Bahrain Owl

As I explained already somewhere in previous posts, there is usually a 2 year plan by all administrators (POF of £50m). This is quite normal. However, this is not the only consideration. Contingency after the 2 year plan will have a great influence towards the administrator making a decision. Kris & co have sufficient experience to satisfy the creditors short and/or long term, their first priority, and, at the same time decide the best deal for the future of Sheffield Wednesday FC. Roll on decision day.....

Laurie's left peg sums it up perfectly. As I said I am in industrial asset disposals so am quite familiar with the process and why I reacted to the statement on BBC. Come what may, I think we are in excellent hands with the administrator.

...so not the highest bidder then.... There is much more to it than folks think and why I raised the doubt against the administrator's comment as reported by the BBC journalist. I think the administrators are doing a magnificent job and they have decent form so I cannot see how they supposedly made the "highest bid wins" statement.

I should add I dispose assets of steel factories not football clubs....

Sorry to go on..... Insolvency law states no such thing at all. Insolvency law (Insolvency Act) provides guidelines for Insolvency Practioners to follow. Consider this.... Bid A - £30m - £15 now and £15 end of 25/26 season. Already submitted POF for £50 but does not appear realistic to the administrator for contingency beyond 2 years (based on them doing their job). Bid B - £28m - £14m now, £7m end of 25/26 season and £7m start of 26/27 season. Already submitted POF for £50 but does appear realistic to the administrator for contingency beyond 2 years. Which one would you choose?

The legal requirement is not highest bidder wins. The legal obligation is with the administrator to provide the best solution for the creditors and this sometimes involves other factors than the monetary value. In all the bid documents, I am sure, there will certainly be a clause stating that the administrator is not bound to accept the highest bid. I work in Asia, I accept it could vary in the UK (but i doubt it). There is no law that states "highest bidder wins" as far as I am aware. Perhaps the administrator can confirm.....

Fortunately I don't have to Google it as my business is asset disposals. I work all over Middle East and Southeast Asia with PWC, E & Y, RSM amongst others. However, those who doubt what I stated in my earlier post are actually wrong. The administrator's legal obligation is to achieve the best possible outcome for ALL creditors and that, sometimes means considering more than the monetary value. Google it....!!

I suspect bad journalism here. There was a statement from Kris Wigfield, when this administration malarky started, that said it the other way around and the decision wouldn't just be based on the highest bidder but who would be the best custodian for the club in the future.

Trading.... as in Del boy Trotter trading? Trading is based on buy and sell, hopefully at a profit. Of course; win some, lose some but lose on every deal and, without financial support, you soon end up bankrupt. Which is exactly where SWFC is heading, at an alarming rate, and potential buyers are fully aware of it. Hence, no deal has been announced.

Not familiar with it all and quite happy not to be either. I spend my time between Dubai and Malaysia these days to keep me out of retirement.

Again... Chansiri is not asset stripping. Asset stripping is a completely different business to what he is doing. Asset stripping involves a takeover, sometimes hostile, and the new owner has already recognised certain assets of their target purchase that he (or they) have determined to be more valuable than the previous owner had knowledge of. Asset stripping is very seldom done by an existing owner of his own assets. What Chansiri has done, or is doing, is simply known as a fire sale i.e. selling ones own assets at below market value to satisfy his own cash flow crisis. (By the way, asset disposal is my business - Google me)

Some fellow elder than I, will, correct me I am sure, but the North Stand at Hillsborough is historic that it was the first cantilever stand of such a spread with a totally unrestricted view (no columns) in the whole world. It was considered a structural marvel in its' day. One for the history books. Is this magnificent club on the verge of making history, once again, in a totally another way?

There was a hint of sarcasm in my initial response mate but I have just binge watched 3 full series of Friends on the plane. Sarcasm or irony - take your pick? To be serious, I agree with entirely.

Good observation. If they car pooled and departed at 9/9.30 and reached in plenty of time for an early lunch (perhaps a Little Chef) they would be well set for a early evening kick-off. And get back well in time for last orders (do the pubs still shut at 1030pm on Sundays?).

Because the buyer's consideration of a reasonable offer is usually a long way from the seller's consideration of a reasonable offer. Thus the negotiations start.... There is a "rule of thumb" out there for the evaluation of Championship clubs but this has now been greatly devalued by the owner disposing (not asset stripping - big difference) of certain assets to maintain cash flow.

It could have been Thai Herrick. Herrick Steel (US company) are one of the largest steel fabrication companies in the world and a lot of the steel for several stadiums in the US were fabricated in Thailand. Salesforce Tower in San Francusco was totally fabricated in Thailand.

He's not actually asset stripping. Asset stripping generally happens when a company is taken over and the new buyer recognises certain assets are of a higher value than previously recognised. These certain assets return a significant profit to the new owner and he sells what's left as scrap. The previous owner screams "day light robbery" or "he's a crook" but it's business and legitimate at that. The situation at SWFC is somewhat different. Here we have an owner, in desperation, who is selling his own assets at prices below their (let's assume) book and market value. This process only reduces the overall value of his entity of course. Plus it shows in the loss column on the balance sheet. Add into this that there is no investment into fixed assets of considerable value i.e. North Stand. Another unfortunate part is that the guy is unable to plug the ever increasing expenses (Thais, like other SEA nations do not practice preventive maintenance) within his business and this adds to the financial burden. Oh.... not to mention the company has revenue issues. Almost zero income June through Mid-August and, it appears, it will be greatky depleted Mid-August onwards. Hes a NOB!

Is this a cryptic way of referring to skeletons in the closets? Damn! The American terminology is getting through already.

Exactly, 40m sovs goes a hell of a long way running a business rather than an upfront payment to satisfy an avaricious seller.

I posted elsewhere Give a man enough rope and he will hang himself. Put yourself in a buyer's position. The company is a wet fart away from bankruptcy. Then ask yourself "why should I spend £40m when in 7 days I can get it for £1". Sure , this is a gamble but business people calculate this. It's money. Perhaps this is why potential buyers are keeping quiet?

I wonder if the Florida consortium, fronted by a Sheffielder, are familiar with the idiom "give a man enough rope..."?

Looking at that very well compiled list and adding the events of the last 2 years, it stinks of Corporate Negligence. Chansiri is 100% responsible for the administration of running a company according to the regulations in the United Kingdom (not the Kingdom of Thailand). It reads to me (and I am sure hundreds of others), he has fell well short. Finish the list and try and get a solicitor to submit it to the FA (there must be someone ready to do Pro Bono somewhere), if nothing else it should attract media attention.

According to latest news releases this afternoon (3pm here) Bruce and assistants have arrived in China this morning. Really - how long does it take to get a visa in the UK to visit China these days? It used to be 3 to 4 days expedited.

Amazing.... the head coach is having a truly bad time last few weeks, the run of results puts the team's confidence very low, no "statement" from the club as, oh so sadly, often claimed by supporters as a default reaction to a bad run of anything more than a run of four losses and.... every single day we read in open media about so called options for the managers position. A position that is NOT vacant. I think I actually agree with Khun Chansiri.... Is this how "family" normally behave..... seriously...?? This is business not football! If Jos gets the sack does anyone seriously think another credible manager will come near SWFC ? The whole company is in a mess, due to whatever reasons, which are in the past. We need to look forward - but I doubt sacking a manager after less than 1 year is the answer. Needs some strategic thought and application.

I opened the article just to check if The Times actually used the word bobbar.....