Administration - A Solution or Not?

[Wilts]

Seen this on another forum and given my two-pence worth. For a club like Brighton with financial instability at the moment (and fans who may therefore know all about it!), is it a solution, or is it too much of a risk...

Administration is a perfectly legal way of wiping the slate clean and 'starting again' so to speak.

Considering the flak both Ipswich & Leicester got when they both went into adminstration would you as a fan sanction adminstration as a means of getting your club out of dire financial straits?

Is it an option to be actively considered, it is legal after all - or do you view it as morally reprehensible and something that the board of your club should do everything to avoid?

 

[trueblue]

Wouldn't we immediately be deducted ten points?

 

[Wilts]

My view -

I could wipe out my student debts etc by declaring myself bankrupt, though as a consequence I cannot get a long term loan or mortgage either (a) over a certain capacity, or (b) at any preferential and low rate for a number of years to come before I prove my financial worth again.

With the clubs that have been in administration, any ability to attract long-term finance (debt finance like most clubs use) is severely impacted. As a credit rating, I imagine that Ipswich and Leicester are now in the bottom 20% of companies at least. Hence financing new developments and players is going to be very expensive and risky. Also creditors may not wish to be involved with lending money to these clubs as history shows that there is a greater possibility of not getting it back!

Administration is a way of saying "ok, we messed up, but give us another chance at it" which everyone deserves, but whether it is feasible to get back to the "good old days" of financial success is always a serious doubt, and it may mean that both clubs have a long way still to go before achieving financial freedom and prosperity.

It seems that in football there is a lot of leighway given to those who get themselves into such financial distress, and hence why the FA are clamping down. In theory if Leicester/Ipswich simply "start again", they are doing so at a higher level than Walsall (for example), who have proven their worth as a club that remains profitable every season. This in itself seems to go against the rules of the Competition Commission who I know are very much against companies being given a "second chance" at such a position in the sector. What they should be able to leverage most is their brand (as a big club) but not their domain and assets.

 

[Marc]

That could jeapordise (sp?) everything to do with Falmer and god knows what would happen as we are at Withdean, a big no no in my book but saying that I'm not that knowledgeable on all this stuff so its probably a better idea...so who knows!?

 

[Publius Ovidius]

...and where would we stand with our season tickets...because surely the club could just suggest we would ahve to pay again?

 

[Schrödinger's Toad]

We can barely afford to lose 10 points, as relegation would surely have severe financial consequences of its own?

 

[Wilts]

Perhaps just not from BHA standpoint (as the Falmer situation is obviously prevalent), but for all clubs in general, do you think it is a solution? If not, what do you think should be done to these clubs...?

 

[Hatterlovesbrighton]

But what debts have you guys actually got?

Administration isn't going to suddenly get you extra revenue.

It means you can't buy any players or even give new contracts to your exisiting players!!

 

[Easy 10]

It means you can't buy any players or even give new contracts to your exisiting players!!

So what else is new ?

 

[Faldo]

deleted - monday crapness.

 

[FG aka FOOTBALL GENIUS]

Lester cheated with Administration typical Adams T***! so it be hypocritical to suggest Administration is the answer.

DICK TIGHT
DICK TATOR
DICK TURPIN
DICK ASTEROUS

So having forked out on past season tickets, away travel, Cardiff, watched Coppell go and the compensation, the play-offs, final money, Zamoras cheap sale when could got so much more we as fans are being asked to bail the club out!

 

[Turkey]

away travel

Travelling to away games doesn't help the club financially.

 

[FG aka FOOTBALL GENIUS]

i thought cup games at least the away club get a cut and also indirectly it does as money fed into the football circle filters down to all affiliated clubs so yes we are helped albeit as indirectly and not as much as attending games at withdean.

 

[Turkey]

i thought cup games at least the away club get a cut and also indirectly it does as money fed into the football circle filters down to all affiliated clubs so yes we are helped albeit as indirectly and not as much as attending games at withdean.

And when was the last time we progressed past the first round in any cup competition?

 

[Rambo]

Administration should never be considered as an option as far as Iam concerned.

 

[sparkie]

The Administrator would probably not allow us to pay for any legal representation at the forthcoming re-enquiry, so administration could well be the end of the Falmer project and the club with it ...

 

[perth seagull]

Exactly, administration is no solution for our club.

 

[The Clown of Pevensey Bay]

Administration would also cap the limit on the amount we were able to borrow to spend on a new stadium. As lots of it is going to be financed by debt, it would be a total impossibility.