Re: Kahn leaves the bulls! : Sun Sep 29, 2013 6:26 pm
Wooden Stand wrote:
The problem for Bradford highlighted on this thread emanates from the poorly worded statement issued earlier this week... “I intend to hand over the reins to new owners ...subject to RFL approval.”
The statement does not make it clear how the two new owners have become the two new owners. Have they either bought a controlling number of shares in OK Bulls Limited OR is the intention to transfer the club to a new entity owned by the two? We don’t know; the statement didn’t say.
Either way, the expressed optimism (and the fingers crossed blind faith of some supporters) (i.e. that the RFL will rubber stamp the deal (supposedly yesterday, 26th September)) appears to be unfounded given the silence from Red Hall. And quite right...In Scenario 1. (The “new owners” have bought a controlling interest in the share capital of OK Bulls Ltd and will therefore honour its debts), the two just have to satisfy the RFL’s “fit and proper person” test. That’s all fine.
Scenario 2 (Where the intention is to transfer the club to a new company owned by the “new owners”) is a bit more problematical for Bradford. Not only do the two have to show they are “fit and proper” but they also have to provide evidence that a) the new entity is appropriately capitalised to take on a Super league club licence and b) (the big one) that OK Bulls Ltd will be debt free at the point of transfer of the Bulls’ licence to the new entity. Failing b) should mean the club being relegated to Championship 1 for 2014. (No RFL club can rack up debts, periodically walk away from them and then expect to be able to carry on as if nothing had gone wrong).
For some time and for the good of the game in this country, I have advocated the following high level requirements be put in place by the RFL and made clear to ALL clubs (particularly before they get themselves into financial trouble) and which cover the above;
1. Provision for annual automatic promotion and relegation between the leagues (I’m almost there with this key provision).
2. Entities owning a club going into Administration = 6 points deduction
3. Entities owning a club going bust (i.e. insolvent liquidation) = club relegated to bottom division
4. All clubs (including non-UK i.e. Catalans to you and me) to prepare annual audited accounts to 31 December each year and submit to RFL by following 30th June. Failure = 6 points deduction
5. No salary cap
6. A limit on the number of players that any club can have registered with the RFL at any one time
7. 13 of the 17 players named for each match to be EU born
The statement does not make it clear how the two new owners have become the two new owners. Have they either bought a controlling number of shares in OK Bulls Limited OR is the intention to transfer the club to a new entity owned by the two? We don’t know; the statement didn’t say.
Either way, the expressed optimism (and the fingers crossed blind faith of some supporters) (i.e. that the RFL will rubber stamp the deal (supposedly yesterday, 26th September)) appears to be unfounded given the silence from Red Hall. And quite right...In Scenario 1. (The “new owners” have bought a controlling interest in the share capital of OK Bulls Ltd and will therefore honour its debts), the two just have to satisfy the RFL’s “fit and proper person” test. That’s all fine.
Scenario 2 (Where the intention is to transfer the club to a new company owned by the “new owners”) is a bit more problematical for Bradford. Not only do the two have to show they are “fit and proper” but they also have to provide evidence that a) the new entity is appropriately capitalised to take on a Super league club licence and b) (the big one) that OK Bulls Ltd will be debt free at the point of transfer of the Bulls’ licence to the new entity. Failing b) should mean the club being relegated to Championship 1 for 2014. (No RFL club can rack up debts, periodically walk away from them and then expect to be able to carry on as if nothing had gone wrong).
For some time and for the good of the game in this country, I have advocated the following high level requirements be put in place by the RFL and made clear to ALL clubs (particularly before they get themselves into financial trouble) and which cover the above;
1. Provision for annual automatic promotion and relegation between the leagues (I’m almost there with this key provision).
2. Entities owning a club going into Administration = 6 points deduction
3. Entities owning a club going bust (i.e. insolvent liquidation) = club relegated to bottom division
4. All clubs (including non-UK i.e. Catalans to you and me) to prepare annual audited accounts to 31 December each year and submit to RFL by following 30th June. Failure = 6 points deduction
5. No salary cap
6. A limit on the number of players that any club can have registered with the RFL at any one time
7. 13 of the 17 players named for each match to be EU born
I'm now hearing that it will take the RFL until after the 9 October Council meeting to adjudicate on this.
