Parent Company Administration

[vercol36]

http://www.scotsman.com/sport/rangers-crisis-forces-spl-to-finally-amend-its-rulebook-1-2328176

'In addition, any club whose parent company goes into administration will now he regarded as in administration themselves. That would apply in a case such as Hearts, owned by Vladimir Romanov’s UBIG company.
“That would mirror the situation at Southampton where the parent company went into administration but the football club (http://www.hibs.net/#) didn’t,” explained Doncaster. “The Football League at that point deemed the football club to be in administration, even though it was strictly the parent company. “Let’s assume there was a football club here which owned several different companies. If a very small company underneath it went into administration, then it wouldn’t be relevant to the football club. Or, indeed, if there was a huge group and the football club happened to be part of one of the individual owners who went into administration, then it wouldn’t be relevant.'


Interesting move by the SPL. Anyone know how UBIG's finances look?

[CropleyWasGod]

http://www.scotsman.com/sport/rangers-crisis-forces-spl-to-finally-amend-its-rulebook-1-2328176

'In addition, any club whose parent company goes into administration will now he regarded as in administration themselves. That would apply in a case such as Hearts, owned by Vladimir Romanov’s UBIG company.
“That would mirror the situation at Southampton where the parent company went into administration but the football club (http://www.hibs.net/#) didn’t,” explained Doncaster. “The Football League at that point deemed the football club to be in administration, even though it was strictly the parent company. “Let’s assume there was a football club here which owned several different companies. If a very small company underneath it went into administration, then it wouldn’t be relevant to the football club. Or, indeed, if there was a huge group and the football club happened to be part of one of the individual owners who went into administration, then it wouldn’t be relevant.'


Interesting move by the SPL. Anyone know how UBIG's finances look?

He contradicts himself a bit there. First of all, it's "any club"..then he cites situations where it wouldn't apply.

Caversham Greens is your man for the Hearts finances... he'll be along in a minute :greengrin

Are UBIG in administration? Are they even a UK company?

[Gus Fring]

Interesting move by the SPL. Anyone know how UBIG's finances look?

I don't think even UBIG know how their finances look

[Monts]

He contradicts himself a bit there. First of all, it's "any club"..then he cites situations where it wouldn't apply.

Caversham Greens is your man for the Hearts finances... he'll be along in a minute :greengrin

Are UBIG in administration? Are they even a UK company?

I read it as being a case of where you were in the chain of the company, rather than depending on which club you were. So not really a contradiction. If the company that finances the club goes into administration then they deem the club to be also. But if a company that is part of a chain, but not financing the club goes into admin, then the club is not deemed to be.

[PatHead]

I don't think even UBIG know how bad their finances look

Sorted it for you.

[greenginger]

Sorted it for you.

And as long as HOMFC's value is maintained at £ 50 million there will be no problem.:greengrin

[Caversham Green]

He contradicts himself a bit there. First of all, it's "any club"..then he cites situations where it wouldn't apply.

Caversham Greens is your man for the Hearts finances... he'll be along in a minute :greengrin

Are UBIG in administration? Are they even a UK company?

Sorry, missed this yeasterday.

I think Bernz has summarised the position pretty well re the contradiction - UBIG own Birac (I think) and HoMFC. If Birac go into administration HoMFC are not affected as far as SPL punishment goes, if UBIG go into administration then HoMFC are also deemed to have done so. Also if any subsidiaries of HoMFC go into administration HoMFC are not affected.

UBIG aren't a UK company, but I'm sure that if they were to go into the Lithuanian equivalent of administration the rules would apply, although it's a bit academic because the first thing the administrators would do would be to close them down bacause they're nothing more than a cash lavvy.

As far as UBIG's finances go, it's difficult to tell what position they're in because they seem to be so secretive. They even witheld their accounts from HoMFC's auditors for the third year running - that's never a good sign. There were some figures on their website a few years back - I did a piece on it at a time. From what I remember they showed a company that appeared to have a reasonably comfortable fixed asset base, but potentially severe short-term cash flow problems - which would explain the frequent failures to pay staff and creditors on time. The performance of shares is usually a reasonable (but not definitive) measure of a company's health and as far as I'm aware this has been steadily downwards in the case of UBIG and associated companies.

I think the recent 'sale' of HoMFC share to Quantum Holdings SA (there's the Q word again) is significant, as is the first truly substantial reduction in debt (he's always kept it above £30m previously). It looks to me like Mr Romanov intends to offload them one way or another very soon. Expect the stadium nonsense to start appearing again in again in the next few months.