Administration - is it that bad ?

[madstadblues]

Would going into Administration really be that bad ? It hasn't seemed to have hurt Leicester who benefited from having £30m of debts wiped out and 14 years later are EPL champions.

[Royalwaster]

Rules have changed since then ... so, yes it would be.

[Top Flight]

AFC Reading.

[tidus_mi2]

Weren't Leicester the team that caused the football league to introduce a point deduction for administration? They overspent, went into administration and got promoted.

[The Sum of the Parts]

Yep, it was Leicester.

And to answer the OP - a club where the majority of debt is owed to the owners means that they'd be writing off the debt owed to themselves as well as the debt owed to others.

Plus, of course, there are no guarantees that the administrator will sell the remains of the club as a single entity, or that they'll sell to the previous owners - although creditors' votes are cast proportionate to the debt each is owed, The administrators' overall duty is to maximise income for the creditors. though, so no guarantees...

Add in transfer embargoes, deduction of points, loss of bank accounts, withdrawal of bank overdraft, damage to credit rating (so credit is much more expensive in future) and it all adds up to being an utterly terrible suggestion.

[Sutekh]

And to answer the OP - a club where the majority of debt is owed to the owners means that they'd be writing off the debt owed to themselves as well as the debt owed to others.

Didn't Bolton's former chairman write off some incredible sum of money he was owed earlier this year more or less saving them from certain doom.

[The Sum of the Parts]

And to answer the OP - a club where the majority of debt is owed to the owners means that they'd be writing off the debt owed to themselves as well as the debt owed to others.

Didn't Bolton's former chairman write off some incredible sum of money he was owed earlier this year more or less saving them from certain doom.

Yes, Eddie Davies confirmed he "will not expect repayment of the debts owed to him" - debts of over £172M!

They recently survived a winding up petition from HMRC for tax debts of £2.2M - and sold their training ground to Wigan as part of the process.

It's always the tax debts that get you - as it nearly was with in summer 2014!

[One8Seven1*]

I would rather be supporting us in League 2 and have genuine owners who care about the club and its supporters, than keep being passed from dodgy owner to dodgy owner. Who will be interested in Reading Football Club without the land and many of its current assets, and take on that £60m+ debt? And why aren't STAR trying to get fans behind a petition, even if it comes to nothing, to try and prevent the sale of the land? We're all sat on our hands being all polite hoping for the best.

Somebody many pages back made a prediction about the owners selling the land, buggering off, and us losing the stadium and ending up in a 15000 capacity ground in a few years. That may not be all that far-fetched if the asset stripping continues with the next false prophets.

[The Sum of the Parts]

The world is running out of idiots prepared to buy football clubs. In the old days they were lots of them, and they'd happily queue up to take on a club and take over its debts on the promise of glory and riches. But over the years people have wised up and seen buyers come a cropper so many times, either at clubs like Portsmouth or Blackburn (where the Venkys were told the club would be 'self-financing'!) or at places like Hull and Cardiff where owners are prevented from doing exactly what they want to do with their expensive asset by all those pesky fans.

So nowadays the only potential owners that anyone can offload a football club to (and I do mean 'offload' - as you do with a hot potato) are either charlatans who make promises they don't deliver on, or those who can see a way of making money that's not connected to the football (legally or otherwise).

After all, why would anyone with no previous connection to a club or its community buy any asset that is only going to cost them more and more money with no return, and at the same time have to endure the club's supporters perpetually calling for them to keep increasing their losses by throwing more and more money at the club in order to show "ambition." What sensible business person in the world would want to do that?

In just about every football club sale over the past twenty years or so, there seems to be pattern that for the vast majority the new owner is somehow worse than the previous - and so the more changes of ownership there are the worse the owners tend to get.

The type of owner that most fans want just doesn't exist, I'm afraid - at least for a club like Reading...

[72 bus]

What sensible business person in the world would want to do that?

