[Bullseye]

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 12:43 pm  

Nothus wrote: Is administration an option when you actually have the capital available to pay off the creditors but just don't want to? I think actually DB would have to close the business. Guidance here: https://www.rapidformations.co.uk/blog/ ... y-company/

Nothus wrote: Is administration an option when you actually have the capital available to pay off the creditors but just don't want to? I think actually DB would have to close the business. Guidance here: https://www.rapidformations.co.uk/blog/ ... y-company/

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 12:47 pm  

Sir Kevin Sinfield wrote:

Jean and myself were spot on with our predictions (ok Toronto didn’t go up) despite the ridicule we faced through the year. I guess there’s a lesson to learn, respect other people’s opinion or it could end up biting you on the backside.

So you weren't spot on then were you...

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 1:32 pm  

Alan wrote:

Ah, at last, someone who has seen the players' contracts!

Whilst I tend to agree that the contracts must be met by the employer, I am left wondering whether there is a clause relating to 'success'. (i.e. a top four finish, and participation in the play-offs) After all, a surprising number of players do seem to have accepted the 'deal' offered by the club, to terminate their contracts.

Only RFL approved clauses are allowed in players' contracts. Whilst there is one to permit termination of the contract on relegation (at least from SL, not sure about C to L1) one for failing to make Top 4/promotion isn't.

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 1:40 pm  

Bullseye wrote: I think actually DB would have to close the business. Guidance here: https://www.rapidformations.co.uk/blog/ ... y-company/ Not really an option as the creditors would just object to the striking off. Putting the club in admin isn't an option either because the funds are there to pay the creditors. This will end with either Leigh paying the players what they are owed, or the players accepting the offer from Leigh. I suspect DB has broken his silence now to try and guilt trip the players currently holding our for their full pay.

Bullseye wrote: I think actually DB would have to close the business. Guidance here: https://www.rapidformations.co.uk/blog/ ... y-company/ Not really an option as the creditors would just object to the striking off. Putting the club in admin isn't an option either because the funds are there to pay the creditors. This will end with either Leigh paying the players what they are owed, or the players accepting the offer from Leigh. I suspect DB has broken his silence now to try and guilt trip the players currently holding our for their full pay.

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 2:11 pm  

Nothus wrote: Not really an option as the creditors would just object to the striking off. Putting the club in admin isn't an option either because the funds are there to pay the creditors. This will end with either Leigh paying the players what they are owed, or the players accepting the offer from Leigh. I suspect DB has broken his silence now to try and guilt trip the players currently holding our for their full pay. Presumably the distinction is whether funds are there for 'Leigh' to honour those contracts, or if the funds belong to Beaumont? If 'Sporting Club Leigh Ltd' can afford to pay, then it simply becomes a contractual dispute between the players and the club. It's hard to see if that's the case given that the business accounts for Sporting Club Leigh Ltd are more than a month overdue. The the ability to pay the players is contingent on another injection of cash from Beaumont (ie a director's loan) that isn't forthcoming, then as the link from Bullsye says, he has three options - sell, appoint a new director or wind the club up. My gut feeling is that there is an element of brinkmanship to this and Beaumont is pressuring the relevant parties to agree to an arrangement. If the club were to fold, the two players in question would face a protracted and expensive legal battle to most likey end up with the square-root of Jack.

Nothus wrote: Not really an option as the creditors would just object to the striking off. Putting the club in admin isn't an option either because the funds are there to pay the creditors. This will end with either Leigh paying the players what they are owed, or the players accepting the offer from Leigh. I suspect DB has broken his silence now to try and guilt trip the players currently holding our for their full pay. Presumably the distinction is whether funds are there for 'Leigh' to honour those contracts, or if the funds belong to Beaumont? If 'Sporting Club Leigh Ltd' can afford to pay, then it simply becomes a contractual dispute between the players and the club. It's hard to see if that's the case given that the business accounts for Sporting Club Leigh Ltd are more than a month overdue. The the ability to pay the players is contingent on another injection of cash from Beaumont (ie a director's loan) that isn't forthcoming, then as the link from Bullsye says, he has three options - sell, appoint a new director or wind the club up. My gut feeling is that there is an element of brinkmanship to this and Beaumont is pressuring the relevant parties to agree to an arrangement. If the club were to fold, the two players in question would face a protracted and expensive legal battle to most likey end up with the square-root of Jack.

