Generic clubs in financial crisis Thread

[Wax Jacket]

maybe they should use the transfer window to get rid of some dead wood

[Wizard]

Are we the only club in the premier and football league not heading for financial oblivion?

[Yellowcoat]

This came as a surprise to the Premier League

Does not say much for all the extra financial restrictions they intended to bring in!

[Barry the bird boggler]

here we go again! Seriously why don't PL/FA/Government/someone somewhere get their house in order and take serious action to do something about this sort of thing once and for all....

[Mr Angry]

Sorry, but this leaves me completely in "so what?" mode?

Even if Brum get relegated, no-one seriously expects them to go under; so what will they do between now and the end of the season?? Why, I think you will find that they will simply carry on spending as there is zero risk attached.

The PL won't do anything; UEFA won't do anything; HMRC had their chance but bottled out of taking Pompey down in the Summer (and if they had, I think a LOT of teams would have suddenly discovered a number of "star" - ie: expensive - players being surplus to requirement.)

[Ian Royal]

Sorry, but this leaves me completely in "so what?" mode?

Even if Brum get relegated, no-one seriously expects them to go under; so what will they do between now and the end of the season?? Why, I think you will find that they will simply carry on spending as there is zero risk attached.

The PL won't do anything; UEFA won't do anything; HMRC had their chance but bottled out of taking Pompey down in the Summer (and if they had, I think a LOT of teams would have suddenly discovered a number of "star" - ie: expensive - players being surplus to requirement.)

HMRC failed, but I'm not sure you can call it bottling - they certainly took it a long old way.

[Svlad Cjelli]

:roll: here we go again! Seriously why don't PL/FA/Government/someone somewhere get their house in order and take serious action to do something about this sort of thing once and for all....

Submissions of evidence to the Culture, Media & Sport Select Committee Inquiry into Football Governance close on Weds 26th Jan 2011.

Have you submitted your evidence yet?

[Elmer Park]

It would have been the best thing to happen to the sport for years if Pompey had gone under or if a Club like Birmingham do. If a lower profile Club like Plymouth or Southend go under there it will not have quite the same impact.

Pompey seem to have hit a sticky patch again on and off the field but as thing stand Pompey have indulged in an extremely questionable financial policy which enabled them to live the dream by winning the F A Cup and have a season in Europe on the back of it. So far the punishment the football gods have dished out has been relegation from the Premiership followed possibly by a season in mid table of the Championship during which they have somehow managed to sign some pretty useful players to maybe help for a possible promotion push next season. I really really do not want them to be able to look back on their shameful behaviour in a couple of years time and think it was worth it.

That being said it must be a huge worry to the fans of these Clubs though and at least as far as we know we have no such worries even though I moan as much as the next man about the Club's tightness.

Not sure if this is the right thread but her is a little business news from this morning's FT relating to SJM.

http://www.ft.com/cms/s/0/3b773806-1cfc ... z1AiDSAklj

[Royal Rother]

Not registered so I can't read it. Can you precis...?

[papereyes]

It would have been the best thing to happen to the sport for years if Pompey had gone under or if a Club like Birmingham do. If a lower profile Club like Plymouth or Southend go under there it will not have quite the same impact.

I think you'll struggle to see a big club go under. I mean, properly go under and not weasel their way out of it.

[handbags_harris]

Pompey seem to have hit a sticky patch again on and off the field but as thing stand Pompey have indulged in an extremely questionable financial policy which enabled them to live the dream by winning the F A Cup and have a season in Europe on the back of it. So far the punishment the football gods have dished out has been relegation from the Premiership followed possibly by a season in mid table of the Championship during which they have somehow managed to sign some pretty useful players to maybe help for a possible promotion push next season. I really really do not want them to be able to look back on their shameful behaviour in a couple of years time and think it was worth it.

Not forgetting somehow managing to get away with not having the mandatory points deduction for entering the new season in administration which I believe is the rule. Nobody has managed to give me any reason why they didn't start on -10.

[TFF]

Not forgetting somehow managing to get away with not having the mandatory points deduction for entering the new season in administration which I believe is the rule. Nobody has managed to give me any reason why they didn't start on -10.

I believe the penalty only applies if administration occurred in the close season. Pompey took a points penalty during the previous season.

They were at risk of further points deduction (like Luton) had they failed to "agree" a CVA with their debtors.

If that's bollix Svlad will put us straight.

[Ferris]

Not forgetting somehow managing to get away with not having the mandatory points deduction for entering the new season in administration which I believe is the rule. Nobody has managed to give me any reason why they didn't start on -10.

I believe the penalty only applies if administration occurred in the close season. Pompey took a points penalty during the previous season.

They were at risk of further points deduction (like Luton) had they failed to "agree" a CVA with their debtors.

If that's bollix Svlad will put us straight.

