Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 4:34 pm  

debaser wrote:

If the new owner pays off all the debt, then why should they get any points penalty at all?

Because admin equals automatic six points minimum. It's the least bad scenario at this point.

Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 5:02 pm  

vbfg wrote:

Because admin equals automatic six points minimum. It's the least bad scenario at this point.

Yeah but why? I need an explanation.

If you pay if all off, who has lost out?

Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 5:30 pm  

debaser wrote:

Yeah but why? I need an explanation.

If you pay if all off, who has lost out?

What were the circumstances that allowed Salford to be take over by the Dr without punishment?

[Bullseye]

Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 5:41 pm  

It appears rules change and if you're looking for consistency you may be a while.

Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 5:47 pm  

Everyone knows that the only CONSISTENT aspect of our beloved RFL is their INCONSISTENCY!

How about asking for a 'Provi' Loan?

Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 5:51 pm  

Bully_Boxer wrote:

What were the circumstances that allowed Salford to be take over by the Dr without punishment?

iirc he arranged a CVA with creditors agreeing to pay them back in full over a 5yr period. not sure if that actually happened though.

Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 5:57 pm  

debaser wrote:

Yeah but why? I need an explanation.

If you pay if all off, who has lost out?

I presume just the fact the club has entered into Administration there is a six point penalty?

After reading through some of the R.F.L. blurb

In the event that the Member has entered into a CVA pursuant to which all of
the Member's debts bound by the terms of the CVA are to be paid in full
(save that this need not include any debt to a creditor who is a Person
Connected with the Member) then a deduction of 6 points (or the equivalent
of the league points awarded for 3 wins from time to time) shall be imposed.
The deduction in the sporting sanction provided in this paragraph shall not
apply where 75% or more of the Member's debts compromised by the CVA is
owed to Persons Connected with the Member

I'm baffled, the way I read this is - If the club pay off all its creditors except the owners debt, then they will cop for a six point deduction. But if the owners debt accounts for more than 75% of the total, then its twelve?

Don't you have any lawyers who post on here, or at least someone who claims they are.

Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 6:23 pm  

The Devil's Advocate wrote:

I presume just the fact the club has entered into Administration there is a six point penalty?

After reading through some of the R.F.L. blurb

In the event that the Member has entered into a CVA pursuant to which all of
the Member's debts bound by the terms of the CVA are to be paid in full
(save that this need not include any debt to a creditor who is a Person
Connected with the Member) then a deduction of 6 points (or the equivalent
of the league points awarded for 3 wins from time to time) shall be imposed.
The deduction in the sporting sanction provided in this paragraph shall not
apply where 75% or more of the Member's debts compromised by the CVA is
owed to Persons Connected with the Member

I'm baffled, the way I read this is - If the club pay off all its creditors except the owners debt, then they will cop for a six point deduction. But if the owners debt accounts for more than 75% of the total, then its twelve?

Don't you have any lawyers who post on here, or at least someone who claims they are.

Let's say Green enters into administration to stop the HMRC winding up the Bulls due to a £240,000 debt to them. Let's say that that the club (i.e., the company registered with the RFL) owes Green personally £760,000 by way of a directors loans and shares, etc. The Bulls can't avoid the full sanction of 12 points by Green cashing in the club's assets to get his personal investment back of £760,000.

Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 6:43 pm  

Even if a new owner pays off all debts, the 6 point deduction is for making the sport in general and The RFL itself look bad, i think

Re: Administration 3 - now in technicolour : Fri Nov 18, 2016 7:28 pm  

Highlander wrote:

Even if a new owner pays off all debts, the 6 point deduction is for making the sport in general and The RFL itself look bad, i think

And in doing so increases the chances of ending up back in the same position again at some point in the future.