Southampton in administration ? ? ? ?

[Gentleman Jim 0]

Food for thought !

http://www.dailymail.co.uk/sport/football/article-1166258/Southampton-playing-administration-card.html

 

 

 

[whoareyou? 0]

Just been mentioned on BBC news too.

Does that mean they will get points deducted straight away?

[Theres only one Ken Foggo 0]

Not straight away - if they finish less than ten points away from relegation at the end of the season they will be deducted then and Saiints will be relegated - if not it will be carried over to next season.

[Theres only one Ken Foggo 0]

Hang on - have just read the Daily Mail report and apparently they are trying to bend the rules to avoid having points deducted! Hope the FA tells them where to get off....

[singing canary 0]

i cant see how they can pull that one off , go into administration without losing ten points , surely thats the rules full stop .

or is it a april fools day joke ?

[Hog 0]

On TalkSport this morning with the blue nose Brazil, it was said that it was their Parent Company that was in trouble so they would avoid the points deduction!  Very fishy!

[mr carra 0]

well it is the football club''s parent company that has gone into admin, apparently, not the football club itself.  Interesting to see if league rules recognise that distinction (bet Southampton have studied the rules pretty carefully though)

Will be an interesting test of league rules - if they get away with it everyone will be setting up parent companies to try and transfer their club''s debt into.

 

Although they''ll probably change the rules so that no-on else can do it but leave Saints (like Ipswich a few years ago) to effectively get away with it.

[singing canary 0]

so southampton could have thier debt wiped , without penalties , why didnt norwich think of that , i hardly see that is fair and will be a complete uproar , especially teams like luton who have been punished big time ..

[rjwc22 0]

If it is the holding company that Lowe used to buy Southampton then you would surely think that the club would be one of their assets and so disposed of in order to pay creditors?

Very dodgy goings on down there, Rupert Lowe showing his true colours again.

[city-till-i-die 7]

its not the actual football club going into administration...so no points will be deducted

[singing canary 0]

im sure this cant happen ... if a parent company has gone into administration , surely if thier is assets connected it would be stripped , so rjwc22 i totally agree with you .

[singing canary 0]

does anyone know how much debt southampton are in ?

[CambridgeCanary 0]

If the holding company goes into administration then its assets wil be sold.  This could well include the club.  That is no different to West Ham being sold because its owner has gone bust.  The club itself is not bust.  It is just being sold as clubs are for a variety of reasons.  Manchester City was sold in the summer when Sinatra was effectively bust due to frozen assets.  Never any suggestion City itself was bust

No administration for the club itself and no penalties

[rjwc22 0]

Think I remember when Lowe took them back there was something like £30m of debt. 

I am intrigued to see how this pans out.

[rjwc22 0]

Whatever you say about him and Man City at least he did it my way......

[mr carra 0]

the assets of the parent club will be the shares in the football club, not the individual assets of the football club itself.  So, yes, the parent company may have to try and sell the football club to raise money to pay creditors.  However, that won''t be easy in the current climate and in any case doesn''t affect the football club as an operation - it would just have different owners.  The football club (apparently) does NOT have insurmountable debts.

[singing canary 0]

dito .. if southampton get away with this , i think all hell will let lose considering how many clubs are suffering financially at the moment .

[rjwc22 0]

If the club is just treated as an asset then I think any sale under this will not affect the debts of the club either so they will be in the same position just different owners (if they can find one).

[mr carra 0]

surely the point will be that Southampton football club won''t be ''getting away with it'' because it isn''t their debt so they are not running a financially unviable operation.

 

For example, would we expect as a club to be punished by the FA and given a points deduction if Delia herself as an individual ran up huge debts on something?

[singing canary 0]

thats a big if ,, unless they have someone lined up allready .

[mr carra 0]

doesn''t matter whether they find a buyer or not.  Doesn''t really affect the club either way in the short term.  Certainly not this season.

[Beauseant 0]

And on April Fool''s Day as well.

[singing canary 0]

typical isnt it .... i was very hopefull when i first see the news that southampton would lose 10 points , it would have made our lives a bit easier this season !!!

[TheCardinal 0]

[quote user="singing canary"]typical isnt it .... i was very hopefull when i first see the news that southampton would lose 10 points , it would have made our lives a bit easier this season !!![/quote]

It might still happen. The football league aren''t idiots - they''ll know if they allow this to happen, others will follow. They don''t want that. By any stretch of the imagination.

[rjwc22 0]

More details here http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article6012015.ece

Looks like Norwich Union are owed money - surely they can help us out!  Also says that the club will have until the end of the summer to find a buyer or face bankruptcy!

[singing canary 0]

well lets hope so , because if they get away with this , its really unfair on all the other clubs in a similar situation .

surely if its southamptons parent company , to wipe off that much debt when there are assets available , defeats the object really .

[GMF 1,044]

Shares in the parent company suspended.

RNS Number : 8600P Southampton Leisure Holdings PLC 01 April 2009

1 April 2009

Southampton Leisure Holdings plc ("SLH" or "the Company")

Update

The Company is currently in discussions with a number of parties concerning the injection of additional finance into its business. Unless this funding is secured, the Company will be unable to continue as a viable business for the forthcoming 12 months and is therefore unable to publish half yearly report to 31 December 2008 by 31 March 2009 which it is required to do under the AIM Rules.

Under the AIM Rules, a company that does not publish its half yearly report within 3 months of the period end will have its shares automatically suspended. The Directors expect that the Company will not be able to sign-off its half yearly report for the six months ended 31 December 2008 until the completion of a re-financing. As noted above, the Company is not in a position to publish its half yearly report to 31 December 2008 by 31 March 2009 and, as a consequence, its shares will be suspended from trading on the AIM market of the London Stock Exchange plc, pending publication of its healf yearly report for the six months ended 31 December 2008."

[Camuldonum 0]

http://www.dailyecho.co.uk/news/4250677.Points_penalty_could_be_suspended_if_Saints_go_into_administration/

[GMF 1,044]

Any clubs who went into administration before the fourth Thursday of last month, March 26, were hit with the ten-point deduction immediately.

Clubs waiting until after that point to go into administration, as may be the case with Southampton, will have their ten-point deduction suspended.

If Southampton are unable to beat the drop they will start their League One campaign next season on minus-ten points.

However, if they finish outside the drop zone, the ten points will be taken off after the final game of the season.

And if that causes them to slip into the relegation zone, they would then go down.

[singing canary 0]

shares have now been suspended .