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The Administration Thread


Boycie

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4 hours ago, kevinhectoring said:

Hoskin told us that he did not foresee problems with HMRC, who had agreed to be pragmatic given they view the club as a community asset. 
Obviously he or someone on his team has had this from the horse’s mouth. What makes you believe the contrary?

The rule change from 2020 essentially. It was made in order to prevent Football Cubs using Administration and a points deduction, as a means to evade Tax Debts. (Think back to Leicester)

Because of that I can't honestly see HMRC being soft. They pushed for the rule change to ensure a greater % settlement and are in effect entitled now to insist on 100%

Something is holding the sale back and I personally think this is a major issue.

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3 hours ago, Woodley Ram said:

I would add Pearce in this and potentially Rush not just Mel. I agree with the rest.

The 151% is interesting, I think Reading are something like 240%. I would imagine the vast majority are well over the 100%.

Other clubs supporters look at wages and debt as a reason we went into administration but that is incorrect, we are there because the owner (Mel) stopped funding. Other clubs, Reading, Middlesbrough, Stoke et al have bigger debts but have owners that own the debt themselves and continue to fund their clubs. 

Mel (for what ever reason) took outside loans and then stopped funding the day to day expenses. Owning a football club is a very rich mans sport. 

I would like to see a new approach to sustainability and a new regulator to do it.

things that need to be improved are:

- Parachute payments (they should be for high residual wages not to give a club a clear advantage)

- FFP, clear penalties that are not reduced on the whim of the EFL. Also better business plans where clubs keep with FFP limits and a better way of implementing points (where possible they should be given in the year of the infringement).Everybody has a go at Derby for delaying accounts but Reading delayed theirs. 

- A clear structure for dealing with Administration 

- A clear and transparent method of implementing embargo's  

- Quicker tribunals and punishments

- A better way of dealing with potential acts of god. The Covid rules benefited a number of clubs and not others such as those promoted.

 

Personally I disagree with the parachute payment system. Clubs should budget accordingly and be run with income and projected income in mind.

Players and agents for too long have dictated and all players should have relegation clauses and a reduction in wages and bonuses etc as part of their contracts.

Its ridiculous to expect a club to pay them the same in a lower division. At the end of the day it's the players who put them there!

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16 minutes ago, RipleyRich said:

The rule change from 2020 essentially. It was made in order to prevent Football Cubs using Administration and a points deduction, as a means to evade Tax Debts. (Think back to Leicester)

Because of that I can't honestly see HMRC being soft. They pushed for the rule change to ensure a greater % settlement and are in effect entitled now to insist on 100%

Something is holding the sale back and I personally think this is a major issue.

But and it’s a big but, none of that changes the basic realities of a business coming out of administration as a going concern. If a prospective purchaser makes a bid that exceeds the value of the assets if liquidated. Then a creditor including HMRC are faced with the choice of taking a higher amount from the bidder or waiting for a share of liquidated assets. In Derbys case the value of liquidated assets will be very small. 

Edited by Eatonram
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4 minutes ago, StarterForTen said:

Just clicked on the Derby Telegraph Rams news page to see a 'Corner Flag Story' bout what the new owners of Derby County need to do....

....turned out to be yet another clickbait re-hash ball-socks .

Bar Studs.

I'm still struggling to get my car running on WD40.

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58 minutes ago, RipleyRich said:

The rule change from 2020 essentially. It was made in order to prevent Football Cubs using Administration and a points deduction, as a means to evade Tax Debts. (Think back to Leicester)

Because of that I can't honestly see HMRC being soft. They pushed for the rule change to ensure a greater % settlement and are in effect entitled now to insist on 100%

Something is holding the sale back and I personally think this is a major issue.

I dont at all. HMRC are always keen to move on quickly and get an agreement these days. Assuming the tax debt is certain and no disagreements in amount its just a case of agreeing a settlement and/or payment plan. They do it all the time for large sums. 

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1 hour ago, RipleyRich said:

Personally I disagree with the parachute payment system. Clubs should budget accordingly and be run with income and projected income in mind.

Players and agents for too long have dictated and all players should have relegation clauses and a reduction in wages and bonuses etc as part of their contracts.

Its ridiculous to expect a club to pay them the same in a lower division. At the end of the day it's the players who put them there!

I seem to remember Birmingham had 25% wage reduction on relegation a few years ago.  Only one I can recall.

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