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If Evans wants out ... 17:25 - Aug 5 with 2513 viewspablovian

The following scenario is pure speculation.

As a businessman, Evans wants to divest a loss-making business. He is ready to write off the loans he has made to the business, but is unwilling to shoulder responsibility for the debt that was assumed when the business was acquired. How should he proceed?

Very plausibly, by attempting to sell the business as a going concern that has decent prospects. If so, he would try to cut operating costs, avoid making additional loans to the business, and do whatever he could to avoid any perception of a fire sale.

This course of action would be logical for ME, but it would put PL in a difficult situation ...
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If Evans wants out ... on 17:28 - Aug 5 with 2473 viewsxrayspecs

I think you will find is no/little external debt left, apart from a small amount of debenture holders, all of the money is owed to ME companies.
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If Evans wants out ... on 17:32 - Aug 5 with 2438 viewsChocorange

It does seem plausible that if ME is to tell the fans what's going on, as PL challenged ( or intimated he will) him to that selling the club could be the reason.

ME isn't going to make a statement moaning about X club putting the price up or Y Club messing us about.. I just can't see he would bother doing that.
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If Evans wants out ... on 17:37 - Aug 5 with 2390 viewsNthsuffolkblue

His best way to get a sale would be to market the club as a potential for making money for someone or for being a club at as high a level as possible.

I don't think there is a club in the land that consistently turns a profit so finding a buyer who honestly believes that there is a potential to make money from it would be difficult and extremely concerning if a buyer came in expecting that.

Therefore, his best bet is getting the club to automatic promotion or looking likely for it and finding someone rich enough and interested in running a Championship club. The preparation for that scenario would be to make sure the squad was highly competitive.

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If Evans wants out ... on 17:49 - Aug 5 with 2340 viewsMarshalls_Mullet

The debt when acquired was arguably c.£6m.

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If Evans wants out ... on 17:55 - Aug 5 with 2317 viewsxrayspecs

If Evans wants out ... on 17:49 - Aug 5 by Marshalls_Mullet

The debt when acquired was arguably c.£6m.


Without going back to check,I think there was around £25m owed to the company who funded the new stands and around £6-8m other (non-football debt). The CVA wrote off a lot of what was owed, the rest covered by a loan from ME.
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If Evans wants out ... on 17:59 - Aug 5 with 2302 viewsMarshalls_Mullet

If Evans wants out ... on 17:55 - Aug 5 by xrayspecs

Without going back to check,I think there was around £25m owed to the company who funded the new stands and around £6-8m other (non-football debt). The CVA wrote off a lot of what was owed, the rest covered by a loan from ME.


It was 30m owed to Aviva, and was bought by evans for 6m.

So the 30m debt effectively disappeared. ME kept it on the books for accounting purposes really.

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If Evans wants out ... on 18:03 - Aug 5 with 2279 viewsxrayspecs

If Evans wants out ... on 17:59 - Aug 5 by Marshalls_Mullet

It was 30m owed to Aviva, and was bought by evans for 6m.

So the 30m debt effectively disappeared. ME kept it on the books for accounting purposes really.


That sounds about right. There were other debts - local businesses included - that got written off but small compared to what was owed to Aviva.
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If Evans wants out ... on 18:15 - Aug 5 with 2227 viewsElephantintheRoom

You assume the losses are genuine. Evans showed why he is here from day 1 - inflating the actual £6 million debt to £32 million. In the last few weeks he has taken in £5 million minimum by doing absolutely nothing. No many small busineses are reliable cash cows to be asset stripped. Evans is probably laughing all the way to the offshore bank this season more than ever.

