Generic clubs in financial crisis Thread

[Ian Royal]

^^ this

reduce the total, but distribute more cash to the each of the remaining clubs

Yeah, said this earlier.

[Stuka]

This new-co, if it all goes ahead, will they just start with the slate wiped clean? I thought liquidation meant they had to sell everything to the creditors then disappear. I don't understand how a business can just magic itself out of debt and continue as it left off by just changing the name and starting the accounts again, even if the club isn't allowed back into SPL.

[Royal Rother]

No. They sell everything to (generally) the highest bidder in order to raise money to distribute to the creditors. Then that highest bidder works to exploit the goodwill of the fans that will be largely carried over from the old club in order to build a successful new business.

And yes, pretty much slate wiped clean because it is a new club, in legal terms nothing to do with the old one.

If the new club are placed in the bottom division of the Scottish League they should have the potential to make a big profit and build a strong Balance Sheet. The goodwill of the fans of the old club would largely be carried over so they would still generate large crowds and could play their kids and probably walk away with that League. Then gradually build over the next 4 years or so.

It's actually likely that Celtic would be the suffering more than Rangers 2012 because they still have players on contracts that would be hard to support without the 4 OF games a year!

If they can view it as a 5 year rebuilding plan then it could very well be a fantastic opportunity to overtake Celtic... but if they feel hard done by, fight perceived injustices that aren't really there, and chase the dream too quickly then it could be a real struggle.

[Stuka]

Thanks for summerising it. Must admit I've been getting increasingly confused by the situation. Well I have to say I think Rangers have a chance to really sort themselves out with a fresh start. I have a feeling the other clubs will begrudingly let them back in SPL but as you say, it'll not be the end of the world for Rangers if they spend a couple years working their way back up and sorting themselves out along the way.

-I also of course now realise that the buyer's the one who buys into Rangers by taking on the debts.

[Wax Jacket]

what happens to Ibrox - who owns it and would money from any potential sale go to the creditors?

[Silver Fox]

That's the thing I've never quite understood, it's a hell of an asset and all the way through everyone keeps saying, "no matter what happens, we'llbe playing at Ibrox" If I was the taxman i'm sure I could find a better use for it

[Wax Jacket]

'zactly

[Stuka]

The tax man just wants some money, so whoever's 'buying' Rangers is really just paying off the tax man and starting again (I think). In this sense it seems the term 'liquidation' is misleading.

-not sure if I've got this right

[TFF]

From what I've read, the liquidators will achieve about £5.5m from the sale of Ibrox to NewCo, just about covering their own fees.

I'm not sure if the land has been offered to Tesco or a housing developer, or what it might be worth in that regard, but it seems that as with all football administrations the first concern is keeping 'the football club' going rather than achieving the best deal for creditors.

Stinks as usual

[soggy biscuit]

On the flip side of financial crisis, Watford are the latest club to enter takeover talks, and a very wealthy owner in waiting by all accounts, already talking about the Prem and Europe.

.

Sounds like we ought to hope that is true!

http://www.watfordobserver.co.uk/sport/ ... e_Bassini/

Lots of (probably false) Internet rumours of Zola becoming Watfords manager

[Ian Royal]

From what I've read, the liquidators will achieve about £5.5m from the sale of Ibrox to NewCo, just about covering their own fees.

I'm not sure if the land has been offered to Tesco or a housing developer, or what it might be worth in that regard, but it seems that as with all football administrations the first concern is keeping 'the football club' going rather than achieving the best deal for creditors.

Stinks as usual

Couldn't HMRC just play the bastard and offer to take ownership of Ibrox as payment of its total debt? That would surely generate a greater value than £5.5m? HMRC then makes NewCo pay to use it, or sells it to a developer for redevelopment? NewCo now have nowhere to play.

[blindedbythelights]

Isn't Ibrox/huge parts of it at any rate a listed building

[Alexander Litvinenko]

The Archibald Leitch Facade is.

But much of Highbury was too, and that's been redeveloped keeping the listing bits intact.

[Royal Rother]

Part is B Listed. I don't think that gives it full protection, rather it would be up to the City Council to decide what happened to it in the event of an application for development.

[watfordroyal]

If you've never been to Ibrox, it's not the most affluent area, so luxury apartments are not going to be attractive to any rich buyers, they'd have the wheels nicked from their mercs & beamers by the wegies in no time. Don't think it'd suit Tescos/Asdas profile area either. Maybe Lidl or Aldi lol, but more likely a scrappies yard would be best use!

[Alexander Litvinenko]

Is that just because of the football, though? House prices around Elm Park went up by 30% the month Reading FC moved to Smallmead.

[watfordroyal]

Is that just because of the football, though? House prices around Elm Park went up by 30% the month Reading FC moved to Smallmead.

Have you never seen Rab C Nesbitt?

[sandman]

Is that just because of the football, though? House prices around Elm Park went up by 30% the month Reading FC moved to Smallmead.

No. Think Beirut but worse.

[Tony Le Mesmer]

Is that just because of the football, though? House prices around Elm Park went up by 30% the month Reading FC moved to Smallmead.

No. Think Beirut but worse.

This. My only visit to Ibrox resulted in me having to walk from the ground through Govan to the city centre. At night. Truely horrendous experience.

[Wax Jacket]

Beirut's meant to be one of the best cities in the Eastern Med. you might want to upd8 your war zone vocab