As we have argued for some time non-league clubs are most likely to go bust in the recession. They are often dependent on smaller scale businesses as benefactors which are most likely to be hit by the credit crunch. Also many clubs have over spent in an attempt to compete. With the end of the season we are now seeing a flurry of clubs going into administration. Chester City went into administration after being relegated from the Football League. Northwich Victoria have entered administration for the second time in five years.
As we have argued for some time non-league clubs are most likely to go bust in the recession. They are often dependent on smaller scale businesses as benefactors which are most likely to be hit by the credit crunch. Also many clubs have over spent in an attempt to compete. With the end of the season we are now seeing a flurry of clubs going into administration. Chester City went into administration after being relegated from the Football League. Northwich Victoria have entered administration for the second time in five years. The Vics have paid back £175,000 worth of debts that they inherited from the previous owner. With the taxman still owed around £400,000 and pushing for the club to be liquidated, the club had no choice but to go into administration. Vics also owe money to several former players and clubs in the north-west, but these will be paid out of the sale of a player.
AFC Hornchurch from the Ryman Premier entered administration last week for the second time in three seasons. Blue Square South St. Albans City’s holding company Verry Construction has run into trouble. Officially wound-up Fisher Athletic may finally see any last chance of saving themselves extinguished this week if they can’t strike a last minute deal with the taxman. Lewes survived another winding-up order last week, but have said that administration cannot be ruled out. In a more direct hit from the credit crunch, Northern League Sunderland Nissan are to fold. The car manufacturer believed it was inappropriate to fund a football club when many of their workers are facing redundancy. Newcastle Blue Star ae pleading with the Football Association to intervene in their battle with the Football Stadia Improvement Fund. Blue Star are being forced to replay the £61,500 grant they were given in 1999 to upgrade their Druid Park home. The Aristocrats moved in with Newcastle Falcons two years ago – and failed to inform the FSIF of their switch to Kingston Park. However, there was good news for Blue Square North Hyde United who discovered they will have an additional seven weeks to settle their £200,000 debt.
Mergers are a common form of reorganisation for most businesses, but are unusual in football. However, it is the fate that faces Merthyr Tydfil who have debts of more than £315,000 and are unlikely to survive the summer. Merthyr chairman Wyn Holloway is talking to a businessman who is willing to pay £300,000 to merge the club with Bridgend. It is hoped that the merged club would take Merthyr’s place in the Southern League while playing at Bridgend, who are currently in the Welsh First Division. Bridgend is 40 miles from Merthyr and Martyrs fans see the move as an equivalent of the MK Dons deal.
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