Toon administration fears resurface.
Posted on September 24th, 2009 | 35 Comments |
What they are saying is that ‘some at the club‘ (who?) fear that a potential £9m payout to Keegan will break the club and send it into administration. They go on to point out that we will be penalised 10 points as a result.
I must admit I find it hard to believe that £9m would send the club into administration given that we’ve saved £35m/year on wages and sold players to the tune of £22m in the last few months. I know we’re struggling and that £9m is no insignificant amount when taken in the context of things like our working overdraft with Barclays but it still seems unlikely to me.
Llambias has previously denied that administration is even a remote possibility and … hang on, virtually everything he says turns out to be untrue. Ah, so much for that line of thinking!
Ashley is the club’s main creditor, so the only benefit to him of putting the club into administration would be to offset a tax loss of £250m or so against any profits he makes from his other businesses. I have no idea how that works out for him in absolute financials.
I don’t really know enough about this sort of stuff to assess whether it’s in Ashley’s interests to put the club into administration, so I’m putting it down as alarmist nonsense simply because it makes me feel better to do that.
Hugh, from a totally unqualified viewpoint, I have to agree and I am looking at this as scaremongering of the highest order. (Fingers crossed).