Sevco: Two weeks from administration?
The exact extent of the financial crisis at the Third Division champions is unknown but with losses of over £1m a month recorded in their first ever accounts it seems only a matter of time before the money runs dry.
Former Finance Director Brian Stockbridge told supporter representatives that the club would be down to it’s final £1m in April with the sale of season tickets needed to keep the players in their luxury lifestyle.
With pay-off’s to Craig Mather, James Traynor and Stockbridge since that announcement it seems that the club could be in administration long before the clocks go forward.
According to the report in the Scottish Sun an insider has alerted the Alternative Investment Market to the extent of the cash crisis.
The paper reports: “RANGERS are at the centre of a financial cover-up investigation over claims the club will be broke within two weeks.
“The stock exchange inquiry was launched after an Ibrox official is alleged to have forecast they would run out of cash by mid-February.
“New chief executive Graham Wallace has assured fans there is no danger of a second plunge into administration — two years after ex-owner Craig Whyte steered the club to its doom.
“But in a complaint to the AIM exchange, a disgruntled investor writes: “It’s the worst-kept secret in Scotland that the club is running out of money in the next few weeks, yet the board has made no announcement.”
“The shareholder says Rangers should have disclosed any projected shortfall under stock market rules. AIM chiefs have vowed to investigate the claims.”
In December, on the day of the club AGM, new chief executive Graham Wallace announced a 120 day review into the finances of the club, last month he sparked concerns after engaging in a conceptional discussion with players over a 15% pay cut which would see some players forced to survive on less than £15,000 per week.
With that offer rejected and no one interested in signing any players during the January transfer window it seems that the club is in meltdown as the second anniversary of Craig Whyte putting Rangers into administration approaches.
Despite being in the job for over a month Wallace reassured various fan groups that the club is in good health with a five year plan for winning the Champions League enough to see off any proposed supporter boycott.
Now it seems likely that the new club is about to follow Rangers into administration with only the continuing support of the SFA likely to prop up a team in blue shirts playing at Ibrox through till the end of the season.
One short term solution would be to stage the final of the League Cup at Ibrox with the SFA already committed to hosting both semi-final’s of the Scottish Cup at the ground.
Sending a £1m plus goodwill gesture to the stricken club would meet with resistance from other clubs and supporters who are already unhappy with the preferential treatment that the Ibrox club has been given
The latest financial crisis is likely to put on hold plans to regenerate the area surrounding Ibrox which include a five star hotel and conference centre, transport hub and raising the capacity of the stadium to 85,000.