What happens if a club goes into administration?

Hi All,

What happens if a club goes into administration. I am severly in debt, and need some money asap. It took me 4 seasons to get promoted to the Premiership as Barnet. I signed some world class players including Ronaldo, but now I am in debt and probably will go into administration.

What happens? Do I lose all my players? Do I come out of debt? Does the club seize to exist?

Thanks

I've never seen a club just disappear, I'd imagine that the board will accept bids for your players without your consent if they are desperate.

You can also get a points deduction.

never seen this but one season a few clubs had a points deduction, guess it could be from going into administration

You can also get a points deduction.

I've never seen that happen on my game so far and I'm in 2021. Just cut down on your wage bills and try to invest in the future to avoid spending silly fees for big players.

Anybody know for sure?

Well I've seen clubs like Villareal go into debt and they accepted a £10m bid from me for Matias Fernandez which isn't a lot for him, so they were desperate for the money.

Yep. So its likely that any bids other clubs make, my board will just accept them?

Well as long as they are slightly reasonable, not a bid of 1k for Ronaldo or anything like that. But I'd imagine your reputation is quite high to get Ronaldo from Man Utd so you shouldn't worry too much about losing players.

Well as long as they are slightly reasonable, not a bid of 1k for Ronaldo or anything like that. But I'd imagine your reputation is quite high to get Ronaldo from Man Utd so you shouldn't worry too much about losing players.

Unfortunately reputation doesn't count for much if you go into administration. If you do go into administration you may lose some players for fees far smaller than normal as the administrators try to get you out of debt, which you have no control over. You may/will probably be deducted upto 15 points in the current season, or possibly into the new season depending when you went into administration. You will not be able to buy anyone as there will be no funds to do so, although I am not sure about signing free players.

You could well see your team of world beaters reduced to not much better than a pub team depending on the size of the debt.

If you do go in administration you will get a 9 point deduction from the premier league

nothing really

a new board comes up,and you are deducted points

your board could restructure your debts like mine did. that way you wont have to sell any of your players and you should be all right until you get all the prize money at the end of the season.

I was on the verge of plunging Werder Bremen into administration before I lost interest in FM08. My board took out a £152 million loan for a new stadium and I made some bad transfer dealings that were over 24 months so loads of cash going out and with German ticket prices really low very little income, we are losing a few million per month. The board "cleared" some of the debt on the bank balance by taking out a £4 million loan, but that disappeared in a flash and we now have yet more interest to pay on loans because of that!

If you do go in administration you will get a 9 point deduction from the premier league

A 10 point deduction if you are in the english football league.

Hi All,

What happens if a club goes into administration. I am severly in debt, and need some money asap. It took me 4 seasons to get promoted to the Premiership as Barnet. I signed some world class players including Ronaldo, but now I am in debt and probably will go into administration.

What happens? Do I lose all my players? Do I come out of debt? Does the club seize to exist?

Thanks

Clubs in FM cannot cease to exsist.. You really need to get rid of some of your playing staff. If you go into administration then you will automatically be docked points which I believe is 9 as someone has already mentioned.

How sucessful (or not) have you been in the premiership? The higher up the league you can get and winning a few cups or doing well in european competition will help your finances immensely. Finally, exactly how much money do you currently have?

I think im about 50million in debt. I just started my first season in the Premiership as Barnet. I have played 5 games, and currently lead the premiership on even points with Man Utd (13 points) with a game in hand.

I've definitely seen some teams cancel the contracts of their highest earners.

I think im about 50million in debt. I just started my first season in the Premiership as Barnet. I have played 5 games, and currently lead the premiership on even points with Man Utd (13 points) with a game in hand.

I really don't think you have any worries about going into administration tbh. A debt of 50 million can quickly disapear in the premiership if your reasonably successful. How big is your first team squad and are you over your wage bill? I think trying to sell some of your biggest earners is the best way to reduce your debt. Try transfer listing some players but try if possible to sell them to clubs abroad.

