Generic clubs in financial crisis Thread

[Uke]

So no mysterious purchaser and the PL is wiling to spunk 11 million on a failing business to "save" it's "reputation" as a brand

Of course spunking the money away protects the brand's integrity much more than showing a rigorous approach to Governance

[Stranded]

But don't Pompey need to show by Weds they can pay off ALL their debt not just the HMRC debt to satisfy the registrar they should not be wound up.

[Comfortably Numb]

But don't Pompey need to show by Weds they can pay off ALL their debt not just the HMRC debt to satisfy the registrar they should not be wound up.

Yes.

[TFF]

But don't Pompey need to show by Weds they can pay off ALL their debt not just the HMRC debt to satisfy the registrar they should not be wound up.

Yes.

Not sure about that - surely the court is only concerned about the debt presented by the party who seek the winding up order. Debt to Gaydamak (sp?) and the local pieman etc don't come into it.

Don't the FL have some say in the matter of handing out the parachute payment? I have a vague recollection that monies owed by way of of parachute payments that cannot be paid to the relegated club, either because that club is immediately promoted back to the PL or ceases to exist, would be shared amongst the league clubs.

[Comfortably Numb]

I thought they said by Wednesday PFC had to present concrete evidence they can pay the debt off. no more last minute "we have an interested party"... and then by Friday they have to actually pay it off? Bit confusing. They'll avoid going bust anyways.

[Royal With Cheese]

But don't Pompey need to show by Weds they can pay off ALL their debt not just the HMRC debt to satisfy the registrar they should not be wound up.

Yes.

You are on fire at the moment.

[weybridgewanderer]

But don't Pompey need to show by Weds they can pay off ALL their debt not just the HMRC debt to satisfy the registrar they should not be wound up.

Yes.

Not sure about that - surely the court is only concerned about the debt presented by the party who seek the winding up order. Debt to Gaydamak (sp?) and the local pieman etc don't come into it.

Don't the FL have some say in the matter of handing out the parachute payment? I have a vague recollection that monies owed by way of of parachute payments that cannot be paid to the relegated club, either because that club is immediately promoted back to the PL or ceases to exist, would be shared amongst the league clubs.

They have to show they have they are "Financially viable", not just that they can pay the revenue a few quid in the short term. The revenue doesn't want £2M now with the promise of another £9M in 10 years as they don't believe, with all the other debts against Pompies income, that they will ever see the money they are owed. the court is concerned that, not only can they not pay the revenue but that they will also continue to rack up debts (more and more short term loans to pay wages?)

Truth is if Pompie pay the revenue everything to get them off their back then someone else won't be paid. There are more and more creditors that will each start saying they want sellable assets if the club can't give them cash.

The revenue has claimed they are insolvent. Insolvent would mean they cannot trade their way out of the debts they have.


If you need to continually borrow more and more money to pay wages you have more than ashort term cash flow problem.

[Mr Angry]

Pompey DO have to show that they can clear ALL their debts in the financial statement that they have to provide to the Court by 4pm on Weds 17th; HMRC and the Court have 2 days to study the statement and they then meet on Friday 19th to make the decision.

Some Pompey fans don't understand this; they think they have till Friday to pay HMRC.

Unless someone comes in to buy Pompey with REAL money and provable liquidity, then Pompey WILL be wound up on Friday; it was clear reading excerpts from the proceedings that the Registrar was utterly unmoved by pleas from Pompey about the 600 (!!!) employees who will lose their jobs and the thousands of fans who will be gutted if Pompey were to go under. The registrar stated that she had no need to consider the consequences of a decision to wind up; her duty was to ensure that money was either paid, or if unpaid, that no further debts were accrued. Hence the 7 day adjournment.

[Whore Jackie]

But don't Pompey need to show by Weds they can pay off ALL their debt not just the HMRC debt to satisfy the registrar they should not be wound up.

Yes.

Good to see your Bachelor's degree worth again.

[Comfortably Numb]

But don't Pompey need to show by Weds they can pay off ALL their debt not just the HMRC debt to satisfy the registrar they should not be wound up.

Yes.

Good to see your Bachelor's degree worth again.

I thought they said by Wednesday PFC had to present concrete evidence they can pay the debt off. no more last minute "we have an interested party"... and then by Friday they have to actually pay it off? Bit confusing. They'll avoid going bust anyways.

[readingbedding]

Very good chance Portsmouth will get help from the Premier League.
They'll avert the winding-up if so.

[Royal Rother]

Pompey DO have to show that they can clear ALL their debts in the financial statement that they have to provide to the Court by 4pm on Weds 17th; HMRC and the Court have 2 days to study the statement and they then meet on Friday 19th to make the decision.

Some Pompey fans don't understand this; they think they have till Friday to pay HMRC.

Unless someone comes in to buy Pompey with REAL money and provable liquidity, then Pompey WILL be wound up on Friday; it was clear reading excerpts from the proceedings that the Registrar was utterly unmoved by pleas from Pompey about the 600 (!!!) employees who will lose their jobs and the thousands of fans who will be gutted if Pompey were to go under. The registrar stated that she had no need to consider the consequences of a decision to wind up; her duty was to ensure that money was either paid, or if unpaid, that no further debts were accrued. Hence the 7 day adjournment.

That is absolutely my take on it.

If the law as I understand it is going to be upheld then Scudamore is doing nothing but pissing in the wind unless someone else puts in tens of millions of pounds in the next few days.

Football itself has its own laws that sometimes beggar belief but surely the PL does not have the power to change the law of the land?

[readingbedding]

Also that's the take from the journo who wrote that piece.

[Barry the bird boggler]

I still reckon that some mug will pop up at the 11th hour and save them.....

[Uke]

I still reckon that some mug will pop up at the 11th hour and save them.....

What would be best would be if someone buys Pompé and then relocates them to another location à la MK Dons, who would have also gone bust too.

Franchise FC's may unfortunately end up becoming the 'saviour' of football

[Stranded]

I still reckon that some mug will pop up at the 11th hour and save them.....

What would be best would be if someone buys Pompé and then relocates them to another location à la MK Dons, who would have also gone bust too.

Franchise FC's may unfortunately end up becoming the 'saviour' of football

Where would they move to - MK was an option but not sure where else would be?

[Arch]

I still reckon that some mug will pop up at the 11th hour and save them.....

What would be best would be if someone buys Pompé and then relocates them to another location à la MK Dons, who would have also gone bust too.

Franchise FC's may unfortunately end up becoming the 'saviour' of football

Where would they move to - MK was an option but not sure where else would be?

Dublin

[Stranded]

If they did, see the floodgates open then - Celtic/Rangers would be down in a flash.

[TFF]

Don't the FL have some say in the matter of handing out the parachute payment? I have a vague recollection that monies owed by way of of parachute payments that cannot be paid to the relegated club, either because that club is immediately promoted back to the PL or ceases to exist, would be shared amongst the league clubs.

Anybody know what would happen to the parachute money if they were liquidated?

[Sun Tzu]

Very good chance Portsmouth will get help from the Premier League.
They'll avert the winding-up if so.

They might delay it but the PL won't be able to avert it for ever if the club is insolvent. All that would happen woul dbe what happened to Gretna in Scotland where the club folded (in effect) with all but a skeleton staff made redundant and the league paying players until the end of the season. Players would effectively be free agents and the best would disappear before the end of the season anyway but the PL would get it's fixtures completed. Once Pompey were relegated the issue goes away for the PL as they would no longer be members.