Generic clubs in financial crisis Thread

[Ian Royal]

SSN saying it's been referred by the FA (not PL) to FIFA with an answer tomorrow

I bet FIFA agree to it...

Aren't FIFA dead against all the debt in the PL? Certainly UEFA seem to be, so I can't see it being agreed.

[Sun Tzu]

Surely they could just "sell" the player now (but wont move till the next window) and at least prove they have the funds coming in at the end of the season.........

That would mean the player couldn't then play any games. May not be very popular with the player !!

I mean have a pre-contract in place........you can put a bid in for players whenever you like but the deal doesn't go through until the transfer window is open again, so they could sell some players this way and say to the courts "look we'll be getting £10m from them in June" etc

1. Why would anyone buy under those terms ? Especially when they coul dhave bought and had use of the player just a couple of weeks back

2. The only way someone would buy would be if they got a player at rock bottom prices. Which would mean Pompey selling off an asset at well under it's value. Would that not make their position even worse ? It would mean any potential buyer would have an even less attractive club to buy, plus they would have a player with zero motivation to even turn up for games, let alone put any effort in

3. What happens if this player breaks a leg ?

[Wax Jacket]

24 hours to get the richest person anyone in Pompey knows to fly to FIFA with a big old bag of cash

[PieEater]

Don't the players have a say in the deal too?

It would be in their interest not to accept a move as they will all probably be able to move on a free shortly anyway and possibly get higher wages. If Pompey do manage to get to the end of the season there'll be a firesale.

[PieEater]

24 hours to get the richest person anyone in Pompey knows to fly to FIFA with a big old bag of cash

I'm not sure how/why it changed but the original date (tomorrow) moved to 1 March, so they have a little bit more time.

[Geekins]

Don't the players have a say in the deal too?

It would be in their interest not to accept a move as they will all probably be able to move on a free shortly anyway and possibly get higher wages. If Pompey do manage to get to the end of the season there'll be a firesale.

Anything is better than Portsmouth TBF.

[TFF]

SSN saying it's been referred by the FA (not PL) to FIFA with an answer tomorrow

I bet FIFA agree to it...

Aren't FIFA dead against all the debt in the PL? Certainly UEFA seem to be, so I can't see it being agreed.

BBC5L reckon they'll say yes.

If the club folds the players will be free agents. Should they take the administration route one of the conditions of administration, apparently, is that the club can sell players outside of the window. School of thought that if the players will be on the market in a couple of weeks anyway they might as well let Pompey take the cash.

I hope they don't though. Unfair advantage over clubs that have structured sensibly.

[exileinleeds]

I suspect there will also be cries of "unfair" if, for example Bolton pick up a couple of players, who make an impact at say the expense of West Ham. There is so much about unfair advantage...I can't see them going with it.

[TFF]

I suspect there will also be cries of "unfair" if, for example Bolton pick up a couple of players, who make an impact at say the expense of West Ham. There is so much about unfair advantage...I can't see them going with it.

Though given recent history that would be a kind of beautiful.

[rabidbee]

Could they loan players now, with an agreement in place to complete permanent transfers as soon as the window reopens. Take the full sum up front now as a loan fee, and then complete the permanent deal in the summer as free transfers.

Of course, if the other clubs were feeling particularly predatory, they could sit back and wait for Pompey to fold. Why pay for players that they could pick up as cheap free agents in a few weeks' time?

[6ft Kerplunk]

So the papers they submitted to the High Court yesterday just basically said "We'll sell some players and pay the tax bill with that" conveniently forgetting to mention the FIFA transfer window. Can't see them getting a favourable judgement.

[Smoking Kills Dancing Doe]

Maybe I am missing the point, but why dont Pompey go into administration?

[rabidbee]

Maybe I am missing the point, but why dont Pompey go into administration?

"Meanwhile, a financial expert says Portsmouth face a very real threat of extinction because of their financial problems and he believes administration is an unlikely option. 'Arguably, the level of debt associated with this case will mean that it is unlikely that a suitable or willing benefactor will be found,' said Simon Wilson, a partner with restructuring experts Zolfo Cooper. 'Portsmouth therefore face the very real threat of liquidation because it is increasingly unlikely that an administration order will be sought or granted.'"

[Ark Royal]

Any news yet about the Conference meeting this evening to decide Chester City's fate?

[Smoking Kills Dancing Doe]

Maybe I am missing the point, but why dont Pompey go into administration?

"Meanwhile, a financial expert says Portsmouth face a very real threat of extinction because of their financial problems and he believes administration is an unlikely option. 'Arguably, the level of debt associated with this case will mean that it is unlikely that a suitable or willing benefactor will be found,' said Simon Wilson, a partner with restructuring experts Zolfo Cooper. 'Portsmouth therefore face the very real threat of liquidation because it is increasingly unlikely that an administration order will be sought or granted.'"

Jeez.

Still, like Harry said, the fans should be greatful.

And that's the worst thing, all the people responsible come out of it smelling of roses. Storrie's is on £1.2m a year. The only people who are going to pay for this are the fans.

The Premier League should save Pompey, they let this happen. They allowed a succesive line of conmen and fraudsters to destroy this club. It's been said before, but what is the point of the fit and proper persons test??

[Royal Rother]

As always these things are more complicated than a paragraph or 2 can illustrate but if a company goes into administration it is effectively being run / supervised by insolvency experts, freezing the debts, in the hope that a buyer can be found who will buy / inject money into it to make it a worthwhile business going forward and give a strong indication to the creditors that it will receive a payment against their debt. That payment can be made upfront or over time depending on what is agreed.

If that does not look a viable proposition then liquidation is the only real alternative where everything is shut down and the insolvency bods conduct a virtual fire sale of everything owned by the company in order to generate the maximum pay out for the creditors (after taking their own fees of course!).

Quite where the balance lies between courts, creditors and insolvency practitioners once a winding up order has been issued (as in the case here with HMRC) I really don't know but to my simplistic eyes (and I know football has some rules of its own that are a mystery to most) unless a viable investment / rescue plan is put in pace in the next few days the club will be shut down.

[T.R.O.L.I.]

A farcical situation just gets even funnier. Hopefully FIFA will tell Pompey to where to go.

[Smoking Kills Dancing Doe]

I know HobNob ain't the place to get all serious about things.

But there is nothing funny about this situation.

[T.R.O.L.I.]

I disagree - I find it hilarious how a business which in any other sector would have gone bust, continues to "trade" and yet the powers that be are considering breaking their own "rules" to keep them afloat.

[Smoking Kills Dancing Doe]

All I know is it would kill if this was happening to Reading.