Luton Town in Administration

[Alex Alex Dawson oo! oo!]

It is sad, but I hate this "we'll use a legal loophole to drop our creditors in teh shit and start all over again" attitude. Leeds were the worst offenders adn see how they have flourished at the expense of shitting on the people they owed money to.

I don't think it's the same situation here as at Leeds in that the club is actually insolvent as opposed to being made technically made so by the directors. It would be an offence to permit the club to trade if insolvent so the directors are faced with injecting more money (as has been the case with DK et al at BHA for years), closing it down (with any assets being sold to repay creditors) or going into administration to hopefully seek a buyer for the business. They've chosen the latter course of action with the chairman personally covering the club's trading losses until the sale process is completed. However, one sentence from their press release might be of interest to Albion fans as we are also faced with declining income from gate receipts this season:
"The directors of the club decided to appoint administrators as a result of the Hatters' decreasing income. "
Incidentally, Luton's administrators (P&A Partnership) also have offices in Leeds.

 

[Vatican Citys No.2 Keeper]

they knew the consequences....maybe we can nick Currie now

My thoughts exactly.

 

[surrey jim]

wonder if the root and branch of the fa will branch out to this. probably not. but we can hope.

not a chance, they just gave McClown all their money

 

[Icy Gull]

I presume that their gates are not what they expected, otherwise why could they sign so many, probably expensive for this division, players?

I thought you could only spend a proportion of your income on players. Surely they are spending more than that on all these new signings? How strictly are these regulations governed?

 

[Couldn't Be Hyypia]

Hi Icy - I think it's in the non-league clubs where the level of wages is determined by gate receipts, not in the Football League.

Putting what we feel personally about Luton as a club (and I do remember the away fans ban), I find it very hard to know exactly how I feel about it:

- serves them right, they spent too much and did better than they would have done by spending money they didn't have and yet there but for the grace of God goes virtually every club in the Football League.

- in effect they got an unfair advantage at the expense of their creditors and yet it's the long term fans who suffer eventually from the mis-management.

- they got players they wouldn't other wise have secured and stopped other (rival) clubs from signing them by offering wages they couldn't afford to pay and yet how liable are the players for being so greedy?

- Luton gambled with the whole damn future of the club but which clubs haven't gambled at some point or other?

And so on............there is an urge to see this as a black and white "they got what they deserved" or "it's a shame". In truth, the big take out I guess is that it's a litmus test for most clubs outside the Premiership. The Luton situation could have been any of our clubs during the last few years and that should be the worry.

 

[JJ McClure]

I kind of not suprised considering that have a fair few decent players that must be earning good money.

That said this should act as a warning to all of us. If falling attendances at Withdean continue, this could be us. Don't let it happen.

 

[Stinkers Bridge]

Luton didn't particularly spend big in the summer as per some suggestions here. Yes Peschisolido, Hutchison, Furlong etc are probably going to be on highish wages, but remember they are all in the twilight of their careers and whilst they are well known names and have been good in the past, everyone has to lower their demands as they get older and start slipping down the divisions. They were also all picked up on free transfers. The only actual money transfer that Luton made in the close season was Dave Edwards from Shrewsbury.
All this against a backdrop of selling nearly 13 million pounds worth of players in the last couple of years - Steve Howard, Kevin Nichols, Carlos Edwards, Kevin Foley, Leon Barnett, Curtis Davies, Rowan Vine.
Obviously some of the money would have had to be used to offset the losses that nearly every club make - let alone one with a ramshackled antiquated stadium, but there has been far too much money disappear from the club by people that don't have any right taking money out of the game.

 

[CoventrySeagull]

Correct me if I'm wrong, but I heard two directors left the club earlier in the week.

This was AFTER the FA announced that charges were being brought against the club/directors re. transfer irregularities, etc.

Next thing we know the club has been put into administration, prompting a 10 point deduction. All this BEFORE investigations into transfers at the club have been completed & with potential penalties to come.

Anyone else have any comments on this, please.

 

[Scoffers]

There must be dozens of football clubs--which are after all businesses--close to bankruptcy.Other types of business would simply be closed down.

There is a key difference with Football Clubs though, to be fair, in business, if you go into bankruptcy, it scares customers off for fear of losing their money, but with Football Clubs, you still have the punter paying on the gate every week and so it's a slightly more sustainable model once you agree to pay a certain amount of pennies in the pound to the suppliers.

 

[Hatterlovesbrighton]

Sad day. Didn't expect this, but the board have been acting very strangely for the last little while. We've got planning applications going in for a new stadium in January. Hope that this doesn't put that in jepoardy but suspect it might.

 

[Starry]

oops, sorry

 

[magoo]

This rule has got to change though. Points deduction is punishing the fans not the Board.

 

[withdeanwombat]

There is a key difference with Football Clubs though, to be fair, in business, if you go into bankruptcy, it scares customers off for fear of losing their money, but with Football Clubs, you still have the punter paying on the gate every week and so it's a slightly more sustainable model once you agree to pay a certain amount of pennies in the pound to the suppliers.

Yes,I guess this is so,but you'd think existing and possible new suppliers are not going to be suppliers for very long if they can only expect a Leeds style few coppers in the pound deal.

Will the few remaining punters want to watch the youth team and a few cheap oldies playing desperate stuff week in week out,scratching about with few prospects of revival even if a new stadium is in the offing?


Oh! Hang on a minute!

 

[smudge]

I wonder if Darren Currie would fancy a club with a chance at play off or even automatic promotion?