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Martyn Sadler

Bradford Bulls - Under New Ownership (Merged threads)

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Could someone enlighten me on who is paying the administrator and has he 'earned' more than Guilfoyle,yet?

 

 

Nobody is paying the administrator yet. He takes his fees out of the money received for the sale of the business, so it is the creditors who ultimately pay the administrator, e.g. if he sells the business for £300k and his fees are £50k then he takes his money and the rest is distributed to the creditors.

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Nobody is paying the administrator yet. He takes his fees out of the money received for the sale of the business, so it is the creditors who ultimately pay the administrator, e.g. if he sells the business for £300k and his fees are £50k then he takes his money and the rest is distributed to the creditors.

 

Shurely shome mistake? In my experience it's:-

 

If he sells the business for £50k and his fees are at least that then he takes his money and the creditors get nowt.

 

Is there some jockeying for position here Derwent. Are they all waiting whilst they can buy it for £1.

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Isn't the last administrator of the Bulls in 2012 amongst the list of people owed money by the current club?

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Nobody is paying the administrator yet. He takes his fees out of the money received for the sale of the business, so it is the creditors who ultimately pay the administrator, e.g. if he sells the business for £300k and his fees are £50k then he takes his money and the rest is distributed to the creditors.

Thanks for that.

I read your reply and then read a local press report and it seemed the administrator was owed money from a game following one of the last takeovers.It also hinted at a dispute as to how much would be given.

http://www.thetelegraphandargus.co.uk/news/local/localbrad/10584210.Former_Bradford_Bulls_firm_now_in_liquidation/

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Shurely shome mistake? In my experience it's:-

 

If he sells the business for £50k and his fees are at least that then he takes his money and the creditors get nowt.

 

Is there some jockeying for position here Derwent. Are they all waiting whilst they can buy it for £1.

 

 

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.

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It's a sorry state for the Bulls to be in, As someone has said some of them are desperate for an owner to be announced, That's totally understandable of course, the most disappointing thing as i see it is that , The man who obviously has enough money to buy it with no problem, seems to want it the least despite all his talk.

 

If i were a Bulls fan i'm not sure i would want someone who obviously wants it for as little as poss, ( quite normal ) but it hardly leaves you thinking he is a big RL fan, Does he really want to see the Bulls back where they have been, or does he see an opportunity somewhere, If he does, then i hope that is to offload Odsal and build a new stadium.

 

No one seems to give much thought to the people who have helped the Bulls in the past and are now owed money, None of the prospective buyers seem prepared to pay them anything ,if they can help it,

 

None of this is the fans fault, I wish MK would buy them, pay for them, Settle off the debts and take the club forward, It doesn't fill me with confidence when he seems to be prepared to put up less money than the other bidders, but then again i might feel differently if i was paying, I would certainly feel better as a Bulls fan if i knew the new owner ( whoever that turns out to be ) made at least an effort to be fair with the people who are owed. Maybe that's what the Admin is insisting on.

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The best bet for a purchaser is to ignore the current state of the club and consider its future. That means letting it go to the wall.

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It's a sorry state for the Bulls to be in, As someone has said some of them are desperate for an owner to be announced, That's totally understandable of course, the most disappointing thing as i see it is that , The man who obviously has enough money to buy it with no problem, seems to want it the least despite all his talk.

If i were a Bulls fan i'm not sure i would want someone who obviously wants it for as little as poss, ( quite normal ) but it hardly leaves you thinking he is a big RL fan, Does he really want to see the Bulls back where they have been, or does he see an opportunity somewhere, If he does, then i hope that is to offload Odsal and build a new stadium.

No one seems to give much thought to the people who have helped the Bulls in the past and are now owed money, None of the prospective buyers seem prepared to pay them anything ,if they can help it,

None of this is the fans fault, I wish MK would buy them, pay for them, Settle off the debts and take the club forward, It doesn't fill me with confidence when he seems to be prepared to put up less money than the other bidders, but then again i might feel differently if i was paying, I would certainly feel better as a Bulls fan if i knew the new owner ( whoever that turns out to be ) made at least an effort to be fair with the people who are owed. Maybe that's what the Admin is insisting on.

The administrators duty is to the clubs creditors. Not.the club, fans etc. If selling the players, ground (if they.owned it) and liquidating the club was best for creditors thats what would happen

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The administrators duty is to the clubs creditors. Not.the club, fans etc. If selling the players, ground (if they.owned it) and liquidating the club was best for creditors thats what would happen

 

So that may happen then, and might be the best way in the end. Let someone start from scratch. Perhaps that's what MK is really waiting for.

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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 !

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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?

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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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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

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

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