frannylee wrote:The FA should use Portsmouths parachute payment (?? £40 milion in total) to pay back creditors
In this way, creditors would get 33p in the pound on their monies owed, which looks like being significantly higher than they will currently get from the administrators, and the club get fuck all
Job done
That's a pretty good suggestion. To expand on your point, if the existing Portsmouth Football club (company) went to go to the wall. the football players, agents and clubs would not then receive preferential status accorded to them by the Football Authorities as per their current rules.
When the existing company went into liquidation, as happened with Leeds, the people behind Portsmouth would have a new company ready to take their place in the Championship next season. But it would be dependent on having their old 'share' transferred to them, and having the FAPL parachute payment(s) which would be normally due to the old company, to the new entity. Quite why the new company which would have no legal connection to the old company other than possibly shared directors and shareholders, should get their hands on this dosh is hard to fathom, but I agree that's the FAPL for you.
Deprived of their 'share' and the dosh, Pompey as a club would cease to exist and supporters etc would be left to form a new club like AFC Wimbledon did and Chester will probably do and then go play in a lower league.
Now here's the rub. At this stage, the old company, the one we see now is still in the process of being wound up. But presumably it will now be entitled to receive the parachute payments, possibly for 4 years if the clubs agree the new proposed rules. That's possibly an extra £48m owed to the club by the FAPL, that is, to the old club and its creditors rather than the new club.
By this approach the players, clubs and agents would no longer get the artificial preference given to them by the FAPL's insovency policy and would receive the same percentage of the amounts owed to them as the St John's Ambulance brigade and the Portsmouth Scout Association.