What’s going on? | Page 61 | Vital Football

What’s going on?

The club is getting no income and has no overdraft, surplus in the bank or anything else to pay things with
It doesn't matter whether wages are astronomical (comparatively speaking) or not. When you have absolutely nothing to pay them with then anything is too much
With 5 million coming into the club this week from player sales (Robinson, Moore and Gelhardt) and 3.8 million due I'm unsure why we have to sell the entire team for the time being? Some transparency from admin would obviously help us understand better but with no debt surely we are a viable buy for any potential investor. I get what people are saying regarding income but surely if fans aren't allowed in games in the next few months the whole football pyramid will fall. Its simply not sustainable to have 92 professional teams with no fans coming through the gates for over 6 months outside of the Premier league.
 
With 5 million coming into the club this week from player sales (Robinson, Moore and Gelhardt) and 3.8 million due I'm unsure why we have to sell the entire team for the time being? Some transparency from admin would obviously help us understand better but with no debt surely we are a viable buy for any potential investor. I get what people are saying regarding income but surely if fans aren't allowed in games in the next few months the whole football pyramid will fall. Its simply not sustainable to have 92 professional teams with no fans coming through the gates for over 6 months outside of the Premier league.
Gelhardt money already allocated to wages so cant cover defecit as far as I understand it
 

Coddenchips

Vital Reserves Team
Changing tack a bit, but can somebody explain what is going on with Derby? I thought they were under some kind of investigation for irregularities in the sale of their ground. Or was that just Sheffield Wednesday?

If it is also Derby, then how on earth have they just managed to get a huge loan using Pride Park as security.

I'm assuming I've got it wrong, otherwise there's no way that should be able to happen, but with all the inconsistencies and irregularities going on lately, maybe not.
 

ZAKKY

Vital 1st Team Regular
So if July wages are paid we basically just owe 6 million and August's wages. Given we are due to receive 3.8 million in transfer fees along with Robinson and Moore (4 million) surely we have easily enough to cover these too. What's the rush to sell anyone else? Wages can't exactly be astronomical now with 75 salaries and few top earners off books.
Paul Stanley, one of the co-administrators, said: “We had a meeting with the EFL on Friday, and they were really supportive in terms of allowing funds from player sales to take immediate cash flow problems away.”


The fee for Gelhardt covered July's wage-bill for the players. The 18-year-old was highly sought-after even before Latics went into administration, and suffered a subsequent relegation.
But it's little surprise that Kieffer Moore and Antonee Robinson have been the latest players linked with exits - and not just because of their stock as players.
Like any club exiting administrations, Latics must clear all of their football creditors’ debts.
And that includes any outstanding transfer fees – even if previous instalments had been arranged.


Administrators give update on sale of club Robinson has been linked with a £2m move to Premier League side Sheffield United. Latics, though, would need to use some of that fee to pay the rest of the transfer fee which they owe Robinson’s former club, Everton – believed to be in the region £500,000.
And the club still owe around £1.5m to Barnsley for Moore and £750,000 to Portsmouth for Jamal Lowe.
It is understood they also owe money to Everton (for Joe Williams) and Rangers (for Josh Windass).
If those players moved on, it would massively reduce the football creditors' debt. Ideally, given the circumstances, Latics would sell those players for more than they owe their previous clubs - so any excess money can go towards the upkeep of the club during this period in limbo without an owner.


As well as transfer fees, football creditors’ debts include any unpaid players wages and agents fees.
Any new owner would need to clear those in full before bringing Latics out of administration. The administrators - who have been in control of the club's affairs since July 1 - will also be paid for their work, before any remaining goes towards paying non-football creditors.
If they don't receive at least 25p in the £, Latics will incur a 15 point penalty.
While the sale of Gelhardt funded players' wages, money raised by fans paid the July wages for office and stadium staff.


The fund set-up by the official supporters' club has already topped the £190,000 mark, and they are hoping to reach £200,000 to potentially cover August wages, too.
 

jeffs right

Vital 1st Team Regular
Changing tack a bit, but can somebody explain what is going on with Derby? I thought they were under some kind of investigation for irregularities in the sale of their ground. Or was that just Sheffield Wednesday?

If it is also Derby, then how on earth have they just managed to get a huge loan using Pride Park as security.

