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WhoDey

Possible Cardiff Administration (Hypothetical)

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Posted

This seems to have slipped under the radar a bit recently. Cardifff have a date at the High Court on the 5th of May, only four days before they are due to play us at Filbert Way. They must pay the HMRC the remaining £1.9 million of tax debt by this date or they will be wound up and placed into administration. There are rumours of potential investment by a Malaysian businessman.

If a club is not in the relegation zone and goes into administration, the 10 point deduction applies immediately, to the points tally accrued in that season. The recently imposed cutoff date of the 4th Thursday in March (where points are deducted at the start of the following season) only applies to teams in the relegation zone.

If they go into administration, Leicester would be bumped up to 4th place and would play either Blackpool or Swansea with the first leg being played away.

With the obvious implications of this hypothetical sytuation, with the playoff schedule and travel plans thrown into chaos at very short notice, it is surprising that the Football League has yet to make a comment on what the contingency plan is.

This is definitely something to keep an eye on in the next couple of weeks.

Sources:

http://www.yorkshirepost.co.uk/football/League-tighten-10point-financial-penalty.2942047.jp

http://news.bbc.co.uk/sport1/hi/football/teams/c/cardiff_city/8557188.stm

Posted

Interesting. But I bet they get away with it.

Dont like Cardiff and dont think they should even be in our league so wouldnt be too upset if they missed out on the playoffs.

I dont care who we play in the playoffs though, we can beat anyone.

Posted

This seems to have slipped under the radar a bit recently. Cardifff have a date at the High Court on the 5th of May, only four days before they are due to play us at Filbert Way. They must pay the HMRC the remaining £1.9 million of tax debt by this date or they will be wound up and placed into administration. There are rumours of potential investment by a Malaysian businessman.

If a club is not in the relegation zone and goes into administration, the 10 point deduction applies immediately, to the points tally accrued in that season. The recently imposed cutoff date of the 4th Thursday in March (where points are deducted at the start of the following season) only applies to teams in the relegation zone.

If they go into administration, Leicester would be bumped up to 4th place and would play either Blackpool or Swansea with the first leg being played away.

With the obvious implications of this hypothetical sytuation, with the playoff schedule and travel plans thrown into chaos at very short notice, it is surprising that the Football League has yet to make a comment on what the contingency plan is.

This is definitely something to keep an eye on in the next couple of weeks.

Sources:

http://www.yorkshire...alty.2942047.jp

http://news.bbc.co.u...ity/8557188.stm

They can probably get upto half of that £1.9mill from their play-off home leg ticket sales, so I think this is a non-starter.

Posted

Cardff will not be subject to a winding-up order with a playoff semi-final home game coming up and a potential Wembley date not long after. They'll be back in court when their on-field future is more clear.

Posted

If they can't pay their taxes like every other club they shouldn't be allowed a play-off place. They'll get away with it though because the creditors (including HMRC) stand a better chance of getting their money back if Cardiff get promoted.

Posted

Cardff will not be subject to a winding-up order with a playoff semi-final home game coming up and a potential Wembley date not long after. They'll be back in court when their on-field future is more clear.

I can't see the hearing being delayed. Imagine how bad it would be if Cardiff won the Playoff Final and then faced the postponed winding-up order. The headache for the Football League would be immense. Whichever club missed out on the playoff spot would sue the FL for allowing an insolvent team to compete rather than them, the club knocked out by them in the semi would demand a replay...it would be extremely ugly. Also the High Court have been clear that this is Cardiff's final hance to pay the outstanding debt. From that BBC source in my original post, "the High Court warned that the next case on 5 May would be marked 'final'".

Posted

As others have said, a non-starter with the potential for Cardiff to earn the fat end of £30 million by the end of the month. If they're knocked out of the play-offs by a certain team, things could get a bit more interesting but it won't affect our play-off semi.

That siad however, the thought of Blackpool away in May for the play-offs made me go slightly erect.

