Where’s the money gone?

[DaveP67 is back!]

According to the Liquidator the 5 Million Lai ‘borrowed’ to bail out another one of his companies looks unlikely now to ever be repaid! Seems that the company in question has devalued itself from 25 Million to 100k! If so I would call this out as embezzlement! The club needs protection from this parasite.

[Calgarybaggy]

It never ceases to amaze me how football fans expect owners to pour money into the fiscal black hole that is their team by essentially pulling money from their other investments and yet if one penney goes the other way they are outraged that the owner is stealing from the team. Its the owner’s money. He can do what he wants with it. You cant embezzle your own money. By all means be disappointed in his decisions when they don't meet your unrealistic expectations, but don't accuse him of being a criminal.

[baggieal]

It never ceases to amaze me how football fans expect owners to pour money into the fiscal black hole that is their team by essentially pulling money from their other investments and yet if one penney goes the other way they are outraged that the owner is stealing from the team. Its the owner’s money. He can do what he wants with it. You cant embezzle your own money. By all means be disappointed in his decisions when they don't meet your unrealistic expectations, but don't accuse him of being a criminal.

Owners can embezzle money - you are wrong and obviously don't own a company. Many owners take money from a company which is usually the creditors or from good cash flow. Look at Mel Norris - he bust Derby and screwed the creditors but he removed the Stadium from the club so the liquidators can't touch it - this is immoral and a disgrace where creditors have lost many thousands. Lai taking loans from the company is not illegal but terrible practice when he's propping up other companies and not fair on the shareholders.

Look at airlines who have gone bust where owners or directors have taken huge sums of money out of the company and then they have gone bust - the government had to bail out all those passengers to return back to the UK. Those directors should have been forced to settle these costs.

I could go on and on. Many football clubs are insolvent but keep going on cash flow but in cases like this the owners/directors should not take out a penny but they do - but this will be the creditors money and they will be screwed when a company goes t its up!

So NO time for Lai - shoddy dealings and zero interest in the business ( West Brom FC, the shareholders or the fans )

Lai can f uck right off!

[SwedishBaggie]

And, lest not forget, owning a football club should and ought to be another thing than owning any other company. It should be about love, passion, commitment etc, and just not a financial investment. I, sadly so, am aware of that it’s not the case - but, still.

Peace said he was an Albion supporter - well, f u k me…

[Calgarybaggy]

Owners can embezzle money - you are wrong and obviously don't own a company. Many owners take money from a company which is usually the creditors or from good cash flow. Look at Mel Norris - he bust Derby and screwed the creditors but he removed the Stadium from the club so the liquidators can't touch it - this is immoral and a disgrace where creditors have lost many thousands. Lai taking loans from the company is not illegal but terrible practice when he's propping up other companies and not fair on the shareholders.

Look at airlines who have gone bust where owners or directors have taken huge sums of money out of the company and then they have gone bust - the government had to bail out all those passengers to return back to the UK. Those directors should have been forced to settle these costs.

I could go on and on. Many football clubs are insolvent but keep going on cash flow but in cases like this the owners/directors should not take out a penny but they do - but this will be the creditors money and they will be screwed when a company goes t its up!

So NO time for Lai - shoddy dealings and zero interest in the business ( West Brom FC, the shareholders or the fans )

Lai can f uck right off!

You're right, Baggieal. I've only been practicing corporate law for 30 years. What the heck would I know about corporations?

[Calgarybaggy]

And, lest not forget, owning a football club should and ought to be another thing than owning any other company. It should be about love, passion, commitment etc, and just not a financial investment. I, sadly so, am aware of that it’s not the case - but, still.

Peace said he was an Albion supporter - well, f u k me…

That is the point I am making. The fans assume that because its a football club, the rules ought to be different. Maybe they should be, but they aren't.

[mickd1961]

You're right, Baggieal. I've only been practicing corporate law for 30 years. What the heck would I know about corporations?

Pick the bones out of that reply AL! 🤣🤣🤣

[baggieal]

Pick the bones out of that reply AL! 🤣🤣🤣

Then he will know as will you and I. Any owner/director drawings deemed excessive will sit on the directors loan account and no issue If the company does not go t it’s up. In the event a business goes t its up a liquidator will pursue an owner/director for anything on the loan account or excessive drawings - in that the company is insolvent so monies have been siphoned off from creditors cash flow!

Take the Derby owner - bent as f uck busting the company and putting the Stadium in another one of his companies names. Many owners run insolvent clubs and are crooked - should not be allowed!

Anyone who practices corporate law would know many owners in football clubs are running insolvent businesses or using one company accounts as their private cash fund!

I would love a Villa in the Canaries! Should I borrow a few hundred thousand from our company? There’s no difference to the ethics!

What Lai did is not illegal unless the company is technically insolvent but immoral and in bad taste to the shareholders.

[SwedishBaggie]

That is the point I am making. The fans assume that because its a football club, the rules ought to be different. Maybe they should be, but they aren't.

For clubs run as a limited company in Sweden, the members of the club have to own 51 % (our ”51 % rule”). Then again, our clubs don’t exactly compete at CL-level…

[DaveP67 is back!]

You're right, Baggieal. I've only been practicing corporate law for 30 years. What the heck would I know about corporations?

So ‘borrowing’ 5 Million and then devaluing the company that borrowed the money by 24.9 Million such that it’s assets are valued at 2% of the value of the loan is perfectly fine? Nope, if it’s been done on purpose then that’s embezzlement mate, can’t see this as anything but dodgy. Yes it’s hard to prove but I’m calling a spade a spade here.