Is Administration the way forward?

[Smiffy]

A few on here are calling for Administration. Especially after another unpaid tax bill and players/staff going unpaid again. Obviously Ron wouldn't put us in voluntary Admin, so this is based on a scenario where an unpaid debt results in the courts appointing Administrators.


But what would be the implications. Is it even possible with the way Ron has structured things?




Would it be a way out of the financial mess, or would it make things worse?




Would we face the real threat of non-league football with a points deduction and loss of key players?




Would Ron have to release his control of the club?




Are we better off struggling and praying the new stadium solves all our problems?




Would new owners step forward?


So many questions. Let's see if we can have a sensible debate and discuss the pro's & con's of Administration for our club. Let's leave this running for a few days and perhaps have a poll later this week. That way we can all chip in and digest the information, before making a rash decision now on whether you think it is the right course of action.

Please add any Pro's & Con's to the list below:


Pro's

Debts would be wiped/reduced.











Con's

Points deduction.

 

[FarmdogSUFC]

It's a hard call, but if they feel that our position is that bad, then they can force Ron to sell up/leave (which is what I believe would be the case anyway). Only problem being that it could see us enter non league IMO.

 

[Rattus Norvegicus]

Well, let me start - and I hope you do not think that I am being unhelpful - but I will try to be concise.

Is administration the way forward? Answer: Not from where I am sitting.

 

[TrueBlue]

No way on this earth is Administration the way forward!!!

we need Ron and Ron needs us, we may not like it but when we can get this deal done and things in place he can sell up and sail off

 

[Smiffy]

No way on this earth is Administration the way forward!!!

we need Ron and Ron needs us, we may not like it but when we can get this deal done and things in place he can sell up and sail off

Let's have some reasoning then old chap...

 

[markw]

Let's have some reasoning then old chap...

Im not too clued up on administration, but isnt he our main creditor? so he would put the club in admin and then have to pay himself Xp in every £?

 

[TrueBlue]

Let's have some reasoning then old chap...

Whether we like it or not we are far far down a road now where this plan NEEDS to work, going into admin in my view would scupper the whole deal.

Not to mention the on the pitch ramifications -10 points for a start! we need promotion that is pure and simple! we will not get promotion with a ten point handicap and a skeleton squad!

 

[sufcnum1]

Let's have some reasoning then old chap...

The relationship between Ron (Southend United) and Sanisbury.

 

[leeblue]

As far as i can tell our debt is mainly to Ron and his various Companies/cronies.
As far as I am aware when you go into administration the people you owe money too will get 10p in the pound (or sumfink like this).
As far as i can tell Ron and Co can not afford for this to be the happen
As far as i can tell ron owns the club and our creditors so going into administration is an absolute non starter.

Any other club would have taken Admin a long time ago but due to our position I mentioned above its almost impossible for us.

 

[MK Shrimper]

Way forward or not I reckon it's just a matter of time.

 

[Tampa Blue]

Something has to happen, or the decision will be out of our hands when a winding up order comes in and Sainsbury's don't pay it.

 

[leeblue]

Can we be ordered to go into administration???

 

[Smiffy]

Something has to happen, or the decision will be out of our hands when a winding up order comes in and Sainsbury's don't pay it.

That's the question isn't it.

Will Sainsbury continue to bank roll the club until this stadium gets built?

Sainsbury always seem to bail us out, but at the very last possible moment. Will they say enough is enough next time?

 

[Mick]

As far as i can tell our debt is mainly to Ron and his various Companies/cronies.
As far as I am aware when you go into administration the people you owe money too will get 10p in the pound (or sumfink like this).
As far as i can tell Ron and Co can not afford for this to be the happen
As far as i can tell ron owns the club and our creditors so going into administration is an absolute non starter.

Any other club would have taken Admin a long time ago but due to our position I mentioned above its almost impossible for us.

I think you must have missed a key point in the original post:

"Obviously Ron wouldn't put us in voluntary Admin, so this is based on a scenario where an unpaid debt results in the courts appointing Administrators."

 

[Smiffy]

Can we be ordered to go into administration???

I am sure next time we go to court with a debt that is unpaid, they will seriously consider appointing Administrators. Winding up is a total last resort and seems unlikely. Not many clubs get "wound up". But plenty get placed in Admin, either voluntary or forced by the courts, if they deem the club "insolvent" which is a word that has been used to describe us several times in court.

 

[Tampa Blue]

That's the question isn't it.

Will Sainsbury continue to bank roll the club until this stadium gets built?

Sainsbury always seem to bail us out, but at the very last possible moment. Will they say enough is enough next time?

If I was on Sainsbury's board, I would have pulled the plug a long time a go - I am hoping that they are now in a situation where their investment is too great to let it fail - I stress the word 'hoping'!

 

[Col.U. Mad]

If you look at last season's final table had Southend gone into administration and received a ten point deduction, they would have only survived the drop through the trap door by the skin of the teeth. My feeling is that Ron will never walk away until he has got his 30 pieces of silver. That won't happen unless FF comes to fruition very soon. I think he has got the club by the short and curlies and if FF is never built he will always have his fingers in the pie. If he was somehow forced out or Sainsbury's pulled funding he would undoubtedly play the "loans" I've made to the club trump card. Therefore forever being a mill-stone around the club's neck.

 

[leeblue]

I think you must have missed a key point in the original post:

"Obviously Ron wouldn't put us in voluntary Admin, so this is based on a scenario where an unpaid debt results in the courts appointing Administrators."

I am at work and had a sneaky read rather than a proper one, cheers.
Although my other question, can we be forced into Administration? stands

 

[chapperzUK]

That's the question isn't it.

Will Sainsbury continue to bank roll the club until this stadium gets built?

Sainsbury always seem to bail us out, but at the very last possible moment. Will they say enough is enough next time?

I reckon as soon as they have their hands firmly on Roots Hall and with us in our 3 sided stadium, they will cut the ties with us and Ron.

I think it is just a matter of time before we enter administration and with more bad news and bad times to come unless we get a rich owner in ASAP!

Also, won't we get another transfer embargo if we enter administration?

 

[Smiffy]

I reckon as soon as they have their hands firmly on Roots Hall and with us in our 3 sided stadium, they will cut the ties with us and Ron.

I think it is just a matter of time before we enter administration and with more bad news and bad times to come unless we get a rich owner in ASAP!

Also, won't we get another transfer embargo if we enter administration?

Of course. Sainsbury will not want to fund us any longer than necessary.

Even if we somehow got on-site at FF before this Xmas. Sainsbury would surely have to continue bank rolling us until we moved in? (circa 18-24 months)...We clearly cannot survive without their financial help.

But at some point surely they will have to make the decision. Can they continue to pump millions into this football club, with no clear development start date?