I'm assuming I've got it wrong, otherwise there's no way that should be able to happen, but with all the inconsistencies and irregularities going on lately, maybe not.
It's ok even without Frank Lampard they are still Derby County and not Wigan or Macc.
 
With 5 million coming into the club this week from player sales (Robinson, Moore and Gelhardt) and 3.8 million due I'm unsure why we have to sell the entire team for the time being? Some transparency from admin would obviously help us understand better but with no debt surely we are a viable buy for any potential investor. I get what people are saying regarding income but surely if fans aren't allowed in games in the next few months the whole football pyramid will fall. Its simply not sustainable to have 92 professional teams with no fans coming through the gates for over 6 months outside of the Premier league.
For starters, that money may not all be coming in as a lump sum & may be spread over a couple of years.
Even if it does come in as one, some of that money may also be due to their previous clubs for sell on fee cuts
We still have £6mill of debt to secured non-football creditors as well as whatever was due to football creditors so the club isn't debt free
And even though it will be when a new owner takes charge the club still has financial commitments that were responsible for the previous owners to have to put in £1mill a month to cover losses - some of that will have gone due to redundancies & player sales etc.. but not all of it
 
I get what people are saying regarding income but surely if fans aren't allowed in games in the next few months the whole football pyramid will fall. Its simply not sustainable to have 92 professional teams with no fans coming through the gates for over 6 months outside of the Premier league.
Does anyone know how many professional clubs we have in this country? I think it's circa 120 but could be more. It's not sustainable in normal society, never mind during this current climate. My local team play at a similar level to Garswood and were paying some players £2,000 signing bonuses this year. It's absolutely mad!

With regards latics specifically, we have to keep the academy if possible. With the new salary caps and huge losses in income it's the only way we may ever play at a decent level again. If we don't sell the entire first team within the next few weeks they'll all be gone within two years and the salary cap will ensure we can't replace like with like.
 

bickymon

Vital Squad Member
Im sure i heard one of the administration staff talking to jay whittle on youtube hope i got his name right
Say to jay because of our situation and reduced fees transfer wise all payments to us must be in full
Correct me if i am wrong
 

moonay

Vital Champions League
I think the plans you put on are further down towards Alker Lane. So both right. We will see shortly as all the new H and S fencing is up around the field I take my dog in .
It said from Alker Lane to Strawberry Fields, but hey, things change !

Some councillor will have had a nice holiday. ;)
(y)
 

TRUE BELIEVER

Vital 1st Team Regular
Looking at the briefing given by the admins to the local news we basically need to offload the players that we still owe transfer fees on to cancel out the football creditors. Given that all of those players are subject to speculation from other clubs in the media I would expect to see them go pretty soon. The likes of Robinson and Moore are pretty well done deals and given the amounts being quoted we will likely raise a nett figure of 1 million after settling the outstanding transfer fees to their previous clubs, 500,000 to Everton and 1.5 million to Barnsley.

Windass will probably end up with Sheff Wed and we can expect to just about cover our outlay, whereas with both Lowe and Williams I would expect us to make a modest profit given both are being courted by a couple of clubs.

Hopefully the nett profits will be enough to pay next months players wages and maybe the agents fees outstanding, however there are still a couple of other players that will no doubt be moving on, Kipre and Marshall, and hopefully any fees from their sales will be used to pay other creditors.

As far as the non football creditors are concerned the admins will be looking to pay them from the sale of the club and need only pay the 25p in the pound required to avoid the 15 point penalty. If this is the £6 million pound figure that MB suggests then that would only be £1.5 million pound.

I think that the sooner the clear out is completed and the admins have done the dirty work new owners will emerge as saviours and take on the club, until then they probably don't want to be seen as the bad guys breaking up the team and selling it for peanuts.
 
As far as the non football creditors are concerned the admins will be looking to pay them from the sale of the club and need only pay the 25p in the pound required to avoid the 15 point penalty. If this is the £6 million pound figure that MB suggests then that would only be £1.5 million pound.
I'm basing that on the figure that I saw quoted when the original preferred bidder was announced
It gave a total for the bid which it said was £x for football creditors & £1.5mill for non-football creditors (representing 25p in the £)
I can't for the life of me find where I saw all this though