This is the nightmare scenario that you describe, I was going to wait until until after the window closed to post something along similar lines - debt transferred to the bank, one player sold and, according to some, other key players are lined up to leave, it certainly makes me nervous. If the fees generated from these players isn't re-invested then I fear the worst. It could be that the boy is speaking the truth and the sales are genuinely a means of financing the clubs PL survival ...... as the late lamented Tickles often said ''only TWT''.
Erm I can't spot the flaw in the suggestion In fact it looks the most likely to me I'm afraid T as he used to say WT
It's certainly possible that they're switching personal debt to company debt (in fact it's very likely), to reduce their liability if things go tits up, but not in the manner you've detailed. There is no 10% that goes one way or another. Any company that has debt, has to service that, whoever it's owed to. If they fail to do so, an administrator will be appointed to realise any assets and repay as much debt as possible. The percentage of debt recovered is entirely dependent on how much is realised on the remaining assets. Why anyone would get involved in any such messing about, when they had the option of taking out all their money and leaving someone else with the problem, is completely beyond me.
No net loss to them? Allamhouse is owed £80m by City and getting £8m back means they won't lose anything?
But they would have the £80mil from the bank loan secured against the business.... or am I missing something??
The business wouldn't be worth £80 million if we got relegated. The bank would put the club into administration being owed millions and the Allams would more than likely end up in prison.
Agreed about administration... why would the allams end up in prison? There's no fraud, the banks know the situation & risk... (Btw... I haven't got a clue on these issues)
Do you think the bank would offer them £80m in exchange for £80m of future income? As OLM stated, the more Allamhouse debt they can shift on to other people, the lower their personal liability. There are going concerns rules on trading and taking the money out yourselves and then pulling the plug while owing others money can potentially lead to prison and disqualification as a director.
Hull City Tigers Limited is insolvent to the tune of £100 million. Do you really think they have gone to the bank for £70 or £80 million and told them it is to pay off their debt so they can sell the club to some other poor sod who would be responsible for paying it back? If they haven't told the bank what the money is for it could well be fraud, especially if the Premier League refuse to pay over the parachute payments in order to pay off any footballing creditors.
Though I think it's likely that the Allams are reducing their exposure by transferring some of their debt to external lenders, I think the chances of them doing anything illegal is pretty much zero.
If the Allams get paid and the bank doesn't the Allams may end up being prosecuted and sent to prison.
Do you really think a bank is going to give Hull City Tigers Limited £80 million so the Allams can be repaid? Its possible but unlikely.
Yes. It's secured against income, massive income This may be one for the conspiracy thread... Allams get the loan, relegation, bank foreclosure & wind up the club.... Allams say not our fault it's the nasty banks
