Leeds administration

[Questions]

I dont know if this has been covered in another thread but if it is sorry.

With talk today that Leeds might go into administration sometime this week , I cannot help thinking that they`re pulling a fast one. So they incurr a ten point penalty this season which means sod all seeing they are already down. I think the 10 point deduction should start next season otherwise I get the feeling they have done a Leicester and maybe got away with things when they should have cut their cloth accordingly. Dont forget they spent 800k on Healy not that long ago when they were supposed to be in massive financial trouble.

I have no axe to grind with Leeds by the way. its just seems like they may have fond a loophole here.

 

[Kinky Gerbil]

This loop hole been there for ages for all to see, But what can the FA do?

 

[bardo]

I think you will find more discussion of the relevant issues in this thread: http://85.234.132.19/showthread.php?s=&threadid=103906

 

[227 BHA]

It's an absolute farce as we all know that had Leeds won on Saturday and Cardiff lost there's no way they would even consider going into administration until after next weekend.

The whole point of a points rduction is it's supposed to be a punishment and if the football league don't insist on any points reduction being carried over to next season then they are an absolute joke and it makes a mockary of the whole stinking system.

 

[Questions]

I think you will find more discussion of the relevant issues in this thread: http://85.234.132.19/showthread.php?s=&threadid=103906

ta

 

[algie]

ta

Will Leeds be forced to sell there best players in they do go into admin...

 

[H block]

Will Leeds be forced to sell there best players in they do go into admin...

That was the problem when Leicester went into admin as they were allowed to keep their players and just pay so much off to creditors. Surely a business should sell its assets to pay off debts.
I know nothing of admin laws and bankrupt rulings though.

 

[Gritt23]

Will Leeds be forced to sell there best players in they do go into admin...

No.

They go into administration omn the Friday evening, and a newly formed company buys the trade of the business out of administration on the Monday morning.

New company takes over all the employment contracts, of the now defunct old company. The receivers will then try to collect all outstanding debts owed to the old company and use any money raised to pay off the creditors, who will get a % of amount owed.


In most cases the employment bit is great, as it protects the jobs of the employees, but football is of course rather different, but the law doesn't distinquish.

 

[algie]

No.

They go into administration omn the Friday evening, and a newly formed company buys the trade of the business out of administration on the Monday morning.

New company takes over all the employment contracts, of the now defunct old company. The receivers will then try to collect all outstanding debts owed to the old company and use any money raised to pay off the creditors, who will get a % of amount owed.


In most cases the employment bit is great, as it protects the jobs of the employees, but football is of course rather different, but the law doesn't distinquish.

Ok cheers.Is there a limit to how many times a company/club can go into administration?

 

[Gritt23]

Ok cheers.Is there a limit to how many times a company/club can go into administration?

Not if it's the way I've described, as essentially - in the eyes of the law - all that has happened is one company has gone under, and the administrators have been able to sell the trade and preserve the employment of it's staff.

So, Leeds Utd FC Ltd goes into administration.

Newco Ltd is formed entirely seperately, and buys the trade of Leeds Utd FC Ltd from the administrators, and continues to trade as:

Newco Ltd t/as Leeds Utd FC.

They can then use virtually all the same letterheads etc, just as long as they are calling themselves Leeds Utd FC and NOT Leeds Utd FC Ltd. Plus they would need to amend the Company reg numbers and VAT reg numbers on any letterheads etc, but that hardly gets noticed by anyone.

This happens a lot in business, and often the customers will never know it's even happened. It's called a "packaged receivership."

As for how many times a company can do it, each company is only doing it once. This time Leeds Utd FC Ltd are doing it, next time it may be done by Newco Ltd. There is no limit to how many times the trade can be sold on.

 

[Storer68]

But don't the players contracts revert to the League when clubs go into administration and as such they all become free agents and can fix their own deal with a new club.

Pesumably they ar not going to get offered similar terms from Leeds

 

[clapham_gull]

I keep reading conflicting rules about the admin.

Can't find the official ones - only those quoted on other sites.

I've read that admin AFTER 1st March results in a points deduction the following season.

I suspect that Leeds are smoking out potential investors.

Either way - I suspect most of the playing squad will be off in the summer.

Probably a good thing for them to start all over again (again)

 

[NMH]

I think you will find more discussion of the relevant issues in this thread: http://85.234.132.19/showthread.php?s=&threadid=103906

That's all very polite, but don't you mean...... fixtures ?

 

[crodonilson]

Anyone ever heard the Leeds United Calypso??

 

[Frutos]

Anyone ever heard the Leeds United Calypso??

Can't say I have...

 

[Questions]

That's all very polite, but don't you mean...... fixtures ?

You see there are some well mannered posters left on here big nose.

 

[crodonilson]

Can't say I have...

I urge you to download it, possibly the best football song ever and certainly the best thing to ever come out of Leeds.

 

[dougdeep]

Anyone ever heard the Leeds United Calypso??

Don't make a song and dance about it.

 

[clapham_gull]

Good discussion on BBC Leeds tonight, on now and all evening.

Talking generally about football administration, with other club chairman etc...

http://www.bbc.co.uk/leeds/local_radio/

 

[clapham_gull]

Rotherham chairman has just been on the radio and said another club is in serious trouble and may fall into administration this week.