it isnt bought at a reduced rate, its bought at its market value. It is only in certain circumstances that buying a business out of admin is cheaper than buying it outright. The only reason a business in admin would be cheaper is if the assets are valued much less than the liabilities. Which is only right.



If the assets have a decent value then it may be in the best interests of the creditors to liquidate.



and again, the new owner doesnt 'gain advantage' they buy what they buy, if thats an SL club, its an SL club, if its not its not. A new owner is likely to pay MORE for an SL club than if it was a championship one, the main beneficiaries of such a situation would be the creditors.

The market rate that is paid is usually massively less than the assets are valued at on the balance sheet.

It maybe "market rate" but, the businesses that I've seen bought and sold by administrators are certainly "good value".

Of course anything up for sale is only worth what somebody is willing to pay and admin situations usually have severe time constraints, and their sale price reflects this.

Far from being a "reduced rate", isn't the buying of a business from an administrator pretty much the perfect test of real market value?



I think a better argument would be that buying from the administrator is cheaper than buying the whole club and company including taking on all of its liabilities.



What seems to have been forgotten by many is that's precisely what originally did happen, MM/RW/BB2014 agreed to buy OKB for £300K. It remains a legal wrangle as to whether they did or they didn't, but if they had done, let's not forget that that would have been a purchase of the whole business/company as an ongoing concern, and we also know the RFL accepted BB2014 as new owners/members etc. so had BB2014 not withdrawn their bid as a result of the sanctions proposed against them, they would have taken on everything, lock, stock and barrel, including the entirety of all creditors. And if they had been able to make the business work, then neither HMRC nor any creditor would have been a penny worse off.

If that were the case the administrator would not sell. A distressed asset is always likely to cost less than one which isn’t. That’s obvious.



But its simply not the case that buying a company in admin gives you opportunity to just buy a ton of undervalued assets. The administrators job is to get the best price for the creditors. If he can get more by liquidating the assets that’s what he will do, and is in fact what they have done. That’s what Marc Green did, bought the assets of OKBulls, which is now being liquidated.



In reality those assets consist of a bit of stock, RFL membership, some intangible assets like the brand, he is hoping the fanbase and history are still there, and a boatload of liabilities. In isolation these are in no way a good deal. The only way there is any value whatsoever in anything Marc Green has bought is if he can make the business work. If he were to sell the assets he would get a hell of a lot less than he paid for them. The name Bradford Bulls and the fanbase are worthless without an RL team, the stock would lose value if the team became defunct and the RFL membership would be revoked. The lease would become a big liability with no income from the RL team. What Marc Green has bought is essentially worthless, in reality the only thing he has bought is the chance to make it work. He certainly hasn’t got a load of assets at a bargain basement price.

[url=http://www.thetelegraphandargus.co.uk/sport/11178165.Former_Bulls_boss_pursued_for___905_000_by_Rugby_Football_League/?ref=var_0Just to add a completely different angle[/url

Bradford Bulls more than any club deserved the 6 points deduction. Second Administration in next to no time. The punishment is for spending more than you can afford on players - therefore cheating other clubs and their players and their supporters by getting some wins unfairly.



Not paying HMRC the tax, national insurance and VAT owed for 6 month's running is no way to responsibly run any club.



The owner was in effect also punished as it meant he had no chance of getting his money back. - The new owners have benefitted as the Bradford Bulls Club with a 6 point deduction cost them less than it would have done without the 6 point deduction.



If the new owner runs things responsibly within its means from now on, the Club will have stopped cheating and he might have half a chance of getting his money back as well.

It just keeps getting better doesn't it ?

As you have now 100% completely lost such plot as you ever had, there is no point in even attempting to address such lunatic ramblings.

I guess that's a "no" then. As you were...

For The RFL, just after the Bradford vs Wakefield game at Odsal would be typical.

So as to eliminate any possible cries of "fix" from any of the relegation candidates, which should allow people to work out exactly who the governing bodies favourite team is

[urlhttp://www.thetelegraphandargus.co.uk/sport/sportbulls/11174215.Bradford_Bulls_bid_to_turn_jeers_into_cheers_in_Challenge_Cup/[/url

Right at the bottom, "Meanwhile, the Bulls’ appeal against their points penalty is now expected to be heard the week after next.", which means next week.

Great, thanks. At least it's sooner rather than later.