Help Sitemap Home Skip Navigation Contact Us Disability Statement


Owls announce bank deal

Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image
Click on thumbnail to view image

Published Date: 13 February 2009
By Paul Thompson
WEDNESDAY this afternoon annouced a major new step in their bid to bring investment into Hillsborough.
A deal has been agreed with the Co-op bank over money they are owed, and talks with other major creditors and certain key shareholders are at an advanced stage.

A club statement says that outline agreement has been reached with the bank "concerning overall indebtedness of the business."

This is understood to mean that the bank are prepared to write off some of the £21m owed to them (out of a total club debt of around £25m) - which would allow the maximum possible proportion of new investors' money to go directly into the club.

The statement adds: "This agreement is subject to contract and formal sign-off by all parties and to new investment, Delivering the agreement will result in the club being in a sound financial position.

"Throughout this process, the bank has been very supportive of the club and its management and has been keen to ensure that any investment funds raised on behalf of the club are indeed invested in the club and its future.

"In addition, positive discussions with the other major creditors and key certain shareholders are at an advanced stage and progressing well.

It is believed that a satisfactory outcome will be achieved, thus allowing a definitive agreement to be put before potential investors.

"Following a period of legal financial and commercial due diligence, which has already commenced, it is anticipated thatr full proposals, all of which would be inter-conditional, will be announced in line with the target deadline of March 31."

Chief executive Nick Parker said: "Long-term financial stability is obviously a pre-requisite before any professional investor will put money into a business and these positive discussions pave the way forward for the club.

"We thank all the major creditors and partires involved for their support during this complex and protracted process and look forward to delivering a successful and financially secure future for Sheffield Wednesday."

Got a view? Add your comment below.



READ MORE

Watch Premiership highlights, international football, golf, tennis, darts and much more

Football headlines.

Football gossip.

Blades news

Blades watch 0809 - The season so far

Owls news

Owls watch 0809 - The season so far

Reds news.

Millers news.

More rugby.

More boxing.

Sports columnists.

All sport categories

Page 1 of 1

  • Last Updated: 13 February 2009 7:24 PM
  • Source: n/a
  • Location: Sheffield
 
Prev
1
2
Next
Last
1

Roy Cook,

Spain 13/02/2009 14:32:45
How can they even think of writing off so much money when the whole economy is in such a mess and people are losing homes etc because they can't pay their mortgages?
2

Nicola Hill,

13/02/2009 14:37:10
Read what it actually says Roy:

"This is understood to mean that the bank are prepared to write off some of the £21m owed to them ."

SOME not ALL. We've got no idea how much this could be really...
3

AnstonOwl,

Sheffield 13/02/2009 14:43:36
This is excellent news - again! - it looks like we finally have a board who know what they are talking about.

Roy - Think about it, Wednesday have had this debt to the Co-Op for years, and if no new investment comes in, they will probably NEVER see any of it back (unless miracle worker Laws gets us to the prem on a shoestring)- This way, if money is invested in the team, the bank have a good chance of a return (bigger crowds, possibilty of promotion & cup runs etc...)
4

Aging Blue,

13/02/2009 14:50:57
Roy, SOME not all of the £21M, I presume they are happy to have agreed an "early settlement figure" so they can settle some of their own debts !!
5

Richbladefan,

Norton Lees 13/02/2009 15:56:37
I think that alot of SUFC fans should read this article and engage their brains for a change. You can call Mr McCabe and Blackwell all you want for being careful with the money but do you really want the blades to go down the same route as the Owls and end up £25 million in debt. The Owls were a big club, playing top flight football, then dropped down, didn't go back up but kept spending, including big wages and found themselves in a mess. Learn from their example.
6

Informed Owl,

13/02/2009 16:06:55
AnstonOwl : "Wednesday have had this debt to the Co-Op for years, and if no new investment comes in, they will probably NEVER see any of it back"

Anyone remember Mr Allen's repeated reassurance that the sale of the training ground would be our salvation (despite the council's determination otherwise)?

Wonder what happened to that 'friend' of his who in 2004 had just sold his business for £100m and was interested in football?

Where did the balance of the £6m raised from the sales of Chris Brunt, Drew Talbot, Madjid Bougherra and Glenn Whelan go?

Why were other clubs in similar circumstances to ours able to receive £2m-£3m per annum more than us?

7

Somniumvisum,

13/02/2009 16:49:47
The Owls were a big club, playing top flight football, then dropped down, didn't go back up but kept spending, including big wages and found themselves in a mess. Learn from their example.

eeehhh?? Kept spending?? It was my understanding that we sold off as many of our top players as we could for very little money, and was forced to continue paying the high wages of some players due to them refusing to leave.

On the main story, I heard the bank are willing to accept a payment of 17m to clear the full debt.
Looking from the banks view, 17m in the pocket is better than 25m owed surely??
I would guess the bank are seeing it as an opportunity to cut their losses and get a good chunk of the money back
8

fishcake breath,

deep fat fryer 13/02/2009 17:08:50
trust me on this but the banks would prefer to have the club with a 25 million debt, why ? because they earn money on the interest of the debt the longer the club owes the debt the more money the co-op receives.

think of it like a credit card, if you pay the balance at the end of the month the credit card company earns 0 or nearly zero, if you owe a grand you might pay off a small amount hence more interest every month after that.

which if these reports are true make the chairman one hell of a negotiater.

keep up the good work !

WEDNESDAY ARE BACK !
WEDNESDAY ARE BACK !
WOOAHH WOOAHH
9

ironbar,

Birmingham 13/02/2009 18:18:27
Sheffield WENDY manager BRIAN LAWS has to-day hit out at critics who have accused him and his team of over celebrating the win over city rivals on Saturday after their first double in 95yrs. Speaking from the TOWN HALL balcony following the open top bus ride to the city to parade their 3 points the SQ HEADED WENNY boss angrily denied that the game represented his sides CUP FINAL "It's just a routine victory" he said before heading back to the newly named "SODJE TUDGAY" stadium for the official release of the commemorative DVD, ALBUM, VIDIO,COLOURING BOOK and PORK PIE. WENDY chairman states this will go a long way in ridding our dept of 21 MILLION POUNDS.
10

A Smith,

13/02/2009 19:12:11
Spelling and grammar. Not a strong point for your average United fan clearly. What does "to-day" mean?

What's a wenny?
Prev
1
2
Next
Last

 

Comment on this Story

 

In order to post comments you must Register or Sign In

 
 
RSS Feed of this article's comments
Delivery formats: RSS, Atom, Javascript & Email
 
 


Sister Newspapers:
Press Complaints Commission

This website and its associated newspaper adheres to the Press Complaints Commission’s Code of Practice. If you have a complaint about editorial content which relates to inaccuracy or intrusion, then contact the Editor by clicking here.

If you remain dissatisfied with the response provided then you can contact the PCC by clicking here.