If we went in to Administration.....,

I was listening to Talk Sport today and heard the Administrator (Brendan Gilfoil) talking about Plymouth coming out of Administration, apparently the fourth club to do so.
It got me thinking (and sorry if this sounds like a naive question) but in a basic practical day to day sense, whay happens if you go in to admin?
I guess you can't buy (or loan?) players?
Do you have to try and sell as many players as possible?
With the BSP, are you automatically relegated or is it a points deduction?
What other sanctions or restrictions are there against a club in admin?

I'm not for or against JF, but reading all the various points of view it does seem that other investment (if any is out there) seems strangled by current politics and in fighting.  Could administration actually give us a fresh start and change the club dynamics which may benefit us in the long term?

I think the main problem is that the debts are owed to the people (Fenty) who would need to put the club into admin. If he did this then he would be writing off any money he has loaned to the club, apart from whatever the administrator said needed to be repaid, ie 10p in the pound or whatever. As Mr. Fenty has said he will never expect the money back then we would in reality be no better off but would still have the penalties associated with administration, ie points deduction, relegation.

But, For anyone wanting to buy into the club these debts could be real debts. Mr. Fenty could demand his loans back or at least use them as bargaining tools to hold his place on the board. This is the only thing i really have against Fenty. I feel he is using these debts to his advantage and stopping the club moving forward. If he doesn't want them back then write them off, don't say i don't want them back unless....blah, blah, blah. It's a bit like feeling how you'd feel if your ex wife won the lottery i guess...the female dog.

I used this in a previous post but will say it again. If GTFC was a one armed bandit and Fenty ploughed his money in and didn't win anything so walked away why does he think that if the next bloke put a few quid in and dropped the jackpot he would be entitled to take his money back from the pot.

These loans that Mr. Fenty doesn't want back are just as likely to destroy the club as much as if he said he wanted them back tomorrow.

I'm no expert and could be completely wrong but thats how i see it.

Someone has to put the club into liquidation. Normally a creditor i.e. bank, Inland revenue.

Fenty is GTFC biggest creditor and as stated above it wouldnt be in his best interest as he would only get a few p in £ as would othe rcreditor. Normally the assets are sold to a new company i.e. GTFC 2011 Limited at a knock down price.

I GUESS adminin the conference results in auto matic relegation but it could be that it is relegation to Nth Prem as Blue Square North are one of the same?

The major problem with administration is what if nobody wants to buy the assets of the club? If there are no takers then the business is disolved and the company wound up. New club starts a fresh somewhere in the pyramid

Quoted from VictorMeldrewsDad

Mr. Fenty has said he will never expect the money back then we would in reality be no better off but would still have the penalties associated with administration, ie points deduction, relegation.

As i see it the clubs problem is not current debts, it is the cost to run the club going forward, Fenty has said the bill as it stands, is to big for him alone, this appears to be the brunt of the argument between Fenty and Parker.

When Parker stepped outside the Board Room and then took shareholder control with 54% he could have wiped Fenty out at a glance by just holding and EGM AGM and using his simple majority.

Quoted from VictorMeldrewsDad

But, For anyone wanting to buy into the club these debts could be real debts. Mr. Fenty could demand his loans back or at least use them as bargaining tools to hold his place on the board. This is the only thing i really have against Fenty. I feel he is using these debts to his advantage and stopping the club moving forward. If he doesn't want them back then write them off, don't say i don't want them back unless....blah, blah, blah. It's a bit like feeling how you'd feel if your ex wife won the lottery i guess...the female dog.

We know Parker has loans in the Club also, not sure how much, should he too wipe these out. Could he be holding Fenty to ransom?????? there's a thought!!!!!!!!

I guess you have to take Fenty at his word until you can prove otherwise. There has been no stampede or hint of one to take the club over.

He has said that he is prepared to go, leave the board / support a new regime and ensure the loans do not stand in the way if a new owner can be found that can sustain the club better. What evidence do we have to suggest he is lying.

