New financial crisis hits Darlo

Darlington FC has been plunged into a new financial crisis and the future of the club has been placed in jeopardy.  Chairman Raj Singh has said that he may walk away from the club after the holding company that owns the club’s Northern Echo Arena stadium and the surrounding land was placed into receivership.   He is thought to be putting £20,000 a week into the club.

Darlington FC has been plunged into a new financial crisis and the future of the club has been placed in jeopardy.  Chairman Raj Singh has said that he may walk away from the club after the holding company that owns the club’s Northern Echo Arena stadium and the surrounding land was placed into receivership.   He is thought to be putting £20,000 a week into the club.


DFC Investments, jointy owned by Singh and former chairman George Houghton, incurred a £1.7m debt to creditors Philip Scott and Graham Sizer.   Singh says that part of the takeover deal was for Houghton to settle the debt which has increased to £2m with interest.   Houghton’s failure to pay triggered a clause in the takeover agreement that increases Singh’s stake in the holding company to 75 per cent, landing the whole problem squarely in his lap.


Singh offered 100 per cent of a new, independent valuation of the land around the stadium.   However, Scott says that this offer was unacceptable as it is less than 25 per cent of the total debt.


The Darlington stadium is a prime example of an ambitious plan that has created a white elephant.  Moving to a smaller, more economical stadium more in line with their attendances could be the way forward for the club.