Matt Posted 1 April 2009 Posted 1 April 2009 The company that owns Southampton has had its shares suspended ahead of an announcement about its financial future.Southampton Leisure Holdings had been warned it would be unable to continue as a viable business if additional funds were not secured before Tuesday's deadline While talks with a number of parties are going on, the company said it was required to suspend its shares because the uncertainty had prevented it from posting half-year results before the three-month deadline. Reports suggest that moves to put the club's parent company, rather than the club itself, into administration will save it from having points docked by the Championship. Southampton are currently second bottom in the table and three points from safety.
Babylon Posted 1 April 2009 Posted 1 April 2009 "Reports suggest that moves to put the club's parent company, rather than the club itself, into administration will save it from having points docked by the Championship." So the league and FA will have to change the rules again then... or do they only do that when Leicester do something a bit naughty, but well within the rules.
surrifox Posted 1 April 2009 Posted 1 April 2009 I thought that the trade off so far as Rupert Lowe was concerned was that although he is a total tit who doesn't know the first thing about football he is a shrewd businessman and a safe pair of hands on the financial front but it appears that he is in fact just a total tit who doesn't know the first thing about football
tewkesbury-fox Posted 1 April 2009 Posted 1 April 2009 Thoughts on this after all the grief we got for going into adminstration during our promotion season should saints be deducted points ? Southampton face the prospect of going into administration and being docked points after trading in shares in the club's parent company was suspended. Southampton Leisure Holdings plc says it needs extra money to have a future. "Unless this is secured the company will be unable to continue as a viable business for the forthcoming 12 months," read a SLH statement. The Saints are currently second from bottom of the Championship, three points adrift of safety. It is possible that moves to put the club's parent company, rather than the club itself, into administration will save it from triggering the automatic 10-point deduction imposed by the Football League. Fans' reaction to financial news However, BBC Sport understands that if a significant proportion of the club's debt is wiped out by such a move, it could still be at the discretion of the League whether a points penalty is imposed.
Babylon Posted 1 April 2009 Posted 1 April 2009 "The Football League have confirmed to Southampton that they will not face a 10-point deduction should their parent company go into administration, rather than the club itself. Southampton's local paper, The Daily Echo, contacted the Football League this morning to confirm whether or not the club would be hit by a points penalty. And a spokesman confirmed that the club would not be deducted points if SLH went into administration, as is widely expected. He said, "Let's be very clear, if the club goes into administration the club will be deducted 10 points. But if the holding company goes into administration then they won't be. "The league rules are very specific, it has to be the club which goes into administration for points to be deducted. "At the end of the day the Football League applies it's rules and they specifically state it is the club that has to go into administration before points are deducted." Derby County provided the precedent which has seen Saints avoid a 10-point deduction for their parent company going into administration. Back in October 2003, when ex-Saints boss George Burley was in charge at Pride Park, the Rams' parent company Derby County PLC were taken into receivership by the Co-op bank with debts of around £30m. But Derby County Football Club, a seperate organisation under the umbrella of the Derby County PLC company, were not taken into administration and had no points deduction. Within minutes of Derby County Ltd going into receivership, a consortium took over from them and that company ceased to exist."
Matt Posted 2 April 2009 Author Posted 2 April 2009 Southampton Relegated? (Nothing official yet) but Administration has been confirmed for the Holding Company of Southampton FC. Mark Fry and David Hudson of Begbies Traynor appointed as joint administrators to Southampton Leisure Holdings plcMark Fry and David Hudson of recovery and restructuring specialists Begbies Traynor have today been appointed joint administrators to Southampton Leisure Holdings plc ("the Company"), the AIM-listed holding company that owns Southampton Football Club. Shares in the Company were suspended from trading on 1 April 2009, when the Company announced that it was in negotiations to secure additional financing to ensure that it was able to continue trading; as yet, new financing has not been agreed, and as the Company is insolvent, it has been placed into administration. The joint administrators are now working with the Directors as they seek to either refinance or find a buyer for the assets of the Company. Further announcements will be made when it is appropriate to do so. Mark Fry, Joint Administrator, commented: "Southampton Football Club has a long history in English football, and could be an extremely attractive investment for the right buyer. We are working hard to preserve the value of the football Club and produce a positive outcome for all stakeholders, and I ask that fans continue show their support for the team for the remainder of the season, as we seek to show the best face possible to potential investors." Ends.
StanSP Posted 2 April 2009 Posted 2 April 2009 I read somwhere this morning that Southampton's 10-point deduction won't come into effect until next season. Think it was BBC's gossip column...
Matt Posted 2 April 2009 Author Posted 2 April 2009 I read somwhere this morning that Southampton's 10-point deduction won't come into effect until next season. Think it was BBC's gossip column... Oh right, Makes sense I suppose, They did that for Leeds didn't they?
