Generic clubs in financial crisis Thread

[royalgrumpy]

if what is seemingly coming out of the club is true then it's the omani's. if. if. if. i guess we'll know soon enough.

[From Despair To Where?]

It was down to Leicester that the points deduction for going into Administration came in was it not.

After they when into admin and got promoted to the premier league in the same season a few years back.

The reason they made it on to my massive list of clubs I hate.

And ended up getting their shiny new stadium on the cheap.

How so?

And didn't RFC get the land to build the Madejski for a quid from RBC? They wouldn't have sold the land as cheaply to B&Q, for example.....

Don't know the exact figures but basically, when Leicester went into administration. they ploughed what money they did have into retaining all their top players still on Premiership contracts and defaulted on paying for the stadium. Non footballing creditors then got absolutely shafted with the CVA so the new owners picked up a nice shiny £40m stadium for oxf*rd all and retained a squad full of Premiership players who managed to secure promotion..

[Who Moved The Goalposts?]

Don't know the exact figures but basically, when Leicester went into administration. they ploughed what money they did have into retaining all their top players still on Premiership contracts and defaulted on paying for the stadium. Non footballing creditors then got absolutely shafted with the CVA so the new owners picked up a nice shiny £40m stadium for oxf*rd all and retained a squad full of Premiership players who managed to secure promotion..

That's how it happened. And as a result, the FL changed the rules. The Leicester board new exactly what they were doing, and basically shat on everyone from a great height.

[Who Moved The Goalposts?]

And didn't RFC get the land to build the Madejski for a quid from RBC? They wouldn't have sold the land as cheaply to B&Q, for example.....

Nice try, Floyd

We got the land for £1 because it was a worthless, contaminated brown-field site. What we subsequently sold to B&Q was a prime retail space decontaminated by RFC at a cost of many millions right at the heart of an area undergoing a rapid and important development. Part of the planning consent was also that RFC contributed £6m to the building of the relief road. This was a win-win for all concerned, not least the town as a whole, and is now regarded as a shining example of what can be achieved when clubs work closely with councils rather than the typical blustering, self-centred me-me-me attitude that so many clubs adopt.

[6ft Kerplunk]

Did we pay the full £1 or after the stadium was built did we offer 20p?

[SPARTA]

@david_conn 6m
QPR, made £65m loss for 2012-13, one of the Championship clubs understood to be objecting to financial fair play http://www.theguardian.com/football/201 ... all-league ….

[floyd__streete]

We got the land for £1 because it was a worthless, contaminated brown-field site. What we subsequently sold to B&Q was a prime retail space decontaminated by RFC at a cost of many millions right at the heart of an area undergoing a rapid and important development. Part of the planning consent was also that RFC contributed £6m to the building of the relief road. This was a win-win for all concerned, not least the town as a whole, and is now regarded as a shining example of what can be achieved when clubs work closely with councils rather than the typical blustering, self-centred me-me-me attitude that so many clubs adopt.

Comment cheerfully withdrawn, Sir.

[Who Moved The Goalposts?]

We got the land for £1 because it was a worthless, contaminated brown-field site. What we subsequently sold to B&Q was a prime retail space decontaminated by RFC at a cost of many millions right at the heart of an area undergoing a rapid and important development. Part of the planning consent was also that RFC contributed £6m to the building of the relief road. This was a win-win for all concerned, not least the town as a whole, and is now regarded as a shining example of what can be achieved when clubs work closely with councils rather than the typical blustering, self-centred me-me-me attitude that so many clubs adopt.

Comment cheerfully withdrawn, Sir.

Mr Streete, you are a gentleman.

[soggy biscuit]

@david_conn 6m
QPR, made £65m loss for 2012-13, one of the Championship clubs understood to be objecting to financial fair play http://www.theguardian.com/football/201 ... all-league ….

The Anzhi chairman saying "QPR have lost their minds, when they agreed to pay his release fee we wept" about selling Samba is one of my favourite football things in recent years. It should be QPR's new club motto.

[The Real Sandhurst Royal]

http://www.bbc.co.uk/news/uk-england-birmingham-26479124

Carson Yeung jailed for six years.

[Uke]

The state of football today summed up on the BBC website at the moment

[Terminal Boardom]

http://www.wirralglobe.co.uk/news/11054430.Vauxhall_Motors_FC_to_resign_from_Football_Conference/

And further down the food chain, another club pays the price for living beyond their means.

[SPARTA]

Birmingham's proposed sale of 12% of the clubs shares to a Chinese advertising company has fallen through.

[Tony Le Mesmer]

http://www.wirralglobe.co.uk/news/11054430.Vauxhall_Motors_FC_to_resign_from_Football_Conference/

And further down the food chain, another club pays the price for living beyond their means.

