Generic clubs in financial crisis Thread

[From Despair To Where?]

Exactly, if I was declared bankrupt and I went to the bank asking for a loan to pay the rent, they'd tell me to fcuk off.

I can't see how this can reasonably end with any outcome tother than winding up.

I know Morris values the stadium at £50m but realistically it's worth nothing without a team playing in it.

[Silver Fox]

I appreciate its the administrators rather than the club doing it but is that even legal?

I bet Mike Ashley has the number of some payday loan companies. At the obligatory 90% interest.

I can’t see how any institution could loan money to a company where income is basically zero, are already in administration and have no collateral to rely on, even if it were legal

Even at stupid rates of interest the potential for a default on the loan is massive, shirley

Yep

Hi! Can we borrow some money please? We're in administration at the moment but hopefully this loan will tide us over until we can get out of administration and pay non-football creditors including you 25p in the pound, if you're lucky.

Hello?
Hello?

[ReadingGlasses]

The only scenario I can think of where someone might loan a club some money in this situation would be if they were potential buyers, confident of getting the deal done, and wanting to keep the club going for long enough for it all to be signed off.

[Dirk Gently]

Exactly, if I was declared bankrupt and I went to the bank asking for a loan to pay the rent, they'd tell me to fcuk off.

I can't see how this can reasonably end with any outcome tother than winding up.

I know Morris values the stadium at £50m but realistically it's worth nothing without a team playing in it.

There are certain organisations which exist only to loan money to football clubs who are in financial trouble. Reading used one to pay the wages a few years ago and picked up a FL penalty for it.

Their standards for acceptance are a lot lower than commercial banks - maybe because there's no real audit trail of where their money comes from.

[From Despair To Where?]

We weren't in administration though when we took out the Vibrac loan. It was secured against parachute payments which was actual real money that we actually had and we also sold assets to pay debts.

[Stranded]

Exactly, if I was declared bankrupt and I went to the bank asking for a loan to pay the rent, they'd tell me to fcuk off.

I can't see how this can reasonably end with any outcome tother than winding up.

I know Morris values the stadium at £50m but realistically it's worth nothing without a team playing in it.

There are certain organisations which exist only to loan money to football clubs who are in financial trouble. Reading used one to pay the wages a few years ago and picked up a FL penalty for it.

Their standards for acceptance are a lot lower than commercial banks - maybe because there's no real audit trail of where their money comes from.

There are and they do but I'm intrigued by how this world work - MSD is one such organisation I thin - if they loan money now they are a creditor but where to do they sit on the list of creditors? Are they classed as a football loan, in which case they get back 100% of their money or are they just a standard creditor who can only expect the 25p in the pound or so that is the best any creditor will get.

If it is the latter, then they would be fools - if it is the former then it either means other creditors may have to accept less or the cost of coming out of admin is about to go up another couple of million (minimum). I'm sure something will save them at the last minute but if I were a Derby fan now, I would be seriously worried that I won't have a club to support in the coming weeks.

[On Strings]

"At least two of Derby's SEVEN senior contracted players are taking legal action over an employment law that could allow them to rip up their contracts when the club is sold..." - BBC Radio Derby

And we thought out player count was bad

[Sutekh]

[quote="On Strings"]"At least two of Derby's SEVEN senior contracted players are taking legal action over an employment law that could allow them to rip up their contracts when the club is sold..." - BBC Radio Derby

5 senior players are definitely contracted; Krystian Bielik, Max Bird, Jason Knight, Louie Sibley and Jack Stretton while a further two players have agreements with options for a further year which I presume would be the two referenced in the quote above.

[Winston Biscuit]

"At least two of Derby's SEVEN senior contracted players are taking legal action over an employment law that could allow them to rip up their contracts when the club is sold..." - BBC Radio Derby

5 senior players are definitely contracted; Krystian Bielik, Max Bird, Jason Knight, Louie Sibley and Jack Stretton while a further two players have agreements with options for a further year which I presume would be the two referenced in the quote above.

wasn't he the next big thing?

[Stranded]

"At least two of Derby's SEVEN senior contracted players are taking legal action over an employment law that could allow them to rip up their contracts when the club is sold..." - BBC Radio Derby

5 senior players are definitely contracted; Krystian Bielik, Max Bird, Jason Knight, Louie Sibley and Jack Stretton while a further two players have agreements with options for a further year which I presume would be the two referenced in the quote above.

The 2 Derby fans seem to think are taking legal action are Buchanan and Byrne who had options triggered for another year. Their view appears to be, how can a company that will liquidate (it would come out of admin a new company) extend my contract for a year only to transfer it over to a new owner almost immediately.

Think they will also be covered by TUPE which some Rangers players used when the NewCo club was formed and they didn't want to drop down and play in the bottom tier.

[Mr Optimist]

Have Derby now finished paying Arsenal for Krystian Bielik now then, I thought there was some talk of unpaid instalment payments?

[Silver Fox]

Have they started paying for him?

[Winston Biscuit]

Your man from Quantuma (the Derby administrators)

it would be naive of me to not ensure we’ve got funding available and assuage the EFL’s concerns, but that’s very much a secondary protection strategy. The main strategy is to get the club sold and sold as quickly as possible.

“Quite what the terms will be, we’ll have to wait and see. Could there be negative points? When do I think it will happen? I genuinely don’t know.

[Franchise FC]

Your man from Quantuma (the Derby administrators)

it would be naive of me to not ensure we’ve got funding available and assuage the EFL’s concerns, but that’s very much a secondary protection strategy. The main strategy is to get the club sold and sold as quickly as possible.

“Quite what the terms will be, we’ll have to wait and see. Could there be negative points? When do I think it will happen? I genuinely don’t know.

Words, words, words, words, words

Says nothing

[Winston Biscuit]

Your man from Quantuma (the Derby administrators)

it would be naive of me to not ensure we’ve got funding available and assuage the EFL’s concerns, but that’s very much a secondary protection strategy. The main strategy is to get the club sold and sold as quickly as possible.

“Quite what the terms will be, we’ll have to wait and see. Could there be negative points? When do I think it will happen? I genuinely don’t know.

Words, words, words, words, words

Says nothing

I took it to mean 'we are not focusing on what the EFL want, we are focusing on selling the club, and so you may want to brace yourselves for a points deduction'

[Franchise FC]

Your man from Quantuma (the Derby administrators)

Words, words, words, words, words

Says nothing

I took it to mean 'we are not focusing on what the EFL want, we are focusing on selling the club, and so you may want to brace yourselves for a points deduction'

I wasn’t suggesting that you were suggesting anything else (?! )
They’re clearly trying to make a statement without saying anything, so leaving it up to the reader to make it up

Your interpretation is about as logical as it gets

[6ft Kerplunk]

At some point they're going to have to let one of these "bigger" clubs just go bust, any other business would have been folded by this point. It'll keep happening time and time again if every club knows that eventually they'll get saved.

[Winston Biscuit]

EFL confirm there is now a delay with the proposed takeover of Derby. Was expected to be complete today apparently.

[AthleticoSpizz]

(Yet) another EFL “it’s ok, we will wait for you Derby”.

You are Derby after all

[Franchise FC]

Does anyone know the deadline by which clubs have to exit administration to avoid a points deduction for the new season.

Just so that I know when the EFL have allowed Derby to miss it