Takeover Rumours

Closer to seven million turnover I think, perhaps even eight million this year. 3x turnover is one rule of thumb, 10x profit another.

 

It’s more than a fair bet whoever bought the club they would want it to be run sustainably

 

20/21 season accounts are due by end of March, the 19/20 season was actually profitable on the back of the £3.2m received from Swansea for McBurnie.

 

Only three people can put City into administration, Rupp, Alan Biggin and Clydesdale Bank as a secured lender.

Biggin won’t unless he suspects it is trading whilst insolvent, that’s his legal duty.

Clydesdale Bank won’t unless they think they’re not getting any money they are owed back and I don’t believe they are owed money.

So that leaves Rupp. The club owes him money apparently, and he paid £6m or whatever for it. If it goes in to administration he loses the club and gets pence in the pound on his £1.8m loan. If the club doesn’t owe money do anybody else, why the hell would he do that?

Let’s say there is a boycott, he has to inject money or the club goes into its overdraft to keep it afloat. If he puts it into administration he still loses his initial investment plus most of his loans AND the club has -12 points. Why would he do that? He would only do that if he wanted rid, and if he wanted to lose the least money he’d be better off selling now for a smaller loss.

The only plausible scenario where it benefits Stefan is if he does what Ken Bates allegedly did at Leeds. The club runs up massive debts with say HMRC, the bank and crucially with one of his other companies. The debt with his other company might be a paper debt, it owes a licence fee or a management fee, not an actual debt. If he owns more than 75% of the debt, he can use administration to pay the debtors pence in the pound and buy the club back from the administrator. He’s written off 90% of the debt to the other companies and got the club back. The catch is HMRC won’t stand for that anymore.

Because realistically Stefan is the only person who can put the club in to administration, there is no reasonably foreseeable scenario where the club runs in to serious debt and Rupp doesn’t sell up first. He’d be better off selling for a small return well before that happened.

 

LOL I was waiting for that reply..

 

so was I, laughed at the first comment

 

Or sells it.

That's the key option you seem to keep overlooking.

 

I don't ever envisage anyone coming in who would put their own money into the club. Rupp did but he's the only one in my life time and he now realises football in the lower leagues is a mugs game.

 

i never said that's impossible? Just because I say one thing doesn't rule everything else out...

 

https://find-and-update.company-information.service.gov.uk/company/05102915/filing-history
Unaudited abridged accounts made up to 30 June 2020

seriously why is everyone so damn sarcastic on this forum? I literally say in my comment I am not an accountant.

 

can @Dennis , @Storck , @Rogered Tart explain this? very confused here... so £32,172 profit?

without any sarcasm thank you very much!

 

I'm no expert on this stuff, Dennis is the go to guy for all things accounts.

 

As @StaffordBantam said the profit for that year was £1.1m The figure you are quoting is an ongoing total, so if you look at the previous year it would -£4.1m

 

"Why would he do that?"
I am not saying he SHOULD I am saying he COULD. regardless of what is likely or not. I am tired of people jumping down my throat without the full picture.

 

so did we make a loss then?

 

Ergo, replace the name Bradford City with pretty much 80 other clubs. The 'formula' for football in this country is currently a totally busted flush.