Nixon reporting(Sunday Sun)

Breadman wrote:I've given up trying to fathom out what goes on behind the scenes at Bolton.

ie, How much do we really owe and who to, how did we get in this mess, how are we still trading and all that bollocks.

Fuck knows and I don't think we ever will because of all the smoke and mirrors.

All I do know is that the club has haemorrhaged money in recent years to the point where we now can't afford to buy players, so something drastic needs to change.

And if that means someone new coming in and taking over the running of the club, so be it.  

For what it's worth, I still think that "someone in a position of authority at Bolton" (no names, no pack drill) has made an absolute killing out of the club over the last few years and we've paid the price on the pitch.

But I don't think they'll ever be held to account for it because the club will be sold and they will disappear quietly into the ether and avoid the kind of scrutiny that they probably deserve.

Agree with everything you say Breaders. I hope someone does take us over and it results in us getting a fresh start but like you I feel we've been taken to the cleaners by two individuals who will ride off into the sunset with their pockets stuffed full of filthy lucre earned on the back of their exploitation of our football club.

Bolton Wanderers play down talk of takeover by Irish consortium

Wanderers are playing down suggestion that the club is to be sold to a wealthy consortium from Ireland.

Reports at the weekend claimed talks were held last week about a potential takeover, which hinged on owner Eddie Davies wiping clean the debt owed to him – a figure well in excess of £150million.

While there has been no official comment from the Macron Stadium, reaction to the story has been very cool, with one source passing it off as “gossip”.

Rumours also circulated last week about an Israeli consortium holding talks with Wanderers but these too have been cast into doubt.

Wanderers remain on the lookout for outside investors and chairman Phil Gartside had well-publicised talks with a Thai consortium last year, which ultimately came to nothing.

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Two good rumors for me...... either one will do us good.  At minimum the financials will get straightened out and I would expect some money to be available for Lennon. New owners will be requiring success I would presume.

The Irish consortium are close to taking over us

Had Eddie written the debt off, we are going back to the prem.

Maybe we can call it Guinness Stadium .... which will be acceptable

i'll believe it when i see it in the news, i can't believe anyone would want to buy us unless Eddie wipes out the debt

he should maybe wipe of the debt but have a profit share for a few years (maybe keep a percentage of the club?)

karlypants wrote:If Eddie threw in the sweetener of wiping the debt then someone behind the scenes is going to go bust surely!

£170 million or whatever it is now is a hell of a lot of money!

No one has answered this.

Am I incorrect in thinking this?

Yes you are incorrect.

karlypants wrote:

karlypants wrote:If Eddie threw in the sweetener of wiping the debt then someone behind the scenes is going to go bust surely!

£170 million or whatever it is now is a hell of a lot of money!

No one has answered this.

Am I incorrect in thinking this?

It's impossible to answer Karly without knowing all the facts.

Yes £170 million is a huge amount of money to write off - but who owns it and where did it come from?

As an example, say Davies did put in £50 million at 10% interest per year.

In year one he would have got £5 million from the club.

But instead of taking it, he reinvested it back in the club - so the club now owed him £55 million - and his interest after the second year would be £5.5 million - which again he didn't draw out - thus the debt would now be £60.5 million.

If this continued for a number of years the debt would soon get really big - but in reality Davies as actually done no more than invested £50 million at zero interest.

Yes he would be on paper entitled to the amount that as built up owing to him - but in reality he knows he is never going to see that money and might be happy just to get his original (£50 million) stake money back.

I don't believe for one second that all the debt is owed to Davies but IF this sort of scenario as happened (it may not of course) and the investors will settle for their stake money back - a good chunk of the £170 million could be written off without too many people getting financially hurt.

There's obviously more going on than we will ever know (or perhaps would want to know) but I doubt very much Davies or anyone else involved will be on the street selling the Big Issue anytime soon.

Eddie still made a lot of money from BWFC I would of thought. The interest payments on the loans must have stacked up pretty well before he froze the interest.

Sluffy wrote:

karlypants wrote:

karlypants wrote:If Eddie threw in the sweetener of wiping the debt then someone behind the scenes is going to go bust surely!

£170 million or whatever it is now is a hell of a lot of money!

No one has answered this.

Am I incorrect in thinking this?

It's impossible to answer Karly without knowing all the facts.

Yes £170 million is a huge amount of money to write off - but who owns it and where did it come from?

As an example, say Davies did put in £50 million at 10% interest per year.

In year one he would have got £5 million from the club.

But instead of taking it, he reinvested it back in the club - so the club now owed him £55 million - and his interest after the second year would be £5.5 million - which again he didn't draw out - thus the debt would now be £60.5 million.

If this continued for a number of years the debt would soon get really big - but in reality Davies as actually done no more than invested £50 million at zero interest.

Yes he would be on paper entitled to the amount that as built up owing to him - but in reality he knows he is never going to see that money and might be happy just to get his original (£50 million) stake money back.

I don't believe for one second that all the debt is owed to Davies but IF this sort of scenario as happened (it may not of course) and the investors will settle for their stake money back - a good chunk of the £170 million could be written off without too many people getting financially hurt.

There's obviously more going on than we will ever know (or perhaps would want to know) but I doubt very much Davies or anyone else involved will be on the street selling the Big Issue anytime soon.

