Generic clubs in financial crisis Thread

[FiNeRaIn]

Call me old fashioned, but I think that if you have debts, you should pay them, and that debts owed to HMRC should take priority as those funds belong to the public.

I agree. People go to prison for tax evasion, yet a lot of football clubs seem to include it in the business plan. They are stealing from me. I don't like it.

Agree with both of you. Only in this shocking attempt at an english league does this happen. No one else gets this ridiculous treatment - so why do corrupt football clubs?

But GUYS! English football is the best in the world

/spit

Makes me sick. C**s.

[Barry the bird boggler]

Well despite it being their very last chance today, they've been given another one. They have another 7 days to pay the bill.

From the BBC

Southend United given seven days to pay unpaid tax bill

Southend United have been granted an extra week to settle an unpaid tax bill with Her Majesty's Revenue & Customs.

The League One outfit faced a winding- up order in the High Court on Wednesday over a debt of about £400,000.

In March they were given 35 days to settle the debt, having already paid a tax bill of £2.1m last November.

However, they have been given a further stay of execution after the court was told they are planning to transfer the money owed within the next few days.

They have been consistently late paying wages this season, with February's only paid last week, and March's still due.

Southend are five points adrift of safety in the League One relegation zone, and manager Steve Tilson believes off-field problems are not helping their form.

"Long-term, I keep saying, it looks rosy," said Tilson. "But long-term is no good for us at the moment. We want to stay in this division and build from that."

Chairman Ron Martin says he is keen for the club to move to a new stadium and grow, telling fans on his blog that "we are not a club [and I could name many] who are content to stay in the lower echelons of League One or Two.
"To simply be satisfied at playing League football will never be a 'turn on' for me as chairman."


Ridiculous isn't it, clubs told no more and they still get given a load of last chances. No wonder Portsmouth won't be wound up.

[ankeny]

Well despite it being their very last chance today, they've been given another one. They have another 7 days to pay the bill.

Just rename themselves Portsmouth,the Teflon club.Hey Presto,worries over

[Deadlock]

In March they were given 35 days to settle the debt, having already paid a tax bill of £2.1m last November.

However, they have been given a further stay of execution after the court was told they are planning to transfer the money owed within the next few days.

Fuxache that's lame. If Southend can't pay up within the given time, when they know that failure to pay was supposed to mean liquidation, why should the court believe them when they say they'll pay in a few days?

[Mr Optimist]

In March they were given 35 days to settle the debt, having already paid a tax bill of £2.1m last November.

However, they have been given a further stay of execution after the court was told they are planning to transfer the money owed within the next few days.

Fuxache that's lame. If Southend can't pay up within the given time, when they know that failure to pay was supposed to mean liquidation, why should the court believe them when they say they'll pay in a few days?

Who would have thought that in the age of instant bank transfers the old "cheque is in the post" excuse would still work! Does make you wonder what clubs will do when cheque books are fazed out.

[Ian Royal]

Lost of Bank transfers aren't instantaneous.

[Stranded]

Lost of Bank transfers aren't instantaneous.

No but they still had 35 days and that was supposedly it. I don't like to see any club go to the wall but is getting ridiculous the amount of chances clubs get to pay debts.

If this was a company run by you or I and we had that deadline there is no way in hell we'd get another 7 days to pay.

[exileinleeds]

No more financial crises for relegated clubs!!!

David GoLOLd has announced PL chairmen have agreed that parachute payments will now be worth £48 m and spread over 4 years. They expect the discision to be ratified over the summer.


Brum making news. A consultancy company claims they are in contempt of court and that unless £2.5m is paid by their chairmans company by May 27 then they have the power to seize shares and will sell them.

[Ian Royal]

Lost of Bank transfers aren't instantaneous.

No but they still had 35 days and that was supposedly it. I don't like to see any club go to the wall but is getting ridiculous the amount of chances clubs get to pay debts.

If this was a company run by you or I and we had that deadline there is no way in hell we'd get another 7 days to pay.

Oh, thoroughly agree about that. No doubt.

[Stranded]

No more financial crises for relegated clubs!!!

David GoLOLd has announced PL chairmen have agreed that parachute payments will now be worth £48 m and spread over 4 years. They expect the discision to be ratified over the summer.


Brum making news. A consultancy company claims they are in contempt of court and that unless £2.5m is paid by their chairmans company by May 27 then they have the power to seize shares and will sell them.

The parachute payments have to be agreed to by the FL as well, which is not a foregone conclusion.

[Wimb]

No more financial crises for relegated clubs!!!

David GoLOLd has announced PL chairmen have agreed that parachute payments will now be worth £48 m and spread over 4 years. They expect the discision to be ratified over the summer.


