Adver News: Patey the debt-buster

[News Monkey]

Patey the debt-buster
           
           


  SIR William Patey has revealed that Sir Martyn Arbib is willing to write off the debt owed to him by Swindon Town, and the new Robins chairman has encouraged Andrew Fitton to follow suit and help the club emerge from their transfer embargo.

           

http://www.thisisswindontownfc.co.uk/news/headlines/9998185.Patey_the_debt_buster/?ref=rss
           
           
           

[Nemo]

Bit cheeky, obviously no idea of who is owed what but Arbib is a whole lot richer than Fitton and I'm sure he'd miss the money a lot less.

[fittons_coaching_badge]

This might be a bit of a dim question but .....

When he says the debt is worthless .... Surely £1m owed is £1m owed isnt it?

[kerry red]

Well, if the debt is in the way of personal loans to STFC, and they have the best interests of STFC at heart, they know the debt will never be repaid.

But getting it off the balance sheet will get the club below the cap which has led to the embargo.

Looks like this is the way to keep PdC on board

[Flashheart]

I don't see how having debt written off will affect the embargo. It's calculated on revenue, not debt.

[Batch]

When he says the debt is worthless .... Surely £1m owed is £1m owed isnt it?

I read that as '£1m never repaid' is essentially the same as writing off the debt.

Its great Sir Martyn is prepared to to do such a thing, but surely Fitton et al invested so they'd have first dibbs  on any 'success' in the first place.

Meh, who knows. Wait and see...

I don't see how having debt written off will affect the embargo. It's calculated on revenue, not debt.

I heard the radio interview. Essentially because with the debt gone  Black would probably release more cash for equity.

[Ardiles]

This is pure guesswork, but when you write off a liability the credit is taken to the company's P&L.  For the accountants out there:

Dr  Liability (B/S)
Cr  Income  (P&L)

Might it be that the credit arising on the write off of the liability is counted towards the 'Revenue' figure?  It would be strange if it did - but you never know.

[kerry red]

I don't see how having debt written off will affect the embargo. It's calculated on revenue, not debt.

Not sure, but I presume the debt is inflating the revenue so getting rid will get us below the threshold

May be talking bollocks

[Bewster]

Patey = Derren Brown

Back in the room

[Samdy Gray]

Hi I'm William Patey and this is Cillit Bang.

One squirt and BANG! the debt is gone.

[Bewster]

Hi I'm William Patey and this is Cillit Bang.

One squirt and BANG! the manager is gone.

[DMR]

Since when has begging your creditors to waive the debt counted as "debt busting?" If this was Diamandis doing it we'd all be in fucking meltdown

Bad feeling about this

[Ardiles]

I have a feeling that something may have been lost in translation here.  So far as I'm aware - although I could be wrong here - Sir Martyn Arbib came on board as an investor, not as a fan (although he may well have become one since).  There were no tales back in 2007 of a boyhood dream fulfilled, or how he spent many happy Saturday afternoons watching Don Rogers and Roger Smart from the Town End.  Why would he write this off?  I would not expect him to.

[fittons_coaching_badge]

I have a feeling that something may have been lost in translation here.  So far as I'm aware - although I could be wrong here - Sir Martyn Arbib came on board as an investor, not as a fan (although he may well have become one since).  There were no tales back in 2007 of a boyhood dream fulfilled, or how he spent many happy Saturday afternoons watching Don Rogers and Roger Smart from the Town End.  Why would he write this off?  I would not expect him to.

Isnt he only allowed in the country 30 days a year or so?  Can be that much of a fan.

[Flashheart]

Why would he write this off? 

On the understanding that if successful his share of the club would be worth more than the amount he writes off and attracting further investment will help them achieve that.