During the course of my work, I often come across companies who go into administration.
I’ve got to tell you that in my experience this is often no bad thing as it takes incompetent management out of the way, allowing someone with business acumen to steer a way forward.What does it mean?
There is a great deal of confusion out there about what administration means. First of all, let’s be clear, it does not mean liquidation or bankruptcy.
What you do is that you go to court to get an administration order which places a company that is, or is likely to become, insolvent (i.e. unable to pays its debts when they fall due) under the control of an administrator following a petition by the company, its directors or a creditor.
The purpose of this order is to preserve the company's business and assets to allow a reorganisation or ensure the most advantageous realisation of its assets whilst protecting it from action by its creditors.
In other words, you can keep the hounds at bay, while you try to get yourself out of the sh*t. That’s right, my friends, you can default on payments that are due – like the next whopping great instalment on the stadium that probably led to the departure of one of the club’s most talented defenders for decades.
More good news
Here’s some more good news: guess who gets sidelined while the administration order is in place? Yes, that’s right, the company’s board of directors.
I’ve got to ask you all this question, my friends: Who would you prefer running West Ham at the moment, the Terry Brown Junta or a business professional who has probably got a load of experience in turnaround situations?
You may say that an administrator might just sell our prize assets. However, this need not be the case and let’s face it, do you trust Brown and Co. not to proceed with a fire sale to save their own skins? I don’t. We don't have any control at the moment - how does an administration order make this worse?
The critical issue here is that an administrator with half a business brain might conclude that selling the silverware at a knock down price and risk staying down in the Nationwide might not be the best way for WHUFC plc to get out of the mess it is in.
After all, Leicester didn’t do too badly out of administration, did they? They actually got what we need at the moment: a breathing space to try and turn things around where it matters most, on the football pitch.
I don’t need to tell you how important it is to be right up the top at Xmas. First or second at that point would really give us some financial confidence. We could see it out until promotion.
Here’s another radical thought. An administrator could get in a new manager and not pay off our failed manager of last season. Mr Roeder would just be another creditor who cannot make a claim.
This is, of course a high risk strategy, as we would have to achieve promotion or pay an even bigger price. But ask yourselves this question, my friends: would you prefer that we held on to the decent players that are left and really went for it, rather than continuing to suck the life blood out of our club and watching a slow and painful decline?
Brown Out - a false hope?
This ‘Brown Out’ campaign might make people feel better, but it aint gonna happen unless he falls on his own sword. As much as I admire those hardy campaigners who turn up to berate him at the AGM, he has all the votes, my friends.
Administration would achieve ‘Brown Out’ right now, or at least put him in a position where his power is considerably diminished. That has got to be a good thing.
I lost faith completely in this man’s business acumen when he made his infamous ‘mea culpa’ speech just before the season ticket renewal letters went out. The line was “Maybe we should have invested in the team last summer”. Too right.
Don’t expect Brown & Co to petition for administration themselves. They want to maintain their control over our club. They will sell players to maintain their grip and will not want to undermine their own position.
If Brown won’t do it, who will? It needs a creditor to do it. Here’s a message to all WHUFC plc’s creditors out there: pull the plug on Terry. Do it now. Get your solicitors on the case today.
Ask yourselves this again, my friends. Half-brain Brown or an administrator with some sense. I know who I’m voting for, as I now think that there’s more chance of hanging onto our players that way.
* Like to share your thoughts on this article? Please visit the KUMB Forum to leave a comment.
* Disclaimer: The views and opinions expressed in this article are those of the highlighted author/s and do not necessarily represent or reflect the official policy or position of KUMB.com.
