Can Plymouth Argyle survive ?

[Leekbrookgull]

Sorry unable to link it,but BBC Sport/football/league one. Pilgrims almost £18 million in debt and almost no hope of either paying it off or settling with creditors ? At a time when there has never been more money in football.

 

[Flavor Flav]

They'll be bought out by some sort of local consortium last minute so the creditors are willing to accept absolutely anything. I hope they manage to survive and get to play at Falmer in a few years time.

 

[Leekbrookgull]

Always seems to happen,but read the story. Maybe to much this time ?

 

[NUFC1892]

BBC Sport - Plymouth Argyle offer unsecured creditors meagre sum

Personally I can't see them not surviving.

 

[pottert]

Sorry unable to link it,but BBC Sport/football/league one. Pilgrims almost £18 million in debt and almost no hope of either paying it off or settling with creditors ? At a time when there has never been more money in football.

Sorry is that Plymouth or portsmouth?

I don't understand how it came to this,As far as I am aware they have decent enough support they haven't bought a load of players they can't afford to pay, what happened.

If Portsmouth can survive I'm sure Plymouth can

 

[Leekbrookgull]

Sorry is that Plymouth or portsmouth?

I don't understand how it came to this,As far as I am aware they have decent enough support they haven't bought a load of players they can't afford to pay, what happened.

If Portsmouth can survive I'm sure Plymouth can

Do Plymouth have the same level of fan base plus money backers as Pompey ?

 

[Rowdey]

0.77p in each pound..?! Yikes..
Quick compute makes the £350k the new pitch laying company get about £2700..

Must be more tempting to say F.you and reject it outright than accept that..

 

[clippedgull]

Hmm, I wish them no ill feeling and hope something materialises but I think it's time for football clubs to face up to financial mismanagement and take whatever penalty comes their way. This is why I believe that Tony Bloom and the board will have a sound wage structure going up into the Championship and any player who thinks he is worth more than he is being offered will be invited to try his luck elsewhere! Back to Plymouth, the football club may be in jeopardy, but failing to pay it's bills puts other small companies potentially in liquidation status as well. Why should a football club be allowed to survive at the expense of any other business?

 

[libra-gully]

Sorry unable to link it,but BBC Sport/football/league one. Pilgrims almost £18 million in debt and almost no hope of either paying it off or settling with creditors ? At a time when there has never been more money in football.

I know the Argyle very well over many years, but how on earth have they rattled up £18m debt with no-one saying anything.

More importantly, apart from the pitch and outstanding wages, where has £18m gone? Incredible!

 

[pottert]

Hmm, I wish them no ill feeling and hope something materialises but I think it's time for football clubs to face up to financial mismanagement and take whatever penalty comes their way. This is why I believe that Tony Bloom and the board will have a sound wage structure going up into the Championship and any player who thinks he is worth more than he is being offered will be invited to try his luck elsewhere! Back to Plymouth, the football club may be in jeopardy, but failing to pay it's bills puts other small companies potentially in liquidation status as well. Why should a football club be allowed to survive at the expense of any other business?

What I don't understand is that when a company goes into administration they stop trading.(unless) you are a football club.

Until a high profile team gets wound up things will never change.

At the moment it is like opening a bank account with £1000 & getting an overdraft of £1000000.

Surely when Portsmouth started buying players like defoe,crouch,James, didn't anybody think how are we funding this.
But then it dosent matter if you have no money to lose.

 

[Cheshire Cat]

You don't "invest" money in a football club, you spend it. There is a difference.

 

[cjd]

The BBC report says the creditors meeting is the 6th May. If the offer is rejected, it says Plymouth will go into liquidation.

If this is the case...and Plymouth are not due to play their final game of the season until May 7th...would this mean their results this season are expunged...?

 

[Cian]

"though an Irish property consortium has also been linked with a buyout at Home Park."

One insolvency to another looming insolvency then, methinks.

 

[Barrel of Fun]

Sorry is that Plymouth or portsmouth?

I don't understand how it came to this,As far as I am aware they have decent enough support they haven't bought a load of players they can't afford to pay, what happened.

If Portsmouth can survive I'm sure Plymouth can

I think they were doing what most clubs do and operating with a 'manageable' debt, but as soon as England lost out on the WC bid, the owners pulled the plug. They were in for a 'free upgrade' and a boost to the support.

 

[pottert]

It's a catch 22 situation.
When Portsmouth were in the same situation everybody knew why( big players,big wages)
Now Plymouth are in the same situation (but with no noticeable investment in players)

So what is worse (Pompey) buying players they can't afford
(Plymouth) total mismanagement with no trophies to show for it.

 

[Gwylan]

What I don't understand is that when a company goes into administration they stop trading.(unless) you are a football club.

Not true, there are plenty of non-footballing countries that go into administration and continue to trade. A local example recently was Sussex Booksellers, that was placed in admin while the administrators tried to find a buyer, eventually selling to WH Smith.

Apart from the preferred creditor status of other clubs (which is a bit odd), football clubs are handled like any other business. There's a good argument to be made that high-spending businesses should be hit harder and there's an argument that HMRC should become a preferred creditor -as it used to be - but football clubs are just taking advantage of business legislation.

I read the other day about Tom Aitken, the restaurateur. His business went bust lots of money and he owed thousands to small suppliers
Small farmers fear they've lost thousands after Tom Aikens restaurant company is hit by credit crunch | Mail Online

He just closed down the business and opened the next day under a new company, wiping off all that debt. I don't see how that's any different to what Portsmouth/Plymouth has done/are doing.

 

[BensGrandad]

As a follow on to what Gwylan has said Mike Ashleys company Sports direct.com has gone broke and restarted the next day under a new name how many times 3 or 4. Also Techenguiz brothers put Yates Bars into administration one evening and reopened the pubs that gave the best returns the next morning under a new name. In the process they wrote off over £90m and closed the bars that were rented on high rents like Worthing. It is the whole financial situation of the country and the legislation that they work under that needs to be scrutinised closer.

 

[drew]

What I don't understand is that when a company goes into administration they stop trading.(unless) you are a football club. I think you are confusing liquidation with administration!

Until a high profile team gets wound up things will never change.

At the moment it is like opening a bank account with £1000 & getting an overdraft of £1000000.

Surely when Portsmouth started buying players like defoe,crouch,James, didn't anybody think how are we funding this.
But then it dosent matter if you have no money to lose.

It's a catch 22 situation.
When Portsmouth were in the same situation everybody knew why( big players,big wages)
Now Plymouth are in the same situation (but with no noticeable investment in players)

So what is worse (Pompey) buying players they can't afford
(Plymouth) total mismanagement with no trophies to show for it.

I wonder if their problems stem from paying for the development of Home Park?

 

[Icy Gull]

Have you seen how much land there is around Plymouth's Ground? A deal will be struck that will involve a property developer, of this I am certain. I'm sure there are covenants and all sorts but it will be ridden through to keep the club alive.

 

[Lord Bracknell]

If Plymouth Argyle FC are liquidated, without a successor football club in place, what are the Football League's rules? Surely a new football club in Plymouth (if one is established) would have to start all over again at the bottom of the pyramid ... just like Newport County, Accrington Stanley, etc. And who gets to fill the empty spot in League Two? Both of the teams that reach the Conference playoff final?