General question on Administration

Hypothetically if we were to go into administration how much worse would it be regarding finances etc

A lot.

In business terms...we would be fucked!

Yep it would have a massive impact and take a long time, and a lot of money, to recover.

Likely that administrators would sell off the valuable assets to satisfy creditors leaving us with very little. Just look at the clubs who have gone into formal administration and see how they are faring.

It’s something to be avoided that’s for sure.

Worthwhile mentioning that Administration is very much a temporary measure.

If the Administrator can’t find a buyer that the creditors agree to within a reasonable period then full winding up is the only option and that’s the end of league football.

I think the risk of this happening is very low because Tan is by far the biggest creditor and he would be cutting off his nose to spite his face if he let it happen as he would lose most of what he has put in. The only asset we have is the ground which is worth a fraction of its value without a team to play in it and there is no one else in the area who can fill it. ( Unlike Coventry situation where they thought they could replace the football team with the Wasps)

Perversely it could have been more beneficial if we owed the money to the bank instead. By now we may have been in a well managed administration. You take the pain for a couple of years, the new owners purchase the ground off the administrators and the club start off debt free. Look what happened at Leicester and Southampton, whilst Derby and Bolton are on the rise. No big clubs have gone under.

The situation we are in just means a long slow decline unfortunately unless Tan can be persuaded to cut his losses and sell up for a reasonable figure.

I think the risk of this happening is very low because Tan is by far the biggest creditor and he would be cutting off his nose to spite his face if he let it happen as he would lose most of what he has put in. The only asset we have is the ground which is worth a fraction of its value without a team to play in it and there is no one else in the area who can fill it. ( Unlike Coventry situation where they thought they could replace the football team with the Wasps)

Perversely it could have been more beneficial if we owed the money to the bank instead. By now we may have been in a well managed administration. You take the pain for a couple of years, the new owners purchase the ground off the administrators and the club start off debt free. Look what happened at Leicester and Southampton, whilst Derby and Bolton are on the rise. No big clubs have gone under.

The situation we are in just means a long slow decline unfortunately unless Tan can be persuaded to cut his losses and sell up for a reasonable figure.

You’re right. The key to that is what is a “reasonable figure”.

I certainly think it’s less likely Tan will get a “reasonable” bid if we are in Div 1 so if we go down he may be forced to commit some significant funds to try and recoup his losses.

Best case scenario is we stay up, Tan gets an acceptable offer from someone with a lot of money and commitment and we move on.

Knowing this club I can’t see it being quite that straightforward though !!!!!!

We will never go into administration under Tan he will lose most of his 250 million pound investment, he will have no say on who the new buyers would be .basically the club is handed over to the company's administrators