Mandaric to Sheff Weds?

[5waller5]

You're right ... whilst i didn't say they were in admin i did allude to that - which was factually incorrect.

The club however was in a position, after administration, where it couldn't service it's debts and therefore folding.

MM did only actually part with £600k .... but underwrote £25m of debt. Do you own your house outright??? If you have a mortgage it's the same deal (ish). There aren't many people that can get a £25m mortgage though - especially against a property that isn't worth £25m (don't flame me for this - i know it's not entirely the same but it's a pretty good analogy).

There are lots of companies that are bought for a £1 with massive trading losses - the buyer is buying the assets and the trading company on the plus side, but is taking on the debts as well - which outweigh in those cases any of the plusses - . Only someone with some serious financial clout can satisfy the banks to transfer that kind of debt.

MM was the ONLY person that came forward and rescued the club at a time when they had already been in admin and were facing that or worse again as their debt mounted and their ability to pay lessened.

If there were other options then i'm happy to hear them - but noone has ever told me of any other REALISTIC option the club had but the one that they took - If MM had not been interested we would have had to find someway of servicing a massively spiralling debt, with static or falling (I'm not sure on this front) revenues and no local benefactor willing to underwrite the debt.

[Flynny]

to back up whats already stated:

note the dates

this last one has the link....

http://www.thisislei...il/article.html

He bought the club for £600,000 not 25 million

I'm no fan of Mandaric's, but to be yet clearer, and I'm going to put this in large too:

He was also obliged by the terms of the takeover to inject £9 million in cash over two seasons.

Additionally, that £600,000 would have risen significantly had we been promoted and stayed up.

[5waller5]

I'm no fan of Mandaric's, but to be yet clearer, and I'm going to put this in large too:

He was also obliged by the terms of the takeover to inject £9 million in cash over two seasons.

Thanks for the big text - if only the entire forum was like this - it would mean all information would be as easy to read as your important posts!!! What is your point???? Are you saying he did not invest the additional £9 million?? You'll have to make it very clear for me i'm afraid - i'm not very bright and need large letters to understand. Thanks!

additionally, that £600,000 would have risen significantly had we been promoted and stayed up.

[MPH]

I'm no fan of Mandaric's, but to be yet clearer, and I'm going to put this in large too:

He was also obliged by the terms of the takeover to inject £9 million in cash over two seasons.

Additionally, that £600,000 would have risen significantly had we been promoted and stayed up.

he was arguing that mandaric paid 25m for the club and took us out of administration. when he clearly had not. so why you feel to point out what he claims to of done since then is a mystery....

[5waller5]

he was arguing that mandaric paid 25m for the club and took us out of administration. when he clearly had not. so why you feel to point out what he claims to of done since then is a mystery....

I wish i could understand what you're saying but can't..... even with the big text!

[Jackirius]

I wish i could understand what you're saying but can't..... even with the big text!

Owned

[Rich Fox]

I agree that Manaric did not pay millians to buy LCFC but without him we would not have been bought out by Asia football investments so he has done a good job either way!

[ozleicester]

Just to go back to the topic, i was listening to BBC Sheff when this was discussed, there is no fact in this at all.

The BBC announcer.. (basically BBC Sheffs 'Stringer"), said " Ive heard that Madaric is due to leave Leicester soon, it would be great if we got someone like that to Sheffield" he did go to great lengths to say that he had heard nothing.. and was only thinking out loud.

as an aside, why do BBC SHeff have a show called football heaven on everynight.. and we get a crappy 1 hour on a monday, i want more Leicester City news on the BBC please

[Guest shearfox]

Mandaric has his faults, but what he will do is steady the ship, restructure the clubs finances and make it more attractive for other potential investors.

[Rapids Johnson]

Looks like he is interested????????

Yorkshire Post

[davieG]

Well either Mandaric or Allen/Chesterfield are not shall we say being entirely honest - Hmm I wonder who it is?

[Philbert Fox]

Any Sheffield Wednesday fan who think he's gonna be the saviour is an absolute idiot, he'll take them back up to the Championship but thats as far as he'll take them, as we all know the guy is as tight as a ducks arse and very impatient with the people who work for him.

