TT 2023

[Roger Mexico]

15 hours ago, Mercenary said:

The contract itself isn't an asset, at best it would be goodwill (if part of an acquisition) surely? Or are you alleging that the clothing/goods had been produced and the stock was transferred (but to my mind that would not be novation).

Of course a contract can be an asset (or indeed a liability) as a quick Google would show.  As such it would provide part of the value of the company and transferring it to another company for free or below value would possibly be fraudulent if the company was known to be going under.  As you point out the same would apply to stock and other assets.

But there are other questions to be asked.  Cube Partnership Ltd were supposed to be chosen as they were the experts in supplying branded clothing: Your Brand in Expert Hands as they promoted themselves[1].  Choosing a company that collapsed a couple of months later doesn't show much due diligence, but does the parent company have the same expertise?  And if it does resemble the old one too closely, the liquidators might get curious.

More practically, most of the debts will be clothing suppliers and there must be some doubt as to whether they or others in the field will want to work with a company so closely linked to one that folded owing money.  At the very least it might limit Cube's options.

The whole process of the procurement of TT merchandise was clearly going to be a disaster from the start - and predicted as such by many on here.  The same people make the same mistakes over and over again and get rewarded and defended.  The only good thing was that Sam Turton was actually able to get many of the documents out of DfE (see ref 3361229) and do some excellent reporting on it, but whether anyone else in the media or politics will be interested to follow it up, is another matter.

 

[1]  Though since the company was only set up in September 2019, they didn't really have that much time to get expert.

[Andy Onchan]

17 hours ago, Fred the shred said:

If any Department needs taking apart it is the DFE .     There appears to be no accountability as to how they waste money with their crack pot schemes.

I've said this before. The income from the companies, boat and air registries are credited to DfE budget. Why?? Whilst they have money coming into their budget there'll be no real scrutiny of what the money is spent on.

[Numbnuts]

I would say that due to Cube , in whatever form , pays IOM government for permission to use the TT Logo and also gets a percentage from every sale made and online sales that surely clouds the liability issues to any creditors or the likes. Lay person here so understand if I’m very wrong. 

[Blade Runner]

Looks like the TT is going up market....

£1,400.00 for a jacket now 🙂

I wonder if RL has paid DFE any fees?

If not are they going to take on someone with a net worth, according to Google of -

$7.4 billion USD

They went after Bushys, and other small makers over this. Will they go down this road with the big boys?

Answers on the back of a postcard to :-

Dept of Enterprise

C/O Government Offices

Bucks rd.

Douglas 

IM1 1XS

#WeOnlyBullyLittleGuys

 

Gef?

Edited October 1, 2023 by Blade Runner
fun

[Max Power]

7 hours ago, Blade Runner said:

Looks like the TT is going up market....

£1,400.00 for a jacket now 🙂

I wonder if RL has paid DFE any fees?

If not are they going to take on someone with a net worth, according to Google of -

$7.4 billion USD

They went after Bushys, and other small makers over this. Will they go down this road with the big boys?

Answers on the back of a postcard to :-

Dept of Enterprise

C/O Government Offices

Bucks rd.

Douglas 

IM1 1XS

#WeOnlyBullyLittleGuys

 

Gef?

I don't think you can stop anyone using the initials TT? I may be wrong on that, but there are other TT events, the Dutch, Australian and TT events in the US which are dirt track based.

[quilp]

'Isle of Man Senior Motorcycle T.T.' it says on that, er, Union Flag. Not triskelion in sight. Not bothered just thought I'd mention it...

[Omobono]

40 minutes ago, Max Power said:

I don't think you can stop anyone using the initials TT? I may be wrong on that, but there are other TT events, the Dutch, Australian and TT events in the US which are dirt track based.

you are correct we still have TT tested milk  and there are a number of TT events all around Europe for cars and Motorcycles 

[La Colombe]

24 minutes ago, quilp said:

triskelion

That's not copyrighted. It's only the logo that is. 

Edited October 1, 2023 by La Colombe

[Mercenary]

On 9/28/2023 at 1:56 PM, Roger Mexico said:

Of course a contract can be an asset (or indeed a liability) as a quick Google would show.  As such it would provide part of the value of the company and transferring it to another company for free or below value would possibly be fraudulent if the company was known to be going under.  As you point out the same would apply to stock and other assets.

Well my quick Google says '...a contract asset arises when an entity has done work for a customer that has been recognised as revenue to date but has not yet issued an invoice or received payment for that work. A contract liability arises when an entity has invoiced the customer or received payment from them but has not yet done the work and the invoices and/or payments exceed the revenue recognised to date.'

 

i.e. it's only an asset when part of the work has been done. If you transfer the contract before starting to make the merchandise (in simple terms) it does not sit on the balance sheet. There could certainly still be fraud involved in any novation (which may have a value), but just signing a contract does not mean you have the contract value to bank (the obligations may cost you more to deliver than the benefits received for example).

 

If IOMG agreed to novate to parent co ahead of substantial activities taking place it looks more like sensible risk management than anything?

[Kopek]

Novate, the new buzz word? Be gone with you 'sea change'!

[Roger Mexico]

14 hours ago, Mercenary said:

i.e. it's only an asset when part of the work has been done. If you transfer the contract before starting to make the merchandise (in simple terms) it does not sit on the balance sheet. There could certainly still be fraud involved in any novation (which may have a value), but just signing a contract does not mean you have the contract value to bank (the obligations may cost you more to deliver than the benefits received for example).

The work done things is true as well of course, but even without that as you say such a contract would have value and as such is a asset.  Even if it can't be formalised on a balance sheet, it makes up part of the value of the company for example it were to be sold as a going concern.

And of course part of the work would have been done by Cube Partnership in any case before the contract was reassigned.  Given the ridiculously short timespan needed between contracting and delivery,  I would imagine quite a lot of work.  So the whole thing is very murky and the decision to continue dealing with Cube may cause all sorts of problems.  But then the DfE burned their boats by the way they dealt with their previous supplier.

[Roger Mexico]

16 hours ago, quilp said:

'Isle of Man Senior Motorcycle T.T.' it says on that, er, Union Flag. Not triskelion in sight. Not bothered just thought I'd mention it...

It's not even the Union Flag if you look at it - the diagonal red cross is down the centre of the white one, not to one side.  It's quite a achievement by Ralph Lauren to produce a £1400 jacket that looks exactly as if it was bought off a market stall for £19.99.

[Nom de plume]

Imagine the Starship Enterprise legal dept taking on Ralph Lauren for trademark infringements. LOL ......  

[Blade Runner]

2 hours ago, Nom de plume said:

Imagine the Starship Enterprise legal dept taking on Ralph Lauren for trademark infringements. LOL ......  

That was my point, They wont.

[NoTail]

3 minutes ago, Blade Runner said:

That was my point, They wont.

Well. You say that but the contract with Motorsport Merchandise certainly contained a clause that the government would be responsible for protecting the trademark. After all a lot of money was passed to the government in order to have exclusive rights.

If the lawyers for Cube are worth their salt I am sure they will be pressing the government to carry out their responsibility.