One that is happy to have a loss making money pit to offset the taxes from his other profitable enterprises.

[72 bus]

The type of owner that most fans want just doesn't exist, I'm afraid - at least for a club like Reading...

They do exist, We had one, but most of the mongtards on here wanted him gone.

Oh for the bad old days of SJM

[Ian Royal]

Would going into Administration really be that bad ? It hasn't seemed to have hurt Leicester who benefited from having £30m of debts wiped out and 14 years later are EPL champions.

Yeah, it would have seen us relegated in both the last two seasons.

[Green]

The world is running out of idiots prepared to buy football clubs. In the old days they were lots of them, and they'd happily queue up to take on a club and take over its debts on the promise of glory and riches. But over the years people have wised up and seen buyers come a cropper so many times, either at clubs like Portsmouth or Blackburn (where the Venkys were told the club would be 'self-financing'!) or at places like Hull and Cardiff where owners are prevented from doing exactly what they want to do with their expensive asset by all those pesky fans.

So nowadays the only potential owners that anyone can offload a football club to (and I do mean 'offload' - as you do with a hot potato) are either charlatans who make promises they don't deliver on, or those who can see a way of making money that's not connected to the football (legally or otherwise).

After all, why would anyone with no previous connection to a club or its community buy any asset that is only going to cost them more and more money with no return, and at the same time have to endure the club's supporters perpetually calling for them to keep increasing their losses by throwing more and more money at the club in order to show "ambition." What sensible business person in the world would want to do that?

In just about every football club sale over the past twenty years or so, there seems to be pattern that for the vast majority the new owner is somehow worse than the previous - and so the more changes of ownership there are the worse the owners tend to get.

The type of owner that most fans want just doesn't exist, I'm afraid - at least for a club like Reading...

Bad experience, The Sum of the Parts?

[floyd__streete]

Would going into Administration really be that bad ?

a new low for the Stockholm Syndrome which pervades amongst many RFC supporters,

[Maneki Neko]

What sensible business person in the world would want to do that?

One that is happy to have a loss making money pit to offset the taxes from his other profitable enterprises.

surely it would make more financial sense to offset the taxes on profit from one business with more profits from another business, not the other way round.

[Maneki Neko]

The type of owner that most fans want just doesn't exist, I'm afraid - at least for a club like Reading...

They do exist, We had one, but most of the mongtards on here wanted him gone.

Oh for the bad old days of SJM

agreed.



people are idiots

[loyalroyaldaz]

Dont blame those people.

Nobody made SJM flog it to The Russian or the Thais.
It was purely his decision to sell up and recoup the money he loaned...

[The Sum of the Parts]

Dont blame those people.

Nobody made SJM flog it to The Russian or the Thais.
It was purely his decision to sell up and recoup the money he loaned...

Because the money that he would need to pump in to keep the club going each year was more than he had available.

Not more than he was *worth* but with his other businesses all going down the pan and with much of his money committed to assets like Station Hill he didn't have available liquidity. He'd also obviously asked himself why he should keep on giving money to the football club and getting no return for it.

[Maneki Neko]

Dont blame those people.

Nobody made SJM flog it to The Russian or the Thais.
It was purely his decision to sell up and recoup the money he loaned...

even if that were the case after the morons complaints, I wouldn't blame him

and yes,he did have to sell, because he had no more money left, so couldn't finance our yearly losses any more, let alone afford to take us forward

[Maneki Neko]

Dont blame those people.

Nobody made SJM flog it to The Russian or the Thais.
It was purely his decision to sell up and recoup the money he loaned...

Because the money that he would need to pump in to keep the club going each year was more than he had available.

Not more than he was *worth* but with his other businesses all going down the pan and with much of his money committed to assets like Station Hill he didn't have available liquidity. He'd also obviously asked himself why he should keep on giving money to the football club and getting no return for it.

especially when our own idiot fans barracked him at consecutive home games.
no way would I have continued to struggle for the club if it were me