Re: Latics in administration - Lenagan leading bid : Wed Aug 26, 2020 10:30 pm  

Jukesays wrote:

You mean the sale when IEC in effect sold it to a stooge?

NOT

What is currently happening with the administrators?

Yeah. The admins are doing their job. You cant pay bills and wages with no income.

Re: Latics in administration - Lenagan leading bid : Wed Aug 26, 2020 10:48 pm  

Egg Chasing wrote:

Yeah. The admins are doing their job. You cant pay bills and wages with no income.

So even though I get that there was some dodgy stuff going on, end of the day they wanted shut.
Serious question, is there a reason they went into admin rather than selling it?(obviously putting the sale to a stooge to one side) because surely if they could have, rhey would have?

And this is the bit that I find strange.
A lot of the Latics fans are making out that they were a "Well run club".
But the reality is losing around 15million a year isnt being a well run club?
And I'm not sure I can comprehend how anyone can think otherwise.

I dont get why IEC bought it in the first place knowing they were likely to lose that amount, but once they had, and once they decide theyd had enough, the only way that the status quo can continue for Latics is that someone prepared to do the same?
Now it's obvious no one in this current climate fancies that otherwise it would have been sold as a package, before the administrators move in and certainly before they start selling off their main assets (The players).

So I can assume, and I have no facts here, someone doant fancy inheriting the losses at that rate, and is hoping to buy them when there is no debt left and as little as possible overheads as possible left.
That what seems to be happening? A clean slate
A business model that you can start afresh with rather than a model that is losing 15million a year.
Crying foul over the sale to a stooge is fine, but if the owners wanted to dump it that's up to them however unsavoury a way theyve done it.

Re: Latics in administration - Lenagan leading bid : Wed Aug 26, 2020 11:34 pm  

Jukesays wrote:

So even though I get that there was some dodgy stuff going on, end of the day they wanted shut.
Serious question, is there a reason they went into admin rather than selling it?(obviously putting the sale to a stooge to one side) because surely if they could have, rhey would have?
It would take all week to even get near to a logical reason for administration. Fact of the matter is the ‘new’ owner wanted to pay £40M to then liquidate and it’s only the administrators currently who ‘advised’ to go the administration route, probably seeing a few quid in it for them, which is how it seems to be panning out.

And this is the bit that I find strange.
A lot of the Latics fans are making out that they were a "Well run club".
But the reality is losing around 15million a year isnt being a well run club?
And I'm not sure I can comprehend how anyone can think otherwise.
These losses are all relative when there have been assets to cover the losses. The next three years or so was going to see a huge reduction in outgoings as true youth system was now beginning to bear fruit. That’s now going to suffer as we’ve just sold three of our best. Larger contracts of senior players were winding down and being replaced by more sustainable numbers. IEC were willing to fund it and had all sorts of ground redevelopment plans to implement (full renovation under the East stand for example to grow match-day income)

I dont get why IEC bought it in the first place knowing they were likely to lose that amount, but once they had, and once they decide theyd had enough, the only way that the status quo can continue for Latics is that someone prepared to do the same?
They wanted to get to the Prem for all the untold riches they would get from being Far East-based. It seems they had enough because of the awful start to the season. Ironically, the team showed the investment in it was more than capable of challenging for the playoffs but Paul Cook completely lost his head with tactics and the team suffered. A bit like we’ve seen when Wane and Lam haven’t gone with a game plan to suit the personnel but Cook bottled it tactically on a level I don’t think I’ve seen in all my years watching the rugby or football. When he finally got it to click the results and the investment showed it could’ve paid dividends but IEC wanted out ASAP in whatever way possible.

Now it's obvious no one in this current climate fancies that otherwise it would have been sold as a package, before the administrators move in and certainly before they start selling off their main assets (The players).
To the outsiders looking in which I assume you are, you’d think it would make sense as a package but that’s only if the administrators who are in sole control are jt that way and it’s pretty clear they don’t and look like they’ll sell the assets off in bits. What makes this administration different is it was liquidation as the aim first to write off the Latics from the balance sheet but then instead it was immediately into administration with only the following monthly bills to pay. The admin process now needs all the football creditors to be paid off fully but immediately which brings forward any instalments on fees which is why players are now going for ludicrously cheap fees and Euxton being sold to PNE just to get some quick cashflow.

