I was messaged by a very good source this afternoon:
“Heard a rumour Admin was discussed at the board meeting. Any truth?”
I had not heard anything apropos an insolvency event discussion at Sevco so I checked with another source.
I realise that this isn’t normal practice in Off The Radar journalism.
However, a second source is standard practice here in Donegal.
He confirmed that during the conclave of the Sevco High Command yesterday that the efficacy of a planned administration was examined.
I was still sceptical given the fact there is very little external debt at the business.
Mr King confessed to this dignified colleagues that he did not have the money to keep the show on the road.
Another director said that although he had been generous to the Holding Company Vehicle in the past that largesse was now Parked.
They discussed the prospect of not being able to get any more soft investment or loans from directors.
In that eventuality, an insolvency might have some merit.
For one thing, Administration allows them to slash the player wage bill.
For example, it was pointed out to me that the combined basic weekly wage of Eduardo Herrera Aguirre and Carlos Alberto Peña Rodríguez is £47.5k.
That does not include bonuses or signing on fee payments etc.
Of course, that £47.5k sum does not include employer’s National Insurance contribution which, according to Rugger Guy, brings the figure to approximately £55k.
By way of comparison, Paddy Roberts and Kieran Tierney almost certainly wouldn’t between them be taking £47.5k per week out of Celtic.
The Pedro experiment has left the Holding Company Vehicle with a crippling wage bill.
That isn’t a good place when you’re a loss-making business without a credit line from a bank.
That reality has to be addressed and although the Sevco High Command definitely DID discuss the merits of administration yesterday they reached no firm decision.