Administration would mean the club re-emerging as a healthy financial entity

[a1canary 0]

Not my words, but those of the latest Pompey owner.

And very true words. Is it the only means of ever paying down our debts? That and a white knight billionaire uberfan?

If come mid April we are 15 points clear of third place, should we take the plunge?

[The Young One 0]

[quote user="a1canary"]Not my words, but those of the latest Pompey owner.

And very true words. Is it the only means of ever paying down our debts? That and a white knight billionaire uberfan?

If come mid April we are 15 points clear of third place, should we take the plunge?[/quote]

I,m lost for words.

[blahblahblah 2]

Didn''t you start a thread like this about 2 months ago ?The answer is still no.

[morty 0]

Have we not done this to death already?Administration is a last resort and should be avoided at all costs. I don''t think its quite the easy solution that the Pompey owner thinks it is, but they really are fresh out of options now.Oh, and we can''t just decide to go into admin because we fancy it, Leeds tried to play that game and look what happened there, the FA saw right through them and screwed them over.

[tom1902 0]

no, because the administrators would sell our assets in order to pay the creditors.

we would loose everything we have

[Canary Man of Kent 0]

[quote user="a1canary"]Not my words, but those of the latest Pompey owner. And very true words. Is it the only means of ever paying down our debts? That and a white knight billionaire uberfan? If come mid April we are 15 points clear of third place, should we take the plunge?[/quote]

Why would we want to start on minus 10 next season?

[a1canary 0]

It was just a question!

What really bugs me though is that the likes of Leeds and next season Crystal Palace, are allowed to just write off nearly all their debts by going into administration. Leeds will be in the prem in 3 years because of that, i guarantee it.

[Lambert is King 0]

No our position is different our secured creditors will take the ground back and like Leeds were we will probably be deducted additional points next year. Portsmouth are going into administration to stop them being wound up by HMRC and will no longer exist.

On top of this all the directors loans will be lost as they will be last to receive anything costing Delia alone millions.

McNally seems to have a handle on things

[Canary Man of Kent 0]

People who think administration is a good idea can''t know too much about finance.

Yes, I agree it seems it can work out for some in the long-run, but there''s no guarantees and there''s a lot of pain to be had along the way.

[TheGoogler 324]

[quote user="a1canary"]It was just a question![/quote]No it''s not "just a question". You clearly do not understand administration.A company goes into administration only as a LAST RESORT. You do not choose to go into administration as it suits you. You go into administration because you can''t pay off debts that are owed. The consequences of it are also far greater than simply a ten point deduction. On top of having to screw over a number of local causes (St Johns Ambulance Brigade lost around £8000 when Ipswich went into admin) and businesses, it also affects chances of getting further finance. Banks become far less inclined to help out. Why? Because we''ve not paid our debts to people before.That leaves you in a difficult spot - indeed, leaves you open to unscrupulous people (Marcus Evans anyone?) swooping in and taking on the debt themselves. Why do that? Well, simply, because they stand to profit from it one way or another.

[a1canary 0]

Yes it is ''just a question'' googler, you clearly don''t understand words.

And no, i''m not an accountant, businessman or financier so i probably don''t understand much about administration. Hence the question.

There''s going to be a lot of pain along the way for all clubs with debts the size of ours. Administration involves squeezing all that pain in to a short space of time.

But i can accept that it looks like a bad idea from our point of view. I just hope it''s the same for all clubs.

Just that Leeds have ultimately got away with it, albeit at a cost, and i don''t want it to become an easy option for clubs. But we weren''t quite as badly run and screwed up as Leeds were by Risdale, we''ve ended up in the same place as them, only now with a whole lot more debt than them. They will be stronger than us next year, you can almost be sure of that because they won''t be paying however many players worth of player wages/transfer fees in debt repayments.

[AndyCanary 0]

Oh my days... do you even know what it means to go into administration?This £25m we owe?... do you think that some magic fairy will pop up and pay the people we owe it to? Even if the administrators didn''t sell all our best players, and assets to pay it then there would be hundreds of businesses small and large totally fecked because of our poor business skills.

