prideoflanarkshire Posted June 10, 2011 Report Share Posted June 10, 2011 Recently,I have heard from a good source, a high shareholder, that no bank will give us anoverdraft facility as they feel we do not have enough ‘assets’, i.e. turnover,fan support, high valued players, etc. Iknow the club are running within itself and making a slight profit, but, isthis down to the above fact and that they have to? Theonly reason I am asking this is now we have no ‘security net’ of John Boyle andthe uncertainty of the owners/set up that is being developed (community idea)then this causes great concern to me as the attendances are on decline and theonly avenue to raise quick cash, if required, would be to sell players and thiscan only be within the window? Justlooking to see if anyone else has heard anything about this, or if I am wrongto rest my mind, and their views? Quote Link to comment Share on other sites More sharing options...
Richie Posted June 10, 2011 Report Share Posted June 10, 2011 Is it not something to do with administration and what credit checks pull up? Im sure I saw there was something strange about Motherwell's credit rating. Ie it couldnt be calulated or something. Quote Link to comment Share on other sites More sharing options...
fatcalf Posted June 10, 2011 Report Share Posted June 10, 2011 No' a bad thing, nae c**t will lend us so we need to make do with what we got. Live within our means and all that. Quote Link to comment Share on other sites More sharing options...
Al B Posted June 10, 2011 Report Share Posted June 10, 2011 The reasoning you've been given is nonsense...we're one of the few smaller clubs in the league who have considerable assets...owning our own ground and the land it's built on, over and above what money we make. It's true that following administration we don't have a credit rating however, which would more than likely prevent us from being given an overdraft, although this woudn't be indefinite though. Our credit rating will slowly be building back up again as we trade responsibly. Quote Link to comment Share on other sites More sharing options...
weegiewell Posted June 10, 2011 Report Share Posted June 10, 2011 Do Motherwell FC own the ground and land though? I seem to remember hearing that when we went inti administration John Boyle transferred ownership of the ground to himself? Quote Link to comment Share on other sites More sharing options...
prideoflanarkshire Posted June 10, 2011 Author Report Share Posted June 10, 2011 From what I have heard John Boyle still has ownership of the ground and land, but I may be completely wrong. Even if we did own the land and ground its not really an asset, if we sell it we will still need to buy new land and build a new stadium, even if someone else builds it we will still have to rent it for a period of time, eating into the money of the sold land and ground As I say, I was just asking if anyone else had heard anything to do with this. The points made regarding having being in administration are interesting though Quote Link to comment Share on other sites More sharing options...
Al B Posted June 10, 2011 Report Share Posted June 10, 2011 It's still an asset though. If you can sell it for money to repay a loan, then it's classed as an asset. The bank don't care if it leaves you without anywhere to play....that would be our problem. Like, if you own a car and sell it...you still have to then buy a new one, but while it's yours it's an asset. By your way of thinking the only thing that could be classed as an asset would be something that you didn't need... Anyway it's a bit of a redundant point as the freeholding of the stadium was part of what JB gifted to the club when he stepped down. Quote Link to comment Share on other sites More sharing options...
daver Posted June 10, 2011 Report Share Posted June 10, 2011 If we did own it the banks would see the ground and land as an asset. They wouldn't care if we needed to find an alternative after they forced us to sell it. Edit: I was obviously typing my reply while Al B was posting the same comment. Quote Link to comment Share on other sites More sharing options...
LadywellToi Posted June 10, 2011 Report Share Posted June 10, 2011 As Al B points out, its all hypothetical, the fact is JB gifted the freehold/stadium back to the club along with his 70%ish shareholding. Quote Link to comment Share on other sites More sharing options...
Steelmen Posted June 10, 2011 Report Share Posted June 10, 2011 Interesting choice of word boyle has given the freehold of the stadium to the club along with his share Freehold and lease hold aren't recognised in scottish law if i remember rightly Quote Link to comment Share on other sites More sharing options...
fatcalf Posted June 10, 2011 Report Share Posted June 10, 2011 Interesting choice of word boyle has given the freehold of the stadium to the club along with his share Freehold and lease hold aren't recognised in scottish law if i remember rightly But there is no lease is there? Not to my knowledge. Quote Link to comment Share on other sites More sharing options...
weeyin Posted June 10, 2011 Report Share Posted June 10, 2011 Interesting choice of word boyle has given the freehold of the stadium to the club along with his share Freehold and lease hold aren't recognised in scottish law if i remember rightly Scotland has 'feuholds' which are basically the same (I think) i.e include the property on the land. Quote Link to comment Share on other sites More sharing options...
Dodge Posted June 10, 2011 Report Share Posted June 10, 2011 Scotland has 'feuholds' which are basically the same (I think) i.e include the property on the land. Not anymore we don't. Feudalism was abolished by the Scottish Parliament a good couple of years ago. Quote Link to comment Share on other sites More sharing options...
Kmcalpin Posted June 10, 2011 Report Share Posted June 10, 2011 Is it not something to do with administration and what credit checks pull up? Im sure I saw there was something strange about Motherwell's credit rating. Ie it couldnt be calulated or something. Yes thats basically true. Football clubs require "working capital" especially over the close season and this is very tight for most clubs. I think JB provided that safety net in terms of a soft loan. The SPL require financial guarantees and a "working float" is to meet that requirement. The £750 k mentioned by Leeann Dempster in the Herald fulfills that function if I'm right. The SFA / SPL / SFL are notoriously slow in handing out payments and I believe we had to wait months for our CIS Cup cash. No doubt the Scottish Cup monies will also be slow in finding their way to the FP bank account. Thats my take on it anyway - if anyone knows better then fell free to update us. Quote Link to comment Share on other sites More sharing options...
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