A 10 point deduction if you are in the english football league.

10 in the English Football League, 9 in the English Premier League.

I've never seen a club going to admin, I've had Middlesbrough £22m in debt, my board just took out a £22m loan to be repaid over something stupid like 40 years

It's a bit off topic, but has any team irl been shot down because they went into adminstration? I know Leeds dropped down, but any others?

How on earth do you get yourself 50 million in debt when you've just started your first season in the Premiership. With financial skills like that I doubt anything will save you!

It's a bit off topic, but has any team irl been shot down because they went into adminstration? I know Leeds dropped down, but any others?

In Scotland, Gretna had to cease existing as their owner pulled his funding after becoming extremely ill and when the administrators could not find a new buyer had to close the club, therefore they were thrown out of the football league. As a Man Utd fan, I am hoping this will happen to City and Chelsea.

In League 2 in England, Rotherham, Bournemouth and Luton were all hit with points deductions for going into administration. In fact, I believe Luton were hit with a 30 point deduction while Bournemouth got a 15 point deduction.

In Scotland, Gretna had to cease existing as their owner pulled his funding after becoming extremely ill and when the administrators could not find a new buyer had to close the club, therefore they were thrown out of the football league. As a Man Utd fan, I am hoping this will happen to City and Chelsea.

In League 2 in England, Rotherham, Bournemouth and Luton were all hit with points deductions for going into administration. In fact, I believe Luton were hit with a 30 point deduction while Bournemouth got a 15 point deduction.

You're hoping the owners of Chelsea and Manchester City will fall gravely ill? Lovely!

You're hoping the owners of Chelsea and Manchester City will fall gravely ill? Lovely!

Funnily enough having posted my reply and then re-read it I thought this would be the first response. What I meant was for them to go massively into debt and close not that the owners fall gravely ill.

As Chelsea currently operate with massive debts that are conveniently cleared by Abramovich then it would not be difficult to see Chelsea go into administration, have points deducted and possibly drop down a division or two if he leaves. I believe that Chelsea currently have an operating loss of about £150 million so even with the money they will earn from Competitions, etc they would still be making big losses. Abramovich even stopped giving Mourinho money to spend partly because of the losses the club was making.

i wonder what will happen in fm09 cos rotherham have 4 years to move to a new ground or they get kicked out of the football league but they have no money so they wont be able to get one. so in next years fm if its accurate rotherham may well dissapear and start again from the bottom

i wonder what will happen in fm09 cos rotherham have 4 years to move to a new ground or they get kicked out of the football league but they have no money so they wont be able to get one. so in next years fm if its accurate rotherham may well dissapear and start again from the bottom

I don't think any feature will ever be implemented in FM that clubs dissapear. Obviously, if a club actually vanishes in reality, then Fm will reflect it.

Funnily enough having posted my reply and then re-read it I thought this would be the first response. What I meant was for them to go massively into debt and close not that the owners fall gravely ill.

As Chelsea currently operate with massive debts that are conveniently cleared by Abramovich then it would not be difficult to see Chelsea go into administration, have points deducted and possibly drop down a division or two if he leaves. I believe that Chelsea currently have an operating loss of about £150 million so even with the money they will earn from Competitions, etc they would still be making big losses. Abramovich even stopped giving Mourinho money to spend partly because of the losses the club was making.

Don't Manchester United have vast debts from the Glazer's buyout of the club?

Don't Manchester United have vast debts from the Glazer's buyout of the club?

I thought a majority of the recent Premiership takeovers incurred substantial debt against the club. The only one I don't remember reading about was Randy Lerner with Villa, i'm sure making money was a plus point, but he seems genuinely interested in the club.

In Scotland, Gretna had to cease existing as their owner pulled his funding after becoming extremely ill and when the administrators could not find a new buyer had to close the club, therefore they were thrown out of the football league. As a Man Utd fan, I am hoping this will happen to City and Chelsea.

