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Friday, January 17, 2014

What Happens Next - An Experts View?


As reported earlier Hereford United face a wind-ing up order on January 27th unless they can find enough money, said to be about £35k, to hand over to HMRC.

So what happens next?

Football finance expert Brendan Gillfoyle spoke to BBC Hereford and Worceste about the situation.

"The club is very close to going out of business in that the wind-ing up petition to be heard on Monday and if the club hasn't got the ability to pay then it the courts will wind it up.

"And if the company is wound-up then it will be expelled from the League and have to re-form I think it is four pyramids down.

"So two options for the club directors.

"One if they can convince the court that there is some prospect of them paying this HMRC debt or coming to an arrangement on it, then it may be possible to get an adjournment but if the court just think that's perlonging the inevitable then that won't work.

"The only other way as the chairman indicated intervene with an administrator but the challenge for the administrator is to fund the club going forward so that it can forfill its fixtures because equally if it goes into administration that's a rescue procedure but it still needs to turn up for its matches.

"I think HMRC's issue is that if the club continues more debts backing up but equally if a administration petition is issued it's likely an administrator would be appointed because the petition then protects the administrator paying any tax, NI, VAT over so they are not going to be in any worse position so normally they would consent to an administration.

"An imaginative administration with a voluntary arrangement could probably compromise a lot of this debt and enable the club to go forward again."