ARE WE GOING INTO ADMINISTRATION ?

[row 0]

I think that, as current circumstances continue to disintergrate, with our team hovering perilusly above the bottom 3, maybe now is the time, or soon may be the time, for the club to enter administration, clearing are outstanding loans that total a quoted 18 million, that is a major contributing factor to such losses as 8 million per year. Maybe if we were to concede defeat at an earlier stage than the end of the season, when we may well find ourselves in the bottom 3 anyway, for example before the 12 game rule comes in that prevents clubs from going into administration with less games than this amount left to play, the rule that came in after leeds went into administration before the season was up in which they were relegated from the championship and were subsequently fined and given a 15 point deduction. More to the point, doing this perhaps unthinkable act could be all the better for the club, at first maybe, the implications of such an act are negative, but in the long run, we would have no debt, a chance to re-build the club in league 1, with a new board. This leads me into another positive that could come from this act. If they were to go into administration, a new person has to take over the club, and with a fair majority of supporters currently not in favour of our pocketless shareholders, it would give the chance , once again, for long time supporter Peter Cullum to come into the club. Im sure that being the shrewd buisnessman that he is, he would bite the clubs hands off to take control of his boyhood club for such a cut down price, which would then give him more money availlible to invest into the playing squad.

A crazy idea maybe, but one that could be the answer to problems, weve been looking for ?

[row 0]

please respond with views

[missing in action? 0]

nowere skint, but we have "assets" and a good loan setup. unless HBOS and other lenders went tits up were ok.....for now.

[row 0]

but dont you think if we did it would just be a fresh start

[Rupethebear 0]

Hardly the way to do business, Delia and Co are not likely to get their reputations carried through the dirt.

[row 0]

the point is thought,, what is best for the club ?

[Pinks 0]

[quote user="row"]but dont you think if we did it would just be a fresh start[/quote]

Not for all the local traders we owe money to. Administration would be an embarrassment to every Norwich supporter and should be avoided at all costs.

I can just imagine the stick from Town fans.

Shame on you

[row 0]

but hang on,, we look to be going down anyway, that would be the same stick as if we were to go down with administration,, and it would be better as we wouldnt have any debt.

[Pinks 0]

[quote user="row"]but hang on,, we look to be going down anyway, that would be the same stick as if we were to go down with administration,, and it would be better as we wouldnt have any debt.[/quote]

Relgation aside, its about pride, ethics and paying your debts. Why should local traders pay for the mismanagement of the board

[row 0]

what implications are there for local traders ??

[Rupethebear 0]

they might go bust too if they dont get paid!!

[row 0]

what local traders arnt going to be paid if we went into administration.

[Rupethebear 0]

All of them would get about 5p in the £1, and you can be sure they will be many of them as we have a lot of local suppliers...

[TheCardinal 0]

Sadly, Row, unless you''re linked with NCFC in some way the full extent of Norwich''s business relationships aren''t public knowledge. However, looking at Ipswich, their period in administration meant their business partners were paid 6p in every £1 - and some (like the St Johns Ambulance Brigade) were paid nothing whatsoever.Administration is a last ditch resort, not a tactic to deploy to reduce your debts. I don''t know how much you know about insolvency and the ramifications of it, but IMO it''s not something to be undertaken on a whim as you seem to be suggesting.

[norfolkchance1 0]

[quote user="row"]what local traders arnt going to be paid if we went into administration.[/quote]

Administration would mean that local traders would get a lot less than they should do for the work they had done.

[norfolkchance1 0]

[quote user="TheMarshmallowMonkey"]Sadly, Row, unless you''re linked with NCFC in some way the full extent of Norwich''s business relationships aren''t public knowledge. However, looking at Ipswich, their period in administration meant their business partners were paid 6p in every £1 - and some (like the St Johns Ambulance Brigade) were paid nothing whatsoever.

