Debt

Does anyone know an actual figure for how much debt our club has to its name??

TIA

 

£5 million plus

 

plus alot more. Work it out when we were in admin the admistrator wanted guarantees of upwards of £6,000,000. put on interest and various other loses you will be looking at approx £9,000.000 minimum if you want to buy the club and assets

 

What are you talking about? That debt belonged to the old compnaythat used to be Barnsley FC. That company was wound up it no longer exists! Im pretty sure most of that debt must have been settled as part of the takeover arrangment! Well all the assets now belong to a seperate company. So Im pretty sure the creditors of the old Barnsley fc would not have accepted their security being transfered to a new company.
Either those debts were settled or the company which holds the assets must have given guarantees. Barnsley fc the football club have no assests apart from the players!

 

at that supporter's club meeting

one of the earlier ones - my friend told me Shep said he thought Barnsley could be completely out of debt by the end of the season.

hard to believe if we're five million in the red.

 

RE: at that supporter's club meeting

There is no way that is true. Im a little confused about what happened with creditors when Mr Doyle was in charge, but some of the debt must have been satisfied. Otherwise we wouldnt have come out of administration. Creditors would not allow company to be wound up and transfered to new BFC company without their debts being met. It must have either been paid off, transfered to new company and guaranteed by company holding assets or personally guaranteed by Mr Cryne. Im surprised nobody knows surely this has been made publically available?

 

They would have given surety on the ground for example.... that with the academy and traning pitches will be worth a small fortune should the new company BFC land in the same swamp as before!!

 

Erm but new BFC does not own the land! Thats what I was saying so surely company which does either holds debts itself or gave guarantee on clubs behalf?

 

I think there is some confusion between "debt" and "making a loss".

My understanding is that Shep is hoping to not make a "loss" this season. That's not the same as wiping out the existing debt.

 

Are you going to bail the club out?

 

No doubt any debt

is structured and is within the means of the clubs income to service.

 

Me? Well If I had to! Maybe a million or so.

 

I'll take this one...

... the club has accumulated losses of approximately £5m guarenteed by a third party. I think we can all guess who that is. No PC to guarentee, admin staight away. The ground etc is held in Oakwell community assets, this currently owes loan repayments of £.75 each to PC and the council. PC and the council have invested £4m in share capital in that company.

 

what I fail to understand is how the pigs can get away with being the thick end of 30 million in debt and not go into liquidation. can anybody explain this to me please?

 

guarentees from Dave allen </p>

You should ask the same question about Cardiff !!</p>

 

assuming you are correct

How on earth would we end up in admin?

If the debt is to a bank, we have no assets and as such the bank would gain absolutely nothing from calling in the debt.

The club is likely now turning a profit as we have wiped out substantial operating losses in the last 2 years.

 

Well like it or not clubs like Wednesday have a big fanbase. Manyof whom bank with the creditors of the club. The creditors would not like to upset these and therefore greater 'goodwill' is afforded to Wednesday than say to Scarborough.

 

RE: I'll take this one...

Still confused there matey. So Barnsley FC football club is in approx £5m debt? This is guaranteed by Cryne? What about asset company? Confused from yer post soz.

 

Wednesdays debt

Is almost entirely to the Cooperative bank and guaranteed by DA I believe.

Their assets have never been worth the debt and hence the bank have not called it in because they would get buggerall. I would assume they think that one day they'll get back to the prem for a few years, win the FA cup, the Champions league and pay some of it off.

 

RE: assuming you are correct

this is Barnsley FC 2002, nothing to do with the old club, the losses of the 'new' club are in the region of the following figures. These are from memory as the copies of the accounts are in my office.</p>

Loss &pound;3.5m y/e 31 May 2004</p>

Loss &pound;1.2m y/e 31 May 2005</p>

Loss &pound;.4m y/e 31 May 2006</p>

accumulated losses approx &pound;5m</p>

You are quite correct that the club doesn't have assets so the outside investors would realise next to nothing from calling in the debt.</p>

Whether the club is making profit in the current year, I'd like to think so as the wages bill should not have increased significantly and the income will have increased by the level of gate receipts at least.</p>