Debt

[pcassist]

For the life of me I can't understand as a club how we have £7million pounds worth of debt having just been bought out.
I would presume that when Abdallah Lemsagam started the negotiation to buy the club this would have been covered then i.e. what Brassbank own and it's value and what AL actually bought from Corney (I'll have to go and wash my mouth out now).
As non of us we're party to these negotiations only the people present will know, I feel our new owner is not an idiot. However, we know he has made some mistakes but also taken action to eradicate them quickly.
Let's just see what comes out of the wash.
Lofty

[GlossopLatic]

I've no idea also how those negotiations went ahead and what Lemsagam has bought or what agreememts are in place.

 

However its not beyond the realms of possibility that a historical debt of £7million or probably more is being held against the club subject to a promition to the premier league. Call it Mr Blitz's insurance policy.

 

IMO Its actually not that bigger deal right now what should be a far bigger concern is the fact that based on fairly strong rumours we are still struggling to pay the staff on time or even the tax man. If we are struggling to pay them then the chances are we are not paying other bills either. To still have these problems which we hoped we would have seen the back off is very worrying.

Edited July 1, 2018 by GlossopLatic

[tGWB]

55 minutes ago, tGWB said:

 

Singe

 

Bury FC Accounts for the year end 31st May 2017

 

Agree that Bury Creditors (Debt) have risen from £6,837,747 in 2017 from £4,334,418 in 2016, an increase of £2,503,329

 

Bury FC Operating Loss is £2,665,662 for 2017 up from £2,358,160 in 2016

 

What's your source for Latics debt being c£7m as we don't appear to have filed our Accounts for some time ?

 

Assuming Latics run at a similar annual Operating loss of lets say c£3m (this £figure has previously been muted by our previous Chairman), what has Mr Lemsagam spent

his c£5m-£6m on  ?

 

Genuinely interested

 

[Dave_Og]

2 minutes ago, tGWB said:

 

I'd be mighty surprised if we were running at anything like that sort of operating loss.  It seemed fairly clear that Bury were offering big money to get what seemed unlikely signings.  While the new owner may have made some short term mistakes with Menig etc. I'd hope the sorts of number involved were not on that scale and will not be repeated.

 

[tGWB]

12 minutes ago, Dave_Og said:

I'd be mighty surprised if we were running at anything like that sort of operating loss.  It seemed fairly clear that Bury were offering big money to get what seemed unlikely signings.  While the new owner may have made some short term mistakes with Menig etc. I'd hope the sorts of number involved were not on that scale and will not be repeated.

 

 

Dave-Og

 

You may well be right looking at this extract from the Fans Meeting with Simon Corney in Jan 2017

 

I do suspect it is likely to have increased from the £1.3m quoted:

 

·         When asked where the money was coming from to fund the expenditure on players etc. SC said he was funding it. The club accountant said on the phone (via loudspeaker) that last season SC put circa £1.3m into the club. To date this season, he has put £900k in and expects by the end of the season to have put in a further £400K. The club has an ongoing gap between income and expenditure averaging circa £1.3m per year.

[Smiler13]

Not this Old chestnut again. It’s gettin boring. Same old speculation without any proof. Pity we cannot look for positives instead of doom and gloom. 

[deyres42]

11 minutes ago, Smiler13 said:

Not this Old chestnut again. It’s gettin boring. Same old speculation without any proof. Pity we cannot look for positives instead of doom and gloom. 

Club accounts aren't really speculation Smiley.

[leeslover]

45 minutes ago, tGWB said:

 

Dave-Og

 

You may well be right looking at this extract from the Fans Meeting with Simon Corney in Jan 2017

 

I do suspect it is likely to have increased from the £1.3m quoted:

 

·         When asked where the money was coming from to fund the expenditure on players etc. SC said he was funding it. The club accountant said on the phone (via loudspeaker) that last season SC put circa £1.3m into the club. To date this season, he has put £900k in and expects by the end of the season to have put in a further £400K. The club has an ongoing gap between income and expenditure averaging circa £1.3m per year.

Simon Corney has been known to, "chat shit," as I believe the kids put It,"

[Smiler13]

14 minutes ago, deyres42 said:

Club accounts aren't really speculation Smiley.

But they are not current accounts. 

[tGWB]

26 minutes ago, Smiler13 said:

Not this Old chestnut again. It’s gettin boring. Same old speculation without any proof. Pity we cannot look for positives instead of doom and gloom. 

 

Yeah you're right !

 

Not paid the Players and Staff again yet, is pretty boring

[Smiler13]

17 minutes ago, tGWB said:

 

Yeah you're right !

 

Not paid the Players and Staff again yet, is pretty boring

Yes because they get paid tomorrow 

[Kusunga_Is_God]

46 minutes ago, Smiler13 said:

Not this Old chestnut again. It’s gettin boring. Same old speculation without any proof. Pity we cannot look for positives instead of doom and gloom. 

[Kusunga_Is_God]

Just now, Smiler13 said:

Yes because they get paid tomorrow 

WHERE'S YOUR PROOF?!

[Smiler13]

1 minute ago, Kusunga_Is_God said:

WHERE'S YOUR PROOF?!