Administration is a last ditch resort, not a tactic to deploy to reduce your debts. I don''t know how much you know about insolvency and the ramifications of it, but IMO it''s not something to be undertaken on a whim as you seem to be suggesting.
[/quote]

Agreed it would make you very unpopular with people if you went in administration.

[Yellowbeagle 0]

Going into administration is not the solution to our problems and is not a get out of jail free card, if it was that simple clubs across the country would accept a year of relegation to clear their debts.  It used to be and i think it still is the case that a document would have to be presented to the courts to prove that we can no longer meet the costs. It''s not for us to decide when we go into administration it''s for the courts to decide how we can best pay back the people we owe money too. If administrators do come in their duty is to get the most  money back to the people we owe it too in any way possible whether thats assets stripping or the sale of the club.

If we do go into administration and no buyer comes forward to buy the club we will basically disappear altogether, i know someone is likely to come forward but there are no guarantees, especially in this financial climate.

[grantroederdisaster 0]

[quote user="row"]I think that, as current circumstances continue to disintergrate, with our team hovering perilusly above the bottom 3, maybe now is the time, or soon may be the time, for the club to enter administration, clearing are outstanding loans that total a quoted 18 million, that is a major contributing factor to such losses as 8 million per year. Maybe if we were to concede defeat at an earlier stage than the end of the season, when we may well find ourselves in the bottom 3 anyway, for example before the 12 game rule comes in that prevents clubs from going into administration with less games than this amount left to play, the rule that came in after leeds went into administration before the season was up in which they were relegated from the championship and were subsequently fined and given a 15 point deduction. More to the point, doing this perhaps unthinkable act could be all the better for the club, at first maybe, the implications of such an act are negative, but in the long run, we would have no debt, a chance to re-build the club in league 1, with a new board. This leads me into another positive that could come from this act. If they were to go into administration, a new person has to take over the club, and with a fair majority of supporters currently not in favour of our pocketless shareholders, it would give the chance , once again, for long time supporter Peter Cullum to come into the club. Im sure that being the shrewd buisnessman that he is, he would bite the clubs hands off to take control of his boyhood club for such a cut down price, which would then give him more money availlible to invest into the playing squad. A crazy idea maybe, but one that could be the answer to problems, weve been looking for ?[/quote]

 

Christ almighty!

 

Don''t throw in the towel yet!

 

Getting rid of the main instigator of our problems Roeder is our best hope at present!

 

RoederOUT!

[Big Ginge 0]

Administration didn''t do much for Woolworths!

It''s not the answer.

[Chabal 0]

As a fan of a club who has gone through administration, it is definitely not desirable, or a clean break, or as simple as you suggest.

[ndhscanary 0]

In the current economic climate this is the worst time we could go into administration. At the moment it will be very hard to get anyone to buy the club and peter cullum has already said he is now being cautious and does not want to buy the club.

A minority of supporters say relegation would help the club but i feel it will just send us further down. We go down we will go into administration and knowing our luck we will get a luton style deduction. Know as i said before who on earth is going to buy a club in the current economic climate which is losing in the regions of thousands every day in league one. I believe if southampton go down the same will happen.

Im pretty sure that none of the 92 league clubs have been liquidated but im pretty sure with things how they are i think a few clubs will go under

[Ive got off the fence 0]

[quote user="row"]what implications are there for local traders ??[/quote]Phone up the MD of Breckland Print, the programme printers, and ask him how he would feel about a 5p in the pound settlement!Then come back and ask your question again, being full of the insight he has passed on to you!They are one of the bigger companies that produce work for the club and may be able to take the hit… the smaller ones would not be so lucky I would imagine!!!!!

[Mark .Y. 375]

Surely our major debt is secured against the ground and surrounding land, assuming that is the case administration would mean no ground.

Mark .Y.

 

[Gingerpele 0]

Mabey we should, it might be better, we can start off from square one

[canary cherub 1]

[quote user="Ive got off the fence"][quote user="row"]what implications are there for local traders ??[/quote]

Phone up the MD of Breckland Print, the programme printers, and ask him how he would feel about a 5p in the pound settlement!

