Generic clubs in financial crisis Thread

[WestCoast Life]

Agilo push Palace into administration

Tuesday, 26 January 2010

By Richard Cawley

THE administrator placed in charge of Crystal Palace has revealed that it was investment firm Agilo which placed the club into administration earlier this afternoon.

Brendan Guilfoyle, from P & A Partnership, took control at 3.30pm.

And it has now emerged that Agilo - a fund who claim on their website to deal with "distressed companies" and are thought to have pumped £5million into the club - made the call to put the Eagles into administration before a winding-up petition was heard at the Court of Justice tomorrow.

Guilfoyle told the South London Press: "We have been appointed by a lender. Agilo exercised their right to appoint an administrator and from the point of view of the board of directors it was unwelcome and unanticipated.

"But since I've arrived at 3.30pm this afternoon I have had good co-operation with Dominic Jordan (vice-chairman) and Simon Jordan, who is devastated but has said he will co-operate in rescuing the club."

Guilfoyle has admitted that players sales look inevitable before the transfer window closes on Monday.

He said: "I haven't spoken about that in any great detail because I haven't had the opportunity to speak to the manager. When I arrived he was on a sponsored plane with the team going up to Newcastle.

"I'll take notice of what the manager says but there is an inevitability that some of the better players do get sold. But it is a balancing act because I've got to do the best for the creditors and the club is worth more as a member of the Championship than in Division One."

Egilo refused to comment when contacted by the South London Press.

http://www.southlondon-today.co.uk/tn/Sport.cfm?id=2603&headline=Agilo

[Stranded]

What affect will the Palace administration have on the winding up order they face today?

[Comfortably Numb]

You see those two fine specimens and it's a struggle to feel any sympathy.

[Dirk Gently]

What affect will the Palace administration have on the winding up order they face today?

It means there is an automatic 10 month stay of execution on the winding up order.

[Wax Jacket]

Guilfoyle said 12 months on 5L yesterday, bit academic at the moment.

you'd feel sorry for them if it weren't Jordan involved - you wonder how far Agilo's patience must've been strained for them actually to take this step.

[Dirk Gently]

That's what I meant to type! 12 months it is!

I understand that this wasn't a voluntary administration - it was forced onto them by a "secured creditor" who wouldn't wait any longer for his money - the directors fought and fought to get it delayed but failed.

[Comfortably Numb]

What affect will the Palace administration have on the winding up order they face today?

It means there is an automatic 10 month stay of execution on the winding up order.

portsmouths next step then to prolong their existance although not until theyre all but certain of relegation

[Who Moved The Goalposts?]

What affect will the Palace administration have on the winding up order they face today?

It means there is an automatic 10 month stay of execution on the winding up order.

portsmouths next step then to prolong their existance although not until theyre all but certain of relegation

But their winding up order is within a couple of weeks isn't it? So they may need to do it regardless of their league position.

[Dirk Gently]

And don't forget that the task of the administrotor is to ensure that any settlement gains as much money as possible for the creditiors, ideally keeping the business as a going concern.

But that can't always be acheived, and there is a big questionmark over the actual ownership of Fratton Park and especially the surrounding land.

[Comfortably Numb]

i just dont want to get all excited over nothing.

[Tony Le Mesmer]

And don't forget that the task of the administrotor is to ensure that any settlement gains as much money as possible for the creditiors, ideally keeping the business as a going concern.

But that can't always be acheived, and there is a big questionmark over the actual ownership of Fratton Park and especially the surrounding land.

Is there any guarantee they will be excepted into the football League in such a poor financial state? For example, Boston were not allowed into the Conference Prem following their relegation whilst in administration.

[Geekins]

And don't forget that the task of the administrotor is to ensure that any settlement gains as much money as possible for the creditiors, ideally keeping the business as a going concern.

But that can't always be acheived, and there is a big questionmark over the actual ownership of Fratton Park and especially the surrounding land.

The land around FP is Gaydaymak's (spelling??) Not sure on FP though.

[Silver Fox]

I understand that this wasn't a voluntary administration - it was forced onto them by a "secured creditor" who wouldn't wait any longer for his money - the directors fought and fought to get it delayed but failed.

I don't want to give Jordan any ideas but doesn't this throw doubt on the validity of the 10 point penalty? The whole reason behind that is to stop clubs playing fast and loose with their cash, giving themselves an unfair advantage and then taking "the easy way out" when it starts going pear by entering administration. All that doesn't apply if someone forces you into administration shurely?

