breaking news from sky sports news

Right time to wait for the inveitable "management buyout" and "support" from the RFL for the new regime wonder if a points deduction will apply (as it shopuld) or in the interests of expansion its overlooked.

Well done RFL on rushing a franschise that wasnt ready into the superleague.,....

rlCRUSADERS GO INTO ADMINISTRATIONrl

[i"We are currently pursuing a number of options and are talking to interested parties and the RFL in the hope that a solution can be found to the club's current difficulties which would enable it to go forward and maintain rugby league in Wales."[/i

rlBlackpool go out of businessrl

[i"The League yesterday cancelled Blackpool's membership after they failed to meet an extended deadline to provide a credible plan to come out of administration."[/i
Shame the RFL couldn't save both.....

So does this newly to be formed club inherit the franchise when it emerges from administration? Should this be ignored when it comes to the awarding of the next franchises? Does it even matter as I'm sure the RFL will have a crusaders team awarded a licence anyway. You might be a bit annoyed though if you're a Cas or Wakey fan whos club gets kicked out and crusaders are left in after the failure of the welsh franchise so far.

Don't get me wrong I think a strong welsh team would be good for the game, but maybe the RFL should just come out and say that crusaders (and catalan and quins probably) are exempt from the licencing system. If you agree with that or not is one thing, but at least it would be honest and a level playing field for everyone else.

maybe we could get witt from them

In VERY basic terms:
The job of the Administrators is primarily to sell the club (company) as a going concern to another company or person(s).
Probably a newly formed one
They will take professional advice on what the market price should be and look for buyers at that price.
They need to assure the court that it is financiallly viable and profitable in the future without its current debts.
When a sale is made to the new company, the latter must take over the employment responsibilities of existing staff under TUPE
"Transfer of undertakings - Protection of Employment"
Thus Reardon and players that are now contracted will have their existing contracts safeguarded

The real question now is - Can the Administrators make a practical case for Crusader's future financial profitability?
This would be impossible without a firm assurance to them that Crusaders would be guaranteed an SL Licence past 2011.

Which considering Widnes were refused admission primarily based on the fact they had recently been in Administration, if the RFL were being consistent, Crusaders should be refused their 2012 license too.

Bloody big IF though isn't it.

conveniently however the RFL have quietly removed the rule about insolvency being a reason for automatic expulsion from SL in last month or so.

Not in this case. Its an Administrartion not a Receivership and the contracts are binding on the new employer and the employee.
Unless the employer imposes a fundemental change in terms or conditions the employee will be bound to the contract.

I was not aware of that and it is interesting, I'll have a look at it. Need to know their interpretation of Insolvent
There are 2 scenarios for the generic term "Insolvent"
1. That the company does not have the funds available to pay debts when they fall due. This can merely be cash flow problems at any snapshot in time and discounts future income from Debtors or the like or the capabilty of encashing other assets to pay the debts.
This may not usually a long term problem.
2. That the Balance Sheet shows that there are not sufficient current assets to meet current liabilities.
This is a problem.

I suspect that the RFL interpretation quite simply that the club has been subject to some form of formal insolvency procedure (e.g. Administration, Liquidation, Company Voluntary Arrangement) rather than being insolvent in terms of application of the above "tests" which you quote.

Will the players still be paid. I've come across a lot of instancesd where employees haven't been paid etc when their employers have gone into administration.