Re: Ownership and twists : Tue Apr 08, 2014 10:28 am  

Would this be company number 00813289? Can't wait to have a look then ask you lots of dumb questions on here and have FA rip me for my ignorance while everyone becomes an accountancy expert for the day!

Re: Ownership and twists : Tue Apr 08, 2014 10:45 am  

Thanks Adey.

Oddly enough, the administrator seems to have exactly the same mistaken ideas as to the purchase price and as to the 50% reduction for two seasons as me. Those who know better need to write in and set him straight too

Re: Ownership and twists : Tue Apr 08, 2014 10:50 am  

Fascinating read and the administrators summary is remarkably clear though I suspect it wont go down too well in the Khan and Whitcut households, or indeed anyone who though they were "fit and proper persons". The interim guys actually seem to have made a fair job of trying to reverse the massive losses but with OK's interference from beyond the grave didn't really have a chance.

Anyway in summary:

1) Ok paid £150k for the club - the other amount would only have been due if we had a franchise in 2015.
2) OK put in aprox £400k , though claims to be owed over £1m. The Administrator is investigating related party transactions?
3) Council put in £200k - but guaranteed by OK, who also seems to have made a pledge for the surrendered Sky money
4) However the looses mean a deficit of over £1m remains so nothing to share out with creditors, of which over £200k is the us (represented by the tax man)
5) The admin fees to date £47k

Re: Ownership and twists : Tue Apr 08, 2014 11:02 am  

OKBL purchased the business and assets for £150k

There was an additional £100k if OKB got a 2015 franchise, "due to changes in SL structure from 2104 onwards no further franchise will be granted and as a consequence this additional payment will no longer fall due". (In other words, even if the club hadn't gone tits, OK would no longer have had to pay that 100k. He was fully paid up)

Mr Khan agreed to take a 50% reduction in the amount the company would receive from central funding for two seasons. The original proposal by the RFL was that no central funding would be paid in season one... it was subsequently agreed that this would be spread over two seasons.

All employees "were transferred under TUPE to BB2104 but "due to non-completion of the sale the employee's (sic) remain employed by OK Bulls Ltd". So they were TUPEd. And also they weren't. Don't suppose it matters much any more.

Unsecured creditors are unlikely to get a penny. They include £255k HMRC, nearly 550k trade creditors and 375k Omar Khan.

Re: Ownership and twists : Tue Apr 08, 2014 12:10 pm  

So, reasons for insolvency - according to Mr Wilson

Reduction in Central funding - proposed by RFL, accepted by OK - blame 50:50?
Continued trading losses - all due to OK
Accounting irregularities? Wtf? Criminal? Fraudulent? Just incompetence? Blame for this one? Who knows
Lack of available capital - due to Ok.

OK has also requested a creditors meeting.

Re: Ownership and twists : Tue Apr 08, 2014 12:34 pm  

Highlander wrote:

Accounting irregularities? Wtf? Criminal? Fraudulent? Just incompetence? Blame for this one? Who knows
Lack of available capital - due to Ok.

OK has also requested a creditors meeting.

Accounting irregularities - the directors have a statutory responsibility to maintain proper accounts, so they should have known what was going on.

Creditors meeting - could be a lynching at the OK Coral stand - any odds on Whitcut attending?

Re: Ownership and twists : Tue Apr 08, 2014 12:58 pm  

Northernrelic wrote:

...
Creditors meeting - could be a lynching at the OK Coral stand - any odds on Whitcut attending?

According to oddschecker.com, there are two chances:
Skybet: Slim
Everyone else: none.

Re: Ownership and twists : Tue Apr 08, 2014 1:44 pm  

thanks Adey, that makes interesting reading.

Whilst OK didn't put £900k in cash in, he did get near that in cash and guarantees. the report says £150k for the purchase plus (£401 kcash put in minus £26k repayment) = 375K plus 200k to the council on PG which is £725k. what it is not possible to determine is whether there was an advance of Sky money that they would want back from him. and if there is, what are the RFL going to do with it, spread it around the other clubs, or make an ex gratia payment to the unsecured trade creditors/hmrc?

As FA says, the administrator states it as it is, one years worth of Sky funding split over between two years, ie 50% of normal funding, and not 50% of the other clubs funding.

Re: Ownership and twists : Tue Apr 08, 2014 1:58 pm  

martinwildbull wrote:

...

As FA says, the administrator states it as it is, one years worth of Sky funding split over between two years, ie 50% of normal funding, and not 50% of the other clubs funding.

You're a trier, I'll give you that, but no, in the end the agreement was that OKB would only receive 50% of the distributions received by other SL clubs in 2013 and 2014. The agreement incidentally specified "distributions" and not "Sky money", which is not quite the same thing, even if not far off.

Re: Ownership and twists : Tue Apr 08, 2014 2:47 pm  

Well now that's out it shows the spin last August as Ok was desperate to maintain confidence (with season ticket sales for this year in mind)he announced he was /had put in £900000.

Wonder with the qualification about the state of the records (accounting records)how Mr Wilson has ascertained the amounts Ok put forward or says he put forward as cash injections.

Forgive my sceptisms.

The point re accounting records is entirely appropriate.
Only by keeping proper books can you meet your legal responsibility not to trade insolvently.
Though I suspect if the Moore & Co lot found a shedload of unposted invoices and other liabilities not paid Ok would have known anyway that He was bust and clearly desperate.

What I fail to understand is how when he bought the club he was presented with a package of contracts for players and other staff that would indicate what the annual wages bill was he did not try

1.To reduce that from the £2.45 million figure to 31.8 2013
2.When clearly income streams were showing not enough to cover the wages bill take steps to reduce it.Instead he increased it with Robbie and a whole host of other backroom appointments

Perhaps he thought something would just turn up?
That had not in 8 years.
Surrounded by medical men but not an accountant in sight.
Just an accounts clerk on £13 grand who took the blame when Whitcut failed to pay the HMRC.

(Despite there clearly been no money to pay HMRC)

Thirteen Grand would not buy you a tea lady these days.

OK clearly did not place financial control as top of his priorities.

Otherwise protective steps would have been taken long before the unfolding drama of his heart attack episode.
It is ALL OK"s fault.
He owned it lock stock barrel.
And ran it the way HE wanted with no accountant just a pack of old and somewhat chequered history littered mates.

Bit like parliament really.
Any dodgy expenses claims?

Like to Dubai on a jolly?

Remember the question at OK"s meet with the fans.
Will you spend up to the salary cap.


YES.

With other peoples money.
The big earners are slowly been moved on.

Give me more Addys and Olbisons.
The club would not be bust then and strangely the result at Widnes said to me if we are going to finish mid table every year players on half what they have been will perform as well.

That has to be the future