by Cisco Kid » Wed May 22, 2024 2:24 pm
Not sure it is quite as simple as administration, taking 12 points and dropping down a league and wiping the slate clean.
Yes the JB Christie Trust is in place, but on top of that land is a very expensive to run building. Not the same as Christie Park, where we could virtually turn the lights off between matches and there are no staff or running costs. How much are the rates? How much are the water rates? How much electricity and gas do we use? How many fans will simply disappear because we are back to Non league?
Best case scenario is a new owner and fast. No manager, no players, staff unsure and nervous. this could not have happened at a worse time of the year. If Jason sells now, we have a chance.
Next best scenario is Admin and then a new owner prepared to invest in the club buys and we have half a chance of league survival, or we go down to the National League with a robust plan to get back. Administrators wont come in one day and sell the next. it is a lengthy process that they will be being paid by the day and in no rush to hurry the process along. We could start the season in Administration. -12 points with Administrators making the decisions on manager and players.
Worst case scenario is that there is a liquidation, asset stripping of the building and stadium (this means everthing within the stadium that can be sold, will be sold, from all the kitchen equipment, the furniture, PCs the managers desk, to every single seat. Even Christie The cat), and the building stands to rot. How long would the JB Christie Trust be able to justify that? they wouldn't have the means to refit.
This is very telling from the Shrimps Trust:
"If the Company goes into liquidation and the Lease is disclaimed by the liquidators, the Trust is there to catch the Club and continue to provide the facilities at Westgate.
Note: The original Trust words explaining what was to happen if the Club ceased to exist were interpreted by the High Court when granting the Order to allow the sale of Christie Park and the granting of a new longer lease to Morecambe Football Club Ltd at Westgate. It was accepted by Lancaster City Council and the High Court that the land was intended to benefit the Club, so even if the existing Company ceased to exist, the Club should be the beneficiary. Only if there is no Morecambe Football Club would the default position be relevant i.e. the use as a public park"
My understanding is that if the worst case scenario plays out then it reverts to the council if the JBC Trust cannot sustain it. How long would the council let it rot for? They don't have any money to maintain or run a stripped building, an overgrown pitch and a vandal magnet that could be dangerous very quickly. With the JBC Trust dissolved, the land back to the council, how long before they sell it to developers with good justification? The sheer scale of the building could be a huge albatross around the neck of anyone with desires to raise a 'phoenix club' (see second paragraph for running costs).
Very worrying times that will play out one way or another very soon.