Well stated Sluffy.  With depreciation and tax write-offs throughout the years, he probably has amortized the loan many times over already.  I think your assumption that he would be happy to get all or part of his original stake back is probably pretty close to what will go on behind the scenes.  Since PG is an accountant, as well as chairman, I believe you can be reasonably assured that the loans were used advantageously, and that there is plenty of room for negotiation as to selling the team.  Well said Sluffy!

Sluffy wrote:

karlypants wrote:

karlypants wrote:If Eddie threw in the sweetener of wiping the debt then someone behind the scenes is going to go bust surely!

£170 million or whatever it is now is a hell of a lot of money!

No one has answered this.

Am I incorrect in thinking this?

It's impossible to answer Karly without knowing all the facts.

Yes £170 million is a huge amount of money to write off - but who owns it and where did it come from?

As an example, say Davies did put in £50 million at 10% interest per year.

In year one he would have got £5 million from the club.

But instead of taking it, he reinvested it back in the club - so the club now owed him £55 million - and his interest after the second year would be £5.5 million - which again he didn't draw out - thus the debt would now be £60.5 million.

If this continued for a number of years the debt would soon get really big - but in reality Davies as actually done no more than invested £50 million at zero interest.

Yes he would be on paper entitled to the amount that as built up owing to him - but in reality he knows he is never going to see that money and might be happy just to get his original (£50 million) stake money back.

I don't believe for one second that all the debt is owed to Davies but IF this sort of scenario as happened (it may not of course) and the investors will settle for their stake money back - a good chunk of the £170 million could be written off without too many people getting financially hurt.

There's obviously more going on than we will ever know (or perhaps would want to know) but I doubt very much Davies or anyone else involved will be on the street selling the Big Issue anytime soon.

Thanks for posting this Sluffy. I hadn't thought about it like you have mentioned and makes pretty much sense come to think of it if this is actually the case.

'Investment in Bolton would be welcomed', says Neil Lennon amid buy-out rumours

Neil Lennon admits Wanderers are ripe for investment amidst heavy speculation the club are being earmarked by a wealthy Irish consortium.

While reports of outside interest continue to be strongly played down at the Macron Stadium they have nevertheless gathered pace in the last few days.

Wanderers legend John McGinlay is among those who have spoken publicly about negotiations with the mystery backers, which are reported to have taken place last week.

But some sources claim the potential investment carries a caveat that Whites owner Eddie Davies must wipe off the debt owed to him – which currently stands at more than £150million.

Lennon refused to confirm or deny the speculation but did offer his thoughts on the prospect of a deal after Tuesday night’s 1-1 draw with Charlton Athletic, claiming any outside backer would be walking into an excellent opportunity.

“I’ve no idea about it but if there is going to be investment, whoever it may be, they’d be investing in an excellent football club,” he told The Bolton News.

“They would be welcome, obviously, and it is a very good club. I’m very happy here.

“If there is investment then it will be great news, if not, then we’ll continue to build the club as best we can.”

Eidur Gudjohnsen, Emile Heskey and Filip Twardzik are the only permanent signings Lennon has made since coming to Wanderers in October, his injury-hit squad supplemented with a raft of loan players.

But the Northern Irishman claims he has reduced the wage bill as a whole, with big earners such as Chung-Yong Lee, Jay Spearing and Medo Kamara farmed out elsewhere either permanently or on loan.

Those cuts could be set to continue unless Wanderers attract extra financial backing this summer, with just one parachute payment remaining from their 11-year stay in the Premier League.

“It would be handy because we haven’t spent a penny,” Lennon said of prospective backing. “We’ve brought in two OAPs who have been brilliant for us.

“But we sold our best player in Chung-Yong Lee, cut the wage bill down and lost a lot of people to injury.

“There might be more trimming to do if investment doesn’t come in. If it does, then we have to see what budget we’ve got and spent it in the various areas.”

Wanderers have made little secret of their desire to attract outside investment but their reluctance to discuss the matter in the public arena could stem from last year’s dalliance with Thai investment group BEC Tero and the Siam Sports Syndicate.

Strong rumours have also circulated in the last fortnight that another international group, based in Israel, have expressed an interest.

Wanderers’ last set of financial figures showed a significant slow-down in their losses, with net debt rising to £172.9million, the vast majority of which is owed to Davies.

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karlypants wrote:

karlypants wrote:If Eddie threw in the sweetener of wiping the debt then someone behind the scenes is going to go bust surely!

£170 million or whatever it is now is a hell of a lot of money!

No one has answered this.

Am I incorrect in thinking this?

Not at all. If ED is worth £65 million as reported,a) the club's debt isn't owed exclusively to him so he can't wipe it off anyway b) there's no man in his right mind would give away his life savings and bankrupt himself to live his later years in poverty especially one used to his lifestyle and c) his rellies would go apeshit and his life would be ruined anyway.

Suggesting that "if ED had wiped out the debt we'd be going places" is almost as stupid as saying "if you cut off Messi's left foot and sew it on to the tea lady she'd be worth a fortune" i.e bollocks.

I'm with Wander on this. Rich people don't get rich by giving money away, no matter how they came by it.

That's dependent on whether it's a real debt or a paper debt to avoid paying Capital Gains Tax when Ed sells Burnden Leisure.

My understanding of the situation is that the Oirish consortium were prepared to invest £40 million in the club on the proviso that they wouldn't be saddled with any debt. In other words, Eddie Davies to write off the £170 million. Now, surely no sane person would agree to that?
You can currently buy Aston Villa or West Bromwich Albion outright for a damn sight less that £170 million and they are both bigger clubs.