admin - players wages

[Oz]

should we go into admin, are all players contracts automatically cancelled?

[Ponty]

I don't think so (though I could be wrong). I don't believe they all become free agents, if that's what you mean. I think the administrators hold their registrations/contracts and are free to offer them for sale as assets. I don't think the players are obliged to sign with other clubs if they don't want to though, and they continue to be paid as preferred creditors.

 

That's what I'm led to believe at any rate.

[Mr Saints]

Contracts aren't automatically cancelled but the club would be strongly advised to put every player up for sale (not that there would be any interest in most of them).

[benjii]

Contracts are not voided if a party to them enters administration. That includes employment contracts, commercial contracts, any kind of contract. A commercial contract will have a clause allowing the solvent party to terminate it if the other becomes insolvent.

 

The difficulty for football clubs is that they have to comply with FA rules (if they want to retain their league registration) in addition to complying with the law. I'm not sure what the FA rules say about player contracts.

[Flyer]

100% of football debt must be honoured. If players arent paid. The good ones leave on a free, the overpaid dross stays because they wont get any better offers anywhere else.

 

Also, the team will struggle to sign players after that. Theres really no positive side to not paying players.