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Re: Ownership and twists : Tue Apr 29, 2014 12:11 pm  
I also find the timing of the RFL's claim on 900,000 a little strange and late to come out of the wood work.
Also if the money did get paid back to the RFL surly the current owners should get a % as it was given to us in the first place.
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Last edited by Ferocious Aardvark on stardate Jun 26, 3013 11:27 am, edited 48,562,867,458,300,023 times in total

Re: Ownership and twists : Tue Apr 29, 2014 12:16 pm  
martinwildbull wrote:
to quote you specifically: There is no rule that allows (or disallows) any such appeal. But if you say the a right of "appeal" by someone (the new owners) who have never actually had a ruling made against them, then please refer me to that rule. If you can, I will of course gladly accept its existence.

Here it is:

4.7 In the event of a member ceasing to be a member upon notice from the Company by virtue of Acquisition, Change of Control or Insolvency Event, the Board, at its absolute discretion, shall have the right to readmit the member or admit a new member as a member on any terms as it sees fit, which for the avoidance of doubt, may include financial, administrative and/or sporting sanctions. In the event of membership continuing the Board may determine that membership shall be deemed to continue to subsist as if the member had not ceased to be a member at all. The Board will from time to time set out policy for the exercise of its discretion but is not bound by such policy or precedent decided under such policy or previous policy and the Board shall be entitled to amend any policy with immediate effect



Taking it all together, a new member is still "the member" as if they had never had membership withdrawn.

Thanks, and having read it, I can understand how you have misinterpreted it like that, as it takes some crunching. However, there are in fact, two alternatives.

The old member – OKB - ceases to be a member due to insolvency event. This is a common factor in each alternative. Then:

1. If the way things pan out (for example a CVA or whatever) OKB remains the owners, then they can be readmitted. That, and only that, is “membership continuing”. OKB used to have membership. Their membership ceases. They then get membership back, and the board can (but doesn’t have to) deem that the membership is deemed to have been continuous, “as if the member had not ceased to be a member at all”.

OR

2. The old member (OKB) can not be saved. So a brand new member applies for and is admitted. This is fine, as the rule says the Board can “admit a new member”. But to have the same effect as in (1), you’d need the wording to be extended to something like:
“In the event of membership continuing the Board may determine that membership shall be deemed to continue to subsist as if the member had not ceased to be a member at all. In the event of membership not continuing but the member being replaced by a new member, the new membership shall be deemed to subsist as if the new member was for this purpose the same entity as the ceased member”.

However, that is not included, for the simple reason that it would be pointless. There is only one point to the rule and that is, if OKB had an insolvency event, and thus ceased to be a member, but sorted itself out and wanted to carry on, then if the Board agreed they could simply deem a continuation which would eliminate the need for OKB and the RFL to go through the entire application for admission process.

And the reason that would be superfluous is because any new owner would never be “deemed” a member, any new owner must in every case apply for membership and complete that process.

Hope this clarifies.

I myself quoted from this rule some weeks ago, when I asked if anyone knew where I could find the “Policy” for exercise of discretion but nobody seems to know. At any rate that’s not important as they clearly can do whatever they want including ignopring the policy or amending it on the fly.

I also quoted the rule on another earlier thread, in the first administration, in the discussion about how sanctions could be applied to a new owner (it was one of the regularly recurring arguments that there is some “club” that exists independently of owners, and some buffoon thought e had checkmated me with something like: Aha!! But if the new owners and the club are not separate entities, the RFL wouldn’t be able to apply sanctions to the new owners, would they?!” The answer was of course that no, indeed they wouldn’t, and that’s precisely why the rules give them that power, which they wouldn’t otherwise have:
“…admit a new member as a member on any terms as it sees fit, which for the avoidance of doubt, may include financial, administrative and/or sporting sanctions.“


Sorry that this post is stretching to unholy length, but obviously what SHOULD have happened is that when BB2014 backed out, the PROPOSED sanctions against them should not have been confirmed, and the RFL should have considered what sanctions to give to BBNL. Then we wouldn’t have this mess.

