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Championship club Wigan enter administration - automatic 12 point deduction


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This from the Wigan Forum

 

I wrote to EFL in May and then the following to all TV and radio broadcaster, Wigan MP but was ignored..

"END OF THE PIER FOR WIGAN ATHLETIC?

Wigan Athletic have recently been sold and bought by the same person; Dr. Choi Chiu Fai Stanley. He is the chairman and majority shareholder of the last owner; IEC plc, and also majority shareholder of the new owning company 'Next Leader Fund LP'. This has been approved by the EFL which renders their club ownership process to kiddies TV; 'The Magic Roundabout'.

Dr. Stanley, has over 20 years experience in financial services and merger and acquisition projects. He also a renowned poker player in the far eastern gambling world through televised poker tournaments.

According to his letter sent to IEC plc shareholders on 8 May 2020 (link below), one of the principle reasons for selling the club and transferring ownership is that it will be financially advantageous to IEC in regard to a previous interest free loan of £24.36 million. IEC have provided a replacement loan via 'the new owner' and most importantly; it is interest bearing at 8%. This is now costing Wigan Athletic £37,846 A WEEK! The club have made an average loss over the last two years of circa £8.5 million which equates to £163,461 per week and therefore losses now total circa £200,000 per week.

For context; the present stock market capitalisation (value) of IEC plc is £36.48 million and is engaged in expensive court actions with tax authorities concerning 2 of it's subsidiaries.

However, the terms require the capital sum to be repaid in 12 months and if the club defaults then the interest rate increases to 20% to which weekly payments on the £24.36 million loan amounts to £93,692 !"

Dr Stanley knows the company cannot pay these figures on their present income and so did the directors of the club and the EFL. So why was it allowed to happen?

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I'd like to think that one day the EFL takes a good long look at the financial fabric of the game and decides it needs a complete overhaul. They should involve whoever is most appropriate and I don't care if it takes three years to start implementing. The situation is a complete shambles in so many ways and it's easy to imagine that several clubs could be in jeopardy of even being able to survive the current social conditions.

 

I don't pretend to have the answers myself, but player salaries of more than 100% of a club's income doesn't require a genius to calculate is not a good idea in the long run. A suggestion on here yesterday (originally made by Simon Jordan I believe) of a hefty deposit for club owner's seems like a good start to me. The 'fit and proper person' test is anything but, and it cannot be right that a sport awash with such phenomenal amounts of cash should allow a club like Bury to dissolve into nothing.

 

Anyway, forget all of that, Harry Kane is driving a new car. Oooooohhhh. 

 

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16 hours ago, mkowl said:

The Wigan situation appears to be that the new owners simply do not have accessible funds or the ability to transfer them to the UK.

 

This could end up being a major issue for a lot of clubs reliant on the owner or funders if there credit lines are reduced. 

 

Just because someone is cited to be worth a fortune it invariably is only on paper and not just sat in a bank account. If credit facilities get jittery or it is needed to support the core business of these owners then this could be a pack of cards. Especially if a club fails owing another club for transfer fees

 

And football is notorious for forward selling income rights to get cash today. Check out our neighbours. If you wanted any reason to know why the EPL and EFL re-started it was because of loans secured on TV rights income. 

 

Football has been living in a unsustainable bubble for years - propped up by TV rights 

Shouldn't Fit and Proper include investigation of basic funds liquidity?

 

Maddeningly stupid.

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6 minutes ago, @owlstalk said:

WIGAN are scrambling to find the cash to finish the season — with the players and staff heading for massive pay cuts.

 

Administrator Gerald Krasner admitted he had limited funds but he would get the money for home and away games.


apparently players only going to get 20% of their wages. 

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12 hours ago, mildatheart67 said:

This from the Wigan Forum

 

I wrote to EFL in May and then the following to all TV and radio broadcaster, Wigan MP but was ignored..

"END OF THE PIER FOR WIGAN ATHLETIC?