Fenty has clearly said that unless a wealthy owner comes in then it is highly unlikely the club can repay so why should he just write them off?

Any new owner could negotiate repayment on terms to suite them as i see it, no doubt Fenty would expect them to demonstrate funds are available to run the club for that to happen is suspect.

As i understand it no other director has written off one penny in the past. In the 80s Ramsden was paid back 850K which is probably about the same value as Fenty's loans today i guess.!!!!!

Personally i don't see a knight in shining amour coming to our rescue (Hope it Happens cos i don't like what these two have done to our Club) we are not a fashionable club and might have to put up with the devil himself.

Quoted from shareholder

We know Parker has loans in the Club also, not sure how much, should he too wipe these out. Could he be holding Fenty to ransom?????? there's a thought!!!!!!!!

I though Parkers money was all used to buy shares? I guess all may be revealed after the AGM in Nov

[b][/b]

Quoted from BIGChris

Someone has to put the club into liquidation. Normally a creditor i.e. bank, Inland revenue.

Fenty is GTFC biggest creditor and as stated above it wouldnt be in his best interest as he would only get a few p in £ as would othe rcreditor. Normally the assets are sold to a new company i.e. GTFC 2011 Limited at a knock down price.

I GUESS adminin the conference results in auto matic relegation but it could be that it is relegation to Nth Prem as Blue Square North are one of the same?

The major problem with administration is what if nobody wants to buy the assets of the club? If there are no takers then the business is disolved and the company wound up. New club starts a fresh somewhere in the pyramid

Your right....we would be demoted to the Northern Premier League (Evostick). The Blue Square North is part of the Conference League and they would not allow us to play within their leagues.

Quoted from tintowner

[b][/b]

Your right....we would be demoted to the Northern Premier League (Evostick). The Blue Square North is part of the Conference League and they would not allow us to play within their leagues.

Exciting times ahead then...

I may well be wrong but I heard we get a 10pt penalty if we go into admin and if we're still in admin next season we get automatically demoted.

Quoted from shareholder

I guess you have to take Fenty at his word until you can prove otherwise. There has been no stampede or hint of one to take the club over.

I suppose so but how do we know there wouldn't be if he dropped his loans ?
Surely that's the point ?

Quoted from shareholder

He has said that he is prepared to go, leave the board / support a new regime and ensure the loans do not stand in the way if a new owner can be found that can sustain the club better. What evidence do we have to suggest he is lying.

Important to understand this is only 'evidence' (may be true or not) and not proof but....

- Said it was only right he had "effective control" when he had equal shareholding with Parker.
- Objected to Parkers increased shareholding
- Wants to come back as chair ?

Quoted from shareholder

Fenty has clearly said that unless a wealthy owner comes in then it is highly unlikely the club can repay so why should he just write them off?

Because it's stopping a wealthy owner coming in ?

Don't understand your logic tbh - if the club can't repay then he shouldn't write them off ? You've lost me...

Quoted from shareholder

Any new owner could negotiate repayment on terms to suite them as i see it

If that's true would that be much consolation though ?
No idea.

Quoted from shareholder

As i understand it no other director has written off one penny in the past. In the 80s Ramsden was paid back 850K which is probably about the same value as Fenty's loans today i guess.!!!!!

Is it a fair comparison though ?
Championship club(presumably) with a BSP one ?

If we went into administration, we would indeed suffer an immediate 10 point deduction. If we were still in administration at the leagues AGM, we would be demoted from the Football Conference totally (which includes North/South). We would then be placed in the Evostick (Northern Premier) League Premier .....although that is not guaranteed. We could even end up in the Evostick North or South and our big local derby would be against Brigg Town!

Quoted from tintowner

If we went into administration, we would indeed suffer an immediate 10 point deduction. If we were still in administration at the leagues AGM, we would be demoted from the Football Conference totally (which includes North/South). We would then be placed in the Evostick (Northern Premier) League Premier .....although that is not guaranteed. We could even end up in the Evostick North or South and our big local derby would be against Brigg Town!

I quite like brigg anyway