J.Lisemore Posted 2 April 2009 Posted 2 April 2009 Rupert Lowe and chairman Micheal Wilde have both resigned according to SSN.
Manwell Pablo Posted 2 April 2009 Posted 2 April 2009 Oh right, Makes sense I suppose, They did that for Leeds didn't they? No they didn't, I don't know how many times I said this now (must be about 4 to you alone Matt) but Leeds 15 points for not going into adminstration correctly not for going to adminstration itself. they were docked ten points in the Championship then 15 in league one for two seperate offenses. They are however the reason that rule was brought in, to stop it happening again.
Alexikokopops Posted 2 April 2009 Posted 2 April 2009 No they didn't, I don't know how many times I said this now (must be about 4 to you alone Matt) but Leeds 15 points for not going into adminstration correctly not for going to adminstration itself. they were docked ten points in the Championship then 15 in league one for two seperate offenses. They are however the reason that rule was brought in, to stop it happening again. I refer him to this post. Oh, and this one
Alexikokopops Posted 2 April 2009 Posted 2 April 2009 Deduct their points now ffs You'll still be 14 points from safety, it won't make any difference to you.
Matt Posted 2 April 2009 Author Posted 2 April 2009 Deduct their points now ffs You're dead and buried anyway, It's just case of filling the other two spots, possibly one now! As for comparing in to the Leeds case, sorry.
StanSP Posted 2 April 2009 Posted 2 April 2009 You'll still be 14 points from safety, it won't make any difference to you. I was going to say that I don't think Lamby wants Charlton to finish bottom, but even with a 10 point deduction Saints will still be above them
Alexikokopops Posted 2 April 2009 Posted 2 April 2009 I was going to say that I don't think Lamby wants Charlton to finish bottom, but even with a 10 point deduction Saints will still be above them Surely he'd rather they finish above them this season but start with ten less points next season
Lamby Posted 2 April 2009 Posted 2 April 2009 I was going to say that I don't think Lamby wants Charlton to finish bottom, but even with a 10 point deduction Saints will still be above them We'll beat them on Sat, which I might be going to, if my brother gives me the £10 he owes me so i can get the ticket
GLC Posted 2 April 2009 Posted 2 April 2009 Southampton's future is seriously under threat, according to the man appointed to run the club's owners. Southampton's parent company was placed in administration on Thursday and chief executive Rupert Lowe has resigned. Trading in Southampton Leisure Holding (SLH) plc's shares was suspended on Wednesday after the company admitted it needed extra money to have a future. "The finances are interlinked therefore the future of the club is in serious jeopardy," said administrator Mark Fry. "The holding company owns the football club. The football club is an asset." The holding company has been put into administration with debts of £27.5m, reportedly made up of financial liabilities of £23.1m and an overdraft of £4.4m. It is possible that putting the parent company into administration could save the club from a 10-point deduction. Fans' reaction to financial news However, BBC Sport understands it could still be at the discretion of the League, which meets on Tuesday, whether the penalty is imposed. If a significant proportion of the club's debt is wiped out by putting the holding company into administration, it would be sure to provoke anger from clubs such Leeds and Luton, who were hit with a points deduction after going into administration. Lowe, Saints chairman Michael Wilde and director Andrew Cowen have resigned from the company with immediate effect, although a statement from SLH said the club is "unaffected by these insolvency proceedings". The business is heavily in debt after spending more than £30m on the 32,000-seat St Mary's Stadium, which they moved to from The Dell in 2001, before being relegated from the Premier League in 2005. The administrators will now try and find a buyer for the club although Fry, who is joint administrator, admitted that has been an-on going process for the directors. "The directors have tried to sell or seek investment for a considerable amount of time, which they have been unsuccessful in doing," Fry said. The controversial Lowe was chairman at the club for 10 years until his removal in 2006 but linked up with Wilde, the man who initially replaced him, to return to the boardroom last summer. But despite introducing a number of cost-cutting measures, including loaning out big earners and closing parts of St Mary's on match days, the south-coast club remain in desperate financial trouble. In an earlier statement Fry insisted the club "could be an extremely attractive investment for the right buyer". He added: "We are working hard to preserve the value of the football club and produce a positive outcome for all stakeholders. "I ask that fans continue to show their support for the team for the remainder of the season as we seek to show the best face possible to potential investors." Last October, SLH's bank Barclays significantly reduced the company's overdraft facility. The Saints are second from bottom of the Championship, three points adrift of safety. And it means they are now threatened by liquidation and could drop out of the Football League, if SLH fails to attract new investment by the end of the summer I want them to go down
Alexikokopops Posted 2 April 2009 Posted 2 April 2009 We only really need the one thread on Southampton surely?
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