Wigan Athletic have recently been sold and bought by the same person; Dr. Choi Chiu Fai Stanley. He is the chairman and majority shareholder of the last owner; IEC plc, and also majority shareholder of the new owning company 'Next Leader Fund LP'. This has been approved by the EFL which renders their club ownership process to kiddies TV; 'The Magic Roundabout'.

Dr. Stanley, has over 20 years experience in financial services and merger and acquisition projects. He also a renowned poker player in the far eastern gambling world through televised poker tournaments.

According to his letter sent to IEC plc shareholders on 8 May 2020 (link below), one of the principle reasons for selling the club and transferring ownership is that it will be financially advantageous to IEC in regard to a previous interest free loan of £24.36 million. IEC have provided a replacement loan via 'the new owner' and most importantly; it is interest bearing at 8%. This is now costing Wigan Athletic £37,846 A WEEK! The club have made an average loss over the last two years of circa £8.5 million which equates to £163,461 per week and therefore losses now total circa £200,000 per week.

For context; the present stock market capitalisation (value) of IEC plc is £36.48 million and is engaged in expensive court actions with tax authorities concerning 2 of it's subsidiaries.

However, the terms require the capital sum to be repaid in 12 months and if the club defaults then the interest rate increases to 20% to which weekly payments on the £24.36 million loan amounts to £93,692 !"

Dr Stanley knows the company cannot pay these figures on their present income and so did the directors of the club and the EFL. So why was it allowed to happen?

Jesus wept...the EFL are a laughing stock now.

 

No one can take this lot seriously anymore surley?

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3 minutes ago, TaxiMark said:

Jesus wept...the EFL are a laughing stock now.

 

No one can take this lot seriously anymore surley?


 

 

Looking at the EFL is too basic now and misses the point 

 

Look instead at gambling, betting, money laundering, fixing matches, dodgy sales and purchases and this Wigan situation 

 

Forget the EFL that’s not what needs focussing on 

 

This could literally explode and show some really interesting and frightening things going on in the Championship

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Owlstalk Shop

 

 

 

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1 hour ago, @owlstalk said:

WIGAN are scrambling to find the cash to finish the season — with the players and staff heading for massive pay cuts.

 

Administrator Gerald Krasner admitted he had limited funds but he would get the money for home and away games.

Are you refering to that tweet by saying that ?

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10 hours ago, DJMortimer said:

I'd like to think that one day the EFL takes a good long look at the financial fabric of the game and decides it needs a complete overhaul. They should involve whoever is most appropriate and I don't care if it takes three years to start implementing. The situation is a complete shambles in so many ways and it's easy to imagine that several clubs could be in jeopardy of even being able to survive the current social conditions.

 

I don't pretend to have the answers myself, but player salaries of more than 100% of a club's income doesn't require a genius to calculate is not a good idea in the long run. A suggestion on here yesterday (originally made by Simon Jordan I believe) of a hefty deposit for club owner's seems like a good start to me. The 'fit and proper person' test is anything but, and it cannot be right that a sport awash with such phenomenal amounts of cash should allow a club like Bury to dissolve into nothing.

 

Anyway, forget all of that, Harry Kane is driving a new car. Oooooohhhh. 

 

 

 

Another bunch of "businessmen" driving a coach and horses through the spirit of P&S and FFP. Surely the "fit and proper" test should also apply to the EFL's own rules?

 

i still reckon that the simplest and easiest was to rein in misappropriation and bad practice is to get companies running these clubs to match any losses with the placing of a bond for the same amount of the losses that is only repaid or partially repaid when the losses reduce or the annual accounts return to profit or break even.

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Guest mrbluesky
8 hours ago, WalthamOwl said:

So apparently there is a video of EFL chairman Rick Parry saying that the Wigan owners put a bet on them to be relegated. 

Been verified now, by all accounts, no doubt our hearing will be put back another two weeks🙂

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Guest mkowl

It's the fact I joked that Wigan had been lost in a high stakes poker game that it turns out could in a roundabout way be true. Reality is stranger than fiction sometimes

 

 

 

 

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