Lee Power

[Legends-Lounge]

2.3m is current liabilities, just the costs of doing business and due within 12 months.  Most of that will be where you pay suppliers in arrears for services.

4.6m is owed to Power (assuming he now owns the Debenture) or others who have loaned the business money

The rest, as far as I can understand Accounting, is essentially share capital that hasn't been paid for (someone with better skills in this needs to confirm).  I think there are ways of dealing with that and it's not something that would be money to Power.  THINK!

The important aspect in all this is that both Clem and Standings accountants and legal team will be able to pick this apart with very little effort. Possibly the judge too. Oh and JBZ, he knows you know. At some point they’ll be able to forensically dissect the money trail also.

[Jimmy HaveHave]

Just baffled as to why all the checks haven't been done before any deal can be agreed

[RobertT]

Worth noting these are the accounts for May 2020, so another year has passed, and it wasn't a good one.

[Private Fraser]

Has anyone got a copy of the accounts? Rob, is that just current liabilities or NET current liabilities? The NET takes into account the current assets.

There’s a link in the final post on page 111

[JBZ]

The important aspect in all this is that both Clem and Standings accountants and legal team will be able to pick this apart with very little effort. Possibly the judge too. Oh and JBZ, he knows you know. At some point they’ll be able to forensically dissect the money trail also.

Nice

[RobertT]

Just baffled as to why all the checks haven't been done before any deal can be agreed

These accounts are not that much different to prior years and they are all public at this level of detail.

The tricky bit is peeling back who the money is owed to, what sort of contracts are signed-up to (like that little pearl about recruitment costs for Power Geneva!).  Power has also shifted a lot of money in and out of the business in two years, relative to it's trading position.  Someone may want to dig further on that to make sure there isn't exposure for the business - not saying there is, just that you can't tell that from headline numbers.

edit: by someone, I mean Morfuni.

[RobertT]

Having to call out that you previously entered a Transfer fee received by the business as a "Directors Loan" is the sort of thing that should probably ring alarm bells.  I'd imagine that is Power trying to make sure some of the more obvious issues with his accounting are straight before someone else gets their hands on them.

[Jimmy HaveHave]

These accounts are not that much different to prior years and they are all public at this level of detail.

The tricky bit is peeling back who the money is owed to, what sort of contracts are signed-up to (like that little pearl about recruitment costs for Power Geneva!).  Power has also shifted a lot of money in and out of the business in two years, relative to it's trading position.  Someone may want to dig further on that to make sure there isn't exposure for the business - not saying there is, just that you can't tell that from headline numbers.

edit: by someone, I mean Morfuni.

Cheers Robert, what a shambles we are at the moment 😳

[Samdy Gray]

These corrections are interesting. Disposed as some assets in 2019 and accounted for it as income (profit) but has now been reclassified as administrative expenses (cost).

And as Rob pointed out, a 2016 transfer fee was made to look like a directors loan account repayment but has now been reclassified as income.

[ThreeDrawsMentality]

These corrections are interesting. Disposed as some assets in 2019 and accounted for it as income (profit) but has now been reclassified as administrative expenses (cost).

And as Rob pointed out, a 2016 transfer fee was made to look like a directors loan account repayment but has now been reclassified as income.

Ritchie joined Newcastle in 2016, wonder if it is that...

[RobertT]

I would imagine so because it was a bone of contention in the Court Case last year with Standing.  That would explain somebody quickly "covering tracks".

[kaufman]

All interesting stuff from people with a better grasp of how accounts work. Glad I asked

[Shrivvy Road]

I imagine this is what Clem meant by he is happy to take on legitimate debts

[Batch]

yeah, can't say I understand that.

So is this as per Srivvy's post, an attempt to get agreed debts before sale.

or Power covering ass before the Standing case starts

[RobertT]

A bit of the latter I think - the items listed seem to be back tracking and make it worse for Power, as far as I can tell.  He has basically admitted we got some cash from another club and it wasn't in fact from HIM!  Which is what the 2016 accounts would have claimed.  Honest mistake no doubt.