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Extreme Football Forum  |  Football Forums  |  Scottish Football  |  Topic: Dens face admin.

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Dens face admin.

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« on: October 06, 2010, 11:00:56 AM »

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By Jim Spence 


Dundee appear 99% certain to go into administration after the football club failed to pay players and staff outstanding wages on Tuesday.

It appears that only a late injection of cash from benefactor Calum Melville will prevent administration for the second time in seven years.

The Division One club are discussing a £350,000 debt with the tax authorities.

And former chairman Bob Brannan is set to write an open letter to fans blaming Melville for the club's plight.

Dundee failed to pay salaries last Thursday, but paid half of the wages due to players on Wednesday morning.

But, ahead of the news of splits emerging within the Dundee boardroom, Player's union chief executive Fraser Wishart said: "Our opinion is that the club has fundamentally breached the players' contracts.

"Why is there money in the bank and yet the club can't pay the wages? That's the fundamental question that hasn't been answered.

"We have advised the players to continue to train, but there will come a time when players can't justify training because of the costs involved."

Team manager Gordon Chisholm revealed that the club were holding talks in Edinburgh on Tuesday afternoon, with insolvency practitioner Blair Nimmo brought in to liaise with Her Majesty's Revenue and Customs.

"We can only hope we get our half wages tomorrow and the rest of the balance before the end of the week," said the manager.

"Reasons were given for it only being half wages, but I'm not going to go into that.

"I don't think it's fair that it is dragging on. There are a lot of people in the dark here.

"Hopefully, there will be some sort of conclusion today and, hopefully, it's positive."

Asked whether administration was a real threat for the Dens Park club, Chisholm replied: "Without doubt." He also said that the players were in low spirits.

"Fortunately, we don't have a game this Saturday," he said. "But it's like anybody who hasn't received their wages, they are obviously down and they're concerned."

Speaking last week, chief executive Harry MacLean was adamant that the club will not go out of business.

"Absolutely. I hope that Dundee FC is still here in another 100 years' time," MacLean said.

http://news.bbc.co.uk/sport1/hi/football/teams/d/dundee/9044022.stm


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« Reply #1 on: October 06, 2010, 12:58:09 PM »

This is not good for Dundee fans at all.

It shows you how much times are hard now for football clubs in the recession. Dundee were in administration in 2003 with depts of up to £28m  Shock and yet they recovered somehow and the're struggling to cope with depts that aint close to that now.

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« Reply #2 on: October 07, 2010, 07:56:29 AM »

Never liked Dundee, but don't mind the Arabs TBH


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« Reply #3 on: October 08, 2010, 04:49:10 PM »

Administrator appointed by Dundee

http://news.bbc.co.uk/sport1/hi/football/teams/d/dundee/9044022.stm

Dundee are to go into administration for the second time in seven years after failing to negotiate a deal over an outstanding tax bill of £365,000.

Panel Kerr Foster has confirmed that the accountancy company has been appointed as administrator for the First Division football club.

The formal process is likely to take place on Wednesday or Thursday.

Redundancies are certain to follow and the club could receive a punitive points deduction.

The First Division club are yet to make an official statement, but a senior insider at Dens Park admitted the drastic step was "imminent".

Players and staff received half wages on Wednesday after a delay in payment.

The Dens Park club had hoped to make a one-off payment to Her Majesty's Revenue and Customs and arrange a settlement plan for the remaining debt.

And investor Calum Melville had pledged to fund such a move.

A spokesman for Melville told BBC Scotland on Wednesday that the businessman had lodged £200,000 with the club's solicitors to aid the talks with the tax authorities and help with the payment of wages.

With Melville, the club's main benefactor, recently offering to resign his position from the board, and ongoing concerns over mounting debts, the move into administration appears to be the only way to offer any hope for a future.

 old git Cheers old git



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