[C-man]

Apparently he offered £250k for Dave Allen's shares. Firmly rejected. Allen values them at £2.5m.

Edit: if that's what the YP article says then apologies... Won't load on my phone.

[Foxes_Trust]

The club was absolutely for sale - they had to consider any route out of administration, sale or trade out of difficulty - it's what administrators are paid to do.

Well the people I've spoken to have all said it was a pretty desperate time ... and that it wasn't appreciated just how close to not servicing the debts the club was (so trading out of the difficulty would have been seen as almost impossible) - and once that happens a winding up order is served and you've gone ... These guys were ex-directors - they should have known the score. I'm sure there was a complex set of sometimes conflicting opinions and a situation that would have had many solutions - one of which was to sell to MM ... ultimately the majority of the people faced with the choice could only see that one realistic way out of the mess they were in. MM was the only guy willing to step forward and use his financial clout to "save" the club from extinction.

Many local "fans" with lots of money were approached and they didn't come forward as potential sources of the necessary backing.

I'm not a massive MM fan ... I think his age (one factor) means that he views things with too short a time frame in mind - I don't mind him viewing the club as a business - it is ... but I don't like his short-termism.

However I find it very difficult to hear people who know little about business (i'm talking about the average fan and football journalist here - not necessarily the forum members on here expressing their opinion) say he didn't "invest" or "save" the club. Without him "investing" risk of losing his money that he was willing to put forward as a guarantee against servicing he debt then the business in it's current format would have gone - which to me means he saved the club.

As one of the shareholders who made the decision to sell to Milan Mandaric, we can catagorically say that:

a) Milan didn't save the club

b) If the takeover had not proceeded the club would not have gone into adminstration

c) However at the end of the season concerned, without any fresh investment, the best players would have to have been sold, so it would have made it more difficult to keep the club in the Championship the following season and the liklihood of challenging for promotion would have been best classed as a long shot

d) Due to c) above, the vast majority of shareholders decided that accepting Milan's offer was more likely to result in us challenging for promotion sooner than if the deal didn't go through

e) An alternative solution was being worked on, but in reality did not seem to be coming together, with parties who may have provided additional finance seeming lees committed to taking the club forward than Milan appeared to show

f) The Trust made a considered decision to back the takeover, however this wasn't taken until we knew in excess of 50% of the shareholders had backed the deal & some of those working on alternatives confirmed they would reluctantly back the deal too

g) Finally, as many have said before the £25million figure was thrown into the media arena very early in the negotations by Milan's camp & it seemed to stick regardless of reality. However he about reached this level combining share capital & loans by the time the Asia Football Investments deal commenced

[Foxes_Trust]

The club however was in a position, after administration, where it couldn't service it's debts and therefore folding.

MM did only actually part with £600k .... but underwrote £25m of debt. Do you own your house outright??? If you have a mortgage it's the same deal (ish). There aren't many people that can get a £25m mortgage though - especially against a property that isn't worth £25m (don't flame me for this - i know it's not entirely the same but it's a pretty good analogy).

There was not £25m of debt when he took over the club, although with the loans that need re-paying to Milan, there certainly was in excess of that when Asia Football Investments looked at the accounts.

Of the £25m however, somewhere between £16 - £17m relates to the stadium still owned by Teachers and the consortium prior to Milan were servicing this debt, so banding around the £25m was mis-leading fans as the impression was given that this didn't relate to the stadium

[Chrysalis]

600k is wrong and so is 25million.

the way I see it the cost is what it cost him to buy the club.

this could would be

cost to buy shares + cost to honour his deal (9mill injection) + cost of underwriting loans.

given that the FT says he was around 25mill when he sold the club, he was probably telling the media the upper limit of his investment.

likewise people assume he would have got sheff wed for 250k, this was offer to just one person, the fiugres I read show he also would have to pay coop 8 million and deal with 5 other directors.

[unreachable]

http://www.dailymail.co.uk/sport/football/article-1329986/Sheffield-Wednesday-reject-Milan-Mandarics-takeover-bid.html

Last updated at 11:26 PM on 15th November 2010

"Sheffield Wednesday last night rejected a takeover bid from Leicester chairman Milan Mandaric.

