Generic clubs in financial crisis Thread

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Reading4eva
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Re: Generic clubs in financial crisis Thread

by Reading4eva » 08 Apr 2014 08:55

Stretts
dizzynewheights Hereford on the brink

:(

Not looking good at Edgar Street:

Facts and Figures

Trading losses at the club have totalled £1.5million over the last four years (10/11 £173,537, 11/12 £452,472, 12/13 £498,994, 13/14 £400,000 estimate)

Staff and Players have not been paid for several weeks

Players "haven't been paid correctly for over two months" according to Friday’s statement

The Non League paper says Martin Foyle & Andy Porter had not been paid in 2014

Numerous local suppliers have not been paid

Herefordshire Council have not received rent or rates for several months

The Board have stated that they are no longer able to cover losses

The Board will make a decision on Administration later this week if no new investment is found

The latest accounts given at the AGM show total debts of around £950,000 after £285,000 of loans were converted to shares. Further losses of £400,000 are expected for this season

The Hereford Times estimates unpaid wages at the club to be £100,000

The AGM was told the outstanding HMRC debt was £78,000 and the club is expecting HMRC to begin winding up proceedings at any point

A transfer embargo is in force for non payment of wages and debts to other clubs for loan players

Scenarios

1. The club trades it’s way out of trouble According to statements made at the AGM, the Club requires £300,000 to cover losses this season and a further £300,000 to meet obligations next season. These are sums that would need to be found/raised.

2. The club enters Administration - Under Conference rules, the Club would receive a 10 point penalty if it goes into Administration before Thursday. This would plunge the Club into the relegation zone. After Thursday, the Conference can impose the penalty this season if the Club is not automatically relegated under normal circumstances and the sanction would relegate the club.

In either case, the Club would have to settle all ’Football Creditors’ by the AGM in June 2014 to avoid an automatic relegation in addition to any relegation suffered during the season. Football Creditors include all employees of the Club, as well as other teams. The Club would also have to agree a CVA to pay 100% of debts within 3 years of the date of the CVA agreement. Creditors can agree deals prior to the CVA to accept smaller sums or write off debts, but 100% of the agreed sums must be paid.

Any continuation of business would require the Administrator to believe that the company is salvageable. The Administrator legally cannot let the company incur further debt and would have no choice but close the Club if it continued to have more outgoings than income.

3. The club enters Liquidation - The club would cease to trade immediately. Under the terms of the leases, the lease on the Edgar Street ground would become void and Herefordshire Council would take possession of the ground. The Liquidator would seek ‘best value’ from the assets of the club selling off stock, fixtures and fittings, and memorabilia around the stadium.

In the event of Liquidation, a new club would be able to play at Edgar Street if Herefordshire Council granted it a lease.


No that's not looking good at all. And another proud club which isnt Portsmouth gets massive sanctions if they do go into Administration. To be fair its likely that the Aldershit will catch them anyway so doing it before they do may be better than waiting till there already dead and buried.

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Uke
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Re: Generic clubs in financial crisis Thread

by Uke » 08 Apr 2014 09:38

handbags_harris So, a man convicted of fraud in his own nation that is a member of the European Union can take over an English league football club. So, can someone remind me what the fit and proper person test is for again...?


Box ticking and then taking the cash

Any football club owner will sell at a loss.

It's almost like they need somewhere through which they can channel money out of their countries

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Sutekh
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Re: Generic clubs in financial crisis Thread

by Sutekh » 08 Apr 2014 16:42

So if Cellino's Italian appeal fails is he looking at a spell behind bars or just a fine?

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Deadlock
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Re: Generic clubs in financial crisis Thread

by Deadlock » 08 Apr 2014 17:08

€600K fine and confiscation of the yacht.
http://www.bbc.co.uk/sport/0/football/26627183

glass half full
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Re: Generic clubs in financial crisis Thread

by glass half full » 09 Apr 2014 07:26

6ft Kerplunk Plan B is go into administration, offer 1p in the £, not pay that and carry on. <repeat to fade>


Didn't Leicester do that a few years ago?


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PieEater
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Re: Generic clubs in financial crisis Thread

by PieEater » 09 Apr 2014 10:43

They are the reason for we points deduction for administration.

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melonhead
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Re: Generic clubs in financial crisis Thread

by melonhead » 09 Apr 2014 11:30

PieEater They are the reason for we points deduction for administration.



agreed :lol:

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Re: Generic clubs in financial crisis Thread

by The Real Sandhurst Royal » 01 May 2014 07:49

AFC Bournemouth post £15.3m loss for 2012-13.

http://www.bbc.co.uk/sport/0/football/27224806

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Re: Generic clubs in financial crisis Thread

by BR2 » 01 May 2014 09:07

The Real Sandhurst Royal AFC Bournemouth post £15.3m loss for 2012-13.

http://www.bbc.co.uk/sport/0/football/27224806


And that was in Div 1.