Brum making news. A consultancy company claims they are in contempt of court and that unless £2.5m is paid by their chairmans company by May 27 then they have the power to seize shares and will sell them.

The parachute payments have to be agreed to by the FL as well, which is not a foregone conclusion.

Would be a fecking disaster if this goes through and I hope the FL tell the PL where to go. Wonder if this is Phil Gartside's latest attempt to create a Premier League 2

[Barry the bird boggler]

Talk about sticking your head in the sand and hoping the problem goes away!

No way should that be approved. If you want that then you specifically create a Premiership 2 and at least have the decency to benefit another 20/24 clubs rather than the same malaise of 6 or so yoyo clubs

[BobKnows]

FootbalLOL

Seriously

[soggy biscuit]

No more financial crises for relegated clubs!!!

David GoLOLd has announced PL chairmen have agreed that parachute payments will now be worth £48 m and spread over 4 years. They expect the discision to be ratified over the summer.


Brum making news. A consultancy company claims they are in contempt of court and that unless £2.5m is paid by their chairmans company by May 27 then they have the power to seize shares and will sell them.

You could quite litterally be receiving your final Premier League parachute payment when you were in the conference.

[Wax Jacket]

FootbalLOL

Seriously

you missed a LOL there but 'greed

[CMRoyal]

I've heard tell that if Hull lose on Saturday they will go into administration, blaming their ousted chairman for their financial troubles.

A question for the financially and football administratively astute: is this their way of avoiding starting next season in the Championship with minus ten points? There must be rules around this kind of approach?

[Stranded]

I've heard tell that if Hull lose on Saturday they will go into administration, blaming their ousted chairman for their financial troubles.

A question for the financially and football administratively astute: is this their way of avoiding starting next season in the Championship with minus ten points? There must be rules around this kind of approach?

There is within the FL but I'm not sure if there is a rule regarding teams coming down from the PL.

[Stranded]

No more financial crises for relegated clubs!!!

David GoLOLd has announced PL chairmen have agreed that parachute payments will now be worth £48 m and spread over 4 years. They expect the discision to be ratified over the summer.


Brum making news. A consultancy company claims they are in contempt of court and that unless £2.5m is paid by their chairmans company by May 27 then they have the power to seize shares and will sell them.

The parachute payments have to be agreed to by the FL as well, which is not a foregone conclusion.

Would be a fecking disaster if this goes through and I hope the FL tell the PL where to go. Wonder if this is Phil Gartside's latest attempt to create a Premier League 2

Interesting article in WSC this month alluding to this very thing. How the increase in these parachute payments is the PL's way of trying to unbalance the competiveness of the CCC.

[Sun Tzu]

I've heard tell that if Hull lose on Saturday they will go into administration, blaming their ousted chairman for their financial troubles.

A question for the financially and football administratively astute: is this their way of avoiding starting next season in the Championship with minus ten points? There must be rules around this kind of approach?

I believe that when they got rid of their chairman it was widely stated that relegation would mean administration (or worse) for them. I don;t think it would in any way mean they don't get the penalty applied for next season, it's what Leeds did and weren;t the rules specifically changed so that if you went into admin too late to have the points deduction one season they they were applied the next ?

[TFF]

I've heard tell that if Hull lose on Saturday they will go into administration, blaming their ousted chairman for their financial troubles.

A question for the financially and football administratively astute: is this their way of avoiding starting next season in the Championship with minus ten points? There must be rules around this kind of approach?

From June 2007:

At the Football League's Annual General Meeting in the Algarve, Club Chairmen and their representatives have voted unanimously in favour of a proposal by The League Board to amend The League's 'Sporting Sanctions' regulations.

This move closes the existing loophole which enables clubs going into administration, once effectively relegated, to avoid any negative effect from the ten point deduction imposed by The League for the following campaign (like Leeds United this season).

The new ruling introduces a cut-off date of the fourth Thursday in March, and any club who goes into administration after this date will have its ten point deduction withheld until it is known whether the Sporting Sanction will have a material effect.

The scenarios work as follows - If a club is ultimately relegated, regardless of a pending ten point deduction, the sporting sanction will occur in the following season, with the club beginning the new campaign on minus ten points. If the club is not relegated, they will suffer the points deduction in the current season (though this could see them relegated).

In previous seasons both Rotherham and Leeds United have been able to choose the point where they would suffer the ten point deduction. This has led to huge debate and is not fair on the other clubs in the division. The new ruling will take immediate effect.

I don't know what the Premier League rules are but if Hull are (effectively) relegated the League will apply a 10 point (or greater) deduction for next season.