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Any accountants out there?

Grays_1890

Grays_1890

Les Howe
Football related question.

My local club Grays Athletic have an owner who has been running the club since 2010, he is listed as the owner and his son is a Director.

He is now looking to take a step back but wants 80k from whoever comes is as he has a Directors loan of 80k against the club, even though in effect he lent the money to himself to spend on players.

So where does this sit? For me seeing as he is owner, borrowed the money from himself and therefor created the 80k debt it sits on his shoulders? A mate of mine reckons the club still owes it to him but surely that only comes into play if there was another owner or perspective owner? And what person will pay for a club that has no ground and no assets other than an 80k IOU?


http://www.endole.co.uk/company/01651326/grays-athletic-football-club-1982-limited?page=ownership
 
Grays_1890 said:
Football related question.

My local club Grays Athletic have an owner who has been running the club since 2010, he is listed as the owner and his son is a Director.

He is now looking to take a step back but wants 80k from whoever comes is as he has a Directors loan of 80k against the club, even though in effect he lent the money to himself to spend on players.

So where does this sit? For me seeing as he is owner, borrowed the money from himself and therefor created the 80k debt it sits on his shoulders? A mate of mine reckons the club still owes it to him but surely that only comes into play if there was another owner or perspective owner? And what person will pay for a club that has no ground and no assets other than an 80k IOU?


http://www.endole.co.uk/company/01651326/grays-athletic-football-club-1982-limited?page=ownership
Click to expand...
As with anything, it depends on the paper trail.

It's perfectly valid to loan a company money that you run yourself and insist on that loan being paid whenever you want it. The only thing you really have to be careful of is any interest or finance charges added on top because, as a related party, you can't profit at any more than the market rate from it. It sounds to me as if he's charging 0 interest and is therefore well within his rights to do so.

There can be issues if the club is in financial trouble - if the director insist on being paid and the club soon becomes insolvent then there's the possibility that creditors could chase the ex-director for that money.

It could be that director loans are barred under the company's articles of incorporation. I've just taken a look on Companies House and they're not available, you could write to the club and ask to see them, although I'm not sure how far that will get you.

Has the director always been a bad thing for the club? Looking through the history on Companies House, it seems that the mortgage was paid off in full just after he bought the club - was that part of the purchase or did he clear it himself?
 
I think it's safe to assume that Grays_1980 is either the Director, the Son, or the Holy Ghost looking to hoover up the breadcrumbs.

I reckon you should put in a bid of £1, tell the Director you will pay all fees owing, then tell him they aren't owing, then bury Paul Merson under the centre circle.
 
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