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Clubs going into admin


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What happens when a team goes into admin? I mean we survived it and seem to have come out the other side better for it.

 

Watford are on the brink (Skates cant be far off) and I am sure there is plenty of other clubs with the worry. What is the worst that ever happens?

 

Us = we feel like we won the lottery

Luton = couple of leagues down, but still fine

Leeds = on the up again

 

Doesn't seem so bad unless you do a Luton and come out of it with out the proper paperwork in place.

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yeah, all those creditors must have loved being put into the brink my another company going into administration...

 

I accept that point, but its not the view I was coming from.

 

What is the chances of the Skates or Watford really going under? There will always be someone willing to buy into a club, and £5 million if thats all it would be for Watford really isn't that much money (in the big scale of things).

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On the face of things, you would expect that Watford will ultimately be OK. They have two particularly prominent and wealthy fans, but both of them are involved to varying degrees with the club anyway (Lord Ashcroft is the largest shareholder and Elton John is the honorary president), and they're still f**ked!

 

Pompey, I genuinely have no idea how that's going to pan out. Without some sort of RBS-esque bail-out, it's hard to see how they could get out of the situation they're in, or why anybody would put money into the club knowing that it'll disappear into one of many of the financial black holes.

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Some time in the not-too-distant future, a relatively big club will go to the wall and there won't be someone to rescue them.

 

Make no mistake, we got very very very lucky.

 

We should be safe then A Granty!;)

Until there is some sort of wage cap say half of what prem players can pick up now, All but the top clubs could go to the wall, 7 or 8 years ago you would never see a prem game being played in a half empty stadium,,,,,,,we are all but fooked.:mad:

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I understand lots of teams are having a bad time of it, but the Premiership would never let a club go into admin while in the top flight. Even if poopey got relegated I am sure the PL would let them have the £20 or so million in parachute payments up front to pay off football debts.

 

I can not see there being a situation where a team in the top two tiers of English football could go out of business completely. As in gone, 1 less team in the league for the rest of the season. That just wont happen.

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What happens when a team goes into admin? I mean we survived it and seem to have come out the other side better for it.

 

Watford are on the brink (Skates cant be far off) and I am sure there is plenty of other clubs with the worry. What is the worst that ever happens?

 

Us = we feel like we won the lottery

Luton = couple of leagues down, but still fine

Leeds = on the up again

 

Doesn't seem so bad unless you do a Luton and come out of it with out the proper paperwork in place.

 

 

Speaking of which ..

If Pompey went bankrupt.and several other CCC clubs are on the brink.

They'll get relegation (and the regulation.. -10 points ....or more for " irregularities ..of which there are probably many)...

What will the Prem. and CCC look, like if they go down..?

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I understand lots of teams are having a bad time of it, but the Premiership would never let a club go into admin while in the top flight. Even if poopey got relegated I am sure the PL would let them have the £20 or so million in parachute payments up front to pay off football debts.

Not a cat in hell's chance, there'd be hell to pay from the other 19 clubs.

 

As I said a few days ago on another thread, the Premier League are probably hoping Pompey get relegated before they go into administration, for two main reasons. Firstly, they can wash their hands of it and say "not our problem"; secondly, to the ill-informed majority, it seems as though the Premier League is untarnished by it.

 

I can not see there being a situation where a team in the top two tiers of English football could go out of business completely. As in gone, 1 less team in the league for the rest of the season. That just wont happen.

The last team in England to withdraw mid-season was Aldershot in 1992 - largely thanks to this man. Bloke comes in promising money but it soon transpires he doesn't have a pot to p!ss in... where have we heard that one recently?

 

It's certainly unlikely (although Stockport are in particularly dire straits right now), but I certainly wouldn't rule it out.

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Interesting bit in this months 442 saying how clubs almost never go out of business. They give the examples of Aldershot, Florentina and Accrington Stanley.

 

As long as a club has a decent base of fans they will always just rebrand and start again. Gretna didn't so won't be around for a few years. They will in the end pop up somewhere.

 

As for the blue few???

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In the old days clubs didn't go bust with the frequency they do now though.

 

Why?

 

Incompetent club staff chasing a buck for themselves (like bankers), leeches such as agents and stupidly high wages in order "to compete" across the divisions.

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In a nutshell if there is a will for there to be a football club in an area i.e.a fanbase, then there will be one. If bad management means that the established on goes out of business then a replacement will pop up. Depending on the timeframe and the reason why they went out of business the new club / company could take on the original league position of the old club - this is what happened to Leeds, or they might have to re-enter the league much lower down the pyramid.

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Do what? I'm pretty sure that's not what happened to leeds!

 

I'm pretty sure it did. The original company, owned by Ken Bates was wound up and the creditors got about 20p in the pound payment on what they were owned. The new company, which Bates started almost immediately, took on all the responsbility of running Leeds Utd and managed to retain Leeds position in the League pyramid when the League granted the new company the golden share at the last minute.

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oh i see, ok my apologies. Is there anything to stop this happening now, and how does it differ from what happened to us?

 

I don't think there is anything to stop it happening now and to be honest it happens in every industry. I guess the flimsy fit and proper person test is about the only thing to stop people exploiting the system.

 

It's different for us in that ML bought the remains of the club from the administrator and followed the rules of the Football league in doing so. That way we only got a -10 deduction while Leeds got -15. I think Saints are now technically owned by a different company now that ML has sole ownership and we aren't a PLC any more.

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Oddly, according to Wiki it seems to have happened to Leeds TWICE:

Leeds United's predecessor team Leeds City FC was formed in 1904, but was forcibly disbanded by The Football League in 1919 in response to allegations of illegal payments to players during the First World War. A new club, Leeds United, was formed and the club received an invitation to enter the Midland League from the league secretary, Mr. J Nicholson. Leeds United were voted into the Midland League on 31 October 1919, taking the place vacated by Leeds City Reserves

Kind of....
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