The first thing to say is that it's sad to see a famous Scottish football club like Dunfermline in such parlous circumstances (debts allegedly in excess of £8 million). I wish them well in extricating themselves from their financial problems. The fact that they got themselves into this situation through spending beyond their means is a salutary lesson for other clubs, but should not detract from wishing them a speedy recovery.
This week is the crunch for them. If they don't put themselves into administration by Tuesday, they will be liquidated, via a winding up order from HMRC.
If they are liquidated, my understanding is their results for the season are declared null and void. Among the immediate implications of this would be a change in the title race, with Morton gaining 2 points on Partick, but Thistle having a game more to play. For Accies, it's a positive situation, as we have only taken 1 league point from Dunfermline this season (despite a great cup win at East End Park), while all the teams below us have taken at least 3 - we'd gain 2 points on both Cowdenbeath and Dumbarton, and 3 on Airdrie (our position relative to Raith would not change, as they, like us, have taken 1 point from Dunfermline).
If Dunfermline go into administration, it will be interesting to see how the SFL act. Contrary to popular belief, there is no standing points penalty for going into administration in the SFL (unlike the SPL). There is also no precedent for penalising any club for a first instance of administration - Dundee's 25 point penalty two seasons ago was for a second period of administration. But Dunfermline are only 9 points above Accies in the table (and we have 2 games in hand), so a penalty of 10 points or more would see them fall below us. Dunfermline are 14 points ahead of Dumbarton in the play-off place (and Dumbarton have 2 games in hand), so the threat of relegation would be real.
As Accies stand to gain in either scenario, it seems appropriate to express the genuine hope that Dunfermline are able to fulfil their next scheduled home fixture, on Wednesday against Falkirk, see out the season, and overcome their current problems. I hope they will also learn from prudent financial management models like that put in place by Accies over the past decade.
Interesting discussion on BBC Scotland. One commenter noted that Pars fans were venting their spleen at owner Masterton at the game today . His colleague commented that they were quite happy to take his money while all was going well on the field. A tad harsh as I'm sure most Pars fans probably not aware of the clubs financial dealings until too late. Kilmarnock owe similar amounts but seem to be able to service their debts and pay their chairman a significant salary Wo betide them if they too were relegated. Hamilton on the other hand seemed to have managed the transition from SPL back to the first relatively successfully but not without pain
ReplyDeleteI would hate to see them liquidated, but at least there seems to be a mechanism now for clubs to start afresh in the 3rd Division.
DeleteThe opportunity of entering division three seems to have been offered to three clubs in recent years - Livingston and Rangers were able to take that up; Gretna were not. Previously, no such offer was extended to Clydebank after their club was bought by Airdrie. Different circumstances in each case, and no guaranteed precedent, but I would hope, if it comes to that, the offer is extended to Dunfermline.
ReplyDeleteIf The Pars are liquidated and made an attempt to return via division 3 it would be madness to knock them back IMO. They have the potential to play in the top division and this country needs as many big clubs as possible.
ReplyDeleteWonder what would happen with East End Park though. Would the owners rent it out to a new Pars or would they sell the stadium for retail/housing to claw back some cash ?
Master ton also owns the ground through another of his companies One commentator at least seems to to think that if the club goes under the other companies will follow suite That means that the club and ground could be available for a knockdown price an attractive option for someone Portsmouth are in the same position A fans group has agreed a deal to buy the club from administrators but only if the stadium owner is prepared to sell at market value
ReplyDeleteDeadline day today. Speculation in this morning's press that the club will be put into administration today, perhaps based on an "investor" (donor) covering costs to the end of the season. This would put a hold on any claims by creditors, such as HMRC for £134,000 and Accies for £5,000, but probably only defer liquidation until the end of the season. The SFL will be relieved if this is the case, as immediate liquidation could affect promotion and relegation from division 1, but either way, it looks like Airdrie will benefit by avoiding automatic relegation.
ReplyDeleteThe quality of media reporting on this is dismal. David Cowan of STV, at East End Park, has just tweeted that the pies have arrived for tomorrow night's game v Falkirk. I guess that's a way of saying someone expects liquidation to be avoided. Gossip on the Web is that an administrator will be appointed at lunchtime.
ReplyDeleteAs I understand it the only ones with cash are the Dunfermline supporters group who want to buy the club and the Purves group who are the club main sponsor. Not sure how much the supporters have but why would you want to cover running cost deficits until the end of the season and still allow Masterton to retain ownership of the stadium company and the club. What Masterton is clearly hoping is that someone will buy the club with its debt and leave him with the stadium company. Now I know Ronnie did that but clearly not in his right mind when he did!!! In the current economic climate if I was a pars fan i would want liquidation and hope that Purves can pick up the stadium and the club in partnership ideally with the fans. Equally if its liquidation there is nothing to stop Masterton buying the stadium back at a knockdown price. It really is a murky world
ReplyDeleteIt's now being reported - http://sport.stv.tv/football/clubs/dunfermline/218973-live-coverage-dunfermline-athletic-await-decision-on-financial-future/ - that a group of Dunfermline fans have put up the funds to cover administration, and DAFC have petitioned the Court of Session to go into admin, with the ubiquitous Bryan Jackson as the official administrator. Subject to court approval, the next question will be what action the SFL will take - will there be a points penalty, and if so, how many? Spare a thought for DAFC players and staff.
DeleteContrary to premature reports yesterday afternoon that Dunfermline are now in administration, this is not yet resolved. The Court of Session will today hear their application to go into administration, along with HMRC's continued bid for liquidation (winding up order). The court needs to be satisfied that administration is viable, to allow it, and it remains to be seen how that will be viewed. Tonight's game, and the entire future of the club, remains in doubt. It's a horrible situation for any club to be in.
ReplyDeleteIt has now been announced that an Interim Order has been granted for administration, pending a final decision on 11 April (2 weeks tomorrow). Tonight's game goes ahead (weather permitting) and Dunfermline stay in business for the time being, but we could still find ourselves back in the same place in a fortnight. See STV coverage: http://sport.stv.tv/football/clubs/dunfermline/219160-live-coverage-dunfermline-athletic-await-court-decision-on-administration/
ReplyDeleteClearly its a bit of breathing space. Looks like there is someone who is prepared to buy the club and leave Masterton with the stadium company. In return presumably the £8m debt most of which is owed to Masterton goes. Its all a bit too complicated for me.
ReplyDeleteI note Dunfermline have now been joined by Coventry in administration An english High Court has heard that the club has debts of £60 million and the Football League has deducted 10 points This will not relegate them but removes them from a play off place and leaves them anchored mid table The club owe the stadium company part owned by the City Council £1.3 million and its not clear they can continue to play in the Ricoh Stadium Apparently there is American interest in buying the club Isntt there always! I wonder if Presley knew what he was getting himself into when he took the job?
ReplyDeleteThe Herald today reports extensively on the ongoing administration. It quotes from a report by Begbies Traynor on the financial state of Scottish football, that " four professional clubs in the top three divisions were facing crippling debts". Assuming they are counting Dunfermline, 2 others are Hearts £20m+, Killie £9m+ but who are the fourth club?
ReplyDeleteAberdeen ? Thought they were approx £9m in debt.
ReplyDelete15 point penalty just confirmed. Puts Dunfermline right in the mix for the play-off spot.
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