Generic clubs in financial crisis Thread

[Platypuss]

English re-reformed clubs always start at feeder league level anyway - where there isn't direct automatic promotion and relegation.

So what happened with Leeds, why did Leeds United Football Club Limited, formed on May 1st 2007, start in League 1 rather than some feeder league?

http://companycheck.co.uk/company/06233875

The old club, Leeds United Association Football Club Limited, formed in 1920, liquidated

http://companycheck.co.uk/company/00170600

Weren't they bought out of administration via a CVA rather than being liquidated and the assets sold off?

[weybridgewanderer]

the old club liquidated, you can see from the company records I posted

they did not exit under CVA

The CVA was due to end on 3 July 2007, which would have allowed Bates to regain full control of the club. However HM Revenue & Customs challenged the CVA, a decision which could ultimately have resulted in the liquidation of the club. Under league rules, if the club were still in administration at the start of the next season, Leeds would have been prevented from starting their campaign by the Football League. Following the challenge by HMRC, the club was put up for sale by KPMG, and once again Ken Bates' bid was accepted. The league eventually sanctioned this under the "exceptional circumstances rule" but imposed a 15 point deduction due to the club not following football league rules on clubs entering administration.

But a different company name, a different company registration, so there was more to this than the club was "sold". KPMG sold the assets to Bates new company

[Mr Angry]

Obviously, anyone who DARES question anything Rangers have done is a Celtic fan......

[Platypuss]

Was the old Leeds club liquidated prior to the new company buying the assets from the liquidator?

[weybridgewanderer]

the old rangers company has not yet been liquidated

you sell the assets, pay off the creditors what you can then liquidate

[Platypuss]

the old rangers company has not yet been liquidated

you sell the assets, pay off the creditors what you can then liquidate

I'm not convinced that sequence is right at all.

[weybridgewanderer]

why not, what do you think happens? Sevco bought the assets but the old company does not die immediately

It is still in adminstration but has not been liquidated yet

http://companycheck.co.uk/company/SC004276

There are some companies and clubs that owe "old co" Rangers money. That money needs to be collect in the old companies bank account and distributed the the creditors.

maybe a liquidation expert can come on and confirm

[Mr Angry]

the old rangers company has not yet been liquidated

you sell the assets, pay off the creditors what you can then liquidate

And of course, whats the biggest asset??

The ground.

Is that getting sold off then?

I'm sure that even in the crappier part of Glasgow it should fetch a couple of million to a property developer; all money to the creditors has to be a good thing.

[Arch]

Can't help thinking Rangers and Portsmouth should each get their own thread and this one should be reserved for news about lesser basket cases.

[weybridgewanderer]

I'm sure that even in the crappier part of Glasgow it should fetch a couple of million to a property developer; all money to the creditors has to be a good thing.

It did.

Rangers assets, including the ground, Murray Park and the players registrations was apparently sold to Sevco for £5.5M

Some may argue the land was worth more than that, however as the main stand is a listed building development options are, arguably, limited

[Bandini]

Can't help thinking Rangers and Portsmouth should each get their own thread and this one should be reserved for news about lesser basket cases.

Pretty sure that Rangers and Portsmouth are specific clubs in financial crisis.

[PieEater]

Have Portsmouth run out of cash (again) yet?

Possibly but they seem to have found a new stash for them all to jolly off to Spain for pre-season training.

If I was a creditor I'd be fuming.

[Mr Angry]

I'm sure that even in the crappier part of Glasgow it should fetch a couple of million to a property developer; all money to the creditors has to be a good thing.

It did.

Rangers assets, including the ground, Murray Park and the players registrations was apparently sold to Sevco for £5.5M

Some may argue the land was worth more than that, however as the main stand is a listed building development options are, arguably, limited

That seems to me to be a massive under valuation of all that land and assets; I'm surprised that the creditors aren't calling into question the way the adminsitrators are dealing with this...........

[weybridgewanderer]

The creditors can only accept bids that were made. They may well value the land and other assets at much more, but an asset is ultimately only worth what you are offered.

Their interim report to the creditors has been posted today. It lists the various bids that were received. The creditors now have an opportunity to review and decide if they have been "done"

FYI - personally I think something stinks about the relationship between the adminstrator (Duff and Phelps) and Craig Whyte and I would not be surprised to see he was still involved in some way.

[Alexander Litvinenko]

....
FYI - personally I think something stinks about the relationship between the adminstrator (Duff and Phelps) and Craig Whyte and I would not be surprised to see he was still involved in some way.

It did at Portsmouth, too for the first administration. Hence the successful court battle to get a more independent Administrator appointed.

It really sticks bacause the Administrator should be working for the interests of the creditors - not the owners who let it get into the mess in the first place.

[Deadlock]

The creditors can only accept bids that were made. They may well value the land and other assets at much more, but an asset is ultimately only worth what you are offered.

While this is true, when you have a director of the new company claiming baldly “on a bad day the club is worth £50m” then it looks very much like gratuitous alienation.

[weybridgewanderer]

i don't disagree with you

Looking at the creditors report Green's consortium has paid £1.5M for Ibrox Stadium, Murray Park and "The Albion" (other ground that the club owns near the stadium").

The adminstrator believes this was the best deal they had on the table.

[soggy biscuit]

Kanu fails to turn up for pre season training. Pompey say it is unacceptable for someone to breach their contract and disrespectful to others

lol

[Dare to Dr£am]

Kanu fails to turn up for pre season training. Pompey say it is unacceptable for someone to breach their contract and disrespectful to others

lol

Has he been paid in the last 7 months? His family are probably on the bread line.

[Geekins]

each player got £5k a week max and rest deferred to when a takeover happens or they leave the club