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The Administration Thread


Boycie

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1 minute ago, PistoldPete said:

It is a members club .. where everyone's interests conflict with ours. So the sense of them having a vendetta against us is because they really are all against us. But did Wigan have all these problems with EFL when they went into admin? 

Probably not. Their owner wasn't around long enough to even get to know the EFL before he put Wigan into administration. Morris was constantly at loggerheads with them for five years, so they couldn't wait to pick him off when they saw the opportunity. Since they got the first bite they've been like hyenas but now he's out of reach, they still want to damage him and have transferred their malice from Morris to the club and will not be satisfied until at least the time we are relegated. 

According to 442 magazine there are about nine more Championship clubs in imminent danger of having to file for administration. It will be interesting to see how the EFL deal with them if it happens. Hypothetically, if nine did fall foul next season and incurred 12 or more points penalties, only three could be relegated. Maybe we'd have been better placed if we could have hung on until the close season!!!

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1 minute ago, Tyler Durden said:

This is what I don't understand about the whole process....so Kirchener knows of he offers x amount of money them this will satisfy the EFLs creditors rules so we avoid another points deduction....but he's not going to offer x minus 1 pound to save a quid but then condemn us to a 15 point deduction....so what's the minimum anyone has to offer to buy us? 

Around £27m-£30m, excluding stadium/MSD loan.

 

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7 minutes ago, Brailsford Ram said:

Probably not. Their owner wasn't around long enough to even get to know the EFL before he put Wigan into administration. Morris was constantly at loggerheads with them for five years, so they couldn't wait to pick him off when they saw the opportunity. Since they got the first bite they've been like hyenas but now he's out of reach, they still want to damage him and have transferred their malice from Morris to the club and will not be satisfied until at least the time we are relegated. 

According to 442 magazine there are about nine more Championship clubs in imminent danger of having to file for administration. It will be interesting to see how the EFL deal with them if it happens. Hypothetically, if nine did fall foul next season and incurred 12 or more points penalties, only three could be relegated. Maybe we'd have been better placed if we could have hung on until the close season!!!

Yeah, I have taken a lot of stick for "defending" Morris but I really do think that we  are unlucky more than anything. We were the first to go into admin, because Morris had already decided to stop funding us after several years of spending big money. Plus we lost more than any other team outside of the EFL due to COVID. 

I think other clubs may hang on for now, they have their COVID loans to 2024 I believe and then the crunch will really come.

Edited by PistoldPete
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3 minutes ago, Tyler Durden said:

Yes so my point is why would any potential buyer offer one pound more than this?

Know its a moot point as we only have one buyer. 

They needn’t, but he needs to pay enough so we don’t get the 15 points deduction….

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So any potential buyer is saying to Quantuma, I’ll mop up Mel’s debt of £27-30 million and in return you will give me a possible League 1 football club with 5 players, no stadium and a leased training facility, which may get another 15 point deduction if I don’t bid much more than it’s worth.

The final bid may depend on how much wriggle room there is with HMRC ?

Edited by hintonsboots
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3 minutes ago, Jimbo Ram said:

Perhaps I misread. He needs to pay the minimum amount so we don’t incur the 15 point penalty ?

Am totally lost. Am reading that his bid won't be enough to avoid us being deducted 15 points. Which if true means there is another minimum cut off level to make an acceptable bid to the administrators but which doesn't satisfy the EFLs creditors rules. 

Edited by Tyler Durden
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1 minute ago, Tyler Durden said:

Am totally lost. Am reading that his bid won't be enough to avoid us being deducted 15 points. Which if true means there is another minimum cut off level to make an acceptable bid to the administrators but which doesn't satisfy the EFLs creditors rules. 

The admin can accept anything they think the creditors will accept? So less than 25%. The 25% or 35% over three(?) years is set by the EFL and is where the penalty points comes into it.

I'm not sure what the bid level is at 25%. Do you know how much it works out to be @Ghost of Clough?

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9 minutes ago, hintonsboots said:

So any potential buyer is saying to Quantuma, I’ll mop up Mel’s debt of £27-30 million and in return you will give me a possible League 1 football club with 5 players, no stadium and a leased training facility, which may get another 15 point deduction if I don’t bid much more than it’s worth.

The final bid may depend on how much wriggle room there is with HMRC ?

£27m-£30m to avoid the -15.

Who knows what Kirchner had bid, probably closer to £20m.

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1 hour ago, Tyler Durden said:

The automatic assumption is that the money saved by not meeting the EFL creditors rules will then be used to enhance the transfer kitty but on what basis is this assumption being made and how much of the cash saved will be diverted to buying new players?

It is a false assumption.  The EFL have said a number of times that it would not be allowed, e.g. "This is to avoid clubs gaining a competitive advantage by going to into administration, wiping out debts and harming the integrity of the competition." It's enforced via the agreed Business Plan and budget controls (at risk of even more points deductions, e.g. -6 as in Reading's case, which is why Barnsley were kicking off).  I'm pretty sure the budget will be stricter if CK doesn't meet the 25% minimum.

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3 minutes ago, RamBeauIV said:

It is a false assumption.  The EFL have said a number of times that it would not be allowed, e.g. "This is to avoid clubs gaining a competitive advantage by going to into administration, wiping out debts and harming the integrity of the competition." It's enforced via the agreed Business Plan and budget controls (at risk of even more points deductions, e.g. -6 as in Reading's case, which is why Barnsley were kicking off).  I'm pretty sure the budget will be stricter if CK doesn't meet the 25% minimum.

Yes this. You beat me to it by saying that the EFL will then "help" us with a business plan meaning ongoing restrictions regards players wages etc meaning Kirchner simply wont be able to invest the money he's theoretically saved into the playing squad. 

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2 minutes ago, Tyler Durden said:

Yes this. You beat me to it by saying that the EFL will then "help" us with a business plan meaning ongoing restrictions regards players wages etc meaning Kirchner simply wont be able to invest the money he's theoretically saved into the playing squad. 

Exactly. He would be better off using the money to make up the 25%, especially if he can agree a deal with HMRC to pay them over 2 years.  If he can keep HMRC sweet, then there's more chance of us avoiding the 15 point deduction.

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