York City rescue imminent
York City administrators have said they are expecting a deal to rescue the third division football club within the next three weeks.
Link: York City becomes the next football victim
The administrators, who were appointed in December, are continuing to trade the club whilst they talk to interested parties. So far, there has been one formal offer for the club and indications of interest from two other parties.
The issues being examined at the moment include the costs of acquiring the club and the expenses of trading it, according to administrator David Wills, partner at Jacksons Joliffe Cork.
He said they would have find a way to reduce the wage bill, which is not profitable at the moment, and find other ways of increasing revenue. It would be possible, he added, because more than ten of the players’ contracts are up for renewal.
And although the club has been loss-making for years, the ITV Digital fiasco made a bad situation worse.
Wills said: ‘The club lost revenues £100,000 per year with the loss of ITV Digital. But the effects of ITV digital were worse: it destroyed the transfer market.’
He explained that York City relied on the transfer market and depended on selling their players to cover their losses.
‘The club was expecting a quarter of a million pounds for Russell Howarth,’ added Wills, ‘but they sold him for only £25,000. There are lots of unemployed football players, it’s a buyers’ market’
Last week, York City received a lifeline of £92,000 from the supporters’ trust, which will keep the club going for the next four weeks. It also made an agreement with the players that they would play free of charge for one month.