Speculation when the end of the month finishes on a Saturday banks usually pay the following Monday. That’s what always happened to me when I was paid monthly.

[Kusunga_Is_God]

4 minutes ago, Smiler13 said:

Speculation when the end of the month finishes on a Saturday banks usually pay the following Monday. That’s what always happened to me when I was paid monthly.

Most if not all payrolls are processed before the month ends.

[Twisbrogan]

1 minute ago, Smiler13 said:

Speculation when the end of the month finishes on a Saturday banks usually pay the following Monday. That’s what always happened to me when I was paid monthly.

I've never known any monthly salary be paid like that. Always been on the last working day prior to the weekend and I would think any payroll system or bank would advise and default to that position for obvious reasons.

[Smiler13]

10 minutes ago, Twisbrogan said:

I've never known any monthly salary be paid like that. Always been on the last working day prior to the weekend and I would think any payroll system or bank would advise and default to that position for obvious reasons.

I can assure you that I am telling you that is what happened to my salary. If the end of the month landed on a Saturday or Sunday I was always paid into the bank first thing the following Monday. Perhaps I was working for a shit company but it was a multi national one.

[Buckshawlatic]

4 minutes ago, Smiler13 said:

I can assure you that I am telling you that is what happened to my salary. If the end of the month landed on a Saturday or Sunday I was always paid into the bank first thing the following Monday. Perhaps I was working for a shit company but it was a multi national one.

 

Definitley shit company I always get it on the Friday if my usual payday lands on a Saturday or Sunday and have done every place I’ve worked 

[Smiler13]

3 minutes ago, Buckshawlatic said:

 

Definitley shit company I always get it on the Friday if my usual payday lands on a Saturday or Sunday and have done every place I’ve worked 

Lucky bugger

[Midsblue]

I’m almost certain that when AL officially took over it was confirmed somewhere (Trust?) that AL purchased the club for £4 million. If he did then why inherit £7 million to boot.  That £4 million presumably is to buy the players and their contract values as ‘assets’ as there’s no other assets.  Any shrewd businessman would have offset legacy debts against that asset value hence reducing £4 million even to the token ‘£1’ that some clubs are acquired for in return for inheriting the debts. This is where is suggested previously that if Corney misled then surely there’s business laws around this sort of thing?!

 

Isn’t that £7 million what the “club” owe Blitz if they wish to buy the stadium, land, north stand etc?  Blitz was stated to be the sole creditor when the fans were invited to view the books last time and assurances that the debt would only be called in once we reached the Prem.

 

Isnt the Trust’s key responsibility to monitor debts, income and expenditure since they came onboard the board.  If so, how could £7 million have been added to our debt?

[yarddog73]

Kin hell can't we just sign a decent player or two my head hurts from all this mind numbingly shit that gets peddled around when everyones bored.

[archiecat]

Some have said Mr Lemsagam has been naive since acquiring the club.

May i point out that IF he paid circa £4 million for Oldham Athletic then not only has he been a little naive but he must be an absolute lunatic.

He doesn't even own a solitary brick in the stadium, just the contracts of a load of fourth rate football players.

Alan Sugar should be knocking Corneys door down to sign him up.he is probably selling oil to the Arabs now.  

[singe]

12 minutes ago, yarddog73 said:

Kin hell can't we just sign a decent player or two my head hurts from all this mind numbingly shit that gets peddled around when everyones bored.

And if we sign crap players? 

[singe]

48 minutes ago, Midsblue said:

I’m almost certain that when AL officially took over it was confirmed somewhere (Trust?) that AL purchased the club for £4 million. If he did then why inherit £7 million to boot.  That £4 million presumably is to buy the players and their contract values as ‘assets’ as there’s no other assets.  Any shrewd businessman would have offset legacy debts against that asset value hence reducing £4 million even to the token ‘£1’ that some clubs are acquired for in return for inheriting the debts. This is where is suggested previously that if Corney misled then surely there’s business laws around this sort of thing?!

 

Isn’t that £7 million what the “club” owe Blitz if they wish to buy the stadium, land, north stand etc?  Blitz was stated to be the sole creditor when the fans were invited to view the books last time and assurances that the debt would only be called in once we reached the Prem.

 

Isnt the Trust’s key responsibility to monitor debts, income and expenditure since they came onboard the board.  If so, how could £7 million have been added to our debt?

If AL paid £4m for the squad alone, we are well and truly fucked. 

[johnafoafc]

56 minutes ago, archiecat said:

Some have said Mr Lemsagam has been naive since acquiring the club.

May i point out that IF he paid circa £4 million for Oldham Athletic then not only has he been a little naive but he must be an absolute lunatic.

He doesn't even own a solitary brick in the stadium, just the contracts of a load of fourth rate football players.

Alan Sugar should be knocking Corneys door down to sign him up.he is probably selling oil to the Arabs now.  

He has been ill-advised if he has shelled out £4m for essentially a name and a football league place. A nominal £1 to Corney and the promise to honour the debts seems more realistic. I thought he had accountants and lawyers etc sifting through the books and contracts before he bought the club? Hope there is more money from where that came from if true or we are well and truly screwed.