Generic clubs in financial crisis Thread

[PieEater]

How does the amount owed to HMRC get affected by administration?

Most likely it doesn't, when they enter administration all debts have to be declared, in Pompey's case another £20-30m of debt appeared so the chances of HMRC getting their cash or a percentage of it got less likely. Even the Beeb can't decide whether the Pompey debts are £65m or £80m+. HMRC will be owed around £18m so you can see why they want proof should the debt get much above £65m.

[Mr Angry]

The key issue for HMRC is that after the Enterprise Act of 2003, (author: a certain Gordon Brown!) unlike other businesses where HMRC are the priority creditor, when it comes to football clubs, football debts are the priority creditor; an illustration....

Normal Companies:

HMRC owed £10M
All a company's assets sold for £9M - HMRC gets £9M, all other creditors get nothing.

Football club

HMRC owed £10M
Football Creditors owed £10M
All a clubs assets sold for £9M - football creditors get £9M, HMRC gets nothing.

The current owner of Pompey got himself "football creditor" status; thats why he put them into admin as it pretty much guarantees he gets his £17m back. If that hadn't happened, he could just as easily have left Pompey be wound up as financially without the football creditor status, he would have lost all his investment regardless of whether Pompey went into admin or went under.

No wonder HMRC are spitting feathers at this!

[Uke]

Let's put this in context

Pompey owe 15 Million GBP to HMRC

There are aboout 60 million people in the UK

That's about 25 pence per person

Therfore each family of four will need to pay about a pound in extra tax to save Pompey!

I am furious!

[Sun Tzu]

Could be the world's shortest occupancy of a shiny new football stadium


although of course we all know they'll be saved at the 11th hour

Presumably the Welsh FA have different rules meaning no points will be deducted and the other Championship clubs have to pay off 1/23rd of the debt
Cardiff to be awarded one of the two automatic promotion spots as compensation for the trauma of being run by Ridsdale.

[Wycombe Royal]

Could be the world's shortest occupancy of a shiny new football stadium


although of course we all know they'll be saved at the 11th hour

Presumably the Welsh FA have different rules meaning no points will be deducted and the other Championship clubs have to pay off 1/23rd of the debt
Cardiff to be awarded one of the two automatic promotion spots as compensation for the trauma of being run by Ridsdale.

I know you are trying to be funny, but the Welsh FA, just like the English FA have no say in this matter.

So it is a FAIL from me.

[Barry the bird boggler]

The key issue for HMRC is that after the Enterprise Act of 2003, (author: a certain Gordon Brown!) unlike other businesses where HMRC are the priority creditor, when it comes to football clubs, football debts are the priority creditor; an illustration....

Normal Companies:

HMRC owed £10M
All a company's assets sold for £9M - HMRC gets £9M, all other creditors get nothing.

Football club

HMRC owed £10M
Football Creditors owed £10M
All a clubs assets sold for £9M - football creditors get £9M, HMRC gets nothing.

The current owner of Pompey got himself "football creditor" status; thats why he put them into admin as it pretty much guarantees he gets his £17m back. If that hadn't happened, he could just as easily have left Pompey be wound up as financially without the football creditor status, he would have lost all his investment regardless of whether Pompey went into admin or went under.

No wonder HMRC are spitting feathers at this!

Just goes to show what an utter clown Brown is, how on earth could a current Chancellor back such a bloody stupid idea?

Quite simply, if any business goes into Administration every creditor should be treated in the same manner receiving a percentage back of the over all debt they're owed. So if Fred Limited goes into Admin and owes me ten grand from an overall debt of 1 million then I get back 1 hundreth of the total final sell price.

[Ian Royal]

I thought that Act meant that HMRC were no longer a priority creditor for ANYONE. It's no Act of Parliament that makes football creditors priority, it's football rules. I.e. you don't pay up, you get kicked out of the football structure and there's no point having a club if it can't actually play.

[Mr Angry]

Call me old fashioned, but I think that if you have debts, you should pay them, and that debts owed to HMRC should take priority as those funds belong to the public.

What I can't understand is this; if a business owes tax, HMRC is on them immediately. If a football club owes tax, it seems to take ages for HMRC to begin trying to get it back.

[Dirk Gently]

Call me old fashioned, but I think that if you have debts, you should pay them, and that debts owed to HMRC should take priority as those funds belong to the public.

What I can't understand is this; if a business owes tax, HMRC is on them immediately. If a football club owes tax, it seems to take ages for HMRC to begin trying to get it back.

That's how it used to be - it was all at the discretion of the local tax office and for some unknown reason they tended to be more lenient to football clubs that to other businesses.

But that's all changed - they are now clamping down hard - not only because nationally they've been instructed to, but also (and full credit to them) because the FL themselves have asked them to.

[Ian Royal]

Call me old fashioned, but I think that if you have debts, you should pay them, and that debts owed to HMRC should take priority as those funds belong to the public.

I agree. People go to prison for tax evasion, yet a lot of football clubs seem to include it in the business plan. They are stealing from me. I don't like it.

[The Prisoner]

Chester City's reformation is gathering pace. The Fan Club are holding a telephone vote for a new team name with the four choices being...

Chester FC, Chester Rovers, City of Chester FC and FC Chester

The Disney imagineers must have been in on that one. Expect Chester FC (pre 1983 name) to be named when the result is announced at Midnight on Wednesday.

They are expected to play in the Unibond League 1 next season (three down from where they were).

[readingbedding]

As said previously (and shot down incorrectly in flames)

• Club aiming to replace current squad with free transfers
• Premier League gives Pompey permission to sell players

[Uke]

Feel quite sad for Palace, they seem to have the fight knocked out of them.

Presumably by Paul Hart.

They should have kept Colin.

[Row Z Royal]

They should have kept Colin.

I don't think that they had much choice in the matter.

[PieEater]

http://www.walesonline.co.uk/footballna ... -26140560/

I can't decide whether this means they have suckered a rich sugar dadday to bankroll them, or that this is the beginning of the end.

[Mr Optimist]

"delolay in the international transfer of the money"..... yeah right, this is 2010, the digital age. It's not being wired through from 1910.

Sounds Malolaisian businessman deliciously dodgy to me.

[Smoking Kills Dancing Doe]

"delolay in the international transfer of the money"..... yeah right, this is 2010, the digital age. It's not being wired through from 1910.

Sounds Malolaisian businessman deliciously dodgy to me.

SOunds exactly like Pompey 6 months ago.

[PieEater]

But he actually has paid some money, that along with other contributions allowed them to pay everyone.

So he is real and has "invested" some money.

[Stranded]

Southend in court today. If they don't pay the £400k owed to HMRC they are gonners as they were told last time that they would get no more time to pay.

[Stranded]

Well despite it being their very last chance today, they've been given another one. They have another 7 days to pay the bill.