The administrator for Coventry City has confirmed the club has gone into liquidation. ITV News Central understands ACL, the company which runs the stadium, voted against a 'CVA' to come out of administration. Paul Appleton, the club's administrator, has now been appointed liquidator. http://www.itv.com/news/central/update/2013-08-02/administrator-confirms-coventry-city-liquidated/
They're proper screwed, they're down in League one and even if they get a new deal in place, they'll start the season with a 15-30 point deduction.
I don't understand these things fully, but is this a similar scenario to Rangers? Will they have to reform? If they're liquidated, how can they compete this year?
If they're liquidated, the wont be able to compete any year. They'll be as real as a dodo or a dinosaur.
If a club is liquidated, doesn't it mean that they go out of existence? They'll end up in League 2 easily if they start the season on -30. Leeds proved it was possible to recover with -15, but look at Luton Town, they had -30 and couldn't escape. If they club were to drop out of the league, would they promote/repreive another club or just leave it at 23 clubs and sort it at the end of the season?
Coventry forum states -15 points and Northampton. Not sure if they are guessing though. Seems company is in two parts and the part with the golden share stays
Someone can come in and buy the assets from the liquidator, then request permission from the Football League to be allowed back in. They would probably be allowed, but they'd have to take the sort of penalty mentioned, I suspect it would be something like a 25 point deduction.
Would this mean they get to play at the Ricoh again. The club seems such a mess from the outside. In someways, it might be better to reform, start at the bottom and boot everyone previously associated with the recent history Wonder when we'll hear from Jimmy Hill? (he is still alive isn't he?)
They've sunk a long way since relegation from the Premier and sacking of Gordon Strachan. The only way up will be to copy Portsmouth, the point deduction will send them down to League 2.
I always thought liquidation meant expulsion from the League and having to reform in the lower Non-Leagues, (or I suppose it could be any league that accepts their application). Thinking of examples such as Newport County, Aldershot, Chester City over the last couple of decades who all had to start again from scratch.
Do clubs genuinely die these days anyway? Or do they just lose their league place for a while. A city the size of Coventry would be back in the league in about six years – probably stronger than when they left. They don’t really lose their history either – clubs exist now that aren’t the ‘originals’ and think of the Hull FC situation in RL. Clubs much smaller have bounced back - Newport and Wimbledon being the most recent examples. Can’t say I’d like it to happen to us but I reckon after the initial trauma rising up through the minor leagues and being a massive **** off fish in those waters must have its sunny sides.
When the company is liquidated, its registrations with the Scottish Football Association and the Scottish Premier League will be terminated. The new company will not automatically inherit the old registrations. The newco would have to request a transfer of Rangers' share in the SPL. The SPL will then vote on whether to admit the newco to the top-flight. The SPL rules require eight of its member clubs to vote in favour of a share to be transferred to another company or club. This would require seven other SPL clubs to vote in favour of transferring the oldco's share to the newco, since Rangers will have a vote. This is the rules that followed Rangers so you would assume that the Football League would have similar rules on the membership of the company. But with Rangers, hadn't they already formed Newco by this point so it was 'easier' to transfer things from one company to another? Plus this all happened with plenty of time for the membership to be transferred, then rejected by the SPL and for them to re-apply for membership to the Scottish Football League; Coventry kick-off the new season tomorrow!! Surely with Coventry until such time that a Newco Coventry is set up there is no chance of transferring anything over therefore the FL membership is held by a company in liquidation? Can't see this ending well!!
It all depends which company owns the 'Golden Share' that entitles a club to play in the football league. Like many football clubs, there are holding companies, non-trading companies, etc involved in the ownership of Coventry City. The last article I saw claimed that only very few people knew which of these companies owned the aforementioned 'golden share'. It's a right ****ing dog's dinner and the football league/FA need to make ownership of all clubs transparent and fair. We've had too many clubs recently fail recently and one thing they share is this opacity of their operations. Leeds and Portsmouth spring to mind.
That's what I thought. If they've been liquidated, who will pay the players wages? Scarborough Athletic are the most recent I can think of. I was on their books as a youngster and I was a little upset that they had to drop so far down.