[Rivvo 257]

[quote user="a1canary"]It was just a question! What really bugs me though is that the likes of Leeds and next season Crystal Palace, are allowed to just write off nearly all their debts by going into administration. Leeds will be in the prem in 3 years because of that, i guarantee it.[/quote]

 

Really? I''m not sure that they''ll even be out of league 1 without more investment.

[PurpleCanary 5,554]

[quote user="a1canary"]Not my words, but those of the latest Pompey owner.

And very true words. Is it the only means of ever paying down our debts? That and a white knight billionaire uberfan?

If come mid April we are 15 points clear of third place, should we take the plunge?[/quote]

For a rather different and arguably less biased view:

http://www.bbc.co.uk/blogs/mattslater/2010/02/portsmouth_fc_in_crisis_qa.html

[Barclay hero 0]

BBC Blog is actually very good. Whilst many people point at Southampton they forget its only 6 months ago that Southampton were days away from FOLDING - gone - at least in their current guise - forever

There will come a time when a club wont make it out of administration. Lets just imagine (horror story) its us that go into Administration in the summer. Deloittes are appointed but despite the media interest no buyer is found. Fernandes decides its not for him, and Cullum et al dont step forward

Holt, Hoolahan and Martin will be sold. Not for millions - more like 100k tops. We''ll have a transfer embargo slapped on us so we couldnt sign replacements even if we had the money. The lesser players will stay for a while but then even they''ll go. Lambert will be long gone - as will McNally as the old board cant stay on

Eventually the administrator will tell the League that we cant fulfill our fixtures. At that point we''re out of the League altogether and the conference wouldnt have us. So its ei ei ei o in the Ryman League we go - to face Lowestoft (if theyre not in a higher league by then) - and thats AT BEST. It could even be the Ridgeons.

Colney will be long gone. Carrow Road will probably be one of the last things to go - hopefully to be bought by the City Council to be preserved as a sports ground and rented to any future club. Thats best case scenario - if the council arent bothered its more likely to be sold to a property developer, demolished and turned into affordable housing. Yes there would be a Norwich Rovers (or whatever) plying its trade but probably groundsharing with Wroxham

It WILL happen to somebody. Its already happened to other clubs - Aldershot being the most notable although older members of this board will remember Bradford Park Avenue and Barrow and Workington - not to mention Newport County.

Its also notable to mention that the original cries for getting rid of Delia at all costs disappeared as Portsmouth''s story developed. She may not be the best owner we''ve had but she could be a damn sight worse. Remember Wimbledon everyone? How would you like to become Bury St Edmunds Canaries. Cos it could happen with the wrong owner

Administration? No thanks. Id rather have our club as it is - even if we are in a pants division this year - because its still our club in our city in our county

A1C I''m not ranting at you - as you said yourself you didnt realise. I AM ranting at the numpties on this board that called for / are calling for / will call in the future for Administration when they know perfectly well the risks involved

[Bethnal Yellow and Green 1,557]

Portsmouth were saying that administration would be the death of them earlier in the season, this latest statement has come out as it is now inevitable and Storrie is trying to spin it (and brush over his £1m+ salary). It looks as if Pompy will have 20 points deducted next season, and half a squad at most once they have to sell all their players off cheap - they will actually be lucky to have a club, the current owner doesn''t really care and just wants his cash back so will sell all the players and the ground if need be. Say we were 15 clear, went into admin;1) The points deduction would start next season so would start in the Champ with minus 102) Expect to see Holt, Hoolihan, Russell, C Martin, McNamee and just about any other decent players going out the door as the administrators sell our assets3) I wouldn''t put it past the FA to stop us getting promoted for a cynical use of the admin systemSo basically no, no to admin.

