Legal, but is it moral?

[MadAmster]

Reading on various platforms of late..........

We won't hit the 25% minimum to avoid -15 points next season.

CK saying huge incoming transfers.

I understand that it's all perfectly legal in insolvency cases but should a supposed family club like DCFC **** on unsecured creditors and yet pour money into players?

Morally it's so wrong.

[Geoff Parkstone]

Agreed MA but I think football and morals parted company a long time ago, when money became the determining factor for success on the field.

[MadAmster]

One thing is certain, we'll get sneers from Boro, Wycombe and other fans for years for not paying off the debt in full, especially the huge amount we owe HMRC.

Fortunately, moves are afoot to ensure both in Law and in football rules, what has happened to DCFC can't happen again.

[ramAnag]

Tbh the last thing that I’d be worried about are ‘sneers from Boro and Wycombe’ who hold no high moral ground where all this is concerned.
Of the rest...of course you and GP are right.

[Geoff Parkstone]

Wow, gonna need to print that and frame it

[MadAmster]

Apparently Kirchner has offered 35p in the pound to creditors over three years to avoid any points penalty. Apparently this is the exact same deal that saw Bolton avoid a points penalty so the EFL will find it hard to say no..... won't they?

[Andy_Faber]

Reading on various platforms of late..........

We won't hit the 25% minimum to avoid -15 points next season.

CK saying huge incoming transfers.

I understand that it's all perfectly legal in insolvency cases but should a supposed family club like DCFC **** on unsecured creditors and yet pour money into players?

Morally it's so wrong.

Not sure I’d describe what CK is doing is immoral, as preferred bidder theres a fair chance he’s offering to clear more debt than anyone else worldwide, so good for him on that basis and good luck to him in making things a success. The finger of morality should continue to be pointed at MM IMO

[swaledale]

I'd have to agree AF. CK is buying a distressed company, he has no moral obligation to creditors and that is the same whatever the business.

It happens all the time with insolvency and in many cases the individual behind the old company, starts another venture within a few months unless he/she has broken the law in some way. Its been like that for many decades and there are astute businessmen, such as Mike Ashley who have made a lot of money from buying companies out of administration, he has lost a lot as well in some cases.

I'm unsure where you read CK is talking about "pouring money" into new players MA?

From what I've read, he is acknowledging that there is a big rebuilding job, but has said that there are a lot of free transfers although obviously money is still involved. I don't get the sense he is talking about spending millions on players, more a financially astute rebuilding job. Also he does ahve to be able to show the EFL that the business plan and budget going forward is sustainable and within FFP rules.

[MadAmster]

I suppose my thoughts are based on DCFC supposedly being a "family club" with strong ties to "the community" (which the Community Trust does very well in) any millions should go to creditors rather than transfer fees and wages.

[swaledale]

Again I don't see anywhere that CK is talking about millions on transfer fees and wages. I mean obviously he is buying a football club and needs the club to be able to operate competitively, not sure how that squares with any millions going to creditors, which in any case isn't Ck's concern. Hopefully going forward the club will operate sustainably and in a more ethical fashion than has been the case recently, but there is no obligation on CK to pay off the debts incurred by the club under Mel Morris


Indeed in league 1, there is a salary cap, which I believe is £125k pa (£2,404 pw) for the 2021/22 campaign, that is the maximum amount that can be paid to an individual player and a squad size of just 20 players aged 21 or over for the 2021/22 campaign.

I presume there are transitional arrangements for relegated clubs, but what that means is we wont be spending millions!