its not the big co owning small co thats the loophole

Lets say, for instance you get a clever lawyer and accountant to sit down with the owner of a footy club.

the professionals know that the wording in the FA rules does not state that a points deduction would be enforced if the parent co goes bust so tell the club to set up a holding co to exploit the loophole in the rules

Posted By: Tony Martin on April 1st 2009 at 08:42:27

Message Thread

SSN - Southamptons parent company have had trading in its shares suspended (n/m) (Other Football) - Klobo04, Apr 1, 07:44:54
- Strong rumours that they will go into admin. If so, would points be deducted this season? (n/m) (Other Football) - South_West_Canary, Apr 1, 08:06:27
  - SSN going saying they likely to avoid penalty because its the parent company not the club (n/m) (Other Football) - Klobo04, Apr 1, 08:17:31
    - Buth surely as a consequence the club go into admin too? (Other Football) - South_West_Canary, Apr 1, 08:34:32
      - do the club actually have any debts? (Other Football) - Tricky Hawes, Apr 1, 08:40:33
      - sfc will be an asset investment of the parent company - and could have to be disposed of (n/m) (Other Football) - Tony Martin, Apr 1, 08:37:31
    - lovely old loop hole (n/m) (Other Football) - Tony Martin, Apr 1, 08:20:06
      - no loop hole needed! - the parent company is a completely different company to southampton (n/m) (Other Football) - Cheltenham_Canary, Apr 1, 08:30:35
        
        which is a loophole - set up a parent company to "hold" the club and bingo you get away (Other Football) - Tony Martin, Apr 1, 08:33:05
        
        only if the holding company - and not the football club - has the debts (Other Football) - mr carra, Apr 1, 08:57:33
        
        thats a given (n/m) (Other Football) - Tony Martin, Apr 1, 09:28:35
        
        exactly! (n/m) (Other Football) - Cheltenham_Canary, Apr 1, 09:08:04
        
        a bigger company owning a smaller one...... (Other Football) - Cheltenham_Canary, Apr 1, 08:37:30
        
        if all the bigger company is is a holding company for the football club (Other Football) - Tricky Hawes, Apr 1, 08:42:50
        
        I am presuming (maybe wrongly) that this is the debt Lowe incurred when he bought the club (n/m) (Other Football) - mr carra, Apr 1, 08:58:46
        
        yep....according to my saints supporting clients.... (Other Football) - Cheltenham_Canary, Apr 1, 09:50:16
        
        precisely! (n/m) (Other Football) - Tony Martin, Apr 1, 08:44:22
        
        its not the big co owning small co thats the loophole (Other Football) - Tony Martin, Apr 1, 08:42:27
        
        Just a quick point... (Other Football) - Arganth, Apr 1, 09:12:49
        
        another reason...... (Other Football) - Cheltenham_Canary, Apr 1, 09:13:54
        
        yes, you can do that but it isn't quite that easy (Other Football) - mr carra, Apr 1, 09:03:44

Reply to Message

In order to add a post to the WotB Message Board you must be a registered WotB user.

If you are not yet registered then please visit the registration page. You should ensure that their browser is setup to accept cookies.