Wednesday directors held an emergency meeting yesterday with the Co-operative bank yesterday ahead of a decision on whether the club is to go into administration.

Mandaric’s interest is now at an end following an opening offer. Chairman Howard Wilkinson was presented with an apparent conflict of interest by the approach.

Wilkinson is also chairman of the League Managers Association who have consistently condemned former Portsmouth chief Mandaric’s high turnover of club bosses.

Co-op executives met with the board at Hillsborough to talk over narrowing rescue options before the Owls face a winding up order from HM Revenue and Customs in the High Court on Wednesday.

Mandaric’s bid was turned down by at least two loan-note holders, including former chairman Dave Allen who is owed £2.4m including interest, as well as the club.

Allen is prepared to waive the interest of £900,000 but - having agreed to give away his 10 per cent shareholding - rejected as 'derisory' a Mandaric offer of £250,000 in settlement of his loans."

[Jordan]

...cost to honour his deal (9mill injection) + cost of underwriting loans...

equals

...the loans that need re-paying to Milan...

...if I'm not mistaken.

Milan Mandaric is equal parts venture capitalist, title pawn broker and hustler.

[Chrysalis]

yes ultimately I expect if he gets what he wants he will get at least most of his money back. I dont think anyone including the FT has much details of the sale tho. This sale tho I think was MM cutting his losses, I think he has lost money on us. It seems to me when he brought us he banked on a quick promotion to the EPL which didnt happen.

[MrSpaM]

Milan Mandaric is expected to renew his interest in buying Sheffield Wednesday this week in a move which could trigger his imminent departure from Leicester City.

The City chairman has had an initial attempt to buy shares in the ailing League One club branded "derisory" by former Owls chairman Dave Allen.

However, that is unlikely to deter Mandaric, who has made it known he wishes to remain in English football when he eventually leaves Leicester, having sold the club to the Asia Football Investments Consortium. Mandaric sees Wednesday as a sleeping giant with plenty of potential.

Wednesday face a winding-up order over an unpaid PAYE tax bill of £600,000 tomorrow, and are due back in court at the start of December over VAT arrears of £300,000.

If they go into administration they will be hit with a 10-point penalty by the Football League.

Click here to find out more!

Mandaric has stated he would stay on with City while the new owners, Aiyawatt and Vichai Raksriaksorn, still need him as chairman, but he could leave in the next couple of weeks if his bid to buy out Wednesday is successful. Under Football League rules, he would have to resign his position to take over at Hillsborough.

Allen told the Yorkshire Post that an offer of £250,000 was made for his remaining stake in the club by a representative of Mandaric's last week. Allen is said to be owed £2.4million.

The Post also claimed that Mandaric's representatives made an offer of £8m to the Co-operative Bank, which is owed £25m by the Owls, and significantly smaller offers to at least six directors and former directors.

The report said the bank and several of the shareholders were receptive to the offer but that Allen and at least one other rejected it.

"It was a derisory offer and I wasn't prepared to listen to it," said Allen.

Mandaric released a carefully-worded statement on Friday which said he was "not currently in discussions regarding the purchase of Sheffield Wednesday Football Club, or any other club for that matter."

It is understood his offer had already been rejected before the statement was issued.

However, Mandaric did hint he was looking to remain in English football.

"There is no secret of my love for English football and my desire to stay in the game," he said. "Until the right challenge is presented, I remain committed to Leicester City Football Club, our owners and our great supporters."

So much for not being in talks with other clubs ay Mandaric, turns out the only reason he wasnt in talks with them like his statement said was because they'd rejected his first offer of approximatly 10 million. He'll be gone by the end of the week.

[JoBrown]

Stringers Twitter:

chairman Milan Mandaric's just ruled himself out of taking over at Sheffield Wednesday although did say The Owls may come back to him.

End of interest or just Mandaric pushing Wednesday to accept his low offer?

[Babylon]

...if I'm not mistaken.

The £9m wasn't a loan. He had to pump that in as part of the deal.

[Wymsey]

I am surprised by this! By BBC

[Finnegan]

Tell you what Wymsey, it's a very good job you posted this because there isn't actually already a 3 page thread just a bit down the same page.

[Wymsey]

forgot about that other thread. well done mods