Palace put into administration

[Tangled up in Blue]

ChampionshipCrystal Palace put into administration as new buyer is sought• Chairman Simon Jordan had been seeking new investment
• 'Our role is to find a buyer quickly to provide certainty'
Buzz up!
Digg it
Press Association
guardian.co.uk, Tuesday 26 January 2010 16.55 GMT Article history
Crystal Palace's chairman Simon Jordan had been searching for new investors for the club for some time. Photograph: Matthew Impey/Empics Sport

Crystal Palace have been placed in administration, the administrators P & A Partnership said today.

The Eagles' chairman Simon Jordan has been attempting to attract new investment into the Championship club, who have been late in paying their players twice this season.

But Brendan Guilfoyle, Chris White and John Russell of the P & A Partnership have this afternoon been appointed administrators.

Guilfoyle said: "This club has been in the spotlight for some months with creditors pressing for payments and players anxious about their wages.

"Our role now is to find a buyer quickly to provide certainty for the employees, players and fans for the future. We are hoping our appointment will be short-lived as we understand there are many interested buyers."

Palace have reported debts of around £30million and are due in court tomorrow to face a winding-up order from HM Revenue and Customs. The move into administration means they will be deducted 10 points by the Football League.

Despite their financial constraints they were lying two points off the play-offs ahead of tomorrow night's trip to Newcastle.

The manager, Neil Warnock, will instead have a relegation fight on his hands while the sale of his star players, such as teenage striker Victor Moses, now seems inevitable

 

[BrettieAngell]

Football in this country is ****ed!

 

[Tangled up in Blue]

Hopefully we're not going to be joining them!:unsure:

 

[Jam_Man]

Hopefully we're not going to be joining them!:unsure:

Why would we?

We had a 2 million pound debt and got it paid, Ron Martin will hardly let us go into administration after paying the debt.

Just goes to show how screwed football is, at least we have a new stadium planned so have some optimism at the end of a long dark tunnel...

 

[Reg Martin]

Why would we?

We had a 2 million pound debt and got it paid, Ron Martin will hardly let us go into administration after paying the debt.

Just goes to show how screwed football is, at least we have a new stadium planned so have some optimism at the end of a long dark tunnel...

Our new stadium is going to have a long dark tunnel?
Will that intimidate opposing players?
Why not a sign over the tunnel like at Anfield saying 'This is Fossets Farm'?

 

[Tangled up in Blue]

Why would we?

We had a 2 million pound debt and got it paid, Ron Martin will hardly let us go into administration after paying the debt.

Why do you think we can't sign anyone (even on loan) at the minute?:unsure:
If we are relegated then that would be a good a time as any to go into administration.

 

[BrettieAngell]

What would going into administration achieve?

 

[Tangled up in Blue]

What would going into administration achieve?

Ask Leeds.;)

 

[BrettieAngell]

Ask Leeds.;)

But isn''t the problem most of our debt is with Ron Martin?

 

[Firestorm]

Why would we?

We had a 2 million pound debt and got it paid, Ron Martin will hardly let us go into administration after paying the debt.

Why do you think we can't sign anyone (even on loan) at the minute?:unsure:
If we are relegated then that would be a good a time as any to go into administration.

Apart from the two signed today that is

 

[Tangled up in Blue]

Apart from the two signed today that is

Hindsight is such a wonderful thing.;)
It would be a big mistake IMO to think all are our financial problems are over.

 

[Firestorm]

But isn''t the problem most of our debt is with Ron Martin?

IIRC The last published accounts had
2.16M owed to associated or parent companies
150K to Directors
888K Tax
1.8 Deferrals Including 1.1M of Tax
234K Bank Overdraft
1.1M Trade Creditors

Total Debt 6.5M

Now assuming that the deferred tax for 08-09 was the same as previous and the the 2.1M borrowed from RH Ltd covered the tax Bill

that would mean that we owed 4.26 to associated companies out of a debt 7.6M or over 50%

A far lower percentage of the debt than Bates had at Leeds .

RM has said that he sees administration as a failure not a buisness option which bates did

 

[Tangled up in Blue]

.

RM has said that he sees administration as a failure not a buisness option which bates did

That is no guarantee that we won't end up taking the same route eventually however.:scared:

 

[Beefy]

That is no guarantee that we won't end up taking the same route eventually however.:scared:

What would it achieve?

As has been said on numerous occasions, our problem is cashflow and not debt.

 

[WestRoadShrimper]

What would it achieve?

As has been said on numerous occasions, our problem is cashflow and not debt.

If we're not careful though, the cashflow on its own will be enough of a problem to make administration the only option. Let's hope it doesn't continue until it gets that bad.

 

[EastStandBlue]

If we're not careful though, the cashflow on its own will be enough of a problem to make administration the only option. Let's hope it doesn't continue until it gets that bad.

Clubs go into administration when they can't pay their debts, not when they're struggling for cash. Obviously, when you're struggling for cash you take out loans which, when not paid, resort into debts...

 

[Tangled up in Blue]

Clubs go into administration when they can't pay their debts, not when they're struggling for cash. Obviously, when you're struggling for cash you take out loans which, when not paid, resort into debts...

Cash flow problems tend to end up as unpaid debts.Sufficient number or quantity (or both)of unpaid debts has led to various football clubs in recent years appearing in the High Court and being put into administration.
Palace thought they'd put their problems behind them some years ago.They hadn't.Despite a new Chairman and owner(sound familiar?)their problems had just been postponed rather than solved.
It would be a brave man(and not necessarily a wise one)to say there's no chance of that happening with SUFC a little further along the road.