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Re: Are Leigh destined for League 1? : Sun Nov 11, 2018 9:17 pm  
Leigh have a big creditor its called derek, he is owed 1.3m in loans. He therefore controls the process and the outstanding contracts would get f'all. He has stated that if we need a newco it will be debt free and 100k in the bank from him, there was no debt to HMRC a situation now frowned on so I don't know what punishment the RFL will place on newco, but it took 3 admins and huge HMRC debts to penalise Bradford points. The choice facing the players is hold out force administration and get nothing or take the pay off on the table, I understand the pay off is similar to Admin fees. That's how it is, not stating its right but reality is something or nothing for the 2 players
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Re: Are Leigh destined for League 1? : Sun Nov 11, 2018 9:45 pm  
maurice wrote:
Leigh have a big creditor its called derek, he is owed 1.3m in loans. He therefore controls the process and the outstanding contracts would get f'all. He has stated that if we need a newco it will be debt free and 100k in the bank from him, there was no debt to HMRC a situation now frowned on so I don't know what punishment the RFL will place on newco, but it took 3 admins and huge HMRC debts to penalise Bradford points. The choice facing the players is hold out force administration and get nothing or take the pay off on the table, I understand the pay off is similar to Admin fees. That's how it is, not stating its right but reality is something or nothing for the 2 players



Bradford were docked points for every insolvency event. In fact we were only admitted into the league after the first one by agreeing to half the central funding for the following 2 years. The one after that no central funding and points. The third one no central funding and points deduction.
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Re: Are Leigh destined for League 1? : Sun Nov 11, 2018 9:56 pm  
Maccbull_BigBullyBooaza wrote:
Bradford were docked points for every insolvency event. In fact we were only admitted into the league after the first one by agreeing to half the central funding for the following 2 years. The one after that no central funding and points. The third one no central funding and points deduction.


Did any of these admins involve HMRC ?
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Re: Are Leigh destined for League 1? : Sun Nov 11, 2018 9:59 pm  
Also you can’t hold an influential position at a club if you have had a company suffer an insolvency event in the previous 3 years.

Which means should Leigh end up in admin Beaumont can’t set up a new business to buy the club off the admin.

He’d have to have someone else do it and gift them the 100k (plus gift it any deduction in central funding).

Realistically I think the two players will come to some sort of agreement with the club or nobody gets anything. Except the administrator - as no one buying the club will offer to pay off Beaumont’s director loans.

Leigh will be in the championship next season I’m confident of that.
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Re: Are Leigh destined for League 1? : Sun Nov 11, 2018 10:04 pm  
GUBRATS wrote:
Did any of these admins involve HMRC ?


I think they were owed money on at least the last one.

The rfl rules are pretty clear though. If you go into admin you will get a points deduction and reduced central funding.

If you pay some or all of the creditors back it reduces the severity of them that’s all.

HMRC debt isn’t viewed any differently to any other creditor anymore. The rfl can’t insist on that because they aren’t a preferred creditor anymore making it illegal.
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Re: Are Leigh destined for League 1? : Mon Nov 12, 2018 9:34 am  
I think a better comparison would be Salford rather than Bradford. Salford did a prepack admin and the amount of league points you are deducted is based on the % that creditors are repaid (I think).
Marwan gave assurances that Salford's creditors would be met and so I think their punishment was more lenient.

If Leigh were to do a prepack but not pay the players anything, then I would imagine the rfl wouldn't look too kindly on that and their points deduction would be higher as a result.
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Re: Are Leigh destined for League 1? : Mon Nov 12, 2018 11:14 am  
GUBRATS wrote:
Did any of these admins involve HMRC ?


Yes. All of them IIRC.
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Re: Are Leigh destined for League 1? : Mon Nov 12, 2018 1:46 pm  
Maccbull_BigBullyBooaza wrote:
Bradford were docked points for every insolvency event. In fact we were only admitted into the league after the first one by agreeing to half the central funding for the following 2 years. The one after that no central funding and points. The third one no central funding and points deduction.


Pretty sure central funding was 'just' reduced on the 3rd, not withheld.

Maccbull_BigBullyBooaza wrote:
GUBRATS wrote:
Did any of these admins involve HMRC ?


I think they were owed money on at least the last one.
The rfl rules are pretty clear though. If you go into admin you will get a points deduction and reduced central funding.
If you pay some or all of the creditors back it reduces the severity of them that’s all.
HMRC debt isn’t viewed any differently to any other creditor anymore. The rfl can’t insist on that because they aren’t a preferred creditor anymore making it illegal.


IIRC in the last one there was a dispute as to how much was owed to HMRC due to someone trying to lessen the VAT bill by selling Season Tickets as 'Memberships' which attract a lower (0?) VAT rate. When the court ruled in HMRC's favour the Club quickly went into administration.
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Re: Are Leigh destined for League 1? : Mon Nov 12, 2018 2:22 pm  
Mr Dog wrote:
IIRC in the last one there was a dispute as to how much was owed to HMRC due to someone trying to lessen the VAT bill by selling Season Tickets as 'Memberships' which attract a lower (0?) VAT rate. When the court ruled in HMRC's favour the Club quickly went into administration.


That was Admin 1 as it was Peter Hood's idea IIRC.

All the central funding was withheld from Omar Khan when he took over after Admin 1 and shared amongst the other SL clubs when he took over making it almost certain he'd fail and lead to Admin 2.
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Re: Are Leigh destined for League 1? : Mon Nov 12, 2018 7:58 pm  
Bullseye wrote:
That was Admin 1 as it was Peter Hood's idea IIRC.

All the central funding was withheld from Omar Khan when he took over after Admin 1 and shared amongst the other SL clubs when he took over making it almost certain he'd fail and lead to Admin 2.


Pretty sure Green tried it, or something similar - it was definitely VAT that was owed. From the T&A in Nov 2016

“The club were subject to a VAT Assessment which was appealed three months ago."
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