The Third Meeting.
- Thread starter Chazz Rheinhold
- Start date
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The FA rules all relate to the football club itself suffering an Insolvency Event, there’s no mention of associated companies.
As you say, it’s not going to happen anyway.
Assem’s going to make s load of coin, so it’s been well run financially for him, but it’s not being well run by any other measure.
And if that is the case that should make us attractive to potential buyers. I’m assuming the fact that the club do not hold the freehold for the stadium is a potential issue mind.
MoH
Indeed.
I was trying to understand if Allamhouse as a parent company held more than 50% of the shares in the club and was viewed as a group undertaking under s1161(5) of the Companies Act 2006. This would then mean that if Allamhouse suffered an insolvency event the EFL Board could deduct points from the club*.
*On my read at least although I am not an SME on company law.
MoH
If you think there’s any chance of Allamhouse suffering an Insolvency Event, then you have s very poor understanding of what’s going on.
Curiosity being what it is I’m trying to understand if money is being taken out of the club iot prop up their other holdings. I might be wrong but iirc there was mention on here that the parent company was not doing so well. I am just trying to understand what might be going on. Such information, if available, is not readily accessible.
If nothing else, it was interesting reading through the EFL governance.
MoH
If Allamhouse goes into insolvency, I want the gig. I would expect a fee in the region of £100k plus just out of the chattel assets, roughly a months work, bring it on.
Short answer is that no one knows the answer outside of the people who do know and they will not let me post .....oh dear.
When the Allamhouse accounts come out in a couple of months, they’re likely to show around £200m income and over £40m in profit, with the SMC being the only group company making loses (of probably around £1.5m).
Thank you. You are obviously much better informed than me and you have allayed my concerns.
The issue with our owners is clearly more to do with them personally, and their decisions made since our halcyon days when in the Premier League, and not with our financial structure which is arguably one of the most important things any potential buyer looks at during the due diligence process.
MoH
The Allams have been unrealistic about their valuation of the club since day one and they continue to do so. When we get into next season and the parachute money is coming to an end, with a significant amount of the debt (if not all) having been paid down, hopefully this will change.
The only thing I don't really understand, is what they're doing with the SMC. They have been running football costs through the SMC for several years, making the losses artificially high (cumulative losses in the last accounts were around £10m) and I'm not sure why they're doing this.