In League 2 in England, Rotherham, Bournemouth and Luton were all hit with points deductions for going into administration. In fact, I believe Luton were hit with a 30 point deduction while Bournemouth got a 15 point deduction.

Man Utd Fan?

The irony.

You lot have more debt than Chelsea and City combined.

Man Utd Fan?

The irony.

You lot have more debt than Chelsea and City combined.

At least I wasn't one of the people opposed to the takeover and stayed to support the club. I have followed United for 18 years and would never turn my back on them just because someone had to borrow money to buy us. At least it shows that lenders could see the global appeal and worth of United to allow such a borrowing.

I did not say that Utd don't have debt, what I said was that Chelsea run with operating losses, where as Utd are the most profitable club in Europe. If Chelsea lose Abramovich's money they wouldn't make any money at all, where as although Utd might (and I stress might) have to service the debt incurred, as a profitable business we can do so. United would probably also find another buyer who knows they only have to clear the outstanding loans, whereas Chelsea would need someone who was willing to lose money every year.

Also, I believe the debt is currently the Glazers and not actually tied to the club, but I am willing to be corrected on that one.

I don't see this happening to any Permier league club any time soon. Yes it happened to Leeds (which I enjoyed thoroughly), but since then English football has went from strength to strength and the money to be made is scary. People would be bashing the door down to buy clubs like Chelsea, Liverpool, Man Utd etc, no matter how bad it was. The difference between Leeds and the clubs in the Prem now, is that the modern chairman would sell when they have the chance and not do a Peter Ridsdale.

I was on the verge of plunging Werder Bremen into administration before I lost interest in FM08. My board took out a £152 million loan for a new stadium and I made some bad transfer dealings that were over 24 months so loads of cash going out and with German ticket prices really low very little income, we are losing a few million per month. The board "cleared" some of the debt on the bank balance by taking out a £4 million loan, but that disappeared in a flash and we now have yet more interest to pay on loans because of that!

I appreciate your honesty. It's nice to know that there are FM'ers who thrive at one team and then struggle at another. IRL it seems to happen all the time. At the moment (Ince comes to mind, but that might be more due to losing quality players during the transfer window).

I'm a Man Utd fan and I can confirm that the debt is not the Galzers and is definately tied to the club, why do you think the actual fans were so agaisnt it? Plus Utd aren't the most profitable club in Europe.

I'm a red through and through, but sometimes I can see why people complain about our "fans".

I'm a Man Utd fan and I can confirm that the debt is not the Galzers and is definately tied to the club, why do you think the actual fans were so agaisnt it? Plus Utd aren't the most profitable club in Europe.

I'm a red through and through, but sometimes I can see why people complain about our "fans".

Ok, I may have been wrong about being the most profitable, however, we did see an increase in profits of 93% after the 2006/2007 season. Regardless of the figures, my point is the United make a profit and are 1 of a few who actually do.

I agree that some fans were against the debt but this was without knowledge of what was going to happen and so far, most of the comments made by these people have not happened. I was a member of MUST and had to leave because I could not stand their scaremongering tactics to get supporters of the club to simply ditch the club they supposedly supported. United was always ripe for a takeover the minute they put themselves on the stock market and removed the words 'Football Club' from the crest.

If the complaint people make is that we do not understand our club, then the same if not more can be said about the "fans" of Chelsea, etc who have supported their clubs since Abramovich and the like have arrived.

A lot depends how you define profit anyway - sensibly you have to take transfer fees out of any measure of profit if you are using it as an indicator of the general financial security of a club.

A recent report I seem to remember said that German clubs are now the most profitable in Europe (I can't remember the exact stat) although that probably doesn't say much actually because I think there are much bigger issues with going into debt in Germany so it doesn't happen so much (in real life) whereas if you average out across EPL clubs you'll be including vast debts of loads of clubs!

