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The Magnificent Dab ADMIN Thread


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I do not understand why there are rumours about United going into administration as according their latest annual accounts lodged at Companies House for the year ending 30th June 2015 they made a net profit of £3,943,976 as a result of player sales of £4.8 Million. https://beta.companieshouse.gov.uk/company/SC013690/filing-history and click "Full account made up to 30th June 2015" dated 23rd March 2016.

Note 6 is interesting as United are now paying more in loan interest and than they were in bank interest. I am at a loss to understand why with interest rates at "rock bottom" the United BOD would prefer to clear their borrowings with Bank of Scotland by signing over their stadium to a supporter who is charging an interest rate of 6% per annum. Perhaps Bank of Scotland were demanding personal guarantees from the United directors to cover the cost of their borrowings and the directors were unwilling to do so.

Hopefully someone like Woodstein could have a look at these accounts and give us his opinion about them.

 

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3 hours ago, WeighorstsWang said:

A foundation is basically a group of external investors (fans) who pledge an amount every month. Hearts have set one up somewhat successfully. They're making big steps both on and off the field but are yet to be standing on their own two feet with it, which they aim to do soon. 

Thank you WW for above explanation ... It all makes sense, when someone explains it :happyyes:

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13 hours ago, islaydarkblue said:

I do not understand why there are rumours about United going into administration as according their latest annual accounts lodged at Companies House for the year ending 30th June 2015 they made a net profit of £3,943,976 as a result of player sales of £4.8 Million. https://beta.companieshouse.gov.uk/company/SC013690/filing-history and click "Full account made up to 30th June 2015" dated 23rd March 2016.

Note 6 is interesting as United are now paying more in loan interest and than they were in bank interest. I am at a loss to understand why with interest rates at "rock bottom" the United BOD would prefer to clear their borrowings with Bank of Scotland by signing over their stadium to a supporter who is charging an interest rate of 6% per annum. Perhaps Bank of Scotland were demanding personal guarantees from the United directors to cover the cost of their borrowings and the directors were unwilling to do so.

Hopefully someone like Woodstein could have a look at these accounts and give us his opinion about them.

 

Profit of £3.9m is healthy - until you consider £4.8m came in via player sales. That's not a sustainable business model as we know. The conveyor belt of talent dries up and so does the income stream.

As for paying 6% to a creditor rather than presumeably less to a bank - perhaps the bank's terms were too onerous in terms of repayments or securities? Or maybe the creditor is a good pal who deserves to make a tidy sum in interest!

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12 hours ago, HK Blues said:

Profit of £3.9m is healthy - until you consider £4.8m came in via player sales. That's not a sustainable business model as we know. The conveyor belt of talent dries up and so does the income stream.

As for paying 6% to a creditor rather than presumeably less to a bank - perhaps the bank's terms were too onerous in terms of repayments or securities? Or maybe the creditor is a good pal who deserves to make a tidy sum in interest!

Note 16 in their annual accounts for year ended 30th June 2015 is interesting as it states that the Thompson family loans had all been repaid in full by 20th August 2015. If United go into administration and they are able to exit administration the Thompson family will still own their shareholding in Dundee United albeit with a reduced value.

Note 23 is also interesting. David McGrory who is a Dundee United director is also a partner at solicitors Maclay, Murray and Spens LLP who carried out the exiting of the banking facilities. Maclay, Murray and Spens were also involved in the Standard Security by The Dundee United Football Company Limited in favour of Hugh Drummond Duncan. https://beta.companieshouse.gov.uk/company/SC013690/filing-history

See Registration of Charge created on 26th March 2015, dated 7th April 2015. 

According to the enclosed Companies House website United directors Stephen Thompson and James Martin formed a company called Thommar with a share capital of 40p on 19th March 2015 one week before the Standard Security of Tannadice was handed over to Hugh Drummond Duncan.https://beta.companieshouse.gov.uk/company/SC500974/filing-history

It will be interesting to see how things develop over the next few weeks especially if there is a points deduction for a club going into administration.

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