The Daily Record has revealed that one Premiership club is on the verge of administration.
According to Bryan Jackson, who helped Hearts out of administration through a CVA rather than the bleak death of liquidation, a confidential report from BDO revealed that one top flight club is close to the edge.
Only one Premiership club has a going concern warning on their audited accounts with most eyes looking towards Ibrox and the dozen plus new contracts handed out during the summer.
With no chance of a share issue and no new loans available something drastic is needed if Sevco are to make it through the season even without providing Mark Warburton with a transfer warchest.
“I’m surprised, I wouldn’t have thought any clubs were on the verge of administration,” Jackson told the Record as he discussed the BDO internal report.
“Administration is difficult now due to the sanctions and any club will do whatever they can to avoid it. They might not be able to of course but it’s a last resort. Would I have expected to be contacted again in the next five years? I’d have said no. I still hope that is the case despite the results of this survey.
“I wouldn’t have expected the survey to show great optimism and for clubs to say, ‘Yeah, we’re all doing financially well’ because most clubs are bumping along the bottom but I wouldn’t have expected any to be on the verge of going over the top.
“I hear a little bit about what’s going on in the industry and if anything goes bad in the cash flow with the smaller clubs, the slightest hiccup can put them in difficulty. They are trading break-even because of their circumstances.”
‘Smaller clubs’ like Motherwell and Kilmarnock have been rumoured to have had problems in the past but have generally lived within their means over the last half dozen years.
With banks unwilling to provide overdraft facilities to football clubs administration is much less likely although the financial figures from Ibrox point to a question of when rather than if.
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