GFC Accounts yet again overdue - nothing new there then | Page 3 | Vital Football

GFC Accounts yet again overdue - nothing new there then

Trashbat said:
You are right to hold your hand up.

It’s a director’s loan. Perfectly normal practice. It will need to be repaid within a certain timeframe, else additional taxes will be incurred - s455 if I recall correctly.
Click to expand...
Not to be confused with the 3 directors loan where the club owe Scally, Andersen and Quarrington (I think) and interest is paid on that each year.

The 90k is money Scally has borrowed from the club, for some reason.
 
Trashbat said:
You guys who bring up the £1 argument time and time again need to look beyond the headline.

£1 was probably more than what the club was worth but it is necessary for the sale of share in the club to be legally binding. Ask yourself why there wasn’t a queue of potential buyers in ‘95. Ask yourself why you didn’t buy the club for a quid... ...you can afford a quid, right? Maybe you could have outbid him at £2 to seal the deal?

Scally bought a club that was in administration. That means the clubs assets were insufficient to cover its liabilities. That’s effectively the capital that Scally would have risked.

To draw a parallel, it’s like you buying the mortgage agreement on my house for £1 when there is no equity in the property and house prices are falling.

I’m not a Scally lover - but it’s boring listening to some of these bollocks arguments that come up every year from the same posters.
Click to expand...
Quite right. The £1 is the consideration needed to make the contract valid. Scally bought the club but also took on some of theclub’s liabilities.
 
Lark said:
Not to be confused with the 3 directors loan where the club owe Scally, Andersen and Quarrington (I think) and interest is paid on that each year.

The 90k is money Scally has borrowed from the club, for some reason.
Click to expand...
Technically the club owes Three Directors Ltd not the individuals.
 
Wayne.Kerr said:
Technically the club owes Three Directors Ltd not the individuals.
Click to expand...

Correct.

And, similarly, Scally did not receive £300k in consultancy fees. Scally Ltd (or whatever the legal entity is called - presuming that it is a ltd company) received £300k. That doesn’t necessarily mean that Scally received £300k; Scally Ltd may have other costs (e.g. staff, premises etc).
 
Trashbat said:
Correct.

And, similarly, Scally did not receive £300k in consultancy fees. Scally Ltd (or whatever the legal entity is called - presuming that it is a ltd company) received £300k. That doesn’t necessarily mean that Scally received £300k; Scally Ltd may have other costs (e.g. staff, premises etc).
Click to expand...

There would be disclosure of the company name in the RPT note if so. Unless the company is in the name/ownership of someone else.
 
Wayne.Kerr said:
Quite right. The £1 is the consideration needed to make the contract valid. Scally bought the club but also took on some of theclub’s liabilities.
Click to expand...

Maybe I missed something but I wasn't aware that Scally had personally assumed or guaranteed liabilities of Gillingham Football Club Limited. Can you please clarify where you have seen this?
 
SurreyGills said:
Maybe I missed something but I wasn't aware that Scally had personally assumed or guaranteed liabilities of Gillingham Football Club Limited. Can you please clarify where you have seen this?
Click to expand...
I didn't say he did guarantee any liabilities but he certainly inherited some when he bought the club.
 
SurreyGills said:
Maybe I missed something but I wasn't aware that Scally had personally assumed or guaranteed liabilities of Gillingham Football Club Limited. Can you please clarify where you have seen this?
Click to expand...

Very honest admission - and I think you’re not alone. Most fans don’t understand that Scally didn’t get a £1 bargain. He would have effectively inherited a massive indebted business.

If you knew the name of the legal entity that went in to administration, you could probably take a good stab at how much debt he bought for £1.

That was Scally’s capital risk.
 
Trashbat said:
If you knew the name of the legal entity that went in to administration, you could probably take a good stab at how much debt he bought for £1.
Click to expand...
By some strange coincidence, the name of the entity that went into administration is Gillingham Football Club Ltd - the same entity that operates to-day. Go to the Companies House website you can look at the administrators' statements/accounts etc etc or the 96 page report to creditors.
 
Trashbat said:
Very honest admission - and I think you’re not alone. Most fans don’t understand that Scally didn’t get a £1 bargain. He would have effectively inherited a massive indebted business.

If you knew the name of the legal entity that went in to administration, you could probably take a good stab at how much debt he bought for £1.

