Oldham in trouble : Tue Oct 27, 2009 1:52 pm  

oldham in trouble again

oldham in trouble again

: Tue Oct 27, 2009 2:13 pm  

You have to wonder why they even bother. Rugby league isn't capable of being a professional sport outside of Super League. Teams are going to the wall left right and centre and those that do continue do so on the back of cash strapped benefactors.

Either get the sheiks involved in the sport or make it amateur below SL to reduce the cost.

: Tue Oct 27, 2009 2:14 pm  

Saddened! wrote:

You have to wonder why they even bother. Rugby league isn't capable of being a professional sport outside of Super League. Teams are going to the wall left right and centre and those that do continue do so on the back of cash strapped benefactors.

Either get the sheiks involved in the sport or make it amateur below SL to reduce the cost.

You could quite comfortably be talking about a good few Super League clubs there as well. In fact, most sporting clubs in this country rely on benefactors to keep them afloat.

: Tue Oct 27, 2009 2:16 pm  

Leyther_Matt wrote:

You could quite comfortably be talking about a good few Super League clubs there as well. In fact, most sporting clubs in this country rely on benefactors to keep them afloat.

They certainly do, i'd be surprised if more then 15 pro or semi pro clubs are solvent in the UK.

: Tue Oct 27, 2009 2:29 pm  

Chris.Taylor wrote:

They certainly do, i'd be surprised if more then 15 pro or semi pro clubs are solvent in the UK.

And you've been very generous with your figure there I think, Chris

: Tue Oct 27, 2009 2:38 pm  

Saddened! wrote:

Either get the sheiks involved in the sport or make it amateur below SL to reduce the cost.

They should have 1 semi-pro division of about 12-14 teams I think, but teams like Doncaster and Oldham do this every other season, I really lose all sympathy for the clubs (though still have some for the fans of course), so clearly should be either amateur or pay a small match fee.

They need to license the Championship and not let the likes of Doncaster, Oldham or Gateshead anywhere near til they're in better shape

: Tue Oct 27, 2009 2:46 pm  

Chris.Taylor wrote:

They certainly do, i'd be surprised if more then 15 pro or semi pro clubs are solvent in the UK.

So you're alleging that how many limited companies are knowingly trading whilst insolvent, then? Care to name any?

: Tue Oct 27, 2009 3:02 pm  

Ferocious Aardvark wrote:

So you're alleging that how many limited companies are knowingly trading whilst insolvent, then? Care to name any?

No I don't as I have no facts whatsoever hence why I said possibly.

: Tue Oct 27, 2009 3:20 pm  

For the avoidance of doubt, a company is insolvent if it is unable to pay its debts as and when they fall due.

Do not confuse this with a club having an excess of liabilities over assets ("technical insolvency").

Many - most, maybe - RL clubs are "technically insolvent". Including some big names which might surprise some people. But they are able to keep trading because their owners/directors have committed to ensuring that the company has sufficient cash to enable it to continue trading for at least the next twelve months. Thereby they remain "solvent" and so may continue trading legally and without personal liability on the directors for trading whilst insolvent. This may be by, for example, by owners or directors:

* Contractually agreeing to subordinate their loans to the interest of the other creditors
* Personally and contractually guaranteeing - or providing security for - the company's overdraft or other debt/s
* Personally and contractually agreeing to inject additional subordinated loan funds, or equity, should the need arise.

Although quite why a non-owner director would do any of this this escapes me...

If necessary owners may write off loans to the company, or (a
(as happened with Saints recently) allow loans to be converted to shares thereby reducing the liabilities.

Sometimes, the lender may allow the situation to continue if the debt is secured on assets whose market value is a lot higher than their book value. That used to be the case sometimes with grounds, although probably less likely nowdays, and anyway most such properties have long since been sold.

: Tue Oct 27, 2009 3:29 pm  

It is easy for anyone to say get rid of Oldham or any other club outside of SL from the comfort zone of being a supporter of one of the clubs who does receive almost £1m Sky money a year. In Oldham's defence I would say look at the current England team how many other towns have produced two players that are in the team that do not have a team in SL. Lose Oldham and do you lose the production line which helped produce the likes of Kyle Eastmond and Kevin Sinfield?