Clubs going into receivership?

[bluemoondays]

Everyone is assuming West Ham are stony broke and they could be headed into receivership.

I was wondering what would happen with the relegation positions if it happened before the end of the season.

They would get relegated, I assume, so does that mean 4 teams would be relegated if West Ham finished outside the bottom 3. Or would only the bottom 2 get relegated along with West Ham?

Anyone know the answer?

 

[bigmalsfedora]

i think its a 10 point deduction and table altered accordingly

 

[slbsn]

Everyone is assuming West Ham are stony broke and they could be headed into receivership.

I was wondering what would happen with the relegation positions if it happened before the end of the season.

They would get relegated, I assume, so does that mean 4 teams would be relegated if West Ham finished outside the bottom 3. Or would only the bottom 2 get relegated along with West Ham?

Anyone know the answer?

They wouldnt go into administration as a Premiership side whilst they still have all those player assets.

 

[Thanx4Knives]

i think its a 10 point deduction and table altered accordingly

Didnt Luton get 20?

 

[Wheelsy]

i think its a 10 point deduction and table altered accordingly

Didnt Luton get 20?

Second offense.

 

[marco]

Everyone is assuming West Ham are stony broke and they could be headed into receivership.

I was wondering what would happen with the relegation positions if it happened before the end of the season.

They would get relegated, I assume, so does that mean 4 teams would be relegated if West Ham finished outside the bottom 3. Or would only the bottom 2 get relegated along with West Ham?

Anyone know the answer?

They wouldnt go into administration as a Premiership side whilst they still have all those player assets.

then they would have to sell up in this window

 

[droylsdenblue]

i think its a 10 point deduction and table altered accordingly

Didnt Luton get 20?

30 actually

 

[slbsn]

They wouldnt go into administration as a Premiership side whilst they still have all those player assets.

then they would have to sell up in this window

I suspect the crunch would only come for them if they got relegated. The owners would be crazy to let it go into administration for the sake of a few million. The size of the Sheffield United payout will be key but they are just playing a game right now. I am absolutely certain 2-3 players will be sold in the window but they will just try and play the game for the month, get 5 extra games out of the players and try and rip someone off (most likely us) on Feb 1st. A rare bit of good financial management - unless one or two get injured of course.

 

[Drog_Town_Punk]

along the lines of the topic in question, just thought some might be interested in this.

here in ireland alot of teams are about to go tits up and bust, my local team Drogheda United after only winning the league for the fist time one season ago, the setanta cup twice in the last few years and the fai cup a few seasons back, are on the brink of extinction, they owe the players and staff €500,000 in wages, they have no way of getting that money together, so far with all the money that supporters have raised they only have about €400,000 of it its looking highley likely that by this time next week the club will cease to exist, it was only a couple of months ago that they were in the champs league qualifiers and went to dynamo kiev and drew 2-2 and nearly bet them in the last couple of mins of that game

other teams in ireland have gone bust too, shelbourne won the league a few seasons ago couple weeks or so later the went into examinership and were relegated, cork city i think one the league too and a while later also entered examinership but did not get relegated, and are also out of examinership. other teams who are about to go down that road are athlone town who are are seeking to leave the league of ireland altogether, Finn Harps who are €300,000 in debt and have to raise €150,000 of that to continue to exist, and now this seasons champions bohemians are sitting precariously with 95% of their incomings going on wages, their big money deal they were getting for their stadium being bought has gone belly up due to zoning issues and its likely the curse of winning the league will hit them too. its a strange time here in ireland for supporters of the league of ireland, thankfully city dont have this problem.

 

[skinhead123]

does anybody know what would happen to chelsea if roman wanted out what would be the procedure
and what could or couldnt happen

 

[mdmd]

does anybody know what would happen to chelsea if roman wanted out what would be the procedure
and what could or couldnt happen

Noone could afford them with the debts and loans.

If roman REALLY wanted out and out for good, then its goodbye club (sell off all assests, then cease to trade as it were)

 

[Chippy_boy]

Everyone is assuming West Ham are stony broke and they could be headed into receivership.

I was wondering what would happen with the relegation positions if it happened before the end of the season.

They would get relegated, I assume, so does that mean 4 teams would be relegated if West Ham finished outside the bottom 3. Or would only the bottom 2 get relegated along with West Ham?

Anyone know the answer?

They wouldnt go into administration as a Premiership side whilst they still have all those player assets.

