Would liquidation be a credible threat? (1 Viewer)

[Calista]

Just suppose that as this saga unfolds, Joy decides to use the threat of winding up or liquidating the football club (which she may or may not have threatened on the eve of the season to the Football League). Would it be a credible threat, and how much should we fear it?

Could someone who knows a bit about these things please answer the following questions :-

If the club was liquidated, would anyone else have the opportunity to pick up the pieces and carry on playing in the Football League?
If we were obliged to start again “at the bottom”, presumably the FA would have decide where to put us - which league might that be?
How would the Golden Share be reallocated – by promoting an extra team from somewhere else into the League, or by seeking a “local replacement” for Coventry City?
If CCFC technically had to start up as a new company with a slightly different name (Coventry City 2013?), would we lose our claim to the history of the Club? And why would anybody care – the history will always belong to the fans and the city, regardless of anything written on Football League headed notepaper. I see that on Glasgow Rangers’ website, they list the whole proud history of the club, despite having been reinvented last year. Wimbledon AFC refer to their predecessors’ FA Cup win, whilst MK Dons conveniently seem to have forgotten to have a history page

 

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[CJ_covblaze]

When I was involved at another club I went to various league meetings. The subject of Pompey came up. It was suggested then that if the worse was to happen they would be looking at the Southern League Prem which is step 3. This was due to the club's size and potential ect. The guarentee of a relatively massive club like that selling out their grounds would mean the clubs would almost certainly vote them in.

Someone from Supporters Direct said something similar to me a few months ago. Yes Wimbledon started a lot further down however our case would probably be viewed differently. He said we have to remember that rather than being a club from leafy suburb with no ground to speak of we are a club from a city of over 300,000 people (around 1m pop catchment area) with a world class arena that is good enough for the biggest sporting events and music acts in the world. What league wouldn't want their teams playing there?

 

[sky blue john]

What would Sisu have to gain by liquidation ?
That would devalue the only assets they have to sell !!!!

 

[shmmeee]

I'm convinced that should Seppala actually go through with one of her many threats, the FL would find it in their heart to exercise some "discretion" and hand the GS to a fans group on the condition that we take a hefty points deduction.

In fact, they've done it once already with Otium, hopefully they would do it with fans as well.

Remember, CCFC has already been liquidated (or will be soon).

 

[skybluetony176]

as she said her only concerns in life are her family and investors. i cant see how liquidating the club would be best for her investors, so i think its a bluff.

 

[CJ_covblaze]

What would Sisu have to gain by liquidation ?
That would devalue the only assets they have to sell !!!!

They've written off far more than this before. No reason why they wouldn't do it again.

as she said her only concerns in life are her family and investors. i cant see how liquidating the club would be best for her investors, so i think its a bluff.

One or possibly two of her investors are running the club.

 

[skybluetony176]

They've written off far more than this before. No reason why they wouldn't do it again.



One or possibly two of her investors are ruining the club.

I've corrected that statement for you

 

[CJ_covblaze]

as she said her only concerns in life are her family and investors. i cant see how liquidating the club would be best for her investors, so i think its a bluff.

I've corrected that statement for you

Thanks Tony. That brings up the valid point though. If her investors are responsible for vastly reducing the income does it blow it out the water about a return?!

 

[Mary_Mungo_Midge]

Liquidation wouldn't mean a club called Coventry City - in a new iteration - would cease to exist. The Rugby Lions have had to bounce back from exactly the same; albeit for different reasons.

Two league games so far; scored almost 130 points and conceded one try. Another game on Saturday, which I'll be attending; beer in hand. The crowd for the first home game was only about 400, but that's 25% of the home gates at Sixfields.

The atmosphere now; with it being a more community-based, transparent ad grass-roots club is great; and it'll take best part of 5 years or more to get back to where they were - but having got there, it'll be a totally different and close-knit club for the journey.

Gates this year at Sixfields will leave us ham-strung by FFP for seasons to come in any case; and unless we get promotion tis year (as the squad in funded using Ricoh-income as the basis for calculating budget), then relegation is a real possibility in the coming seasons.

I'm not saying we should advocate liquidation, just saying that in a different sport, the Lions have done it and are rebuilding, whereas we seem on a trend headed in a very different direction, with no sign of a change of direction in sight

 

[tisza]

They've written off far more than this before. No reason why they wouldn't do it again.


Where have they written off more than this before?
Why SISU don't provide us with some of their success stories to reassure fans that they do know what they are doing and can successfully turn a business around?