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If Evans wants out ... on 18:16 - Aug 5 with 2209 viewsSpruceMoose

If Evans wants out ... on 18:15 - Aug 5 by ElephantintheRoom

You assume the losses are genuine. Evans showed why he is here from day 1 - inflating the actual £6 million debt to £32 million. In the last few weeks he has taken in £5 million minimum by doing absolutely nothing. No many small busineses are reliable cash cows to be asset stripped. Evans is probably laughing all the way to the offshore bank this season more than ever.


lol

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If Evans wants out ... on 18:56 - Aug 5 with 2066 viewspablovian

If Evans wants out ... on 17:28 - Aug 5 by xrayspecs

I think you will find is no/little external debt left, apart from a small amount of debenture holders, all of the money is owed to ME companies.


ITFC had a debt of $82.4 million in 2015

(see for example https://www.insidermedia.com/insider/central-and-east/146334-insider-football-fi )

I presume that the debt has subsequently increased.
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If Evans wants out ... on 19:03 - Aug 5 with 2032 viewspablovian

If Evans wants out ... on 18:15 - Aug 5 by ElephantintheRoom

You assume the losses are genuine. Evans showed why he is here from day 1 - inflating the actual £6 million debt to £32 million. In the last few weeks he has taken in £5 million minimum by doing absolutely nothing. No many small busineses are reliable cash cows to be asset stripped. Evans is probably laughing all the way to the offshore bank this season more than ever.


How does one asset strip a debt-laden, loss-making enterprise? (Just asking for a friend ...)
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If Evans wants out ... on 19:22 - Aug 5 with 1985 viewsrosseden

If Evans wants out ... on 19:03 - Aug 5 by pablovian

How does one asset strip a debt-laden, loss-making enterprise? (Just asking for a friend ...)


easily - apparently. i mean, if you were a tax exile why wouldnt you lose some tax by asset stripping a business like ITFC, who actually have very little in the way of assets and when you dont pay tax anyway

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If Evans wants out ... on 19:36 - Aug 5 with 1932 viewsCoastalblue

If Evans wants out ... on 18:15 - Aug 5 by ElephantintheRoom

You assume the losses are genuine. Evans showed why he is here from day 1 - inflating the actual £6 million debt to £32 million. In the last few weeks he has taken in £5 million minimum by doing absolutely nothing. No many small busineses are reliable cash cows to be asset stripped. Evans is probably laughing all the way to the offshore bank this season more than ever.


I smile at your username every time I see a post like this from you, tongue in cheek and irony are what you're aiming for I assume?

No idea when I began here, was a very long time ago. Previously known as Spirit_of_81. Love cheese, hate the colour of it, this is why it requires some blue in it.
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If Evans wants out ... on 19:48 - Aug 5 with 1906 viewsSpruceMoose

If Evans wants out ... on 19:36 - Aug 5 by Coastalblue

I smile at your username every time I see a post like this from you, tongue in cheek and irony are what you're aiming for I assume?


I assume so. I mean, the other day he wrote that British people are the second largest group of illegal immigrants in the US, so he's definitely on the wind up with a lot of his posts.


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If Evans wants out ... on 20:15 - Aug 5 with 1829 viewsRegencyBlue

If Evans wants out ... on 17:59 - Aug 5 by Marshalls_Mullet

It was 30m owed to Aviva, and was bought by evans for 6m.

So the 30m debt effectively disappeared. ME kept it on the books for accounting purposes really.


He kept it on the books so that he could be paid back the full thirty million when we got promoted and he could get his grubby paws on the Premiership millions.

Unfortunately plan A didn’t work and there has never been an effective plan since!
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If Evans wants out ... on 20:21 - Aug 5 with 1786 viewsCoastalblue

If Evans wants out ... on 20:15 - Aug 5 by RegencyBlue

He kept it on the books so that he could be paid back the full thirty million when we got promoted and he could get his grubby paws on the Premiership millions.

Unfortunately plan A didn’t work and there has never been an effective plan since!


Would you not have expected that?

I think it was supposed to be over a number of years if we were promoted wasn't it? I thought that's how most of these football club investments were done at the time?