If they can't meet their financial obligations (like pay their bills) then they are insolvent. And they cannot continue to trade while insolvent - it's illegal. So yes, they can go into administraion irrespective of where they are and what players they have. When the bank says "no more money", it's game over.

 

[skinhead123]

f-cking hell thats scary

 

[slbsn]

They wouldnt go into administration as a Premiership side whilst they still have all those player assets.

If they can't meet their financial obligations (like pay their bills) then they are insolvent. And they cannot continue to trade while insolvent - it's illegal. So yes, they can go into administraion irrespective of where they are and what players they have. When the bank says "no more money", it's game over.

I understand how insolvency works, thanks. The banks are NOT the funder of last resort for West Ham. In fact, the banks almost certainly said no more ages ago. They have third party equity investors and so, IN PRACTICE, only a completely bust owner would not bridge the funding deficit. Only a huge payout to Sheffield United or relegation will put West Ham in administration I assure you. They are in real trouble no doubt but they were a few years back when Chelsea bailed them out by buying the Glen Johnsons of this world.

 

[Prestwich_Blue]

I understand how insolvency works, thanks. The banks are NOT the funder of last resort for West Ham. In fact, the banks almost certainly said no more ages ago. They have third party equity investors and so, IN PRACTICE, only a completely bust owner would not bridge the funding deficit. Only a huge payout to Sheffield United or relegation will put West Ham in administration I assure you. They are in real trouble no doubt but they were a few years back when Chelsea bailed them out by buying the Glen Johnsons of this world.

Good to see you back on here projectriver.

I understand that a bust owner is exactly the problem at West Ham and that Gudmundsson's Hansa company is listed to face insolvency proceedings in an Icelandic court in a couple of months. As Hansa is West Ham's holding company then West Ham would be part of that.

There but for the grace of god.....

 

[S04]

does anybody know what would happen to chelsea if roman wanted out what would be the procedure
and what could or couldnt happen

Noone could afford them with the debts and loans.

If roman REALLY wanted out and out for good, then its goodbye club (sell off all assests, then cease to trade as it were)

Well, apart from us of course...

 

[slbsn]

I understand how insolvency works, thanks. The banks are NOT the funder of last resort for West Ham. In fact, the banks almost certainly said no more ages ago. They have third party equity investors and so, IN PRACTICE, only a completely bust owner would not bridge the funding deficit. Only a huge payout to Sheffield United or relegation will put West Ham in administration I assure you. They are in real trouble no doubt but they were a few years back when Chelsea bailed them out by buying the Glen Johnsons of this world.

Good to see you back on here projectriver.

I understand that a bust owner is exactly the problem at West Ham and that Gudmundsson's Hansa company is listed to face insolvency proceedings in an Icelandic court in a couple of months. As Hansa is West Ham's holding company then West Ham would be part of that.

There but for the grace of god.....

"Interesting" to be on here again!!

As for West Ham, although I have been telling anyone that would listen (inc. the BBC) that they were on the verge of disaster, I dont think Gudmondsson or his co-investors are as close as 2 months away from calling it quits on WH but thats only guided by their level of brinkmanship. But maybe they just have balls of steel. If I was almost gone, I'd have Upson, Bellamy and Parker at City, quicker than you could say "that will be £30m please" rather than holding out for possibly 10% more on February 1st. £30m would keep the wolves from the door for a few weeks.

Its reminds of the rumours that circulated on here in late August re administration at City (that were wide of the mark) - the signal of REAL trouble would have been a panicked the sale of Micah Richards. Remember its only 6 months ago that he had a market value of £20m!!! Its exactly what also happened at Leeds when they sold Ferdinand too.

 

[slbsn]

Noone could afford them with the debts and loans.

If roman REALLY wanted out and out for good, then its goodbye club (sell off all assests, then cease to trade as it were)

Well, apart from us of course...

This would really be fantastic news for us because as soon as Roman decides hes had enough, the first thing he will do is order a fire sale of players and extract as much cash as he can. Maybe Bridge is the first sign but i doubt it. Certainly thats the only way we will ever get Cech, Terry and Essien. Even Hughes could use those 3 I think....

 

[Brucie Bonus]

So...if things go our way, and everyone goes tits up...we can win the title?

 

[slbsn]

So...if things go our way, and everyone goes tits up...we can win the title?

Unless ADUG get disillusioned first. The economic backdrop is a fantastic advantage for us. Everyone of the Big 4 has funding issues (if you include Abramavich boredom as a funding issue)