Is this because Gibson owns all the assets rather than the Football club, but the debts belong to the club?
Gibson O'Neill the Group holding company, holds the 100% ownership of Bulkhaul, Middelsbrough FC and Rockliffe, each as limited companies.
Steve Gibson owns 75% and Mike O'Neill owns 25% of Gibson O'Neill. Broadly that means they own the operating companies within.
This includes the assets, but equally the liabilities.
They are both very wealthy men as a result and good luck to them both.
Had Steve not been so fanatical about Boro - and thought it a decent long term investment punt - then they both would be a lot better off without Boro, that much is indisputable.
Middlesbrough FC owe the parent Group £116m plus whatever they lose this season which is liable to be well in excess of £20m despite the reduction in wage bill, because of Covid.
Middlesbough FC's assets are outweighed by its liabilities (including the money owed to GO'N Group) by £86m (plus whatever we lose this season).
The Club as an entity is a complete financial basket case.
If Steve (and Mike) gave the club away, whoever they gave it to would own all the assets, but would still owe Gibson O'Neill £116m plus this year's loss. They would still only own something that had book value of MINUS £86m (plus this year's loss)
Bulkhaul is so successful that the GO'N Group overall remains a solid operation. Effectively Bulkhaul covers the debt of MFC because Bulkhaul's positive value (reserves) enables it to and Bulkhaul profit refreshes/finances this.
The Nett Liability of MFC is actually covered by the huge nett Asset value of Bulkhaul (and a little by Rockliffe) within the Group.
GO'N's Balance Sheet would show £116m (plus) greater nett shareholder value if somebody would come in and buy the MFC equity £64m and assume the MFC Undertakings of £116m plus. I'm pretty sure Gibson would be delighted with this.
Nobody in their right mind would do this.
Leicester is no more attractive on the face of it than Middlesbrough as a club and certainly not as attractive on the face of it as a Leeds United, or a Newcastle United.
We have similar pulling power/population to draw from and are similarly distance from local rivals. We have similar crowds, stadiums etc etc.
Leicester got a magnificent investor in the Thai family. Investors who have hired better people to make better decisions.
Leicester have a nett asset value of £73m (£160m better than us)
They have double the equity in their club (injected legally by owners) and nearly all of their P&L balance deficit in the Balance Sheet is from last season and Covid where they lost over £60m.
They owe their Group equivalent £137m, so even more than MFC does.
They also have Bank debt of £65m, which we do not.
Overall then what does this tell us.
1. Leicester have a richer owner who underwrites their business with Group support.
2. Leicester's owners have pumped equity into the club on a large scale and this makes the Club a genuine going concern.
3. Leicester's owner has appointed people who have made excellent decisions. They have recruited superbly, traded wisely and created a squad that has performed in the league like we never have and is worth an incredible amount of money not even reflected on the Books. They are transformed from being like us to being not like us at all.
4. Leicester's position is still fragile. A couple more seasons of financial results like the last one and their position will look rather different.
5. Steve Gibson on the one hand is the only reason that MFC is still playing. Without the financial strength that Bulkhaul provides, the model of guaranteeing the systemic book losses MFC makes every year outside the Premier league, would simply not be possible.
6. Steve Gibson COMPLETELY owns and controls the Club and makes every significant decision. This means who works for it, with what scope, under what strategy, with what budget. He makes all the calls. He is entitled to, but he does.
7. Steve can only look to himself as to why his decisions have taken Middlesbrough to the football and financial position they are in, while Leicester's decisions have taken them to theirs.
8. It is about money, of course it is. But it is about so much more than just money.
9. Of course there are clubs who are in worse positions than Boro.
They may have the debt, but without the committed owner.
They may not have a big catchment area or passion and hence limited potential.
They may have no stadium, no training facilities, no assets whatsoever.
They may never be able to attract an owner who can see potential.
There are definitely clubs I would not swap with, but there are many examples of similar clubs far far better led. Leicester are just one.
10. For now, in the real world, Steve Gibson is stuck with us, as nobody else will assume the debt, let alone pay him for the privilege of assuming it from him.
And equally, we are stuck with him, meaning there is nothing we can do about his catastrophic decision making since 2016, or what he will do from now on; or for that matter whether he "sells up", who to, or whether he injects equity into the club or not.
I make no apology for wishing passionately there was another way, but I just can't see it at the moment.