 

[Calista]

I’m not advocating liquidation either. But if some of the comments above are correct, it doesn’t sound too frightening. We could start again in a league from which we could get back to our current status within a number of years, playing at the Ricoh and having the fun of a series of promotions. To me, that’s a much better prospect than Joy’s tedious and unambitious Northampton/Brandon plan.

 

[CJ_covblaze]

Where have they written off more than this before?
Why SISU don't provide us with some of their success stories to reassure fans that they do know what they are doing and can successfully turn a business around?

Perhaps their version of success is something they don't want us to know about!

 

[CJ_covblaze]

as she said her only concerns in life are her family and investors. i cant see how liquidating the club would be best for her investors, so i think its a bluff.

I’m not advocating liquidation either. But if some of the comments above are correct, it doesn’t sound too frightening. We could start again in a league from which we could get back to our current status within a number of years, playing at the Ricoh and having the fun of a series of promotions. To me, that’s a much better prospect than Joy’s tedious and unambitious Northampton/Brandon plan.

Wimbledon and Winkleman FC is a prime example.

 

[bezzer]

Liquidation wouldn't mean a club called Coventry City - in a new iteration - would cease to exist. The Rugby Lions have had to bounce back from exactly the same; albeit for different reasons.

Two league games so far; scored almost 130 points and conceded one try. Another game on Saturday, which I'll be attending; beer in hand. The crowd for the first home game was only about 400, but that's 25% of the home gates at Sixfields.

The atmosphere now; with it being a more community-based, transparent ad grass-roots club is great; and it'll take best part of 5 years or more to get back to where they were - but having got there, it'll be a totally different and close-knit club for the journey.

Gates this year at Sixfields will leave us ham-strung by FFP for seasons to come in any case; and unless we get promotion tis year (as the squad in funded using Ricoh-income as the basis for calculating budget), then relegation is a real possibility in the coming seasons.

I'm not saying we should advocate liquidation, just saying that in a different sport, the Lions have done it and are rebuilding, whereas we seem on a trend headed in a very different direction, with no sign of a change of direction in sight

All being well, I'll be there too

 

[italiahorse]

What would Sisu have to gain by liquidation ?
That would devalue the only assets they have to sell !!!!

Debts are more than value, so they would gain the difference.

 

[Mary_Mungo_Midge]

All being well, I'll be there too

Cool; look for a big, ugly yet cheery looking chap. That shall be me

 

[torchomatic]

Sounds good. I hate rugby though.

Liquidation wouldn't mean a club called Coventry City - in a new iteration - would cease to exist. The Rugby Lions have had to bounce back from exactly the same; albeit for different reasons.

Two league games so far; scored almost 130 points and conceded one try. Another game on Saturday, which I'll be attending; beer in hand. The crowd for the first home game was only about 400, but that's 25% of the home gates at Sixfields.

The atmosphere now; with it being a more community-based, transparent ad grass-roots club is great; and it'll take best part of 5 years or more to get back to where they were - but having got there, it'll be a totally different and close-knit club for the journey.

Gates this year at Sixfields will leave us ham-strung by FFP for seasons to come in any case; and unless we get promotion tis year (as the squad in funded using Ricoh-income as the basis for calculating budget), then relegation is a real possibility in the coming seasons.

I'm not saying we should advocate liquidation, just saying that in a different sport, the Lions have done it and are rebuilding, whereas we seem on a trend headed in a very different direction, with no sign of a change of direction in sight

 

[Mary_Mungo_Midge]

Sounds good. I hate rugby though.

I always knew there was something I distrusted about you, Torchy

I used to play for the Lions and Coventry and only turned to watching football after torn ligaments ended my egg chasing. Compared to what's happened in the last few years at CCFC, standing right next to the pitch with a beer in your hand is pretty refreshing. And not only the beer!

 

[Deleted member 5849]

Cool; look for a big, ugly yet cheery looking chap. That shall be me

Prop for the day?

 

[Mary_Mungo_Midge]

Prop for the day?

The only thing I shall prop is the bar; dear chap. Nope, No 8 is my position. Warm ears in the winter

 

[ohitsaidwalker king power]

Does the statement that accompanied todays Otium submission make this more likely do we think?