Didn't Leeds do the same thing as Pompey, but still got the points deduction the following season? Or was that cos they waited till they were all but relegated to do it?

[Svlad Cjelli]

The points deduction is down to the date of entereing administration.

pompey went into this before the daat (I think it's teh 3rd Thursday in March, same as the transfer dealdine date) and so got the deduction of 9 points while in the PL - 17th March 2010.

Leeds started the season with a deduction because they couldn't reach an agreed CVA settlement to come out of administration.

The latter has happened to 4 clubs : Leeds United (deducted 15 points), Rotherham (-17 points), Bournemouth (-17 points)and Luton (-20 points).

[T.R.O.L.I.]

And in reference to this:

Not forgetting somehow managing to get away with not having the mandatory points deduction for entering the new season in administration which I believe is the rule. Nobody has managed to give me any reason why they didn't start on -10.

Didn't Pompey come out of administration the day before the season started?

[Royal Rother]

Also posted this on the Non League thread, but fits just as well here...

Things looking decidedly dodgy for Windsor & Eton at the moment.

The existing Chairman, Peter Simpson, has still, months on, not produced all the paperwork required by the Administrators to prepare complete and thorough documentation to support the CVA application, and he has not paid them either so, although they say they have enough to go to court for the CVA, they'll do nothing until he (Simpson) honours his commitment to pay their fee. Unfortunately Simpson's company, Lovegroves the Solicitors, (of whom I believe he was a Senior Partner) has just gone bust.... (not looking good is it?)

Meanwhile, Kevin Stott, the proposed new owner / Chairman (understandably) requires an indemnity from Simpson to cover him in the event that any further creditors come out of the woodwork.

If the CVA does go ahead we will suffer 10 points deduction which will take us close to the relegation zone and, although the players have shown commendable form / commitment over the last few months as all this shite rumbles on, the inevitable slashing of the playing budget (already happening) will make it tough to stay up.

If the CVA does not go through it'll be a start-again scenario at the bottom of the pile somewhere. Whether we would have a ground at that point I have no idea as it is supposedly in the terms of the Crown lease that, should the current club fold, the lease reverts back to the Crown... they might not exercise that but who knows...

A further complication in all this is that Simpson and Stott dislike each other with a vengeance; reason being that allegedly, (and I have heard this from a couple of sources but cannot verify its accuracy) when they were previous co-directors of Windsor and Eton a few years ago, Stott's company was in difficulties, and he took some "friendly" advice from Simpson - his company ended up going down the tubes and he (Stott) sued Simpson's firm for bad advice and won £1.2m!!! Perhaps hence them going down the tubes themselves just recently. Bad blood or what?! So although I have sat in on public meetings where Simpson has personally undertaken to support the CVA in any way he can, and has also undertaken to pay the Administrator's fee himself, I'm not so sure that he will do anything other than look after himself and whatever he has got left, rather honour his commitment to Stott and the club's supporters.

Oh well....

[Tony Le Mesmer]

And in reference to this:

Not forgetting somehow managing to get away with not having the mandatory points deduction for entering the new season in administration which I believe is the rule. Nobody has managed to give me any reason why they didn't start on -10.

Didn't Pompey come out of administration the day before the season started?

Nope, that dragged on well into the season. I also have no idea why they weren't deducted points. And id also like to know how wiping out £80m odd worth of debt can justify anything less than expulsion from the football league?

I also heard whilst watching them on ESPN last weekend that Bologna have twice been deducted points this season for failing to pay tax and players wages on time. And thats from a league that is bent a fuk. What does that say about the english league?

[Ian Royal]

Didn't Pompey have the CVA in place and what dragged on into the season was the dispute about whether it was a valid agreement? As that dispute failed, the original CVA has to be seen as valid and in line with the rules, hence no further deduction.

[Who Moved The Goalposts?]

And in reference to this:

Not forgetting somehow managing to get away with not having the mandatory points deduction for entering the new season in administration which I believe is the rule. Nobody has managed to give me any reason why they didn't start on -10.

Didn't Pompey come out of administration the day before the season started?

Nope, that dragged on well into the season. I also have no idea why they weren't deducted points. And id also like to know how wiping out £80m odd worth of debt can justify anything less than expulsion from the football league?

I also heard whilst watching them on ESPN last weekend that Bologna have twice been deducted points this season for failing to pay tax and players wages on time. And thats from a league that is bent a fuk. What does that say about the english league?

With you 100% on this one Tony. Portsmouth's escape from receiving true justice - coupled with them sigining two players on £20K a week just a few weeks after leaving administration - was what finally killed my love for football. It was a real slap in the face for every honest, law abiding citizen in the country, irrespective of any interest or not in football.

[Tony Le Mesmer]

Do Portsmouth still get Parachute payments? I thought they had effectivley reformed as a new company?