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If they don't get a take over sorted and they get points deducted does that mean they might end up in liquidation?

 

Administration can in essence be the beginning process of liquidation.

 

When a company goes into administration they are basically saying they don't know how to trade through it. The administrator then comes in (usually a firm of accountants specialised in insolvency) and attempt to trade back out of the administration (often by trying to cut costs, make deals with govt agencies for payroll taxes, VAT etc and by asking creditors to agree to reduced payouts).

 

However, Administration doesn't always lead to liquidation. A number of clubs have been in administration and none that I can recall went bankrupt (Dumbarton maybe ???) - but I am hazy on those details.

 

If they get the points deduction and relegation there is a chance they may go bankrupt - BUT that depends on the fans, sponsors, merchandising sales etc also dropping - and you often also get players taking wage cuts to help out.

 

Administration is never good but doesn't necessarily mean that they will go out of business.

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