MD
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It's like sitting in a full bath and taking the plug out - for a while there'll still be enough water to wash your face but that won't go on forever. Administration is putting the plug back in while there's still a little bit left to work with.
Good analogy TBananaG! To explain simply Cobbler1991... say you borrowed £1m yesterday, £1 due for repayment today, £999,999 the week after. You placed all of the cash on a losing bet yesterday and lost the lot. As you stand today, you can probably afford to pay your repayment of £1 today out of your back pocket. However unless you had some other means of believing that you would have managed to find the best part of £1m by next week, you'd be in a position where you couldnt reasonably expect to pay all your future debts as they fall due. So even though you can afford today's repayment and are up to date on your debts, you're still technically insolvent. Listen, I honestly don't wish to scaremonger. The new buyers will clearly have their own financial plans, which they clearly believe will be sufficient so we must assume the same. If the deal fails to go through, then clearly none of us know the true financial position at the club, or even how deep the Cardoza's pockets are (or their appetite) to invest futher, etc etc, so we can only speculate... however logic would suggest that administration would not be a surprising outcome should the deal fail to happen.
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HallamCobbler
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It's like sitting in a full bath and taking the plug out - for a while there'll still be enough water to wash your face but that won't go on forever. Administration is putting the plug back in while there's still a little bit left to work with.
Thats a nice analogy, but its based on your assumptions. I can also assume we have someone stood ready to refill the bath, even increase its water capacity and put a new plug in. And administration will leave us with a bit left, but the new water won't be coming. If DC wasn't selling or if it can be proven that their is no consortium, or if the takeover falls through, then yes action is needed. For all of the name calling on here, it is sadly the case that there is enough financial information in the public domain - the loan documents, the movement of monies around First Land, liabilities on the club - that the prospect of administration remains a real one, if not a certainty. Some of the Cardoza apologists admit they haven't read the available information - if you didn't do a bit of research, you would also think the earth was flat.
You've read the financial information in the public domain, what about the information that isn't in the public domain? People on the inside could say the EXACT same thing about you, you've taken the little information you have and made "certainties" from it, its stupid. You call people apologists, yet you haven't bothered reading what they are writing, and then attack the same people for not reading what you want them to read. No-one is defending DC or saying they wouldn't like him out, they are just being realistic about the situation and not hitting the panic button. You've now stated that administration is a certainty? You really want to stand by that statement?
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everbrite
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Listen, I honestly don't wish to scaremonger.
You have repeated that a few times now and imo thats exactly what you are doing.
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2020 Grand National S/S 3rd Place
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Charlatan
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It's a massive issue, with the imminent possibility of administration, because the loan was to be used to create facilities - East Stand, hotel etc. - that would provide additional income streams that would service the loan. As those income streams don't exist and we were not trading at a profit level sufficient to service the loans directly, it seems almost certain that the loan capital itself is being used to service the loans. This is ultimately disastrous because, with interest, the amount to be repaid exceeds the capital sum so we will default on payments at a future point when the money runs out. As stated elsewhere, administration happens when you can no longer trade with a reasonable expectation of paying the bills. It's like sitting in a full bath and taking the plug out - for a while there'll still be enough water to wash your face but that won't go on forever. Administration is putting the plug back in while there's still a little bit left to work with.
For all of the name calling on here, it is sadly the case that there is enough financial information in the public domain - the loan documents, the movement of monies around First Land, liabilities on the club - that the prospect of administration remains a real one, if not a certainty. Some of the Cardoza apologists admit they haven't read the available information - if you didn't do a bit of research, you would also think the earth was flat. Good post. I hope i'm wrong but i'm finding the lack of REAL info on (new) owners & what's happening RE development a real worry. I feel administration is a certainty, I really hope i'm wrong.
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Rodney
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BBC's Joe Townsend just tweeted me:
sorry I meant to reply last night! Frustratingly dead-end when trying to find anything out from council, club or chairman
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After years of boredom, despair, resignation and misery, this is unbound joy.
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MD
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You have repeated that a few times now and imo thats exactly what you are doing.
Not really, just would rather walk with my eyes open to an obvious risk than bury my head in the sand! Anyway, lots of contract completions happen on a Friday, so let's hope...
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TbananaG
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You've now stated that administration is a certainty? You really want to stand by that statement?
Which is the part of "not a certainty" in my original post which leads you to think I'm saying administration is a certainty? I can write it, but I can't read it for you.
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HallamCobbler
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Which is the part of "not a certainty" in my original post which leads you to think I'm saying administration is a certainty? I can write it, but I can't read it for you.
You may want to work on the writing part. the prospect of administration remains a real one, if not a certainty
If you did mean its NOT a certainty, although poorly phrased it would make more sense. It doesnt help that Charlatan also quoted you as saying you feel administration is a certainty. I assume he made an error in his post.
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TbananaG
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You may want to work on the writing part.
If you did mean its NOT a certainty, although poorly phrased it would make more sense.
It doesnt help that Charlatan also quoted you as saying you feel administration is a certainty. I assume he made an error in his post.
"Poorly phrased" - thanks, you do make me chuckle. Now, enough of this nonsense - off to get ready for Brizzle.
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HallamCobbler
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"Poorly phrased" - thanks, you do make me chuckle. Now, enough of this nonsense - off to get ready for Brizzle.
No worries, always good to learn from your mistakes. You were an only child right? Just kidding, enjoy the trip and hopefully you can bring back some positivity with you from the result.
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Charlatan
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You may want to work on the writing part.
If you did mean its NOT a certainty, although poorly phrased it would make more sense.
It doesnt help that Charlatan also quoted you as saying you feel administration is a certainty. I assume he made an error in his post.
I made an error putting my post in TBans quote, apologies Hallam, however I did not quote TBans as him saying administration is a certainty.
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