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 4:26 pm  

bramleyrhino wrote: Presumably the distinction is whether funds are there for 'Leigh' to honour those contracts, or if the funds belong to Beaumont? If 'Sporting Club Leigh Ltd' can afford to pay, then it simply becomes a contractual dispute between the players and the club. It's hard to see if that's the case given that the business accounts for Sporting Club Leigh Ltd are more than a month overdue. The the ability to pay the players is contingent on another injection of cash from Beaumont (ie a director's loan) that isn't forthcoming, then as the link from Bullsye says, he has three options - sell, appoint a new director or wind the club up. My gut feeling is that there is an element of brinkmanship to this and Beaumont is pressuring the relevant parties to agree to an arrangement. If the club were to fold, the two players in question would face a protracted and expensive legal battle to most likey end up with the square-root of Jack. I'm just basing things on the quotes from DB in the article. "When 40% of your playing budget would be taken up by those two players, that you're trying to arrange to move on, it leaves very small amount of money to recruit 20 players. "If I gave a coach that money they'd be in League One the following year." That makes it sound like the central funding can cover the liabilities but wouldn't leave them with much to build the rest of the squad.

bramleyrhino wrote: Presumably the distinction is whether funds are there for 'Leigh' to honour those contracts, or if the funds belong to Beaumont? If 'Sporting Club Leigh Ltd' can afford to pay, then it simply becomes a contractual dispute between the players and the club. It's hard to see if that's the case given that the business accounts for Sporting Club Leigh Ltd are more than a month overdue. The the ability to pay the players is contingent on another injection of cash from Beaumont (ie a director's loan) that isn't forthcoming, then as the link from Bullsye says, he has three options - sell, appoint a new director or wind the club up. My gut feeling is that there is an element of brinkmanship to this and Beaumont is pressuring the relevant parties to agree to an arrangement. If the club were to fold, the two players in question would face a protracted and expensive legal battle to most likey end up with the square-root of Jack. I'm just basing things on the quotes from DB in the article. "When 40% of your playing budget would be taken up by those two players, that you're trying to arrange to move on, it leaves very small amount of money to recruit 20 players. "If I gave a coach that money they'd be in League One the following year." That makes it sound like the central funding can cover the liabilities but wouldn't leave them with much to build the rest of the squad.

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 5:46 pm  

Monies owed to employees are taken out of the pot before preferential creditors such as the crown or the banks who own debentures. However, the last accounts show that Leigh are massively insolvent so there is no money to pay any debts. Even if DB was to write off the money owed to his other company, Leigh are still insolvent. (This is all based on the 2017 accounts by the way, the 2018 accounts are overdue and I doubt they will get filed anyway)

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 6:36 pm  

Ruune Rebellion wrote:

Monies owed to employees are taken out of the pot before preferential creditors such as the crown or the banks who own debentures. However, the last accounts show that Leigh are massively insolvent so there is no money to pay any debts. Even if DB was to write off the money owed to his other company, Leigh are still insolvent. (This is all based on the 2017 accounts by the way, the 2018 accounts are overdue and I doubt they will get filed anyway)

As you say employees are preferential creditors but they come second in line to secured creditors (and the insolvency practitioner).

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 6:47 pm  

Mr Dog wrote:

As you say employees are preferential creditors but they come second in line to secured creditors (and the insolvency practitioner).

My mistake! Thanks for the correction!

Re: Are Leigh destined for League 1? : Thu Nov 08, 2018 6:57 pm  

Budgiezilla wrote:

40% of the 200K that we'll get from the RFL funding. That is all we are going to spend on players for next season (allegedly).
All the other players accepted 'pay offs' or signed for other clubs. Kevin Larroyer should be able to find another club, but Rhys Evans (on 80K a season) was injured constantly, but has a 3 year deal.
Derek Beaumont has helped create this 'mess' but he's not prepared (this time) to bankroll us out of it. It happened to one of the biggest clubs in Bradford Bulls, so the fact that it is happening to Leigh Centurions is hardly 'earth shattering'.

Wow 80k a year. Heard Widnes want him