Quote Adeybull="Adeybull"Indeed. Guess I'm not the only one who knows where to look for these sort of things then! I'd say the signs are looking ominous. Not good.
Your views on their - what looks suspiciously like - invitation to the public to apply for shares? Legal? And what happens if they cash the cheques and then go into Administration? I'm finding it hard to avoid the conclusion that a desperate BOD may have seriously overstepped the line here. Hopefully i guess I'm wrong.'"
I've avoided commenting on the subject after the lambasting on VT about a year ago when I summed up several items that pointed towards an iceberg on their horizon.
It's not a public issue of shares, as the BoD have said that if the fans raise this money they will hand over their stake in the business to the trust, not to the investors.
What concerns me further is what these fans will get for their hard earned cash? A business that is in debt, with the Image Rights issue still hanging over the sport, and a queue of debtors wanting paying.
£500,000 isn't much help to cashflow when they have already announced that £350,000 is to the VAT man and a £162,000 'donation' was infact a loan. (Although the latter may be part of the £350k). That swallows the fund before they even start to think about other debts, staff salaries etc. Administration will follow as soon as the rest of the skeletons come out of the cupboard.
If I was asked for my advise I would suggest they wait, raise their £500k if it's possible and use it to buy the club debt free from the administrators and own 100% not 50%.