Then come back and ask your question again, being full of the insight he has passed on to you!

They are one of the bigger companies that produce work for the club and may be able to take the hit… the smaller ones would not be so lucky I would imagine!!!!!


[/quote]

Personally I''d be willing to chip in to a collection to help local businesses.

 

[Mr.Carrow 394]

[quote user="Mark .Y."]

Surely our major debt is secured against the ground and surrounding land, assuming that is the case administration would mean no ground.

Mark .Y.

 

[/quote]

Agreed, i think is far easier for clubs like ipswich who had few assets for the administrators to flog off.  I`m not sure we`d lose the ground as even in administration they`ve got to strive to keep the business as a going concern i believe, but i think we`d probably lose the training ground and land assets.

Could the club pre-empt administration by sale and lease-back of all its land assets i wonder?

[Andy Larkin 15]

[quote user="Potless Percy "]

[quote user="Ive got off the fence"][quote user="row"]what implications are there for local traders ??[/quote]Phone up the MD of Breckland Print, the programme printers, and ask him how he would feel about a 5p in the pound settlement!Then come back and ask your question again, being full of the insight he has passed on to you!They are one of the bigger companies that produce work for the club and may be able to take the hit… the smaller ones would not be so lucky I would imagine!!!!!

[/quote]

Personally I''d be willing to chip in to a collection to help local businesses.

 

[/quote]????? As in ''agree with the go into administration" and then help pay the debts of all those that have lost their money?

[canary cherub 1]

[quote user="Andy Larkin"][quote user="Potless Percy "]

[quote user="Ive got off the fence"][quote user="row"]what implications are there for local traders ??[/quote]

Phone up the MD of Breckland Print, the programme printers, and ask him how he would feel about a 5p in the pound settlement!

Then come back and ask your question again, being full of the insight he has passed on to you!

They are one of the bigger companies that produce work for the club and may be able to take the hit… the smaller ones would not be so lucky I would imagine!!!!!


[/quote]

Personally I''d be willing to chip in to a collection to help local businesses.

 

[/quote]

?????

As in ''agree with the go into administration" and then help pay the debts of all those that have lost their money?
[/quote]

No of course not.  If we went into admin we''d be in far too much debt for a couple of hundred quid from me to make any difference.  But if after the admin process was completed there was a local firm on the brink through no fault of their own because the club hadn''t paid them, I''d be willing to chip in.

Agreeing or not with administration is irrelevant, because it usually only happens when there''s no other choice available.  But I''m not sure it would be worse that carrying on as we are under the present regime.

 

[blahblahblah 2]

[quote user="Mr.Carrow"]Could the club pre-empt administration by sale and lease-back of all its land assets i wonder?[/quote]You''d get a fiver in the current market.  Okay, maybe a tenner.  But there''s more chance of getting a rich idiot to throw money at the club hand over fist than there is in getting a reasonable price for any land assets at the moment.

[Beauseant 0]

[quote user="blahblahblah"][quote user="Mr.Carrow"]Could the club pre-empt administration by sale and lease-back of all its land assets i wonder?[/quote]

You''d get a fiver in the current market.  Okay, maybe a tenner.  But there''s more chance of getting a rich idiot to throw money at the club hand over fist than there is in getting a reasonable price for any land assets at the moment.
[/quote]

 

It would be a ridiculous thing to do. First, as Blah rightly says, we''d get sod all for the land at present, but thereafter we would be bereft of assets to use as collateral, and face rising leaseback costs as the property market gets into an upward cycle. King''s Lynn went for this option in the 80s and then had to throw themselves on the goodwill of the council (to whom they sold the ground) to avoid going bust. It took them nearly 20 years to get to their current fairly strong position, but even now the lack of real assets is an issue.

Administration is a last resort and should be avoided at all costs!