Leeds Utd in Administration

[Colr]

Warning for the Jambiods about what happens if you over borrow to fund success (or the lack of it in both cases).

[HibeeJibee]

What you didn't point out was:
- if they went to administration voluntarily now (before season finished) fined 10 points. But they're relegated anyway so doesn't matter, just relegated by 'more'
- if they had gone into administration after Sundays game OR after the season officially ends after play-offs, they would have been fined 10 points from start of next season.
Biggest amount of gamesmanship ever, and surprised the administrator allowed it IMO.

[Colr]

Originally Posted by HibeeJibee
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What you didn't point out was:
- if they went to administration voluntarily now (before season finished) fined 10 points. But they're relegated anyway so doesn't matter, just relegated by 'more'
- if they had gone into administration after Sundays game OR after the season officially ends after play-offs, they would have been fined 10 points from start of next season.
Biggest amount of gamesmanship ever, and surprised the administrator allowed it IMO.

Yes, and the new firm will be owned by Ken Bates. Bet their creditors are not pleased. £35m debt.

[Forzahibs]

Originally Posted by Colr
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Yes, and the new firm will be owned by Ken Bates. Bet their creditors are not pleased. £35m debt.

They can just start afresh ??

[garethni]

Originally Posted by Forzahibs
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They can just start afresh ??

Think its like a new consortium headed (and more likely) funded by Bates and TBH because the Club is now under apparent "New Ownership" is perhaps the only reason they are allowed to proceed in this manner.

[Forzahibs]

Originally Posted by garethni
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Think its like a new consortium headed (and more likely) funded by Bates and TBH because the Club is now under apparent "New Ownership" is perhaps the only reason they are allowed to proceed in this manner.

Doesn't seem fair though does it , smaller well run clubs have to play in the lower divisions while not living beyond thier means

[garethni]

Originally Posted by Forzahibs
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Doesn't seem fair though does it , smaller well run clubs have to play in the lower divisions while not living beyond thier means

I think one of their main saving graces will be the fact they are stilla huge club - not by league position or the league they play in but in terms of stadium and fan base (much like Nottingham Forrest). Its a pity that fud Ridsdale fecked them because they have actually whiped out a considerable amount of debt - think at one stage they were £60M+ now they are around £20M. I can still see them bouncing back they just need a rub of the green and a fresh approach.

[pq123]

Quoted on tv as £35m debt. Given the size of the club and the fan base, it puts the Jambo's debt into perspective ie not much less than Leeds and no chance of trading their way out of it!
Their dependency on Mad Vlad is absolute!

PQ123

[Postiga]

Originally Posted by Forzahibs
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They can just start afresh ??

Yes, No debt and can start rebuilding. This shouldn't be allowed in my opinion.

[Colr]

Originally Posted by Postiga
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Yes, No debt and can start rebuilding. This shouldn't be allowed in my opinion.

Other companies do this so, I guess, football clubs can too.

[HibeeJibee]

Boston United have just trumped Leeds' audacity. To clarify, they went into todays last game of the season with the table as follows, while their accountants had declared if they did not survive in League Two they may go bankrupt because of reduced revenues, sponsorship and TV money available in the Football Conference:

Bury 49
Wrexham 48
Boston 46 (in relegation slot)
Torquay 35 (relegated)

Bury were at home to Mansfield (drew 1-1)
Wrexham were at home to Boston

At half-time Wrexham were 1-0 down. So Boston would stay up. Wrexham equalised with a 56th minute penalty. Boston need a goal but have had much of the play. Then, in the 87th minute, Wrexham scored again. The Boston board of directors immediately, in the stand, entered the club into a CVA receivership before the match could finish, avoiding a 10 points fine that would have been incurred once the season had finished. Ironically they conced in added time to lose 3-1 to Wrexham.

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[Forzahibs]

Originally Posted by HibeeJibee
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Boston United have just trumped Leeds' audacity. To clarify, they went into todays last game of the season with the table as follows, while their accountants had declared if they did not survive in League Two they may go bankrupt because of reduced revenues, sponsorship and TV money available in the Football Conference:

Bury 49
Wrexham 48
Boston 46 (in relegation slot)
Torquay 35 (relegated)

Bury were at home to Mansfield (drew 1-1)
Wrexham were at home to Boston

At half-time Wrexham were 1-0 down. So Boston would stay up. Wrexham equalised with a 56th minute penalty. Boston need a goal but have had much of the play. Then, in the 87th minute, Wrexham scored again. The Boston board of directors immediately, in the stand, entered the club into a CVA receivership before the match could finish, avoiding a 10 points fine that would have been incurred once the season had finished. Ironically they conced in added time to lose 3-1 to Wrexham.

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Not according to the Boston chairman on the radio tonight , he said they hoped not to go down that road
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[egb_hibs]

i'm not sure that going into adminstration clears all your debts. if so there'd be no such thing as liquidation.

not sure of the details, but doesn't it mean that an administrator is appointed precisely to ensure that assets are used to reimburse creditors as best as possible?

[egb_hibs]

in this case the move has been allowed by some main creditors allowing their debt to be written off - can't see vlad doing this can you:

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this article says that if it wasn;'t for this leeds could have been liquidated next month.

[scaredyhibby]

It's an astonishing fall from grace for Leeds United and I'm amazed it's been allowed to happen at such a big club. I know they're not universally liked down South but it's still sad to see
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