NB not that they weren't going into administration at some point when they realise that they've spent the ST money for the next 3 years already

[Dirk Gently]

And don't forget that the task of the administrotor is to ensure that any settlement gains as much money as possible for the creditiors, ideally keeping the business as a going concern.

But that can't always be acheived, and there is a big questionmark over the actual ownership of Fratton Park and especially the surrounding land.

Is there any guarantee they will be excepted into the football League in such a poor financial state? For example, Boston were not allowed into the Conference Prem following their relegation whilst in administration.

Nope - which is only fair considering the number of basket cases (e.g. Chester) that the Fl have sent down to the Conference.

IIRC Boston's demotion was a delayed penalty for their breaking of the rules when they went up from the Conf, whcih the FL refused to impose on them the first season they were promoted.

[Dirk Gently]

I understand that this wasn't a voluntary administration - it was forced onto them by a "secured creditor" who wouldn't wait any longer for his money - the directors fought and fought to get it delayed but failed.

I don't want to give Jordan any ideas but doesn't this throw doubt on the validity of the 10 point penalty? The whole reason behind that is to stop clubs playing fast and loose with their cash, giving themselves an unfair advantage and then taking "the easy way out" when it starts going pear by entering administration. All that doesn't apply if someone forces you into administration shurely?

NB not that they weren't going into administration at some point when they realise that they've spent the ST money for the next 3 years already

Nope, he'll not have a leg to stand on. The penalty if for "going into administration" and the only mitigation is unforeseen events outside the control of the club. Running the club in such a way that you don't have the financial ability to avoid administration equals the same thing.

[Baines]

I understand that this wasn't a voluntary administration - it was forced onto them by a "secured creditor" who wouldn't wait any longer for his money - the directors fought and fought to get it delayed but failed.

I don't want to give Jordan any ideas but doesn't this throw doubt on the validity of the 10 point penalty? The whole reason behind that is to stop clubs playing fast and loose with their cash, giving themselves an unfair advantage and then taking "the easy way out" when it starts going pear by entering administration. All that doesn't apply if someone forces you into administration shurely?

NB not that they weren't going into administration at some point when they realise that they've spent the ST money for the next 3 years already

But if the winding up order was to be dealt with the day following administration, no CP can hardly complain that they shouldn't be subject to the administration penalty, because if the club hadn't gone into administration they would have likely lost all of their points as a result of the club ceasing to exist.

[Wax Jacket]

I understand that this wasn't a voluntary administration - it was forced onto them by a "secured creditor" who wouldn't wait any longer for his money - the directors fought and fought to get it delayed but failed.

I don't want to give Jordan any ideas but doesn't this throw doubt on the validity of the 10 point penalty? The whole reason behind that is to stop clubs playing fast and loose with their cash, giving themselves an unfair advantage and then taking "the easy way out" when it starts going pear by entering administration. All that doesn't apply if someone forces you into administration shurely?

NB not that they weren't going into administration at some point when they realise that they've spent the ST money for the next 3 years already

Nope, he'll not have a leg to stand on. The penalty if for "going into administration" and the only mitigation is unforeseen events outside the control of the club. Running the club in such a way that you don't have the financial ability to avoid administration equals the same thing.

either way it's a question of seriously pissed-off creditors.

would be interesting to know if the person who first suggested and/or signed off on the Palace investment at the creditor still has a job.

[Dirk Gently]

either way it's a question of seriously pissed-off creditors.

would be interesting to know if the person who first suggested and/or signed off on the Palace investment at the creditor still has a job.

More than likely - they are a secured creditor, so get to claim their security. Not quite sure what that security might be, though, as ISTR the ground is still owned by Ron Noades, despite Jordan claiming he'd bought it off him a few years ago. That creditor may well be Noades, of course - still having the ground as security until all of the debts on it are paid off.

[bassavage]

Moses not allowed to play tonight. Clearly on his way.

http://www.skysports.com/story/0,19528, ... 43,00.html

[Dirk Gently]

Moses not allowed to play tonight. Clearly on his way.

http://www.skysports.com/story/0,19528, ... 43,00.html

Makes sense - the administrator will look at evrything in cold hard unsentimentral money terms, and if there are assets that can be sold they will be.