Chester City supporters had been prepared for the worst, but it still hurt. Following administration in , many of Chester City's players left leaving a team of untried youngsters at the beginning of Three days later they couldn't field a team against Forest Green Rovers and the following game against Wrexham was called off before the club was wound up a month later.
The tears just flowed. But fans were already making plans to start a new club. Chester City's old ground - the Exacta Stadium - was reopened for use by Chester FC after being locked up following the old club's liquidation. Insolvency events are invariably produced by a lack of liquidity; essentially, the club does not have enough cash to meet its financial obligations to creditors as and when they fall due.
Clubs entering administration are typically those that have been recently relegated and have not recalibrated their financial operations to the new lower levels of revenue generated.
Alternatively, a club may be forced into an illiquid position due to the withdrawal of financial support from an owner e. Bury in or the financial mismanagement and over-stretching of a club over a sustained period of time e. Leeds in Leeds went into administration in Entering administration is considered the last resort for football clubs in financial difficulty.
However, the protections it provides do offer clubs the time for either a new owner to be found, or to restructure liabilities under a CVA in a manner which will enable the club to continue in the medium-to-long term. Football League and Premier League rules both mandate that if a club enters an. Bolton went into administration in In terms of other restrictions, the administration period is a holding phase wherein the club is safe from the immediate threat of winding up.
It can still operate as normal company; with the major caveat that it is being run by the administrator whose fundamental goal is financial survival of the club rather than on-field success. In the event there are multiple offers to purchase the club, the administrator will select what they consider the most financially sound for the club. Contact Us. Need Help? Why wait when we can help? More News. Purdue Syracuse Villanova Virginia Wisconsin. Redblacks Stampeders.
Featured Teams. Home Odds. Bayern Munich Dortmund. Celtic Rangers. Toggle navigation Subscribe. By Matt Slater Sep 23, So what does it really mean when a club enters administration? Is there a fire sale, with all of the talent in the building destined for pastures new?
Which creditors get paid first? And how does a club get out of the situation? Paul Appleton, of Begbies Traynor, is an experienced insolvency practitioner and has been an administrator at Bolton Wanderers, Portsmouth and Coventry City.
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