It is all very well apologists for the RFL saying they had to act quickly, because otherwise too much league points uncertainty, but the argument falls down immediately as now the decision was entrely predictably appealed against, that meant and means there is no certainty until whenever the appeal comes to be heard.

Instead what they appear to have done is imposed sanctions on BB2014. That is thinking about it probably technically possible, since as I understand it, BB2014 were operating under a sort of temporary licence or membership, if you like, but the fact is, they did not own the company. That is why BBNL could not appeal, as the points sanction was not imposed on them. The administrator, who was obviously effectively acting as interim owner of OKB in administration, was perfectly entitled to lodge an appeal by OKB against any sanction imposed on OKB. But the problem I have with that is, no sanction was imposed on OKB. (I accept that it could have been, but so far as I am aware, no such event occurred; on the contrary, the RFL went to great pains to say that they hated BB2014’s plans, and as BB2014 couldn’t do any better, (although MM said they did do better, but that weirdly the RFL refused to consider some revised new improved plan) they were going to be docked 6 points and kept in special measures.

What could OKB appeal about, if no sanction was imposed on them?

I can probably just about conceive a highly artificial contrivance where the administrator of OKB, who undoubtedly would have the right to act in OKB’s shoes and lodge an appeal, signed over the legal rights to allow someone else (BBNL) to take over the conduct of the appeal, but it would be highly unsatisfactory since OKB never appear to have been sanctioned so have nothing to appeal about.


martinwildbull wrote:
It therefore follows that the member can be penalized when one person is in control of the member, and under the general rules of discipline and appeal tribunals, can appeal against that penalty even though there has been a change of control of "the member".

It doesn’t. There was no change of control of member. (Well, there may have been if we get into the did-he-didn’t-he of the sale of OKB shares from OK to MM and RW, but that isn’t the subject here). It was not a continuing member, controlling shares in which changed hands. BBNL was a brand new member. As indeed was, or would have been, BB2014.
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Re: Ownership and twists : Tue Apr 29, 2014 1:20 pm  
FA your two alternatives are subsets of one alternative, which is that membership continues. This has to be seen in the light of the second alternative, that nobody wants to apply for membership and so membership discontinues. clearly when membership had not been continued then the phrase "membership shall be deemed to have subsisted as if it had not ceased to be a member at all" cannot apply. My interpretation of continuing is in that context.

you still refer to owners, when there is only club, controlling person and membership. Obviously I stand to be corrected, but in the bits relevant to this discussion I cannot find any reference to owner. and this has to be the case, surely you have heard the term shadow director, someone who controls a company if they were a director, whether or not they are appointed or have shares in the company.

OKB controlled the club as members of the RFL etc that club were penalised for an insolvency event. a new controlling person was found, (eventually as you say) who applied to the RFL for membership of the same club to the RFL etc. That was continuing membership, and so the club was allowed to appeal the penalty as if the club had never had its membership withdrawn. No owners, no shares, just membership (or not). Which is why the member club gets deducted points, not the controlling person.
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Re: Ownership and twists : Tue Apr 29, 2014 1:48 pm  
Guys - I think we have more members here than would be found at one of Messalina's parties - could we withdraw a few of them?
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Re: Ownership and twists : Tue Apr 29, 2014 1:58 pm  
The RFL was clearly sick of tintervening in Bulls financial underwriting by August 2012.
Ok was "given" the remains of the club.
The private nature of the agreement with him at August/September is finally been released into the public domain.
The RFL are sick of the games name at government level been tarnished with non payment of Tax Business rates et al.

So they gave Ok this.
A message from the outset.
Run it solvently.

For t5he last time I will tell forum members Bradford Bulls paid up to the salary cap in season 2012 -2013.
And contracts in place by December of 2013 show this would also have been the case this season.
Three big earners have departed.
So the club are currently paying under cap.

If creditors are £1.2 million (and that figure will vary with the latest revelation)it strikes me the RFL were attempting to ensure the Bulls did not hide behind "limited Liabilty" of shareholders in insolvency.

