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Bradford Bulls - Under New Ownership (Merged threads)

Super League Bradford Bulls

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66 replies to this topic

#61 Rob

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Posted 25 March 2014 - 08:26 PM

Sky Sports News are reporting that an agreement to buy the club has been reached. The winning bidder is being reported as Marc Green, the club's major creditor who put them into admin in the first place !

 

Is this a worrying development?  Perhaps Marc Green's bid for the club was simply a bid to ensure that he can sell the remaining assets (players) to get his money back, and not actually because he wants the club?



#62 Konkrete

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Posted 25 March 2014 - 10:27 PM

Words fail me.
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#63 Amber Avenger

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Posted 25 March 2014 - 10:29 PM

Is this a worrying development?  Perhaps Marc Green's bid for the club was simply a bid to ensure that he can sell the remaining assets (players) to get his money back, and not actually because he wants the club?


I'll wait to see what he says if this is true, but my initial reaction is that "a worrying development" is an understatement. :(
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#64 The Parksider

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Posted 26 March 2014 - 07:23 AM

If the sale of the business assets doesn't raise enough to pay his fees and the creditors then the administrator has to come to an agreement with the creditors over how much he will actually be paid. Could be all his fees, could be 50%, could be 25%, depends on the circumstances.

 

In so far as jockeying for position is concerned, I think its important to understand that they are not bidding for a going concern business (OK Bulls Ltd) but for the assets owned by that business. You would realistically only get it for £1 if you were buying the business and taking on all the inherent liabilities of that business. Nobody is prepared to do that in this case as it would mean committing to paying all of the creditors.

 

The thing you need to remember here is that to the administrator, on behalf of the creditors, cash up front is king. Bidder A could offer £250k purchase price with no further investment in the club promised, Bidder B could offer £100k but a promise to invest £1m in the club afterwards. So even though Bidder B would be the best long-term solution for the club, Bidder A would be the administrator's preferred bidder as he's really not concerned with how the club is managed after he's sold it, he's focused purely on realising the maximum amount of cash for the current creditors. This is, I assume, why the Koukash bid was turned down as it was the lowest in terms of actual purchase price.

 

This is where the administrator and the RFL have completely different aims. The administrator is only concerned with realising the maximum amount of cash now and couldn't care less what happens after that, the RFL are more concerned about the buyers having enough cash to invest over the longer term to ensure the future viability of the club. There's an obvious conflict, which is probably why things are taking so long to resolve.

 

Big thank you for an informative and fascinating reply



#65 MrPosh

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Posted 26 March 2014 - 07:56 AM

Is this a worrying development?  Perhaps Marc Green's bid for the club was simply a bid to ensure that he can sell the remaining assets (players) to get his money back, and not actually because he wants the club?


That had worried me, but they'll be another TUPE to go through yet, so I doubt potential transfer fees will be much when players will shortly be available for free.
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#66 Mumby Magic

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Posted 26 March 2014 - 07:57 AM

Surely the RFL have to approve as they held restrictions in place for Lamb.


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#67 John Drake

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Posted 26 March 2014 - 11:35 AM

The saga is finally over.

 

New thread here

http://www.totalrl.c...eover-complete/


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