Generic clubs in financial crisis Thread

[Platypuss]

PFC are not in administration though, only the parent company. So they won't receive a points deduction.

I thought that loophole had been closed ages ago.

In Southampton's case it was shown that the holding company had no other means of support other than the club and therefore was effectively the same entity. I think CSI can show that there is more to them than just PFC and that CSI's failure was not just down to PFC.

[TFF]

3/ Chanrai will decide to cover the costs until the end of season with a short term loan to be recouped by selling the whole squad at the end of the season. This will help protect his position in the short term – provided he is given a 100% guarantee that he will be bale to extract the money.

What is the value of players who's registration is not held by a trading football club?

[andrew1957]

3/ Chanrai will decide to cover the costs until the end of season with a short term loan to be recouped by selling the whole squad at the end of the season. This will help protect his position in the short term – provided he is given a 100% guarantee that he will be bale to extract the money.

What is the value of players who's registration is not held by a trading football club?

The club would still be trading if he pays the HMRC off and keeps it afloat til May.

[TFF]

3/ Chanrai will decide to cover the costs until the end of season with a short term loan to be recouped by selling the whole squad at the end of the season. This will help protect his position in the short term – provided he is given a 100% guarantee that he will be bale to extract the money.

What is the value of players who's registration is not held by a trading football club?

The club would still be trading if he pays the HMRC off and keeps it afloat til May.

So he's going to sell all his players before the end of the season? Will they try (again) for their own transfer window?

No football club is going to pay £1M+ for any of their players when just by waiting for their contracts to be voided they could pick them up for nothing.

[andrew1957]

3/ Chanrai will decide to cover the costs until the end of season with a short term loan to be recouped by selling the whole squad at the end of the season. This will help protect his position in the short term – provided he is given a 100% guarantee that he will be bale to extract the money.

What is the value of players who's registration is not held by a trading football club?

So he's going to sell all his players before the end of the season? Will they try (again) for their own transfer window?

No football club is going to pay £1M+ for any of their players when just by waiting for their contracts to be voided they could pick them up for nothing.

You are obviously being difficult or purposely acting a bit thick so I will try again.

If Chanrai puts enough money to pay off the HMRC and keep the club afloat until the summer then the club will not be in administration or liquidated. When the transfer window re-opens he can re-coup his new investment by selling some or all of the more valuable players. The club then may or may not survive depending on whether new owners can be found.

If he does not put money in it looks like administration or possibly liquidation will occur - in which case he will most likely lose out on a good proportion of his existing investment.

He will be running a big risk either way because as you rightly say player values will be depressed when the window re-opens if Pompey are forced sellers in the summer.

[Ian Royal]

Presumably HMRC are the sole creditors on this new debt?

If so, Pompey have to either pay up, or rack up a shit load more debt elsewhere 'til HMRC have less than 26% of the debt, or there's no way they'll get a CVA. Adminstration will mean at absolute least 13 points off this time around what with it being a second event so quickly.

HMRC want Pompey out of business as an example more than they actually want the debt in full even.

[Platypuss]

Presumably HMRC are the sole creditors on this new debt?

If so, Pompey have to either pay up, or rack up a shit load more debt elsewhere 'til HMRC have less than 26% of the debt, or there's no way they'll get a CVA. Adminstration will mean at absolute least 13 points off this time around what with it being a second event so quickly.

HMRC want Pompey out of business as an example more than they actually want the debt in full even.

It's a tax bill - HMRC have issued a winding up order to get it paid.

[Ian Royal]

Yeah, I'm just wondering if any further debt has come crawling out of the wood work in the reducing HMRC's share stakes. Afterall the staff have apparently not been paid now too.

[Barry the bird boggler]

There is also the daily operating costs of the club to be paid and they only have x amount available in the bank, once it's unfrozen, so even if Chanrai pays off the HMRC (which is probably going to be the most likely outcome of this initial threat) he's still going to have to stump up more for when existing funds run dry. His option really is does he keep it afloat and hope or cut his losses and let the whole sorry tale finally end allowing everyone to start afresh.

Isn't the HMRC debt accrual from no payment of tax in December and non payment of tax in January? If so that debt will only rise as presumably there are installments due every month?

Finally, finding a buyer for this outfit won't be easy unless the land around the ground is also available to purchase.

[TFF]

You are obviously being difficult or purposely acting a bit thick so I will try again.

