Why aren't Coventry in administration?

[Donnyjim]

£60 million in debt? May lose their ground, etc etc. A ten point deduction must be around the corner, surely?

[big fat yorkshire pudding]

It's still a possibility for them that's for sure.

[The Red Baron]

I wouldn't be surprised if that's how it ends up. However, the ground dispute is a classic case of brinkmanship. If the company who manage the stadium force City into administration/ out of business then they will be putting themselves out of business too.

They do seem to be driving a coach and horses through the Financial Fair Play rules. Yes, they have bigger gates than we do but they also have a much bigger squad and a big wage bill to go with it.  They could even afford to take two loan players recently and leave them sitting in the stands!

[gillinghamrover]

Tbh at the current rate they are aquiring points, -10 will see them in the playoffs still!

[DonnyBazR0ver]

With JR's advice, I think they've reached an agreement with the stadium company so, although their finances look bleak, they'll be up there when it matters!

[BobG]

What the hell was JR playing at then?!!!!

Lol

BobG

[Glyn_Wigley]

Very basically, companies don't have to go into administration while they can still pay the interest on their debts. When they can't do that they're trading illegally and have to enter administration or wind up.

[IDM]

Any of us with a mortgage or car hp deal are technically in debt, but as long as we can maintain the payments, we're ok, even if the value of our assets is less than the debt itself.

[1879Rovers]

Still time for it to happen. Even if they get the local council on side regarding the rent they are still in it up to their necks.