Club Vs Company

[Pudgie]

Why can't a company that owns a club, rack up a lot of debt, sell the club to a fresh new company, then afterwards liquidate the indebted company?

There would be no current relation to the old club and no points deduction as the club never failed to make payroll or entered administration or liquidation whilst owned by the old company.

[ChutneyLove]

That jaiket is fuckin' humming.

[Pudgie]

That jaiket is fuckin' humming.

It's reid and looks like carpet underlay! Fuck's wrang wi it?

[davieb]

 

Why can't a company that owns a club, rack up a lot of debt, sell the club to a fresh new company, then afterwards liquidate the indebted company?

There would be no current relation to the old club and no points deduction as the club never failed to make payroll or entered administration or liquidation whilst owned by the old company.

 

 

It goes beyond football ownership, the directors would be responsible for the debts personally, maybe not the best move.

 

http://www.icaew.com/en/archive/library/subject-gateways/law/insolvency/legal-alert/when-directors-can-be-personally-liable-on-company-insolvency

[ZeroTolerance]

 

Why can't a company that owns a club, rack up a lot of debt, sell the club to a fresh new company, then afterwards liquidate the indebted company?

There would be no current relation to the old club and no points deduction as the club never failed to make payroll or entered administration or liquidation whilst owned by the old company.

 

 

Because despite what the Sevconians would have you believe to support the Rangers didn't die myth there is actually no difference between the Company and the Club.

 

A limited company is (generally) the legal form taken by a professional sports Club in this day and age. A club could take a different legal form (e.g. a CASC or Charity) but I don't think that there is any club in the senior leagues in the UK that does so.

 

The Club is not some ethereal asset of the company that could be traded around between companies.