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Friedel made bankrupt in US

Premier League Aston Villa
by KennyH1 (U5191707) 21 January 2011
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Brad Friedel has been declaired bankrupt in the US and had his £260,000 house in Ohio repossessed. He also apparently owes the taxman £250,000 as well. Hopefully its all through a holding company and not his personal money although this looks unlikely with the house being repossessed.

Hope he keeps focused as hes been on top form recently.

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posted Jan 21, 2011

How things like this come into the spot light is shocking!


The Media are awful!

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posted Jan 21, 2011

"Hopefully its all through a holding company and not his personal money although this looks unlikely with the house being repossessed."
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Not really...it can still be a company bankruptcy rather than a personal one. Directors of a company are allowed to use personal assets as security against their company's loans.

Besides, if he still owes the tax man money, he can't be personally bankrupt. Bankruptcy wipes out all your assets and creditors, which is why it's a last resort. Everyone loses.

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comment by Adam M (U14582334)

posted Jan 21, 2011

How a player in the Premier League can go bankrupt is also quite shocking. He hasn't missed a game since 2004 and depending what clauses and bonuses he has in his contract was probably one of the highest paid players at the club.. This venture surely couldn't have wiped out his entire bank balance.

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comment by KennyH1 (U5191707)

posted Jan 21, 2011

Dislecsyk - is this what you mean?

A spokesman for Brad Friedel said: “This is a technical bankruptcy and it is not anticipated that it will be in place for long as an application for an annulment will be submitted in the next few days. Arrangements are in place to deal with the issues which gave rise to the bankruptcy

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posted Jan 21, 2011

Apparently he set up a soccer academy in the US in Ohio, with a £20,000 a year membership fee!!!!!!

It has worked up debts of 5million quid!

He also owes £250,000 through unpaid property tax bills.

No wonder he is still playing at 40!!

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posted Jan 21, 2011

"Dislecsyk - is this what you mean?

A spokesman for Brad Friedel said: “This is a technical bankruptcy and it is not anticipated that it will be in place for long as an application for an annulment will be submitted in the next few days. Arrangements are in place to deal with the issues which gave rise to the bankruptcy"
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No no, that's a completely different thing which could apply to either of himself personally or his company.

On the assumption that US company law has a a lot of similarities to UK company law, what I mean is this: If he's running an academy over in the US, he'll be operating it through a company just in case this very scenario comes up, unless he's had some diabolical financial advice. This means the company, a separate legal entity to Brad Friedel, will build up all it's own assets and liabilities which at no point would legally belong to Brad Friedel, as such (except for the limited liability according to share cost...but that's normally negligible).

Since the company is carrying on the business of the academy, when the academy fails, the company goes bankrupt. Not Brad Friedel the person.

However, as a director of the company, Brad is entitled to use his own personal assets as security against the company's loans. If he's used his home as security, the security is called in when the company goes bankrupt and he'd lose his home. Brad Friedel the person would then be short of property, but not bankrupt and would therefore still be liable for his personal debts (including whatever he owes to the tax man). The company would owe nothing to anybody though, because it's bankrupt, and that's why bankruptcy is a last resort. Everybody loses out.

That last quote you've said there suggests to me that the company isn't yet bankrupt, though. Probably not liquid and maybe being looked at by administrators, but not actually bankrupt.

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comment by KennyH1 (U5191707)

posted Jan 21, 2011

OK thanks.

Anyway like i said, lets hope this doesn't distract him.

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comment by Dan (U10808998)

posted Jan 21, 2011

Friedel is as safe as houses as a keeper. No wait, hang on a minute....
Jokes aside feel sorry for him. If anyone has read his book, he was very passionate about this school he set up in the states, and its a shame it has failed for him.

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posted Jan 21, 2011

course he was passionate about this school,he was charging kids 20k a year

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