dewsbury and leeds too

Bu-ll-st
[urlhttp://www.thetelegraphandargus.co.uk/sport/9778329.Guilfoyle_admits_he___s____pessimistic____of_Bradford_Bulls____prospects/?ref=rss[/url

The deal with the RFL for the lease of odsal is looking like the worst bit of business since Gerald Ratner labeled his own jewellery as crap!!!

Seems a little unprofessonal of the 'administrator' to state such things at this stage

It may appear to be poor business, but it certanly would give a new Bulls team somewhere to play and if the brown stuff really does stick, then surely there would be some other development at Odsal where they could gain some rent/ income ?

From the point of view of getting £1m, seemingly oblivious to the bank pulling the plug when they no longer held the odsal lease, then giving £700,000 of it straight back (in effect) to the RFL to settle the loan and then failing to turn £250,000 of the remaining £300,000 over to HMRC causing them to petition for them to be wound up.
I'd say it was pretty high in the calamity stakes!!

Why is it bad business? It's value isn't only dependent on the Bulls playing there. Other parties want it for other purposes. I'm sure the RFL could get rid if and when they need to.

Because the sale of the lease equalled virtually no money no credit and a petition from HMRC to be wound up.
All those things are in my view "quiet bad".
Not for the RFL; they got there £700k loan back. Not for anyone seeking to buy the club with a secure lease in place, but simply as a decision made by the then directors.
It was the catalyst for the club to implode.

The RFL will now be a creditor, with the Bulls owing their lease payments. Any Newco will have to renegotiate the terms - can't see the RFL doing any better out of this - probably much worse.

If the press article is accurate then a wage bill of over £2.4 M would suggest they are paying their
clerical and backroom staff far too much

They are clearly running a team they can't afford. Don't have too much sympathy for them.

Bradford have gone into adminstration!

Another day another deadline! Just 10 days to save them from liquidation!
[urlhttp://www.bbc.co.uk/sport/0/rugby-league/18554519[/url

As a numbnuts,can someone explain the difference between Liquidation and administration?

My understanding is liquidation is selling off all assets in order to pay debts. Administration in simple terms is taking over the running of the club in the hope that it can be made viable again, which might be via agreeing a reduced payment with creditors, finding an investor or restructuring etc.

Administration is a process where an "administrator" is brought in and tries to effectively save the business while keeping it running. They go for the best deal for all rather than just the business owners. So that means creditors are protected and the business is protected, under a limited time, after which the best deal will be made to get creditors their money, i.e selling assets.

The idea being that creditors are more likely to get their money if the business is still running, rather than just shutting them down and no one getting anything.

Liquidation is the end if either admin isn't chosen or it ultimately fails.

Re structuring the wage bill to make it a viable profit making business until someone else comes in and takes financial control is high on the list of priorities, and unsurprisingly the thing that's been killing the Bulls for the last five years or so.
Could be a lot of staff gone by the end of the week.