I'm a Man Utd fan and I can confirm that the debt is not the Galzers and is definately tied to the club, why do you think the actual fans were so agaisnt it? Plus Utd aren't the most profitable club in Europe.

I'm a red through and through, but sometimes I can see why people complain about our "fans".

Yeah, I think some of our fans are so desperate to defend us that they recall something about the Glazers taking out loans to buy the club and assume it means the debt is therefore the Glazers'. The debt was the Glazers' for about five minutes. Then they transferred it onto the club. United should be okay in the long run, but it relies on continued football success and the financial rewards that generates, plus continuing to sell out the stadium on matchdays, as well as plenty of revenue from TV and from merchandise. Can all that be guaranteed? I hope so. It certainly serves to show why United can end up in financial trouble on the game!

on fm, unless you take a club already in debt, to get a club bankrupt etc is near impossible unless your a complete nunse..

In Scotland, Gretna had to cease existing as their owner pulled his funding after becoming extremely ill and when the administrators could not find a new buyer had to close the club, therefore they were thrown out of the football league. As a Man Utd fan, I am hoping this will happen to City and Chelsea.

In League 2 in England, Rotherham, Bournemouth and Luton were all hit with points deductions for going into administration. In fact, I believe Luton were hit with a 30 point deduction while Bournemouth got a 15 point deduction.

Bournemouth and Rotherham both got 17 points deductions, related to the the way they came out of administration not complying with the FA's rule, which I know the clubs feel is impossible to do.

20 of Luton's points were deducted for that reason too I believe, but the rest were punishment relating to irregular and illegal payments to agents.

Man Utd Fan?

The irony.

You lot have more debt than Chelsea and City combined.

Having a loan doesn't necessarily mean a team (or indeed a company) are in debt.

Hi All,

What happens if a club goes into administration. I am severly in debt, and need some money asap. It took me 4 seasons to get promoted to the Premiership as Barnet. I signed some world class players including Ronaldo, but now I am in debt and probably will go into administration.

What happens? Do I lose all my players? Do I come out of debt? Does the club seize to exist?

Thanks

As well as the points deduction mentioned, you'll have a transfer embargo placed on you and the administrator(s) will accept bids for your players and may also release your higher earners.

Do the administrators in FM ensure you have enough players to be play games at some sort of level. I seem to remember a few real teams in administration refusing to sell players after a while to ensure they at least had a senior team could play on a Saturday afternoon. Leeds were allowed to sign a couple of players to ensure they had a minimum number of professionals.

It's a bit off topic, but has any team irl been shot down because they went into adminstration? I know Leeds dropped down, but any others?

Boston United

Relegated from League 2 in 2006/7, and had 10 points deducted for entering into a CVA.

Demoted straight into Conference North (bypassing the Conference Premier) for being in that CVA for season 2007/8.

Demoted into UniBond Premier after finishing 10th in Conference North, for still being in CVA by 2nd Saturday in May. 10 days later, BUFC exited this CVA.

Not sure exactly what the situation at Fiorentina was, but they went bust completely and fell out of existence only some 6 or 7 years ago. They reformed as Florentia Viola (or something similar) and had to start lower down, bought the name Fiorentina back and managed to jump 2 leagues in one season (if I remember correctly) due to various demotions of teams elsewhere, hence why the bounced back so fast.

Were Fiorentina not involved in the match fixing as well, that was part of the reason for their demotion and later woes I think, but i'm not sure. I seem to remember Di Livio continuing to play for them even when they were in Serie C, he took reduced wages etc.

I don't think they got demoted - they folded completely and reformed, although I don't know whatever went on in the background to determine that they re-entered the league system at Serie C2 level (I assume there are lower levels in Italy?). Di Livio did stay with them, although he was coming towards the end of his career anyway so probably wouldn't have been upto playing in Serie A any longer. I like the loyalty of that though

in my game derby got into administration and had 10 points deducted. it was 2012 and derby were in the championship. i made an enquiry for one of their squad players and they wanted.. zero.