Ok will have to pay.
He knew what the "costs" of running the club were.
And completely failed in 12 months to correct haemoraging losses.

The creditors may live to see something?
I doubt it.
The lawyers will.

I know personally how angry Nigel Wood and the RFL were after the 2012 fiasco.

Some of the thuings that went on at the Bulls in OK"s tenure are simply unbelievable.

I see Adeybull has gone very quiet in recent months.
He knows a lot.

The concept of "limited liability" sits uncomfortably where 58 per cent of top professional sports clubs operate at a loss.

Well Done the RFL I say for making OK personally liable for his pathetic attempt to run the club solvently
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Re: Ownership and twists : Tue Apr 29, 2014 2:16 pm  
Ferocious Aardvark wrote:
Keen observers will note the irony of Mr. Carter whingeing about how in contrast to the Bulls situation, he put his house on the line. Kudos to him for that, but it seems OK put not just a house but his bollox on the line for the cause.


The difference in reality is that Carter put his house on the line in order to run the club solvently. OK put his cahoots on the line but carried on running it as chaotically as before, which is what the RFL are clearly unhappy about.

The RFL desire is for clubs to run themselves solvently, not for chairman to make promises they then dispute once the guarantee is called in.

On a more positive note, the timing might benefit you, because it tarnishes the previous owner, not the current, so they might give the new owner a bit more leeway.
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Re: Ownership and twists : Tue Apr 29, 2014 2:41 pm  
Do any of the points raised via all the typing involved to generate the questions, answers and debate actually matter anymore?

Whatever problems OK is saddled with now are squarely down to his own actions (or lack of them). He came seeking publicity and adulation, he briefly got that and now we know more about him than we did. What was his name again?
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Re: Ownership and twists : Tue Apr 29, 2014 2:46 pm  
Errol Stock wrote:
Do any of the points raised via all the typing involved to generate the questions, answers and debate actually matter anymore?

Whatever problems OK is saddled with now are squarely down to his own actions (or lack of them). He came seeking publicity and adulation, he briefly got that and now we know more about him than we did. What was his name again?


Omar Khant I think
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Re: Ownership and twists : Tue Apr 29, 2014 3:04 pm  
Northernrelic wrote:
Guys - I think we have more members here than would be found at one of Messalina's parties - could we withdraw a few of them?


I did have a bit of a laugh myself before pressing the submit button at the number of members and their incontinuence. But its up to FA to work out that its down to those that control the members to withdraw them, not the members owners.
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Re: Ownership and twists : Tue Apr 29, 2014 3:27 pm  
Noble & Honest wrote:
The RFL was clearly sick of tintervening in Bulls financial underwriting by August 2012.
Ok was "given" the remains of the club.
The private nature of the agreement with him at August/September is finally been released into the public domain.
The RFL are sick of the games name at government level been tarnished with non payment of Tax Business rates et al.

So they gave Ok this.
A message from the outset.
Run it solvently.

For t5he last time I will tell forum members Bradford Bulls paid up to the salary cap in season 2012 -2013.
And contracts in place by December of 2013 show this would also have been the case this season.
Three big earners have departed.
So the club are currently paying under cap.

If creditors are £1.2 million (and that figure will vary with the latest revelation)it strikes me the RFL were attempting to ensure the Bulls did not hide behind "limited Liabilty" of shareholders in insolvency.

Ok will have to pay.
He knew what the "costs" of running the club were.
And completely failed in 12 months to correct haemoraging losses.

The creditors may live to see something?
I doubt it.
The lawyers will.

I know personally how angry Nigel Wood and the RFL were after the 2012 fiasco.

Some of the thuings that went on at the Bulls in OK"s tenure are simply unbelievable.

I see Adeybull has gone very quiet in recent months.
He knows a lot.

The concept of "limited liability" sits uncomfortably where 58 per cent of top professional sports clubs operate at a loss.

Well Done the RFL I say for making OK personally liable for his pathetic attempt to run the club solvently




After weeks of trying to work it out I'm now convinced you are Stuart Duffy
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