Well, it's going to be interesting. My understanding (and I could be wrong) is that going into receivership means the company will be liquidated with assets being sold off. (With administration the business would be run as a going concern until a buyer is, hopefully, found.)
But the BCFC statement seems to think they can continue to operated "normally". I don't see that is feasible unless HK law is considerably different from ours. I guess we will find out eventually.
The imposition of a 10 point penalty will be in the assessment of the football league and its judgement of the ownership and solvency of the entity trading as 'Birmingham City FC'. Not sure we can take too much for granted there. FL has 2 and a bit months to sort it out and then inevitably 'BCFC' will have its right of appeal if/when FL misses something semantic or technical. Until we know for sure we'll have to assume no deduction. If BCFC has taken any measure like creditor protection then morally the points deduction should apply cos they're no longer playing on a financial/legal level field, but this is the FL. Will make interesting reading in the coming months.
Points deduction should be appropriate. If not, what's to stop owners structuring their club as a subsidiary of a holding Co and if problems arise just put the holding company under and say the club is unaffected.
Another mess caused by an 'unfit' person passing the ever stringent 'fit and proper person' test.
Perhaps the Football League should get their own house in order before giving out punishments that their own failing processes have helped to cause.
Heard a League rep talking about the 'TEST' a while back. His explanation was that, unlike tbe PL, the FL is a very small organization with very limited resources. Running investigations at a level we might expect is beyond their capabilities.
Isn't there a difference in treatment between parent companies and the actual football club? It's not as if the football club itself has stopped paying bills, unlike Forest say who paid Peterborough late for Britt Assombalonga in January, preventing Posh making a signing in the window
Southampton were given the deduction when their holding company went into admin, because the club and the holding company were "inextricably linked as one economic entity." If it's the same situation for Birmingham, they will be deducted points.
Thats exactly what I thought. Therefore would expect points deduction.
If not surely that would give Southampton valid cause for complaint.
Surely, if Birmingham aren't deducted 10 points, it is in the interest of ALL the club's below them to sue the FL.
Because of what happened at Southampton, the precedent has been set.
Another mess caused by an 'unfit' person passing the ever stringent 'fit and proper person' test.
Perhaps the Football League should get their own house in order before giving out punishments that their own failing processes have helped to cause.
Heard a League rep talking about the 'TEST' a while back. His explanation was that, unlike tbe PL, the FL is a very small organization with very limited resources. Running investigations at a level we might expect is beyond their capabilities.
What with all that TV money flooding into English football? Oh, wait...
These things take time.. often months to sort out.. If there is a point deduction it will happen for the start of next season...
I thought the rule was that if the deduction materially impacted the outcome of the season that club went into admin then the deduction would be applied then.
I thought there was a date that was relevant too, something like if the club goes into administration before 31st March it's applied that season, but if it's after that date, then it depends on material impact on the course of the season.
From 2007–08, any club entering administration after the fourth Thursday in March would have their 10-point deduction suspended until the following season. If the club is relegated the points will be deducted from their tally at the start of next season. If the club stays up the 10 points will be taken off their final total.
Didn't they just turn down 5 m for their their winger ( Gray ) from Bournemouth. Why would they have not cashed in on him ?
maybe because cash flow isn't the immediate problem. maybe it is a battle for control of the club and the anti Carson Yung group on the board did this to stop the pro yung group gaining control.
Didn't they just turn down 5 m for their their winger ( Gray ) from Bournemouth. Why would they have not cashed in on him ?
maybe because cash flow isn't the immediate problem. maybe it is a battle for control of the club and the anti Carson Yung group on the board did this to stop the pro yung group gaining control.
According to the Mail this is the reason for going into receivership. The Football League have demanded an emergency meeting with the club who have said they are not in financial difficulty.
Comments
But the BCFC statement seems to think they can continue to operated "normally". I don't see that is feasible unless HK law is considerably different from ours. I guess we will find out eventually.
Perhaps the Football League should get their own house in order before giving out punishments that their own failing processes have helped to cause.
If BCFC has taken any measure like creditor protection then morally the points deduction should apply cos they're no longer playing on a financial/legal level field, but this is the FL. Will make interesting reading in the coming months.
Long Term: A better chance of selling the club
Charlton-36
Fulham-35
Rotherham-33
Brigton-31
Millwall-30
Birmingham-28
Wigan-22
Blackpool-21
If we are safe and Brum need a win to send Millwall down..............
Would leave them 2 behind Millwall...I think they would make that up easy enough tbh.
Because of what happened at Southampton, the precedent has been set.
Birmingham should not get any special treatment.
From 2007–08, any club entering administration after the fourth Thursday in March would have their 10-point deduction suspended until the following season. If the club is relegated the points will be deducted from their tally at the start of next season. If the club stays up the 10 points will be taken off their final total.
it's effectively an internal dispute where someone has decided to use the nuclear option!