I have made this point before but it looks like it needs made again - sportingbet is NOT rock solid financially or anything like it.
They have substantial payments to make under the earn-out terms of their many acquisitions and it is not certain they can meet these, though they have been making progress in recent months.
Having said that, the founder took the chance to raise €10m or so selling one third of his stake near the bottom of the market, not exactly a vote of confidence.
For US punters, it is important to realise that we do not have anything as robust as Chapter 11 in allowing companies to see off problems by carrying on trade. Most UK liquidations are run for the benefit of the Inland Revenue and the liquidator.
I have been involved - luckily with only $50 balances - in 2 of these, Luvbet and Netbetsports. In both cases the liquidator has reported that unsecured creditors like myself can expect nothing.
Should sportingbet plc go bust, I would expect a payout of between 0% and 5% of my balance at the time, probably 0%.
They have substantial payments to make under the earn-out terms of their many acquisitions and it is not certain they can meet these, though they have been making progress in recent months.
Having said that, the founder took the chance to raise €10m or so selling one third of his stake near the bottom of the market, not exactly a vote of confidence.
For US punters, it is important to realise that we do not have anything as robust as Chapter 11 in allowing companies to see off problems by carrying on trade. Most UK liquidations are run for the benefit of the Inland Revenue and the liquidator.
I have been involved - luckily with only $50 balances - in 2 of these, Luvbet and Netbetsports. In both cases the liquidator has reported that unsecured creditors like myself can expect nothing.
Should sportingbet plc go bust, I would expect a payout of between 0% and 5% of my balance at the time, probably 0%.
SportingBet's debt regarding earns outs was settled months ago. The fact the company has been consistently profitable is a matter of public record. Stating they have debt is not that useful unless it is in context of who is owed and why. The reality is that funds are owed to an entity with a vested interest in the company as a going concern. Why do they owe more than anticipated? Because the main acquisition in question performed substantially better than expected. There are worse problems to have.
The situation has very little to do with the ability to meet financial obligations but rather is matter of control. To suggest otherwise indicates either misinformation or inability to understand the situation.
The situation has very little to do with the ability to meet financial obligations but rather is matter of control. To suggest otherwise indicates either misinformation or inability to understand the situation.
I suppose it depends on your definition of rock solid. Compared to a lot of offshore bucket shops sportingbet probably is.
In UK terms, I see Hills as rock solid, also Corals. Ladbrokes on its own is rock solid but it has the cash drianing Hilton Hotels as a major part of the group, so is by no means as solid as Hills.
Betfair is rock solid so long as its dominant market share of exchanges holds up. Chandlers and Stan James seem pretty solid. Paddy Power is becoming solid with good cash flows.
And that is about it for UK books you can go to sleep on today, wake up in 3 years time and still find them in good shape. The rest need regular and careful watching.
In UK terms, I see Hills as rock solid, also Corals. Ladbrokes on its own is rock solid but it has the cash drianing Hilton Hotels as a major part of the group, so is by no means as solid as Hills.
Betfair is rock solid so long as its dominant market share of exchanges holds up. Chandlers and Stan James seem pretty solid. Paddy Power is becoming solid with good cash flows.
And that is about it for UK books you can go to sleep on today, wake up in 3 years time and still find them in good shape. The rest need regular and careful watching.