[ThorpeCanary 71]

[quote user="Barclay hero"]BBC Blog is actually very good. Whilst many people point at Southampton they forget its only 6 months ago that Southampton were days away from FOLDING - gone - at least in their current guise - forever There will come a time when a club wont make it out of administration. Lets just imagine (horror story) its us that go into Administration in the summer. Deloittes are appointed but despite the media interest no buyer is found. Fernandes decides its not for him, and Cullum et al dont step forward Holt, Hoolahan and Martin will be sold. Not for millions - more like 100k tops. We''ll have a transfer embargo slapped on us so we couldnt sign replacements even if we had the money. The lesser players will stay for a while but then even they''ll go. Lambert will be long gone - as will McNally as the old board cant stay on Eventually the administrator will tell the League that we cant fulfill our fixtures. At that point we''re out of the League altogether and the conference wouldnt have us. So its ei ei ei o in the Ryman League we go - to face Lowestoft (if theyre not in a higher league by then) - and thats AT BEST. It could even be the Ridgeons. Colney will be long gone. Carrow Road will probably be one of the last things to go - hopefully to be bought by the City Council to be preserved as a sports ground and rented to any future club. Thats best case scenario - if the council arent bothered its more likely to be sold to a property developer, demolished and turned into affordable housing. Yes there would be a Norwich Rovers (or whatever) plying its trade but probably groundsharing with Wroxham It WILL happen to somebody. Its already happened to other clubs - Aldershot being the most notable although older members of this board will remember Bradford Park Avenue and Barrow and Workington - not to mention Newport County. Its also notable to mention that the original cries for getting rid of Delia at all costs disappeared as Portsmouth''s story developed. She may not be the best owner we''ve had but she could be a damn sight worse. Remember Wimbledon everyone? How would you like to become Bury St Edmunds Canaries. Cos it could happen with the wrong owner Administration? No thanks. Id rather have our club as it is - even if we are in a pants division this year - because its still our club in our city in our county A1C I''m not ranting at you - as you said yourself you didnt realise. I AM ranting at the numpties on this board that called for / are calling for / will call in the future for Administration when they know perfectly well the risks involved[/quote]

I nearly fell had a breakdown reading this.

[whoareyou? 0]

One p[oint worth mentioning is that even if you go into administration, FA rules state that any money owed to other football clubs MUST be paid in full to allow you to continue in the Football League/Premier League.

Portsmouth will almost certainly be on the brink of League One this time next year. Who would want to sell a player to them in the future without being paid in full up front?

Administration is a lst resort to prevent Portsmouth being wound up!

[Cestrian Canary 0]

For those interested, Chester are a step further along than Portsmouth in terms off going out of business and are about to be thrown out of the conference. I know we are more high profile than the Conference and hence may find it easier to find a buyer if in adminstration, but it''s a recent example that proves a buyer can''t always be found and if you can''t pay your bills you fold. A 126 year club down the pan because the owener thought adminstration was a good idea to clear the debts. As has been said, adminstration is the LAST resort.

http://news.bbc.co.uk/sport2/hi/football/teams/c/chester/8521746.stm

[morty 0]

[quote user="Cestrian Canary"]

For those interested, Chester are a step further along than Portsmouth in terms off going out of business and are about to be thrown out of the conference. I know we are more high profile than the Conference and hence may find it easier to find a buyer if in adminstration, but it''s a recent example that proves a buyer can''t always be found and if you can''t pay your bills you fold. A 126 year club down the pan because the owener thought adminstration was a good idea to clear the debts. As has been said, adminstration is the LAST resort.

http://news.bbc.co.uk/sport2/hi/football/teams/c/chester/8521746.stm

[/quote]A 25 point deduction? Ouch!!!!!Certainly illustrates the point that its never a good idea!

[pete_norw 0]

[quote user="morty"]Have we not done this to death already?

Administration is a last resort and should be avoided at all costs. I don''t think its quite the easy solution that the Pompey owner thinks it is, but they really are fresh out of options now.

Oh, and we can''t just decide to go into admin because we fancy it, Leeds tried to play that game and look what happened there, the FA saw right through them and screwed them over.
[/quote]

Quite right Morty thes people at Portsmouth are trying the same thing they were more than capable of paying the debts off they drew  £48mil in last year from sales of players where''s it all gone,? only one place comes to mind as far as I can see, The big question  Why do the players put up with it ? why not Strike? 