Posted

They can probably get upto half of that £1.9mill from their play-off home leg ticket sales, so I think this is a non-starter.

Yes, they could - with an average ticket price of £37.

Posted

Yes, they could - with an average ticket price of £37.

Not forgetting TV revenues and other matchday incomes.

Posted

Who Dey makes some excellent points. Whatever the prospects of HMRC getting their pound of flesh from play-off revenues there is a lot of politics involved here. For a start there's the small matter of a Mr P. Ridsdale who has got form in such matters.

And for another, well connected club owners (not entirely pure as the driven smow themselves :rolleyes: ) with a collective interest in due process being observed.

Posted

Not forgetting TV revenues and other matchday incomes.

Not sure how much Sky pay to semifinal teams. I thought playoff TV money went to the FL?

Anyway, it's irrelevant. The hearing is scheduled to be held before the playoffs start. Cardiff won't have that money until after the hearing. The High Court says the money needs to be paid by the 5th.

Posted

Not sure how much Sky pay to semifinal teams. I thought playoff TV money went to the FL?

Anyway, it's irrelevant. The hearing is scheduled to be held before the playoffs start. Cardiff won't have that money until after the hearing. The High Court says the money needs to be paid by the 5th.

Why would the play-off gate receipts go to the FL?

“The play-offs are a strange financial mix in that the revenues from the semi-finals are pooled and then divided equally.

So if their playing usthey'll get a decent amount, if it's Blackpool nowhere near as much.

They can start selling tickets next Monday 3rd - two days of ticket sales would reap in a decent amount and money can always be 'borrowed' against guaranteed income so I think it's entirely relevant.

They'll find a way of finding it.

Posted

Interesting. But I bet they get away with it.

Dont like Cardiff and dont think they should even be in our league so wouldnt be too upset if they missed out on the playoffs.

I dont care who we play in the playoffs though, we can beat anyone.

Totally agree.

Posted

Why would the play-off gate receipts go to the FL?

So if their playing usthey'll get a decent amount, if it's Blackpool nowhere near as much.

They can start selling tickets next Monday 3rd - two days of ticket sales would reap in a decent amount and money can always be 'borrowed' against guaranteed income so I think it's entirely relevant.

They'll find a way of finding it.

I agree. With the prospect of Play Off revenues and possible promotion it would be disproportionate and unreasonable for the court to make a final order. Bet on an adjournment.

Posted
money can always be 'borrowed' against guaranteed income so I think it's entirely relevant.

I'm not a financial expert but I would be surprised and a bit worried if, guaranteed income or not, a company with a pending High Court winding-up order could get a loan. The club will have numerous other creditors if they owe the HMRC money.

Bottom line is without investment PDQ or a controversial stay of execution by the High Court, Cardiff are going into administration.

Posted

I agree. With the prospect of Play Off revenues and possible promotion it would be disproportionate and unreasonable for the court to make a final order. Bet on an adjournment.

Don't they own the land which they're training ground or old ground was on and were they not given more time to pay as they could simply sell this land or did I dream that?

Posted

I'm not a financial expert but I would be surprised and a bit worried if, guaranteed income or not, a company with a pending High Court winding-up order could get a loan. The club will have numerous other creditors if they owe the HMRC money.

Bottom line is without investment PDQ or a controversial stay of execution by the High Court, Cardiff are going into administration.

It doesn't have to be a formal bank type loan, I'm sure they have plenty of rich 'friends' who may not want to part with money on a permanent basis but would be happy to sanction a short term loan.

Of course they could try conning the fans againtongue.png

I'd be beyond amazed if they went into admin now.

Posted

Don't they own the land which they're training ground or old ground was on and were they not given more time to pay as they could simply sell this land or did I dream that?

I don't follow Cardiff's fortunes that closely but I expect there's a source somewhere on the Internet. I think the courts are loathe to make orders when there is a reasonable chance of money being forthcoming in the short term.

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