleable players for a big fee both in the summer and in January, but injuries/AFCON prevented either being sold.  Loan players could have replaced them, and/or buying players cheaply from the lower leagues.   That left the alternative of selling multiple players for moderate fees (Okay, Wallace, Swift, BTA,  Palmer, Griffiths, Fellows) which would have decimated the squad and created too many holes to fill.  As you say, there must have been confidence that we could source extra funds to see us through the season. 

In terms of loans (plus interest) owed by the club, we’ll know soon enough re the MSD loans because their debenture would be discharged at Companies House once they are repaid.  

On the other side, we’ll have to rely on what we get told about net proceeds. It’s been suggested that Lai will be paid £20m in three installments now, August 2024 and August 2025, with the latter two payments subject to uplift if we find ourselves in the Premier League.  If it’s correct (we don’t know), that the price is £60m gross, but only £20m net, then that suggests to me that the £40m deductions are to pay MSD (£28m plus about £6m of interest), and to cover the Wisdom Smart debt (plus interest) of about £6m.   But I’m purely guessing until anything is published.

The audited accounts to 30th June 2023 have to be published by 31st March 2024, and the sale plus the settlement of debts will need be reported as post-balance sheet events in the accounts of the various companies. That’s only 6 weeks away.

[Fulham Fallout]

Well at least Lai will walk away with £20m (less the payment to Hearn, if he makes it). That’s a 90% loss on the reported £200m paid for the club, although I seem to recall reading a figure of £175m

That’s a hefty loss rate. At least Lai should look on the bright side in that he did slightly better than that bookie tiT who came on here (punters advice) with all his tips of games to bet on and lost all of his £100 stake.

[Pragmatist]

Well at least Lai will walk away with £20m (less the payment to Hearn, if he makes it).  That’s a 90% loss on the reported £200m paid for the club, although I seem to recall reading a figure of £175m

That’s a hefty loss rate.  At least Lai should look on the bright side in that he did slightly better than that bookie tiT who came on here (punters advice) with all his tips of games to bet on and lost all of his £100 stake.

Yes, £175m was what I thought too.  Lepkowski keeps saying £200m (£207m to be precise).  I’m not sure how he we would know that, and he does often state inaccurate info re the loans.  

£175m for 87.8% of the club would have valued the club overall at £200m.  I suspect that might be the confusion. 

Anyway yes, the investors have lost a fortune. Lai only has a minority percentage of that, and if it’s correct that the Wisdom Smart loan has been deducted, then Lai effectively needs to pay that back to the other investors out of his share of the £20m, along with what he owes to Hearn.  He won’t be seeing anything back beyond that.

[Remi_Moses]

The financial experts on here never give up. The news that we were out of cash exactly justified the need to sell players in the window and the MSD loans spent as several suggested.
The new owners are not clearing these loans, but arranging a new term of payments. Lai is going to have to await his chunk of money. This implies they're not flush with ready cash or they're going to manage the financial side of the business. No rush for promotion more a period of stability whilst a longer term plan is set up.

[Fulham Fallout]

The financial experts on here never give up. The news that we were out of cash exactly justified the need to sell players in the window and the MSD loans spent as several suggested.
The new owners are not clearing these loans, but arranging a new term of payments. Lai is going to have to await his chunk of money. This implies they're not flush with ready cash or they're going to manage the financial side of the business. No rush for promotion more a period of stability whilst a longer term plan is set up.

And thank fuck we no longer have to read “Reminomics” drivel