So I can assume, and I have no facts here, someone doant fancy inheriting the losses at that rate, and is hoping to buy them when there is no debt left and as little as possible overheads as possible left.
Which almost makes it not worth the investment to pick an ‘in name only’ club off the floor.
That what seems to be happening? A clean slate
A business model that you can start afresh with rather than a model that is losing 15million a year.
Crying foul over the sale to a stooge is fine, but if the owners wanted to dump it that's up to them however unsavoury a way theyve done it.
As bad as the administrators seemed to have turned out, the first thing they did say is they are normally walking into winding up orders, a historical trail of unpaid bills and a creditors list so big you wouldn’t know where to start. The ‘well run’ tag seems to come from all payments due have been made on time, with a good reputation in the game for meeting commitments. It’s up to individuals to decide if that’s the terms of reference for being well run but it we applied it to football and all of Super League is be surprised if there would be many teams left if owners just did a 7 day turnaround form purchase to pulling funds

Re: Latics in administration - Lenagan leading bid : Wed Aug 26, 2020 11:59 pm  

DannyT wrote:

It would take all week to even get near to a logical reason for administration. Fact of the matter is the ‘new’ owner wanted to pay £40M to then liquidate and it’s only the administrators currently who ‘advised’ to go the administration route, probably seeing a few quid in it for them, which is how it seems to be panning out.

This makes no sense; if their first choice was liquidation then that was it, goodbye club, out of the league. Liquidation was end game, why would anyone think administration is worse than liquidation?

DannyT wrote:

These losses are all relative when there have been assets to cover the losses

This also makes little sense. The assets can't cover the losses, sure you could try and get some security off them but if you're losing £15m a year, you need cash and the theoretical (very much in this case) value of your assets starts to be pretty meaningless pretty quickly. Cash is the name of the game, not Balance Sheet values.

Re: Latics in administration - Lenagan leading bid : Thu Aug 27, 2020 9:35 am  

The Ghost of '99 wrote:

This makes no sense; if their first choice was liquidation then that was it, goodbye club, out of the league. Liquidation was end game, why would anyone think administration is worse than liquidation?

This also makes little sense. The assets can't cover the losses, sure you could try and get some security off them but if you're losing £15m a year, you need cash and the theoretical (very much in this case) value of your assets starts to be pretty meaningless pretty quickly. Cash is the name of the game, not Balance Sheet values.

Correct
I'd like to see some evidence of where the owners wanted liquidation Before Administration ?

Either way it's a Moot Point
Top line is they wanted shut - And losing 15million a year was a big reason - They wanted Rid before Covid as well so that isn't the only reason they wanted shut, although it certainly will have increased the pressure to do so and increased potential losses?

Latics still had a LONG way to go to be a "Well Run Club" IMO
Acceptable losses are only acceptable as long as the person who is accruing those losses is prepared to accept them & Fund them

Seems strange to me why IEC decided in Nov/Dec19 that they weren't prepared to do that anymore, but end of the day that's their right.

Not too dissimilar than if IFL said tomorrow that he wasn't prepared to put "X" into Wigan to cover their losses

Re: Latics in administration - Lenagan leading bid : Thu Aug 27, 2020 10:19 am  

the administrators have just confirmed there was nothing illegal so i guess they have nothing to be upset about.

We would be in the same position if IFL decided not to cover our losses. Not sure what our debts are though, obviously there aren't really transfer fees in rugby so that would take away half of latics debts

Re: Latics in administration - Lenagan leading bid : Thu Aug 27, 2020 10:38 am  

stadium not been sold

Re: Latics in administration - Lenagan leading bid : Thu Aug 27, 2020 10:39 am  

Administrators are currently answering questions.

Q How close are you to selling the stadium?

A I'm not selling the stadium independently.

Re: Latics in administration - Lenagan leading bid : Thu Aug 27, 2020 10:43 am  

MattyB wrote:

Administrators are currently answering questions.

Q How close are you to selling the stadium?

A I'm not selling the stadium independently.

I know they’re administrators but those two hardly Instill confidence do they?

Re: Latics in administration - Lenagan leading bid : Thu Aug 27, 2020 10:56 am  

MattyB wrote:

Administrators are currently answering questions.

Q How close are you to selling the stadium?

A I'm not selling the stadium independently.

If they go into liquidation and cant find a buyer then they might have to sell the stadium separately along with the traing pitches .