[morty 0]

[quote user="pete_norw"]

[quote user="morty"]Have we not done this to death already?Administration is a last resort and should be avoided at all costs. I don''t think its quite the easy solution that the Pompey owner thinks it is, but they really are fresh out of options now.Oh, and we can''t just decide to go into admin because we fancy it, Leeds tried to play that game and look what happened there, the FA saw right through them and screwed them over. [/quote]

Quite right Morty thes people at Portsmouth are trying the same thing they were more than capable of paying the debts off they drew  £48mil in last year from sales of players where''s it all gone,? only one place comes to mind as far as I can see, The big question  Why do the players put up with it ? why not Strike? 

[/quote]They put up with it because they want the money!Portsmouth had ideas of breaking into the big time and to attract big players I should imagine they paid some hefty wages! Even if players were partially aware of the risk then it was probably worth a gamble anyway. I don''t think that striking is really relevant here, as far as I know the players have been paid up to date.

[Cestrian Canary 0]

Pete_norw - Again i refer to the Chester example, but a player strike is exactly what happened before their game at Forest Green Rovers. The players just refused to get on the bus as they hadn''t been paid, the fixture wasn''t fulfiled and now they face expulsion from the league. It can happen and it will happen further up the football pyramid one day in the not too distant future.

[Canary Wundaboy 1,358]

I personally think it''s disgusting that Portsmouth could avoid the winding up order. They have over-reached themselves, its all gone spectacularly wrong, they pwe £70m and the club is being passed around like a hot potato. They are going to get relegated this season, if they cant satisfy their debtors with the riches and money of the Premier League how on Earth does anyoen think they''ll be able to manage in the Championship? To keep dragging it out is embarrassing to the FA who just don''t want to admit that their precious Premier League is a stinking cesspit of overpaid primadonna footballers, appalling boardroom management and a steady stream of uninterested money men.

[pete_norw 0]

[quote user="Canary Wundaboy"]I personally think it''s disgusting that Portsmouth could avoid the winding up order. They have over-reached themselves, its all gone spectacularly wrong, they pwe £70m and the club is being passed around like a hot potato. They are going to get relegated this season, if they cant satisfy their debtors with the riches and money of the Premier League how on Earth does anyoen think they''ll be able to manage in the Championship? To keep dragging it out is embarrassing to the FA who just don''t want to admit that their precious Premier League is a stinking cesspit of overpaid primadonna footballers, appalling boardroom management and a steady stream of uninterested money men.
[/quote]

My thoughts too, well said

[a1canary 0]

Hmm, that is the answer to the question then - administration is definitely a bad idea and far too much of a gamble. Plus i can see it can have a devastating effect on the local business community.

My main concern was indeed that administration was a get out of jail free card and i still contest that it appears to have been just that for some clubs. Southampton looked to have emerged from it most unscathed of all. I mean, their 10 point deduction doesn''t even make much difference to their league place at the moment!

They may just miss out on the play offs this year, but they will absolutely walk this league next year.

[morty 0]

Whilst I don''t think that Portsmouth should "get away with anything" I think people here need to remember that the football club doesn''t just employ 30 or 40 "prima donna" footballers.There is a whole host of normal people in the background, normal people on normal wages who have families to support. Administration will affect them, and also many local businesses too.There but for the grace of God, go us.

[UEAstudent 0]

All we need it a pre pack

http://en.wikipedia.org/wiki/Administration_(law)#Pre-pack_administration

I can''t make links work but feel free to cut and paste - ruthless yes but a buyer would rather buy a club free of debts than one with debts.

I don''t charge for this advice you know (unlike delloites)

[a1canary 0]

HA - SEE!!

(joke)

[Gingerpele 0]

If we go into administration....we will lose Lambert...

because the administators are incharge, and when Celtic come knocking on the door, they probably won''t refuse..... (plus why would anyone want to manage a team in administation? if they have the choice/chance to go elsewhere...)

Thats what i think anyway....