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Posts tagged ‘administration’

Latics Lolly

Thread by @marksparko on Twitter.

Published to highlight the dodgy dealings that could happen in football. We all know even with County, there has been charlatans sniffing around our Club when in financial freefall:

“A thread: How Wigan Athletic have been victim to one of the greatest sporting scandals of all time.

In 2018 Dave Whelan sold Wigan Athletic to Hong Kong based International Entertainment Corporation (IEC) who specialise in gambling. Owned by professional poker player Stanley Choi of Hong Kong.

June 2020. The club officially changed hands to Next Leader Fund (NLF) based in the Cayman Islands and only set up in January 2020. Majority share in NLF? You guessed it, Stanley Choi. How did NLF afford the takeover? A loan.

IEC loaned NLF £28million with an interest rate of 8% rising to 20% if not paid back in 12 months. That’s £100,000 a week in payments which Wigan would not be able to afford. Sounds dodgy as hell right? Well the EFL didn’t seem to think swiftly approving the terms of sale.

On 24th June, NLF switched hands to a new majority stakeholder, Au Yeung Wai Kay. A week later, Chinese lawyers contacted administrators to instruct them to seize control of the club. The administrators themselves can’t even contact the owners, who have clearly ‘done a runner’.

Has Au Yeung Wai Kay always dreamed of owning a football club in Lancashire? Doubt it. He paid £17million for the club + £28million in loan repayments. That’s £45million pounds to own a club for 7 days and then place it into admin. Why would anybody do that?

Well, here’s why… This is a video of the head of the English Football League, Richard Parry, stating he’s heard a rumour that there was a big bet placed on Wigan’s relegation in the Philippines. Remember the past owner was a professional gambler who owned a string of casinos? https://t.co/uW3PTkrOAL

This video has since been confirmed as Rick Parry by the EFL.

I wonder which Philippine-based gambling company could have been used? Well look no further than the front of Wigan’s shirts. KB88 bet. Director of KB88, Tat Man Cheung, left the company prior to take over then was reinstated 12 days before Wigan was placed into administration.

KB88 brought into the club by the past owner and Darren Royle (Current Wigan Chairman). Royle used to work for KB88 Bet. He was also responsible for recommending IEC to Wigan Athletic when Whelan was looking to sell.

Royle, since the administration news, has deleted his LinkedIn account. A coincidence or to cover up communications?

So why would somebody place a club into admin 7 days after owning them and only 6 games before the end of the season? -12 points is the sanction from the EFL, dragging Wigan back into the relegation places. Nobody would want that surely?

Unless maybe you (or a close ally) gambled on the club going down and panicked as they started to pick up points and climb away. Does Au Yeung Wai Kay even exist? Or is he a fictional front man to keep Choi out of trouble?

Let me now take you back to August 2019, witnesses in the stand saw somebody get thrown out of the stadium for being wired up and illegally betting. Where in the world was he wired up to? Hong Kong. There’s a history of betting scams.

“It’s a well run club and the oddest situation I’ve ever seen” was the verdict of administrator Gerald Krasner. Wigan have always been a well run club, loss making, but controlled. We rely on funding from owners and have only spent money we either had or believed was incoming.

This money was quickly pulled from under the club’s feet by a transaction that was sanctioned by the EFL only weeks prior. The same EFL that then issued a -12 point penalty, punishing the club but potentially rewarding the owners and their carefully constructed plan.

This is an international scandal that requires investigation at the highest level. Facilitated willingly by the EFL who proceeded to punish innocent people based on their own failings. We may be too far down the line to save Wigan but this CANNOT be allowed to happen to others.

Finally, a massive thanks to @sammorsy08 Paul Cook and the rest of the lads. You are all heroes as I hear despite looking at 20% pay you’re all on the bus to Brentford.

Please share this thread, this is potentially the greatest football scandal of all time!”

Of course, the above is merely a reproduction of allegations published in the public domain.  The correct legal authorities including administrators will no doubt uncover the precise facts and whether the above content is factually correct or not.  But an intriguing story and proposition it has to be said.  We like others will follow the news as this further unfolds – and will try and buy a cardboard cut out from the S’PORT as a token gesture of support.

Read and sigh ……. “Latics Lolly” https://s-port.co/2020/07/04/latics-lolly/ via @acrobatonline #WiganAthletic from a #stockportcounty fan and supporter of real football, real clubs, real fans globally.

Money for old rope?

It has been brought to my attention, the professional fees that the administrator to Glasgow Rangers FC has accrued to date. Duff and Phelps, has confirmed that it has already received £2.4M.  This for the first stint of six-months’ appointment at the original club, “Rangers”. 

Apparently, its’ original quotation was in excess of this but requoted along with a variance to the original brief.  We understand that it is now asking creditors to approve a further payment of £363K for work carried out between June 30 and August 10 2012.
 
Should Duff and Phelps secure approval, it would mean the London-based firm had been paid a total of £2.7M for the six-months.  I wish I had more time to do an analysis of fees vis-à-vis size of club, amount of creditors and debts.  No surprise firms chase this sort of work.

Messy house

The latest Begbies Traynor report on football’s well-being states that:

“Of 68 teams surveyed in the Divisions [Championship, 1 and 2], 13 have signs of distress such as serious court actions against them, including winding-up petitions, late filing of accounts and “serious” negative balances on their balance sheets. That 19% compares to just 1% in the wider economy”.

When will they learn?  The Firm has been Administrator at several clubs that I’ve personally had involvement with: Chester and Huddersfield.  Plus others such as: Lincoln City, Northwich Victoria, Wrexham, Farnborough, Crawley, Scarborough, Bournemouth, Halifax, Southampton and Port Vale.

From a purely selfish perspective this keeps us in business, but how many times do we need to ask when will football get its own house in order?

The survey measures the financial distress of clubs according to problems including serious court actions against them and big negative balances on their balance sheet.

Dead as a Darlo?

Variation on the ‘dodo’ theme, but let’s hope extinction isn’t just around the corner.

Whilst, one club, Weymouth, gets a firmer footing and will revert back to full-time status after a torrid time, poor Darlington lurch from crisis to crisis.  I have feared the same fortunes for my beloved County.

Darlington could cease to trade this week, unless a new owner is forthcoming, according to administrator, Harvey Madden.  White knights are not as prevalent these days!  Darlo are in administration now for the third time in recent years.  The Administrator comments: “Things are still dire. We have not had any definite interest. We have seen a hell of a lot of people interested in the last week. No one has taken it a step further and quite a few have withdrawn. Without money, the club will not survive. I will have to make decisions by the end of the week and assess it.” Deja vu – Stockport County?