Would it break the impasse that appears to exist or be a total disaster?
If we did go into administration which assets would be exposed? Would The Valley be safe in that a) Does the mortgagee on the North Stand hold a charge over the ground which would come into play? or b) is it safely tucked away in another company and thus untouchable? Certain directors have already purchased the training ground and houses at a "competitive" (shall we say) valuation so what would be left?
One assumes players would be sold (cheaper than market value) to realise something for the creditors and (notwithstanding the mortgage issue mentioned above) the other major creditors appear to be the directors themselves from what we can glean. I have never seen any CAFC accounts so inevitably can only speculate.
One could therefore surmise that from their viewpoint administration is good as they get SOME if not all of their investment back. A cynic might say that RM said what he said in the SLP last week to deflect any flak from himself should administration happen. Not my fault guv it's the others.
Administration would also be good for Varney and Co as the purchase price would be correspondingly lower and therefore (perhaps!) there would be more to invest in rebuilding the squad.
Am I spouting total bollocks or what? I've spent far too long on Charlton Life today and admit to feeling a bit shellshocked with it all!
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Seriously I know want news 24/7/365 but have some f**king patience for the love of good.
Dont think that is true Southampton's administrators sold Andrew Surman and David McGoldrick while running them.
So at this time, could still be included amongst the club's assets.
Players contracts are only available if you stop paying their wages, and the PFA wouldn't support them if it was a couple of weeks. Even then we pay our dross so much more than anyone else would virtually all of them, apart from maybe Shelvey and Gray, would be hanging on for dear life.
that's rubbish imo. Whilst in Admin Southampton sold Andrew Surman to Wolves for 1m so he didn't go on a free did he. Just as when you go into Admin when taken over you are responsible for 100% of football debt ie outstanding fees to other Clubs, players contracts etc. You can negotiate with the man who supplies the pies and offer him 10p in the £ but if you owe Man Utd 2m then you still owe them 2m.
All that said, we will not go into administration, it's an academic question: when we have so much friendly debt it's never going to happen.
I understand that you'd owe your players their wages still because they are treated as preferential creditors by the admins (like if your work goes bust you'll still be paid before other unsecured creditors) but do teams who'm we buy players from have a higher status than the man who sells us pies ? I feel sorry for the man who sells us pies ! But they are rubbish though...
I think it basically goes: staff->tax->preference shares (not sure if the directorial debt is in them)->creditors->shareholders, although I may have the three and four mixed up
I believe the order of creditor payment is roughly as set out below:
I've done this off the top of my head and it could be I've got 5 and 6 round the wrong way. However hopefully, in conjunction with my hypothetical notes, it gives those who are confused a bit more idea than they had previously.
1. Fixed Charge (eg there could be one possibly on The Valley held by the North Stand Mortgagee)
2. Administrator/ Liquidator (to make sure they get paid!)
3. Preferential Creditor (unpaid wages, Paye etc)
4. Floating Charges (on assets that change like debtors and "crystallise" at the time administration or liquidation occurs)
5.Deferred Debts (Dividends, the interest owed on loans to the directors that they deferred. They didn't waive it)
6.Unsecured Creditors (essentially ordinary suppliers like the programme printers etc)
7.The Shareholders themselves
Thanks Morts, at least it demonstrates that certain creditors have to be paid before others and that if there isn't enough inthe pot then the others go without.