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Royal Rother
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Re: Generic clubs in financial crisis Thread

by Royal Rother » 07 May 2014 07:51

Man City in deep shit over FFP. £50m fine.

Fascinating that they employed Deloittes, the very mob who drafted much of the FFP rules, to oversee their accounting and ensure they stayed within the acceptable parameters.

UEFA then employed Deloittes' biggest rivals, PWC, on their side and they have dug deep and found that Man City had indeed broken the rules but effectively tried to hide it or missed a crucial point.

Very interesting to see where this story goes.

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Re: Generic clubs in financial crisis Thread

by stealthpapes » 07 May 2014 09:19

I think the squad ruling might be the best way to approach punishing FFP transgressions.

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Re: Generic clubs in financial crisis Thread

by Sutekh » 07 May 2014 09:49

Fines are pointless, there should be a points deduction as well :lol:

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Royal Rother
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Re: Generic clubs in financial crisis Thread

by Royal Rother » 10 May 2014 07:20

Royal Rother Man City in deep shit over FFP. £50m fine.

Fascinating that they employed Deloittes, the very mob who drafted much of the FFP rules, to oversee their accounting and ensure they stayed within the acceptable parameters.

UEFA then employed Deloittes' biggest rivals, PWC, on their side and they have dug deep and found that Man City had indeed broken the rules but effectively tried to hide it or missed a crucial point.

Very interesting to see where this story goes.


8 of the 9 clubs to have fallen foul of FFP under UEFA are close to agreeing deals apparently - Man City still considering their position yesterday.

Announcement expected Monday.


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Re: Generic clubs in financial crisis Thread

by SpaceCruiser » 10 May 2014 11:02

glass half full
6ft Kerplunk Plan B is go into administration, offer 1p in the £, not pay that and carry on. <repeat to fade>


Didn't Leicester do that a few years ago?


And the scumbags got a free stadium in the process, IIRC.

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SPARTA
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Re: Generic clubs in financial crisis Thread

by SPARTA » 12 May 2014 13:59

Bury close to going bust. Real shame if it happens. I quite like Bury.

BURY Football Club will go out of business in days unless they get £1 million of investment

http://www.burytimes.co.uk/news/1034534 ... on/?ref=rc

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Re: Generic clubs in financial crisis Thread

by handbags_harris » 12 May 2014 21:03

Sad to hear, but when a Chairman of a club with a dearth of financial hardship stories over the last 20 years goes cap in hand to local investors saying "come on lads, give us £100,000 each, I'll make sure you get your money back", well it all smacks a bit of pure desperation really.

UNfortunately, Bury is one of those clubs that should have gone bust years ago, or allowed itself to be relegated to a sustainable level. Put it out of it's misery. It's not like a club that has been badly mismanaged, it's just a club that consistently finds itself in an unsustainable situation with no recourse to financial safety.

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Re: Generic clubs in financial crisis Thread

by Wax Jacket » 13 May 2014 13:56

^ 'greed. and for all that it's a community asset that needs to be saved and so on - well let it carry on being a community asset just at a more sustainable level.

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Re: Generic clubs in financial crisis Thread

by Sutekh » 13 May 2014 14:30

So if they go under Bristol Rovers could be reprieved from the Conference....

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Re: Generic clubs in financial crisis Thread

by Terminal Boardom » 13 May 2014 18:41

SPARTA Bury close to going bust. Real shame if it happens. I quite like Bury.

BURY Football Club will go out of business in days unless they get £1 million of investment

http://www.burytimes.co.uk/news/1034534 ... on/?ref=rc


Am I missing something here? The date of the article is 10th April.

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SPARTA
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Re: Generic clubs in financial crisis Thread

by SPARTA » 13 May 2014 19:37

Terminal Boardom
SPARTA Bury close to going bust. Real shame if it happens. I quite like Bury.

BURY Football Club will go out of business in days unless they get £1 million of investment

http://www.burytimes.co.uk/news/1034534 ... on/?ref=rc


Am I missing something here? The date of the article is 10th April.


That'll be me searching latest news, seeing 10th, and expecting latest news. :roll: Anyway, seems quite the recovery - http://www.thisislancashire.co.uk/news/ ... ain_stand/ new stand and training complex. :|

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