Marsdinho Posted 3 April, 2009 Share Posted 3 April, 2009 Just a few questions regarding the administrators.... 1) What do Begbies Traynor get out of this situation, assuming they arent involved just because they are feeling charitable, they must expect a fee, shares...some sort of payment??? 2) When they say that they will get the best deal for the club, is that to just satisfy the short term debt or do they look long term. I mean, they must have a completely different view on what its a suitable conclusion to the sale. They just need to repay debts surely, whereas we (as fans) would want long term pledges.... Thoughts.... Link to comment Share on other sites More sharing options...
Torres Posted 3 April, 2009 Share Posted 3 April, 2009 A truck-load of money. I shudder to think what the chargeout rate for a Partner at Begbies Traynor is - and we've got two of 'em. Plus assorted other staff, expenses etc. Yikes. Link to comment Share on other sites More sharing options...
trousers Posted 3 April, 2009 Share Posted 3 April, 2009 I have been wondering what scenario is financially more rewarding for an administrator. i.e. do they get more money out of a long drawn out affair or from a swift conclusion? As I understand it, Administrators are profit making organisations like any other company so I've neverquite understood how they rationalise their performance with their shareholders vs the companies they are trying to save and/or wind-down. Would be interested to know what scenario typically makes them most money. p.s. was it Barclays who chose which Administrators to use or is that decided by some sort of LSE panel? Link to comment Share on other sites More sharing options...
derry Posted 3 April, 2009 Share Posted 3 April, 2009 Administration is very costly and I believe comes out of available assets. Another nail in the coffin, I presume the longer it goes on and the more people involved the greater the cost Link to comment Share on other sites More sharing options...
trousers Posted 3 April, 2009 Share Posted 3 April, 2009 Administrators OUT! Link to comment Share on other sites More sharing options...
ladysaint Posted 3 April, 2009 Share Posted 3 April, 2009 What happens if we dont have enough money to pay the administrators then or are they the first creditors to get paid and what about the general staff (not players). Link to comment Share on other sites More sharing options...
trousers Posted 3 April, 2009 Share Posted 3 April, 2009 What happens if we dont have enough money to pay the administrators then or are they the first creditors to get paid and what about the general staff (not players). What if the administrators go bust whilst administrating someone else? Link to comment Share on other sites More sharing options...
stevegrant Posted 3 April, 2009 Share Posted 3 April, 2009 AFC Bournemouth paid a six-figure sum to Begbies Traynor when they were appointed as their administrator last year. Link to comment Share on other sites More sharing options...
alpine_saint Posted 3 April, 2009 Share Posted 3 April, 2009 Doesnt the administrator get paid first ? It's a f**king racket.. Link to comment Share on other sites More sharing options...
Torres Posted 3 April, 2009 Share Posted 3 April, 2009 What if the administrators go bust whilst administrating someone else? A black hole is formed and the entire galaxy is compressed to size of a pea. Link to comment Share on other sites More sharing options...
Clapham Saint Posted 3 April, 2009 Share Posted 3 April, 2009 Just a few questions regarding the administrators.... 1) What do Begbies Traynor get out of this situation, assuming they arent involved just because they are feeling charitable, they must expect a fee, shares...some sort of payment??? 2) When they say that they will get the best deal for the club, is that to just satisfy the short term debt or do they look long term. I mean, they must have a completely different view on what its a suitable conclusion to the sale. They just need to repay debts surely, whereas we (as fans) would want long term pledges.... Thoughts.... They will be charging fees. Mostly likely on a time costs basis (i.e. hourly rate). I have absolutely know idea what their hourly rates are but I would guess that it will vary depending on the grade of the each member of staff from say £100p/h for the lower grades to say £350? p/hour for the partners Just to confirm, although based on my experience this is complete GUESSWORK on my part. I don't actually know what they are charging. If you are a creditor (which techincally I suppose season ticket holders are) you could write to them and ask. If anybody wants the full details of the professional rules they can be found here: http://www.detini.gov.uk/cgi-bin/moreutil?utilid=431 Alternatively there is a summary here: http://www.kpmg.co.uk/pubs/services/A_Creditors'_Guide_to_Administrators'_Fees.pdf Link to comment Share on other sites More sharing options...
Tomobz Posted 3 April, 2009 Share Posted 3 April, 2009 Administrators rape the business they are trying to save. Its not good times. Link to comment Share on other sites More sharing options...
Badger Posted 3 April, 2009 Share Posted 3 April, 2009 Administration is very costly and I believe comes out of available assets. Another nail in the coffin, I presume the longer it goes on and the more people involved the greater the cost I don't think it can be drawn out given the fact we are not a viable going concern.Things will detriorate even further if we do not have the mess sorted. As I understand it they have a duty to the outstanding creditors to try to obtain a swft resolution but maximise the return for the creditors etc.This would not enable them to dictate the timescale involved. Link to comment Share on other sites More sharing options...
bridge too far Posted 3 April, 2009 Share Posted 3 April, 2009 First and foremost - I'm not an Administrator But I am an auditor and we have daily rates and fixed fee rates. I think maybe they will have quoted both and a judgement will be made as to which is more cost effective. I wonder if there's also a percentage rate too i.e. they get x% of any sales they achieve :smt102 Link to comment Share on other sites More sharing options...
Clapham Saint Posted 3 April, 2009 Share Posted 3 April, 2009 Doesnt the administrator get paid first ? It's a f**king racket.. Being techincal the fees are broken up and some may be paid first, some after the bank. In reality, yes they get paid first. Link to comment Share on other sites More sharing options...
Clapham Saint Posted 3 April, 2009 Share Posted 3 April, 2009 I don't think it can be drawn out given the fact we are not a viable going concern.Things will detriorate even further if we do not have the mess sorted. As I understand it they have a duty to the outstanding creditors to try to obtain a swft resolution but maximise the return for the creditors etc.This would not enable them to dictate the timescale involved. The administrators have a duty to all creditors. If they dragged it on to increase fees they would be breaching that duty. An administration also automatically ends after 1 year (if it makes it that far) unless the adminstrator makes an application to court for an extension, which he would have to justify. Link to comment Share on other sites More sharing options...
Deano6 Posted 3 April, 2009 Share Posted 3 April, 2009 There's an oft-used quote round these ways along the lines that administration is a self-fulfulling prophecy. If you weren't sure if you were insolvent when you call in the administrators, you definitely will be afterwards! Link to comment Share on other sites More sharing options...
Hurricane163 Posted 3 April, 2009 Share Posted 3 April, 2009 They will be charging fees. Mostly likely on a time costs basis (i.e. hourly rate). I have absolutely know idea what their hourly rates are but I would guess that it will vary depending on the grade of the each member of staff from say £100p/h for the lower grades to say £350? p/hour for the partners Just to confirm, although based on my experience this is complete GUESSWORK on my part. I don't actually know what they are charging. If you are a creditor (which techincally I suppose season ticket holders are) you could write to them and ask. If anybody wants the full details of the professional rules they can be found here: http://www.detini.gov.uk/cgi-bin/moreutil?utilid=431 Alternatively there is a summary here: http://www.kpmg.co.uk/pubs/services/A_Creditors'_Guide_to_Administrators'_Fees.pdf If as a season ticket holder you do write to the Administrator you are of course running up more costs that SFC will have to pay!!!!! Link to comment Share on other sites More sharing options...
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