No idea when I began here, was a very long time ago. Previously known as Spirit_of_81. Love cheese, hate the colour of it, this is why it requires some blue in it.
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If Evans wants out ... on 20:25 - Aug 5 with 1778 viewsRegencyBlue

If Evans wants out ... on 20:21 - Aug 5 by Coastalblue

Would you not have expected that?

I think it was supposed to be over a number of years if we were promoted wasn't it? I thought that's how most of these football club investments were done at the time?


Yes.

My point was that it was kept on the books for more than just accounting purposes.
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If Evans wants out ... on 20:28 - Aug 5 with 1752 viewsCoastalblue

If Evans wants out ... on 20:25 - Aug 5 by RegencyBlue

Yes.

My point was that it was kept on the books for more than just accounting purposes.


Ah OK, in that case apologies

No idea when I began here, was a very long time ago. Previously known as Spirit_of_81. Love cheese, hate the colour of it, this is why it requires some blue in it.
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If Evans wants out ... on 20:28 - Aug 5 with 1767 viewsPhilTWTD

If Evans wants out ... on 18:56 - Aug 5 by pablovian

ITFC had a debt of $82.4 million in 2015

(see for example https://www.insidermedia.com/insider/central-and-east/146334-insider-football-fi )

I presume that the debt has subsequently increased.


£95.5 million as of the end of June 2018 but as above all internal debt other than a couple of million in loan notes to fans.

https://www.twtd.co.uk/ipswich-town-news/34983/town-announce-%EF%BF%BD5.2m-pre-t
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If Evans wants out ... on 16:52 - Aug 6 with 1400 viewsSamWhiteUK

If Evans wants out ... on 20:28 - Aug 5 by PhilTWTD

£95.5 million as of the end of June 2018 but as above all internal debt other than a couple of million in loan notes to fans.

https://www.twtd.co.uk/ipswich-town-news/34983/town-announce-%EF%BF%BD5.2m-pre-t


Can someone please explain to me "internal debt" and "buying £30m of debt for £6m"? Never wrapped my head around that

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If Evans wants out ... on 18:14 - Aug 6 with 1335 viewsrosseden

If Evans wants out ... on 16:52 - Aug 6 by SamWhiteUK

Can someone please explain to me "internal debt" and "buying £30m of debt for £6m"? Never wrapped my head around that


internal debt = debt owed to companies also owned by ME - hence internal rather than external which would be a bank loan etc.

And the aviva thing, when debt is considered 'bad debt' people take whatever they can get to get it off their books, they then write down the 30m loss in their books, and bank the 6m, but if someone 'buys the debt' they they take the total and put it into their books.....

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If Evans wants out ... on 23:06 - Aug 6 with 1164 viewsArnieM

I wonder how long ITFC would last as a football Club if Evans said tomorrow... “ right, that’s it, I’m done with this shyte. No more money paid each week to cover the running costs,. I’m out of here, sort yourselves out”!

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If Evans wants out ... on 23:25 - Aug 6 with 1118 viewsNthsuffolkblue

If Evans wants out ... on 18:14 - Aug 6 by rosseden

internal debt = debt owed to companies also owned by ME - hence internal rather than external which would be a bank loan etc.

And the aviva thing, when debt is considered 'bad debt' people take whatever they can get to get it off their books, they then write down the 30m loss in their books, and bank the 6m, but if someone 'buys the debt' they they take the total and put it into their books.....


Debt collection agencies often work like that. Student Loans Company is due to collect £10K from 2000 ex-students and they expect less than 1000 of them to actually pay it. The debt collection agency buys the debt off them for around £1M and then proceeds to more vigorously chase the debts to ensure they get far in excess of the debt back.

The full debt to Evans is only going to be paid off if the club comes into a massive windfall. That means by getting to the Premier League (and probably now staying there too). That is why people thinking Evans gains from the club getting relegated is so ridiculous.

Evans next best option is to sell on the debt to someone who believes they can get more back. That is why he can't sell because who honestly believes they can take us to the Premier League and make much more money than it will cost for them to do so?

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