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Scally

And as good as SL was for a few matches his team set up and tactics are looking very suspect - In a statement last week he said the "The squad of players I have are excellent" so who is living in cloud cuckoo land.

Yes, because every manager says 'my squad of players are mostly crap' when things aren't going well.
 
The only problem Anderson may have caused is that we may have to pay him back earlier than expected, although PS contests whether even that will be true.

Correct me if I am wrong but wasn't the money he put in to the club listed as a loan rather than a shareholding? It was always going to have to be paid off sooner or later so although assets on the balance sheet will reduce so will liabilities.

I appreciate it is still likely to impact on short term budgets but we have not actually lost money through his involvement.
That's all very well as long as there are liquid assets from which to settle the liability
 
The idea that it is Steve Lovell's tactics that have been the overriding problem is an obvious and deliberate red herring. We tried a different route on recruitment, which will probably just about get us over the line. Any attempt to go again with zero investment will result in relegation, whoever mangages the team. We know that and I suspect Scally does too. If not he can sack Lovell and gamble that his judgement is better.
 
The idea that it is Steve Lovell's tactics that have been the overriding problem is an obvious and deliberate red herring.

If you give Lovell credit for the good form and getting matches tactically spot on then he should also be open to critique when things aren't going as well with the same resources in place.
 
The only problem Anderson may have caused is that we may have to pay him back earlier than expected, although PS contests whether even that will be true.

Correct me if I am wrong but wasn't the money he put in to the club listed as a loan rather than a shareholding?

Several things need to happen before it may be a problem for us:

a) The US courts need to find Anderson guilty.
b) His US based assets don't cover the fine. The IRS or whichever department will chase US based assets first as it'll be easiest to get.
c) The US will need to apply to the UK courts in order to have the debt recognized in the UK and therefore enable the US to make claim on Anderson's UK assets.
d) Anderson doesn't have enough more liquid assets like property to cover the fine. I'd be surprised if Anderson didn't live in a house worth a million at least.

If all that happens then the US could make a claim onto the loan to the club. A loan will have a clause in it stating when the loan will be paid back. Usually with football clubs the investor immediately loans back the money so there is a continuity of investment. However, if the US make claim to the loan then we will need to pay the money out in that future date.

With the way the legal system works, it'll probably be several years before any impact may fall onto the club if at all.
 
I assume Scally will do what is required according to the Companies Act and will provide for such eventuality in the financial statements either by a provision or note in the accounts. My experience of the US/UK courts activity is that it can be very quick - there are conventions in place [mine related to the reclaiming of UK withholding tax on a dividend distribution - it was a test case rather than profligacy and involved HMRC and the IRS]. Regarding Anderson's UK assets, if they derived from activities in the US, then they will quickly become 'US' assets. The US interpretation of a US transaction leaves little to the imagination. For example, make a payment via a US bank account, which takes a nano-second, and the transaction is deemed to be a US transaction.
 
What is there to prevent Anderson from simply telling Scally that he wants his money back if it was all above board and in the books as a loan? Not sure of the legalities but surely if he was refused his money and I am not saying this will happen, he could start his own legal action in the UK against GFC/Scally? I am sure the last thing we need is yet another court case. Does anyone know where Anderson is at the moment - has he been extradited or is the US court action ongoing/resolved etc?? The plot thickens.
 
Update to my last posting - just seen a KOL article dated 19 January saying he has filed a case against GFC for £900,000. Scally was quoted as saying "this was not a straightforward case". Can find nothing further. Perhaps we have paid him off anyway? Who knows.
 
It's highly likely that Anderson can be found at his large neo-Georgian mansion in the West Malling area. His preference will be to pay any fine that can't be covered by US assets with the repaid loan, rather than selling any property (which isn't as liquid as asset).

It's not a straightforward case for Scally, because he hasn't made a contingency plan for any lender wanting to be paid back (presumably no water-tight contract in place to prevent a lender requesting early repayment).
 
Nothing is straightforward with GFC but, if the debt is recoverable, it could see GFC in receivership. By GFC, I mean the the group company that is recording the loan
 
I would guess that the contract covering Anderson's (or any other) loan would have numerous agreed terms and conditions attached. Time period over how long the loan was for. What was the soonest a loanee could call back all or part their loan. Maximum that could be returned in one go etc etc. The club as well as the loanee would look to protect their positions so that 'normal business' could continue without fear of sudden disruption.
 
We really don’t need another court case. Scally knows that more than anyone with his health issues. I can’t imagine the terms of the contract say that Anderson is entitled to call in the loan at any time.
 
It's not a straightforward case for Scally, because he hasn't made a contingency plan for any lender wanting to be paid back (presumably no water-tight contract in place to prevent a lender requesting early repayment).

How do you know he hasn't made any contingency plan?

In order for it to be classified as a loan in the accounts then there has to be some sort of contract otherwise it would count as an investment and be dealt with differently.
 
According to the GFC accounts to 31/5/16, Directors' loan accounts falling due within one year amounted to £449,868. Other loans falling due between two and five years amounted to £1,800,000. The latter amount is secured by a debenture over the whole of the company's assets and by a legal charge over Priestfield Stadium both dated 26/9/11. Anderson was owed £433,475 at the balance sheet date - I presume this is included in the current liabilities, ie due within one year. The amount of £1,800,000 is owed to Three directors Ltd which has the same three directors as GFC; accordingly, the three directors own 33.3% each of the shares. So, Mr Anderson also has an asset worth £600,000 being his share of the mortgage on the stadium but I'm not sure to whom or what does Three Directors Ltd owe the £1,800,000 which falls due after one year; it's certainly not a bank because bank loans are recorded separately. i'm sure Durham can explain everything.
 
How do you know he hasn't made any contingency plan?

In order for it to be classified as a loan in the accounts then there has to be some sort of contract otherwise it would count as an investment and be dealt with differently.
It's nothing to do with contingency plans but accounting convention requires disclosure of significant post-balance sheet events and contingent liabilities [potential claims for example] even if no provision is made in the accounts.
 
Captainreblue
According to the GFC accounts to 31/5/16, Directors' loan accounts falling due within one year amounted to £449,868. Other loans falling due between two and five years amounted to £1,800,000. The latter amount is secured by a debenture over the whole of the company's assets and by a legal charge over Priestfield Stadium both dated 26/9/11. Anderson was owed £433,475 at the balance sheet date - I presume this is included in the current liabilities, ie due within one year. The amount of £1,800,000 is owed to Three directors Ltd which has the same three directors as GFC; accordingly, the three directors own 33.3% each of the shares. So, Mr Anderson also has an asset worth £600,000 being his share of the mortgage on the stadium but I'm not sure to whom or what does Three Directors Ltd owe the £1,800,000 which falls due after one year; it's certainly not a bank because bank loans are recorded separately. i'm sure Durham can explain everything.

Its all smoke and mirriors in accounts - I have a simple view of anyone to do with finance or audit, they were all trained in Hogwarts
 
Smoke and mirrors it may be but that doesn't hide the fact that the club is in debt to the tune of £10m plus.

If you look at the last set of accounts which is as per the end of the 2016 season, then there is only about £1.9m total debt of which £1.8m is the director loans. The short term debtors and creditors figures are within £50k of each other so for sake of argument cancel each other out.

Would you like to clarify where the other £8m plus of debt you think we have is? We haven't been anywhere near £10m of debt since the bank wrote off half of our debt several years ago.