Generic clubs in financial crisis Thread

[Dirk Gently]

A question:

A CVA requires the backing of 75% of the creditors.

I'm wondering how's that worked out?

In the BBC blog they mention that the HMRC debt may "only" be about 20% so they may be able to agree a CVA with the other creditors.

Depends who it's owed to.

At Leeds United, the debt owed to a Cayman Island company which Ken Bates denied any links to was substantial, but not enough to take them over the required 75%. Then, the day before the hearing, it was sudenly discovered that there was additional substantial debt (I think in the region of £1M) for advertising services owed to a DAB-only local radio station in the Leeds area (proprietor K Bates). The votes this extra debt brought were enough to make up the 75% in favour of selling the company to K Bates, ahead of other consortia which would have paid more moeny to creditors.

[OzBiscuit2004]

My sympathy has suddenly run out. Portsmouth supporters taking the piss out of us:

http://www.pompeyonline.com/forums/show ... hp?t=56037

You need to register to even view that forum. What are they saying?

[Russell Street]

My sympathy has suddenly run out. Portsmouth supporters taking the piss out of us:

http://www.pompeyonline.com/forums/show ... hp?t=56037

The bloke who runs that website sits directly behind me at work. He thinks he has all the inside info on Pompey and for the last few months has been telling me, what seems like every other week, that (yet another) consortium is about to save them. Bragging that Al WhichEverOneItWas had personally rung him to discuss the club. Yeah of course.

How I LOL at him every time he says that. And then LOL even more when nothing comes to fruition.

Oh, it's merely handbags stuff on the site btw:

LOL all the JCL reading fans are back - Today, 09:14 AM

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in our office today suddenly they all want to go to the quater finals.. yesterday they wernt holding out any hope of beating the baggies and today da da!!


Today, 10:24 AM

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Quote:
Originally Posted by blueman
in our office today suddenly they all want to go to the quater finals.. yesterday they wernt holding out any hope of beating the baggies and today da da!!

Tell em we will see them in the Final

Today, 10:39 AM

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I went to school in reading and there was 1 reading fan. Says it all really! Must be why the atmosphere at the mad stad has always been shocking.

Today, 10:56 AM

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Quote:
I went to school in reading

...and had a South Bank card

Mark McGhee is magic, he wears a magic hat, and when he saw the championship he said I'm havin' that... wooooooooooooooooooooooahhhhh etc

[exileinleeds]

Breaking News4:14pm UK, Thursday February 25, 2010
Portsmouth FC Set To Enter Administration
A "conscious decision" has been made to put Portsmouth FC into administration tomorrow morning after four potential buyers failed to prove they had the funds to buy the club.More follows...

[Uke]

Breaking News4:14pm UK, Thursday February 25, 2010
Portsmouth FC Set To Enter Administration
A "conscious decision" has been made to put Portsmouth FC into administration tomorrow morning after four potential buyers failed to prove they had the funds to buy the club.More follows...

Here he sits, brokenhearted....

[Barry the bird boggler]

So that's the end of their Premiership run then, will be reduced to 7 points...

[Dirk Gently]

Just reading that Mansfield will vote to keep Chester in the Conference - because it makes their own play-off chance better.

[Barry the bird boggler]

What a surprise, but then honestly to have a vote from member clubs about it is daft, after all those who are going to lose out are going to vote for them to stay in.

You seriously have to wonder about the way league competitions operate, it should be a clear guideline that says if you are unable to continue then you are kicked out and tough on other teams who lose out when records are expunged.

[Arch]

Administration done and dusted by the time I wake up in the morning. Nice birthday present.

Expect Platini to use this as leverage to press for stricter financial standards on clubs competing in UEFA competitions. I think everyone else in Europe would like to see PL clubs being forced to play with their own money.

[Dirk Gently]

Administration done and dusted by the time I wake up in the morning. Nice birthday present.

Expect Platini to use this as leverage to press for stricter financial standards on clubs competing in UEFA competitions. I think everyone else in Europe would like to see PL clubs being forced to play with their own money.

That's coming anyway - the UEFA Licensing Scheme starts later this year.

[Rex]

Is this another indirect way of capping players wages?

[Dirk Gently]

Is this another indirect way of capping players wages?

Not in the slightest - it's a way of controlling debt.

Spend what you like on wages - as long as you can afford it!

UEFA are to appoint a watchdog to scrutinise the financial accounts of clubs involved in European competition.

The club financial control panel, made up of eight financial and legal experts, will be in charge of ensuring clubs are complying with UEFA's club licensing system.

The system obliges all clubs to file up-to-date accounts and display financial integrity, and the panel will have the power to carry out spot checks.

UEFA general secretary David Taylor told his organisation's official website: "This is the first step to have concrete measures to promote what we call financial fair play.

"We already have a club licensing system across Europe, a system based on national licensing by national associations or leagues.

"We feel that it is important to have something at European level and the panel will look specifically at the finances of clubs and how they are structured. As from next season, this panel will be doing continuous monitoring."

UEFA's executive committee approved the creation of the panel on Tuesday ahead of Wednesday's Congress in Copenhagen.

[Barry the bird boggler]

In other words, carry on everyone as long as you can find ingenious ways to organise your obscene debts we won't care.

[Rex]

I should think that all clubs will supply honest accounting in the hope that they are not externally audited.

[Dirk Gently]

It'll be a culture shock to some of them - the accounting practices in many are amazingly haphazard (e.g. a filing system for invoices consisting of plastic carrier bags). Why do you think so many don't actually know how much they owe and to whom?

[Tony Le Mesmer]

"Portsmouth are likely to need between £22m and £26m to keep the club going until the end of the season."

[Rex]

What was it - £55 m wages and £75 m income generated. Not a real surprise that one.

[Jimmy the Tree]

So have I got this right:-

• 10 years ago, Pompey went into Administration, all debts written off, and were bought out by Gaydamak who starts the over spending.
• Over the next 10 years they build up debts of £70M
• They use this money to give themselves Premiership membership and an FA cup win, at the expense of others
• They go into Administration, and get their debts written off again, the points deduction being meaningless
• Club gets bought out again and cycle repeats

So the other clubs, Tax payers and other creditors fund their champagne lifestyle.

Where is the punishment to stop this being a successful business model?

[The whole year inn]

So have I got this right:-

• 10 years ago, Pompey went into Administration, all debts written off, and were bought out by Gaydamak who starts the over spending.
• Over the next 10 years they build up debts of £70M
• They use this money to give themselves Premiership membership and an FA cup win, at the expense of others
• They go into Administration, and get their debts written off again, the points deduction being meaningless
• Club gets bought out again and cycle repeats

So the other clubs, Tax payers and other creditors fund their champagne lifestyle.

Where is the punishment to stop this being a successful business model?

The 'punishment' is what will be dished out to Portsmouth over the next few months - which will be nothing from the Premier League

[exileinleeds]

Arsenal have posted their half year pre-tax profits of more than £35m. They have significantly reduced their borrowings by about a third.

If they can be run in a profitable and honest way, why can't they all...it's not as if clubs are run by crooks and money launderers is it?