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Sale of Southend United to Justin Rees and his consortium

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rigsby said:
No…. The name mentioned to me is Paul Scally.
I can’t actually believe it myself

Hence my post to see if those really in ITK like Cricko have heard the same.

If it had come from a trusted source i would have said so but with some on here deliberately posting fake news i don’t want to add to the misery.

Sorry if that wound some insecure people up but it wasn’t a “I know something you don’t post”

It was more I have heard something that’s very worrying and hope it’s not true post.
Click to expand...
I know that Scally is one of Ron's few friends within football circles. Another was the awful Grimsby Owner John Fenty. They're all cut from the same cloth.
That being said, I'd be very surprised if Scally would be interested in owning another club given the grief he withstood at Gillingham for a number of years.....unless of course Ron is offering him a large slice of a future financial pie.
 
Just as we thought it couldn't get worse, other than ceasing to exist, the likes of Scally come to the fore. How can he pass the 'fit and proper' test to own a club? I hope it's just a wind up by Martin.
 
The whole Administration scenario is a worrying, and an unknown quantity for me, other than I understand Derby County we’re given a 12 point deduction (not sure if NL rules are the same or if we get this on top of the current 10 points lost?). They survived, as did Southampton and Huddersfield. But anyway I found this…

What Does Administration Mean?​

When a company or football club can no longer pay its bills, the company enters administration. In administration, all control of the company is passed to an administrator. Essentially creditors can’t take action against the club as there is then a statutory moratorium in place – like an embargo on anyone taking legal action against the club.​

What Does an Administrator Do?​

Administrators will handle every part of the day to day running of a club other than what happens on the pitch. An administrator’s role is to try and stop a company (football club) being wound up (liquidated) either by finding someone who will take the club on or by repaying creditors where possible through the sale of assets. In the case of football clubs, this can mean players, grounds, training pitches, or merchandise.

Similar to company administration, there is a hierarchy of creditors who will be paid in a certain order. However; companies must pay Preferential Creditors first but, in football, there is a higher tier of creditors known as Football Super Creditors who will receive monies owed first. These are;​

  • Players
  • Managers
  • Other football clubs
  • The Professional Footballers Association (PFA)
  • The Football League
  • The Premier League
If it is found that the club/company does not own any/enough assets to pay creditors, the club can be closed down through liquidation. Clubs that have suffered this fate over the years include Chester City, Scarborough, and Darlington. Sometimes a club will be reformed under a slightly different name; Chester City reformed as Chester FC and Scarborough as Scarborough Athletic FC.​

What Can the Punishments be for a Football Club Entering Administration?​

Entering administration is not an easy option for a football club, not only because they may be forced to sell some of their best players but also because the team could face points deductions in the league too. Currently a club can be deducted up to 12 points for entering administration. This points deduction is used to preserve the integrity of the league and act as a deterrent to clubs entering administration to clear their debts without any real repercussions.​

Is There Life After Administration?​

Administration doesn’t necessarily mean the end for a football club. In recent years, clubs such as Derby, Southampton and Huddersfield have entered administration following serious financial difficulties. Southampton went into administration in 2009 after suffering relegation to the third tier of English football and Huddersfield went into administration in 2003. Both clubs have come out of the other side of those financial difficulties and have enjoyed time back in the top flight recently.

Balancing the books at any business is never easy, particularly in today’s economic climate, and sometimes there is no other option but to enter administration.​
 
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