That was Scally’s capital . The legal entity Gillingham Football Club Limited had debts when it was bought by Scally and unless Scally personally guaranteed the debt (for which I have seen no evidence hence my question to Wayne) he inherited no debts at all. When he bought the club, the club had debts. Paul Scally and the legal entity he acquired are not the same thing.
Click to expand...
Trashbat said:
Very honest admission - and I think you’re not alone. Most fans don’t understand that Scally didn’t get a £1 bargain. He would have effectively inherited a massive indebted business.

If you knew the name of the legal entity that went in to administration, you could probably take a good stab at how much debt he bought for £1.

That was Scally’s capital risk.
Click to expand...

The legal entity Gillingham Football Club Limited had debts when it was bought by Scally and unless Scally personally guaranteed the debt (for which I have seen no evidence hence my question to Wayne) he inherited no debts at all. When he bought the club, the club had debts. Paul Scally and the legal entity he acquired are not the same thing and you seem to have this confused. Scally risked £1 only unless he personally guaranteed the debt.
 
Regardless of if he did or did not personally guarantee the debit I dont remember a long line of potential buyers ever at £1 - PS took the chance when no one else would.

This thread is like Christmas - it comes around once a year and its the same old guff but hey its tradition
 
DurhamGills said:
Regardless of if he did or did not personally guarantee the debit I dont remember a long line of potential buyers ever at £1 - PS took the chance when no one else would.

This thread is like Christmas - it comes around once a year and its the same old guff but hey its tradition
Click to expand...
It comes around once a year because the accounts are published once a year - well almost. As someone else pointed out, nothing was bought for £1 as such; that was simply the consideration [price] put on the agreement to but the club in order to make the contract legal. What happened back in '95 is obviously history; moreover, I'm not concerned how much Scally pays himself or any company for his services. My bitch is that we're seemingly going downhill each season, ie lower and lower average attendances and less and less attractive football being played.
 
SurreyGills said:
The legal entity Gillingham Football Club Limited had debts when it was bought by Scally and unless Scally personally guaranteed the debt (for which I have seen no evidence hence my question to Wayne) he inherited no debts at all. When he bought the club, the club had debts. Paul Scally and the legal entity he acquired are not the same thing and you seem to have this confused. Scally risked £1 only unless he personally guaranteed the debt.
Click to expand...

Trashbat - did Scally personally guarantee the debt?
 
SurreyGills said:
The legal entity Gillingham Football Club Limited had debts when it was bought by Scally and unless Scally personally guaranteed the debt (for which I have seen no evidence hence my question to Wayne) he inherited no debts at all. When he bought the club, the club had debts. Paul Scally and the legal entity he acquired are not the same thing and you seem to have this confused. Scally risked £1 only unless he personally guaranteed the debt.
Click to expand...
When Scally bought the club, ie Gillingham Football Club Ltd, the same entity that exists to-day, the administrators had already set up an arrangement through the High Court to deal with the creditors, which comprised: local traders and suppliers, preferential creditors, ie Inland Revenue etc, loans from Tony Smith and family etc secured on the club's assets etc and a debenture from Co-op Bank again secured on the assets of the club. I don't know much more but all Scally had to do after that was implement his rescue plan for GFC Ltd. As regards guarantees, these surely were the floating charges on the Company's assets etc. You need to look at the history of the administration etc published on the Companies House website; I can't be arsed any more.
 
Wayne.Kerr said:
When Scally bought the club, ie Gillingham Football Club Ltd, the same entity that exists to-day, the administrators had already set up an arrangement through the High Court to deal with the creditors, which comprised: local traders and suppliers, preferential creditors, ie Inland Revenue etc, loans from Tony Smith and family etc secured on the club's assets etc and a debenture from Co-op Bank again secured on the assets of the club. I don't know much more but all Scally had to do after that was implement his rescue plan for GFC Ltd. As regards guarantees, these surely were the floating charges on the Company's assets etc. You need to look at the history of the administration etc published on the Companies House website; I can't be arsed any more.
Click to expand...
I would also say that Tony Smith waived £500k of the amount owing to him - don't know if others did, eg Smith family, Baker or Sondes, and after paying the Inland Revenue and other secured creditors, other creditors, eg traders and suppliers got 17p in the £ for what they were due. Scally effectively took over from there, I guess.
 
You must log in or register to reply here.