To be fair, they've done the honest thing and admitted they are unable to operate at that level. If they hadn't been reprived of relegation a few years back (something that should be done away with immediately imo), maybe they'd now be playing at a level they could sustain. Instead, they've had to fold the 1st team entirely after playing at a level neither their finances or on pitch performances deserved.

[tmesis]

http://www.wirralglobe.co.uk/news/11054430.Vauxhall_Motors_FC_to_resign_from_Football_Conference/

And further down the food chain, another club pays the price for living beyond their means.

To be fair, they've done the honest thing and admitted they are unable to operate at that level. If they hadn't been reprived of relegation a few years back (something that should be done away with immediately imo), maybe they'd now be playing at a level they could sustain. Instead, they've had to fold the 1st team entirely after playing at a level neither their finances or on pitch performances deserved.

Not quite sure how you can say their on-field performances didn't deserve BSN football. They are 15th currently, which makes them a respectable team by the standards of the division.

I know they don't now, but did Vauxhall Motors ever chip in to help with the running costs of the club?

[From Despair To Where?]

And didn't RFC get the land to build the Madejski for a quid from RBC? They wouldn't have sold the land as cheaply to B&Q, for example.....

Nice try, Floyd

We got the land for £1 because it was a worthless, contaminated brown-field site. What we subsequently sold to B&Q was a prime retail space decontaminated by RFC at a cost of many millions right at the heart of an area undergoing a rapid and important development. Part of the planning consent was also that RFC contributed £6m to the building of the relief road. This was a win-win for all concerned, not least the town as a whole, and is now regarded as a shining example of what can be achieved when clubs work closely with councils rather than the typical blustering, self-centred me-me-me attitude that so many clubs adopt.

I remember reading something at the time that estimated the cost of decontaminating the land at somewhere in the region of £13m.

[SPARTA]

Cellino has pulled his investment in Leeds. Apparently put in over 10m so far and not even been approved by the FL yet. (delayed pending outcome of a court case I think) Leeds needed £4m more last month to cover wages.. he said no. The club is a disaster, but a great soap opera.

[Royal Ginger]

Let's just hope it wasn't "eh, that'a Reading'a teamsa not-so-bad. Ehmaybe i buy them instead? spaghetti, amore, carbonara etc etc."

[dizzynewheights]

Hereford on the brink

[Stretts]

Hereford on the brink

Not looking good at Edgar Street:

Facts and Figures

Trading losses at the club have totalled £1.5million over the last four years (10/11 £173,537, 11/12 £452,472, 12/13 £498,994, 13/14 £400,000 estimate)

Staff and Players have not been paid for several weeks

Players "haven't been paid correctly for over two months" according to Friday’s statement

The Non League paper says Martin Foyle & Andy Porter had not been paid in 2014

Numerous local suppliers have not been paid

Herefordshire Council have not received rent or rates for several months

The Board have stated that they are no longer able to cover losses

The Board will make a decision on Administration later this week if no new investment is found

The latest accounts given at the AGM show total debts of around £950,000 after £285,000 of loans were converted to shares. Further losses of £400,000 are expected for this season

The Hereford Times estimates unpaid wages at the club to be £100,000

The AGM was told the outstanding HMRC debt was £78,000 and the club is expecting HMRC to begin winding up proceedings at any point

A transfer embargo is in force for non payment of wages and debts to other clubs for loan players

Scenarios

1. The club trades it’s way out of trouble According to statements made at the AGM, the Club requires £300,000 to cover losses this season and a further £300,000 to meet obligations next season. These are sums that would need to be found/raised.

2. The club enters Administration - Under Conference rules, the Club would receive a 10 point penalty if it goes into Administration before Thursday. This would plunge the Club into the relegation zone. After Thursday, the Conference can impose the penalty this season if the Club is not automatically relegated under normal circumstances and the sanction would relegate the club.

In either case, the Club would have to settle all ’Football Creditors’ by the AGM in June 2014 to avoid an automatic relegation in addition to any relegation suffered during the season. Football Creditors include all employees of the Club, as well as other teams. The Club would also have to agree a CVA to pay 100% of debts within 3 years of the date of the CVA agreement. Creditors can agree deals prior to the CVA to accept smaller sums or write off debts, but 100% of the agreed sums must be paid.

Any continuation of business would require the Administrator to believe that the company is salvageable. The Administrator legally cannot let the company incur further debt and would have no choice but close the Club if it continued to have more outgoings than income.

3. The club enters Liquidation - The club would cease to trade immediately. Under the terms of the leases, the lease on the Edgar Street ground would become void and Herefordshire Council would take possession of the ground. The Liquidator would seek ‘best value’ from the assets of the club selling off stock, fixtures and fittings, and memorabilia around the stadium.

In the event of Liquidation, a new club would be able to play at Edgar Street if Herefordshire Council granted it a lease.