Swindon Town consider administration as club searches for new investors (From The Wiltshire Gazette and Herald)
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Town board will meet to discuss financial restructure
7:35am Thursday 17th January 2013 in Sport
SWINDON Town are considering the possibility of entering administration, the Advertiser understands.
Majority shareholder Andrew Black is not keeen to pump any further funds into the club and is currently seeking alternative investment, with potential new owners lined up.
Should a takeover not be forthcoming, however, it is possible that the Robins could enter administration for the third time this century, as the club looks to financially restructure.
Neither Black nor chairman Sir William Patey has been available to speak to the Advertiser in recent weeks, as they look to secure Town's future.
Former chairman Jeremy Wray, speaking this morning, said he would be surprised if the board opted for administration and the ten-point deduction that woul incur under Football League rules.
"That is the last thing they would want to do I would have thought."
The club's board is set to meet on Saturday to discuss the prospect of a financial restructure. It is understood the board may appoint adminstrators to undertake the restructure.
The club owes around £13 million to its owners and has a monthly wage bill thought to be around £250,000.
Mr Wray said the budget for the season had been agreed with Mr Black and money had been set aside for the January transfer window, should the club be in the play-off places.
"That money may have been reduced," said Mr Wray. "If Mr Black has changed his position then the club has to respect that."
He said Mr Black's decision was unlikely to mean he wants to withdraw funding immediately. He said it was liekly the club will need to prepare a pathway for that.
"There are people willing to invest in the club, it is in a good position and it has a very saleable asset in the manager Paolo Di Canio," he said.
Speaking this morning chairman Sir William Patey stopped short of ruling out administration, but did confirm the club is bringing in professional support to help with any potential sale.
“Andrew Black has made it clear he is looking for new investors and new owners, and that has gathered a great deal of interest by trying to do that and we have had positive discussions and we are encouraged by the detail," he said.
“It is much better to sell the club in its current state where it’s gunning for promotion with a good squad of players, and we want to attract new owners by showing off Swindon to be a club with potential.
“We are going to bring in some professionals who know football, because buyers want to go through details like financial forecasting which clubs don’t keep on a day to day basis and it will enable us to go through due diligence.
“There is no 10 point penalty (which could be applied if Town did go into administration) if we sell the club, so people are getting a little ahead of themselves.”
More to follow.