Probably not a 1am read but

No that makes perfect sense.
They weren’t doing it from a moral perspective but a financial aspect due to the loss of income relegation brings.
If they survived there was no financial benefit, the Administrator was clear about that when announced.

 

I heard same, only thing I would argue is surely proper due diligence would have evidenced a lack of funds.
Which makes me think of EFL accept it, surely they are admitting it is their fault for not doing their job properly

 

Spot on. The force majeure provision envisages a situation in which performance of contractual obligations is rendered more or less impossible due to unforeseen events. Covid may have been unforeseen but all other clubs have complied with their obligation not to go into admin. The real reasons for Wigan’s plight stretch much further back, as the excellently researched article provided by OP show.

I wouldn’t be surprised if Wigan withdraw the appeal. I think they are keeping it alive in case any prospective purchaser wants to pursue it. I think there is a fair chance that any purchaser would prefer to start in League One, although that rather assumes that League One will operate normally next season.

allowing Wigan off the hook would inevitably mean a legal challenge from Barnsley. I think the EFL will try very hard to make the sanction stick.

 

Just scanned it and thought occurred so question to any Accountants or Solicitors:

To paraphrase it read that Wigan was sold for £17 million and had a debt of £24 million.
I read that as saying buying club is taking on the debt.
Think it also said £3 million had been put down.

So if buyer paid £3 million and then went into admin does the new owner still own the business or do previous owners claim back because not completed?
Secondly if new owner retains ownership by putting into admin and let’s say 30p in £ is agreed that wipes out a heck of lot of money?

 

The EFL say: "That independent panel will determine whether the relevant insolvency event(s) arose solely as a result of a force majeure event"
https://www.hulldailymail.co.uk/sport/football/wigan-athletic-efl-deduction-appeal-4346652

They're screwed.

 

Thanks for pointing out this great website and article





Notice the increase in salaries and wages of £10.33m in 2018 to £17.52m in 2019. The report states that WAFCL ‘was not in good financial health even at the time of the original sale for the club by Whelan in 2018’. When according to the BBC report the Whelan ‘family were putting in "nearly £1m a month just to keep it going" despite having the fourth-lowest wage bill in the Championship’ .

 

So a club year on year always makes a loss even though a few of those years involved premier league parachute payments thought the best thing to do for their long term future was to add another seven million pounds a year to their wage bill.....

 

Exacltly and then for the following financial year 19/20 entice Kiefer Moore from Barnsley by increasing his wages, so we are punished once again for trying to balance our books.