If Chanrai puts enough money to pay off the HMRC and keep the club afloat until the summer then the club will not be in administration or liquidated. When the transfer window re-opens he can re-coup his new investment by selling some or all of the more valuable players. The club then may or may not survive depending on whether new owners can be found.

If he does not put money in it looks like administration or possibly liquidation will occur - in which case he will most likely lose out on a good proportion of his existing investment.

He will be running a big risk either way because as you rightly say player values will be depressed when the window re-opens if Pompey are forced sellers in the summer.

I prefer 'devil's advocate'

So he invests a further £1.6M now to pay off HMRC, plus wages, tax liability and other running costs for the rest of the season, in the hope that he can sell some (most) of their 16 man squad for at least that further investment.

I can't see that would get him anywhere near recouping even a fraction the money that he's already pumped in.

You're offering him the chance to risk a further £10M(?) on a three legged horse.

[Geekins]

Unbelievable! http://www.portsmouth.co.uk/sport/pompe ... _1_3497189

Although i love this comment...

So, we've asked PCC and the Government...anyone thought of writing to the Queen or God...might as well go cap in hand to everyone!

[Badger Finger]

Shocking.

Any other type of business would have gone years ago...

[TFF]

Unbelievable!

Not really. They'll be up for election soon so they don't want to have "killing the football club" on their records.

I very much doubt they expect anything to come of it but they'll be able to say "we tried"

[exileinleeds]

Unbelievable! http://www.portsmouth.co.uk/sport/pompe ... _1_3497189

Although i love this comment...

So, we've asked PCC and the Government...anyone thought of writing to the Queen or God...might as well go cap in hand to everyone!

Personally, I like:

Two simple points. Bearing in mind the urgency of the situation how exactly is Balram Chainrai travelling over here from Hong Kong...in a rickshaw?! Secondly, and much more importantly, there is a lot of rubbish being talked about in terms of how this type of thing has happened before...it hasn't, this is unprecedented. We are not an Accrington or an Aldershot or a Darlington. We are a big club with an away following that matches anyone in the country bar the six or seven clubs at the top of the Premiership and it's time the FA and the League, not to mention quite a lot of other people, woke up to the fact that Pompey (2012) playing in something like the Conference South is not a very sensible idea.

[PieEater]

I really don't get the anger against Chanrai, have they all forgotten he pumped in £17m of his own money to save them and now they need more?

The problem is them running a squad of very rich players they can't afford.

I can see the PL being kind (again) and advancing at least some of the parachute money, probably enough to keep them going to the end of the season.

[Cobi]

Finally, finding a buyer for this outfit won't be easy unless the land around the ground is also available to purchase.

And it isn't. I think I read somewhere that it's under some kind of protection to prevent it ever being sold for non-footballing reasons, i.e it can't ever be sold for housing etc. The stadium also can't be redeveloped there, or couldn't be, so it's a major put off for any potention buyer.

[Barry the bird boggler]

They can't seriously expect the government to buy or contribute to buying the ground in today's climate - there'd be a national outcry with Southampton tax payers at the top of the list.....

Even the local council would be in very hot water using their meagre finances to contribute to saving a private sporting club.

[PieEater]

fixed it for you

Even the local council would be in very hot water using their meagre finances to fund millionaire lifestyles of overpaid footballers.

[soggy biscuit]

Lol @ signing Kitson on £20k a week days after their last drama

[floyd__streete]

We are a big club with an away following that matches anyone in the country bar the six or seven clubs at the top of the Premiership and it's time the FA and the League, not to mention quite a lot of other people, woke up to the fact that Pompey (2012) playing in something like the Conference South is not a very sensible idea.

Big club? Your average home crowd is lower than Reading's

Away support that matches anyone in the country? You had about 300 at Birmingham last night Stop thinking you are somehow a special case that deserves saving. You aren't.

Pompey playing in the Conference South is not a very sensible idea? Deluded. You;ll be starting lower down than that, mate . And I'll tell you what isn't a very sensible idea.....spending millions in transfer fees and wages that a medium-sized club like yours could never, ever wish to support.

As you can see I am definiteLOLy rattLOLed by this.

Let 'em die let 'em die let 'em die
Let 'em die let 'em die let 'em die
Let 'em die let 'em die let 'em die
Let 'em die
Let. 'em. Die.