Babararacucudada":jzd9wwyi said:Lundan Cabbie":jzd9wwyi said:mde203":jzd9wwyi said:There is no way that those 5 guys would be a total of £40,000 per week, and no way Barnes, Gow and Donnelly would be on £10,000 in total. They would be on £6,000 per week at most.
Every club in ome way has their troubles, and with our crowds we are bound to be struggling a little. At the end of the season we'll have a shake up, sort out a few players, lower our outgoings and sort out the major issues.
We will not go into administration.
It only takes ONE creditor to call in administrators. That's what happened at Palace. The club had no choice, had not called them in themselves and didn't see it coming. (well not at that time anyway). On that Tuesday morning, in they walked and told the staff that the club was in administration. No warnimg, they just walked i and took over.
You make it sound as though the fault lies with the unpaid creditor who expected to be paid for services and/or goods already rendered and who then did the dirty.
Why didn't Palace just pay the bill as they must have agreed to at point of purchase?
I couldn't have chosen better words myself.
During the close season Simon Jordan claims that he had "liquidity" problems. I'm not sure what that means but from what I understand, he had invested in projects, investment which had become difficault to recal. Not to a point that his investments were lost but couldn't transfer funds to the football club. The film "Telstar" that he produced had flopped and his assets were looking very much just to be on paper rather than easily available.
He took a hedge loan from a company called Agilo and secured the loan against players contracts which in essence meant that Agilo had first call on transfer fees received if Palace defaulted. As the season progressed, the club found it harder to make repayments but then agreed new terms when Agilo became hostile. Palace managed to stick to these new conditions and had done right up until that Tuesday when the Administrators walked in but in doing so got behind with payments to other unsecured creditors and struggled to pay players on time.
The sale of Victor Moses was to clear the majority of this debt to Agilo, if not all if they could secure a big enough fee. With the transfer window a little over a week to closure, Palace were holding out for the best deal but Agilo panicked, thinking that if Moses didn't move in January, they would not get their money until July at the earliset and they appointed Adminstrators to come in and secure their funds.
Agilo have been described as "legal loan sharks." Why oh why did Jordan take his business to them? I'm sure he regrets that now.
What have Agilo acheived by calling in Administrators? They still don't have their money but by doing what they did and seeing as their debt was secured, they are first in the queue for their debt to be repaid and have condemed other creditors to have to accept only a fraction of what they are owed.