Back on topic, this news is just sinking in with me and making me very depressed.

Good luck to the Bulls fans, I hope it all works out for you.

Apple turnover will be in the billions won't it

I can't help thinking Bradford are getting a very harsh press over this.

Many, many businesses rely on their overdrafts to survive. Many operate within their overdraft facility for long periods or even permanently. Businesses rely on their banks to provide backing and to lend. One of the most devastating aspects of the recession has been banks' unwillingness to lend to small businesses, and to 'adjust' existing credit terms without thought to the effect that has on the business.

The Royal Bank of Scotland has cut Bradford's overdraft facility ahead of payments due to HM Revenue and Customs. That would land many businesses deep in the sh*t. For example (and this is purely conjecture; I have no idea of the actual circumstances or sums), let's say they have a £1M overdraft facility and have managed within that limit until now. They have bills of £500k owing to HMRC, but have that amount within their overdraft. If RBS suddenly cut their overdraft to £500k, they're screwed.

Yes, there have been poor decisions in the past, but it seems to me the urgency of this current crisis is not entirely of their doing.

I am prepared to stand corrected.

Much as I hope that you are right Cronus, at this point the people issuing these statements have no credibility at all with me. There is every chance that what they say is true. There is, after all, a first time for everything.

I've just said on the Bradford board that I have filled in the pledge form at least four times now without actually submitting. I can't bring myself not to do it, but I can't bring myself to bail these fsckers out either.

I know what you mean. It's no good bailing them out if they are a large part of the problem. You want to pledge your support but if the money goes into saving the people who got you into the mess in the first place, you're not helping. Is that right? It makes sense.

We don't know what the "urgency" is - the Bank will have issued the Bulls board with more than one ultimatum, they won't have just woken up one day and decided to cut their working cap facility and screw the club.

The "urgency" could very well be entirely of the Bulls' making, if they haven't addressed the Bank's concerns adequately over time and if brinksmanship has led to this current plight. The Bank's concerns are likely to have been wholly legitimate too, given the perilous state of the club's finances.

Sadly, very often in this situations you are doing the opposite of helping by bailing out. If the bail out isn't accompanied by some sort of far reaching operational restructuring, you're just allowing a bust business to limp on temporarily.

My gut feel is that Administration would be the best bet for the Bulls, albeit I have no basis in fact for that!

Banks are quite happy to cut overdrafts without warning. Believe me, I know. I've been there and it led to my business going bust and left me in a right old mess. It may be a different matter with larger concerns but banks have no scruples in protecting and recovering their cash with absolute ruthlessness at the first opportunity if they deem it necessary.

It could indeed be of their making, but Bradford weren't urgently appealing for cash until RBS did what they did. For all we know they were in the middle of a good financial plan and delicately but successfully balancing the books and slowly paying off debts until RBS decided they were too much of a risk and decided to recover their cash.

We're all speculating.

and I hereby stand down from my role of Bradfords accountant.......

With all due respect I find it hard to believe this happened out of the blue, without warning, whilst fully compliant with all relevant financial covenants.

If it transpires that it did, then I apologise in advance.

Judging by recent events, it looks like you were.

There was a little more to it, but that's what happened. Because I'd put my account back into the black (with cash essential to keeping the business running), they closed the overdraft. I know of a few local businesses who've lost overdraft and/or credit facilities over the last 3-4 years with little or no warning.

Must admit, the recent purchase of Odsal is the one thing making me question darker dealings behind the scenes. I'm not a conspiracy person normally but I suspect the Bradford knew things were tight and approached the RFL, who then stepped in to save such an enormous asset - a wise move, certainly in hindsight. RBS cutting their overdraft was the straw that broke the Bull's back.

He won't mind - KPMG have probably made him an offer to join them!

Interesting quote from the BBC:

The issue would be, where would the Administrator get the cash to run the club for the rest of the season? The Bulls problem is more a lack of income rather than excessive costs.

Even if the Administrator drastically cut costs he/she would still need an income stream to keep going. The cheap season ticket money has all been received up front. Apart from money from away fans, there's very little taken at the turnstiles on match day. Commercial/sponsorship income is usually received at least partly up front. I'm not sure how the Sky money is paid, but on the face of it most of the money for this season has already been received.

It seems to me that, to get through the season, the Administrator would have to cancel the season tickets and charge everyone again to watch a severely weakened team.

Just seen Duckett on Look North, when questioned as to where it all went wrong, one of the reasons stated was the Iestyn Harris affair.

Does anyone know roughly how much it cost?

Cronus is spot on with his last 2 posts

That is interesting.

Wonder if that meant they wont sign Personal Guarantees.

The fans need to clarify that.

That would be the conclusion from that statement

I personally don't think it was the Iestyn Harris money that has near enough killed Bradford off. I think the bulls have been overspending for years to achieve success in the late 90s to mid 00s and it's simply come back to bite them on the ass! Like a previous Hull Fc fan said earlier in the thread, the amount of credit the bulls were using from the banks was probably only viable for a club who's winning trophies every year and it only needed one bad underachieving season and star players leave attendances drop and the ship starts to slowly sink. Bradford have underachieved every season since 2005 and over the last 3/4 years they have been pretty poor for Bradford standards, now the bank have refused the Bulls credit due to them having no colataral with the sale of odsal to the RFL. I can see no way out of it for Bradford now? In a better financial climate maybe but with the country on its ass as it is I just can't see it?

It would seem that the only way forward for Bradford is administration, followed by a steady period of rebuilding; they might lose a few big names in the fire sale, but that needn't be fatal - it seems like they've been spending more than they can afford anyway, so getting some of those big wages off the books wouldn't necessarily be a bad thing.

For those fans who are considering dobbing in their £100, my advice would be to keep it and wait until the club rises from admin under new ownership - spend your £100 to help them off to a good start, rather than propping up the management structure that have already failed you.

Difficult times but from personal experience, short term pain can bring longer term gain; it's like lancing a boil.

They didn't help wakey?! Your kidding right! You would be in the championship if the rfl had followed their rule book and denied you a licence!

But if you remember they changed the rules to try and help the welshies, which in turn gave you lot a franchise!

The way out for Bradford is the RFL, as it usually is. They should be able to cover £500k as they claim to be very profitable. Mind you the complete lack of a sponsorship deal looks a poor move now doesn't it.

Another way is for them to put their players up for sale. Bateman would attract 6 figures in a battle of cocks between Warrington, Wigan, Hull and Leeds no doubt. Burgess and Elima are both good players but I think out of contract at the end of the season and Whitehead, pumped up with a bumper £1m 5 year deal just last week could sell also.

Aren't the clubs you mention already at full salary cap though?

Further to that, they could release all the scholarship juniors and under 18's that they have illegally signed up - (not allowed to even approach kids yet).

The rumour is that they have spent up to 100k this Spring tapping up kids from out of their area.