Sheffield Wednesday - Securing debt against Hillsborough

Discussion in 'Bulletin Board' started by Loko the Tyke, Oct 6, 2020.

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  1. Dav

    DavidCurriesMullet Well-Known Member

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    Keef always liked to shop at Aldi apparently
     
    DavidCurriesMullet, Oct 6, 2020
    #21
  2. Tyke_67

    Tyke_67 Well-Known Member

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    It already is :)
     
    Tyke_67, Oct 6, 2020
    #22
  3. Gordon Owen

    Gordon Owen Well-Known Member

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    Gordon Owen, Oct 6, 2020
    #23
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  4. SuperTyke

    SuperTyke Well-Known Member

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    How different is this to our owners taking out a mortgage secured against Oakwell or whatever it was that they did?
     
    SuperTyke, Oct 6, 2020
    #24
  5. BrunNer

    BrunNer Well-Known Member

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    It’s only a big deal if they start missing payments, otherwise it’s a mortgage.
     
    BrunNer, Oct 6, 2020
    #25
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  6. Loko the Tyke

    Loko the Tyke Administrator Staff Member Admin

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    I think that's the point though. Sold the ground to themselves for £60 million and so far only seen £7.5m of that land in the accounts.

    Current accounts two months outstanding so no idea if another payment has been made
     
    Loko the Tyke, Oct 6, 2020
    #26
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  7. Red

    Red Rain Well-Known Member

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    We do not know exactly what is going on at Sheffield Wednesday because they have not filed their accounts at Companies House. However, when they filed their 2018 accounts, they had extended their year end by 2 months in order for the owner to buy the ground from the club in order to generate a false profit in order to cover up FFP irregularities. However, those accounts also showed that no cash had been paid over by Chansiri. The purchase price of the ground was shown as an outstanding creditor. We do not know what has happened since. The tweet suggests that Sheffield Wednesday has borrowed money using an asset that no longer belongs to them as security. That seems unlikely, so I am assuming that Chansiri has borrowed the money. However, if money is being borrowed from a commercial source, it suggests that Chansiri has finally run out of cash, rather than just reaching into his back pocket. That might be to pay off his debt to Sheffield Wednesday, or it might be in order to raise yet more cash to invest in Sheffield Wednesday. We do not know. It may just be to cover a temporary overdraft at the bank, as it was at Barnsley a year or so ago. There are lots of questions that Wednesday fans are bound to be asking over the next few days, questions that a very difficult to answer honestly when the accounts are overdue. I mean they may just be overdue because they have broken FFP rules again.
     
    Red Rain, Oct 6, 2020
    #27
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  8. orsenkaht

    orsenkaht Well-Known Member

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    The tweet suggests that Dejphon Chansiri has borrowed money using Hillsborough as an asset.
     
    orsenkaht, Oct 6, 2020
    #28
  9. Red

    Red Rain Well-Known Member

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    They did not sell the ground to themselves. This is a common misunderstanding. The owner and the company are two separate parties in law. When money passes between them, it creates an entry in the accounts of both parties. Therefore, Sheffield Wednesday sold the ground to their owner. Therefore, when money is introduced by its owner, it has to be done by the company issuing new shares (unusual) or through a loan by the owner (usual). Therefore, when an owner puts money into the club, it creates debt in the club accounts (a loan by the owner to the club).
     
    Red Rain, Oct 6, 2020
    #29
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  10. Barnsley Chopin

    Barnsley Chopin Well-Known Member

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    Bound to have some bogs too - I'll pop in for a sh hit every time I'm passing.
     
    Barnsley Chopin, Oct 6, 2020
    #30
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