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Swindon Town up for sale to avoid administration

Swindon Town have been put up for sale in order to avoid administration, with debts thought to be around £13m.
The club's owner, Andrew Black, is unwilling to put in further funds, and is actively seeking fresh investment.
Around £9m could be wiped from the deficit owed to investors if they enter administration, but the club may then face a points deduction.
"Andrew has made it clear he's looking for new investors," chairman Sir William Patey told BBC Wiltshire.
"That's why there's been a great deal of activity in the last few weeks.
Andrew Black is the co-founder of betting exchange Betfair.
He was part of a consortium, led by ex-chairman Andrew Fitton, which took over Swindon in 2008.
Although rarely seen at the County Ground, his investment has put Town in the top 30 richest football clubs in England.
"We've had some positive talks and we're encouraged by the discussions."
When asked if he could guarantee the club could avoid administration for a third time in their history, Patey responded: "Not a single chairman in the country could do that."
He went on to say that Town are likely to appoint "professional advisors" to restructure their finances.
A reduction in the monthly playing budget at Swindon - which is believed to be in excess of £250,000 - is likely to be a priority, meaning League One's fifth-placed club could be forced to sell players.
And if entering administration is their only viable option, the Football League could impose a 10-point penalty.
When Paolo Di Canio was appointed as manager in May 2011, he was given substantial funds to add to the squad and last season the re-shuffle paid dividends, as he led them back to League One as champions at the first time of asking.
Play mediaDi Canio went on to make seven signings over the summer but it eventually led to the club breaking Football League regulations by overspending on wages and fees, and they were given a month-long transfer embargo earlier this season.
Chairman Patey, who replaced Jeremy Wray the week after the embargo was sanctioned, said earlier this month that no money would be available for Di Canio to spend in the January transfer window.
He added: "The dream scenario is we'd be in the Championship with new investors and new owners, but there are a lot of other things that could happen too, and I do stress the money situation is extremely tight."
And on being told he may not be able to re-sign key loan players Chris Martin, Danny Hollands and John Bostock, Di Canio said he would be willing to invest up to £30,000 of his own money to keep them at the County Ground.
Owner Black was part of a consortium which took over Swindon in 2008.
A board meeting has been called for Saturday, with several external parties understood to be interested in purchasing the club.

Comments

  • Come on Di canio buy it?
  • Swindon Town have been put up for sale in order to avoid administration, with debts thought to be around £13m.
    The club's owner, Andrew Black, is unwilling to put in further funds, and is actively seeking fresh investment.
    Around £9m could be wiped from the deficit owed to investors if they enter administration, but the club may then face a points deduction.
    It's just plain wrong that so much debt just vanishes
  • Bert (Andrew Black) along with Ed Wray (brother of Jeremy, Swindon's former Chairman) were the co-founders of Betfair (where I work) and has his fingers in any number of pies including a horseracing training centre (with Michael Owen) and a Stud.

    Following Betfair's flotation a couple of years ago it is safe to say that he isn't short of a few bob or two but clearly what was a "bit of fun" to throw money has now become a financial white elephant.
  • Come on Di canio buy it?

    He is mad, but not that mad!
  • Swisdom said:

    Swindon Town have been put up for sale in order to avoid administration, with debts thought to be around £13m.
    The club's owner, Andrew Black, is unwilling to put in further funds, and is actively seeking fresh investment.
    Around £9m could be wiped from the deficit owed to investors if they enter administration, but the club may then face a points deduction.
    It's just plain wrong that so much debt just vanishes

    Spot on. Spend beyond your means, get promoted, wait until your safe from relegation, wipe out 2/3 of the debt, take the 10 point hit, start again a league up....

    Screw over other League 2 clubs, local businesses etc by doing so.
  • edited January 2013
    Nowadays it's not enough to be a mere millionaire to take over and make a 'success' of a football club. In a normal business, success is measured in terms of profit, i.e. income exceeds expenditure. Football clubs are different. Success is measured in terms of cups won or promotion. Profit is a distant second to the glory gained from success on the field of play.
    I think that many millionaires, possibly like Mr Black, despite their business acumen and success, do not fully realise this. They are carried away by the thought of being an owner, visiting the dressing room, photos with the lads, adoration in the local community, they do not realise the potentially huge cost in monetary terms.
    Billionaires can afford to splurge millions on ownership, on a hobby, on a vanity project. Mere millionaires, even multi millionaires cannot compete long term in the football business.
  • I didnt realise any debt just vanished when you entered admin, I thought it was just up to the admins to take over and sort it out the best they can. It doesnt seem to have helped some of the other clubs that have entered admin in the last few years.
  • MattD said:

    I didnt realise any debt just vanished when you entered admin, I thought it was just up to the admins to take over and sort it out the best they can. It doesnt seem to have helped some of the other clubs that have entered admin in the last few years.

    Equally many clubs have flourished after administration
  • MattD said:

    I didnt realise any debt just vanished when you entered admin, I thought it was just up to the admins to take over and sort it out the best they can. It doesnt seem to have helped some of the other clubs that have entered admin in the last few years.

    Creditors end up taking something rather than getting nothing.
  • Look at scummy palace for example
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  • MattD said:

    I didnt realise any debt just vanished when you entered admin, I thought it was just up to the admins to take over and sort it out the best they can. It doesnt seem to have helped some of the other clubs that have entered admin in the last few years.

    Equally many clubs have flourished after administration
    Palace - Even own their ground now and whatever you think of Selhurst it is a financial asset that was obtained at well below market value
  • Look at scummy palace for example

    and Southampton .. look where they are now
  • Administrators pay themselves first.
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