"BDO concludes there is “fundamental uncertainty which may cast doubt over the company’s ability to continue as a going concern.”

http://www.coventrytelegraph.net/news/coventry-news/coventry-city-owners-file-late-6162353

 

[SonOfSnoz]

So why did Joy give an interview to les reid?
Another pile of BS from Sisu?
Investors running away now fans are turning their back?
New stadium applications being met with a firm NO?

 

[skybluetony176]

So why did Joy give an interview to les reid? Curse you ACL for making Joy & Les do that interview
Another pile of BS from Sisu? Curse you ACL for making Sisu talk BS
Investors running away now fans are turning their back? Curse you ACL for making Investors turn their back
New stadium applications being met with a firm NO? Curse you ACL for not assisting Sisu with new stadium applications and then having them turned down

its all ACL's fault you know

 

[SkyblueBazza]

as she said her only concerns in life are her family and investors. i cant see how liquidating the club would be best for her investors, so i think its a bluff.

How on earth is liquidation good for investors?

 

[Astute]

Liquidation wouldn't mean a club called Coventry City - in a new iteration - would cease to exist. The Rugby Lions have had to bounce back from exactly the same; albeit for different reasons.

Two league games so far; scored almost 130 points and conceded one try. Another game on Saturday, which I'll be attending; beer in hand. The crowd for the first home game was only about 400, but that's 25% of the home gates at Sixfields.

The atmosphere now; with it being a more community-based, transparent ad grass-roots club is great; and it'll take best part of 5 years or more to get back to where they were - but having got there, it'll be a totally different and close-knit club for the journey.

Gates this year at Sixfields will leave us ham-strung by FFP for seasons to come in any case; and unless we get promotion tis year (as the squad in funded using Ricoh-income as the basis for calculating budget), then relegation is a real possibility in the coming seasons.

I'm not saying we should advocate liquidation, just saying that in a different sport, the Lions have done it and are rebuilding, whereas we seem on a trend headed in a very different direction, with no sign of a change of direction in sight

And this is why I don't want them getting the freehold.

Two main reasons. Whatever happens we would have somewhere to play and also if they liquidated the ground would become theirs to cover debts.

 

[SkyblueBazza]

Sounds good. I hate rugby though.

Is it because you have never tried hard enough to understand it properly?
I actually found going to 3-4 internationals & this yrs double-header at twickers quite invigorating & a more flowing game than football overall. If you have the ball you have to try to make progress...& if you succeed in that you end up close to scoring a try so you might as well go for it all the time! Football you can play for a (bore) draw.

 

[skybluetony176]

How on earth is liquidation good for investors?

i don't know. do you?

 

[SonOfSnoz]

Blame Richardson!

 

[SkyblueBazza]

i don't know. do you?

Oh - I can't see how in any way at all. I thought you might have had some sort of inkling for me lol

 

[skybluetony176]

Oh - I can't see how in any way at all. I thought you might have had some sort of inkling for me lol

having thought about it a bit longer the only possibility i can see for it making sense is that liquidation could save her investors from further losses. i.e. they cut and run, as apposed to pouring more money into a business that joy can no longer get a return on. that's assuming she has run out of idea's on how to get a return from the business and whether she can or not is anyone's guess.

i guess handing over money to hedge funds is always going to be a gamble and people who are willing to do it probably do so on the premise that they may never see their money again. a bit like fruit machines, except you get the privilege of stamping over innocent football fans in the process.

 

[SkyblueBazza]

having thought about it a bit longer the only possibility i can see for it making sense is that liquidation could save her investors from further losses. i.e. they cut and run, as apposed to pouring more money into a business that joy can no longer get a return on. that's assuming she has run out of idea's on how to get a return from the business and whether she can or not is anyone's guess.

i guess handing over money to hedge funds is always going to be a gamble and people who are willing to do it probably do so on the premise that they may never see their money again. a bit like fruit machines, except you get the privilege of stamping over innocent football fans in the process.

But selling for £100 more than the actual value of any assets would be better than liquidation...I'm sure there are people out there that could easily rustle that amount up to buy them out?

 

[skybluetony176]

But selling for £100 more than the actual value of any assets would be better than liquidation...I'm sure there are people out there that could easily rustle that amount up to buy them out?

possibly. but shitsu would have admin, legal cost and effort involved to complete the process and as we've seen what they charge for management fee's £ 100.00 profit (on the assets, not the investment) aint going to cover it. any sale price would have to cover their cost and effort for going through the motions as well. would they have any cost and effort if they put the business into liquidation? i haven't a scooby, but liquidation might possibly end up being the best return for their investors investment at this stage in the game.