Who'd want to own a football club? (From Swindon Advertiser)

Who'd want to own a football club?

2:20pm Friday 1st February 2013 in News

Why is the takeover taking so long to complete?

In reality, this takeover is actually taking no time at all. Contracts have been exchanged but Football League approval is required. This means the potential new investors passing a fit and proper persons test. It should be complete within a week or so.

What has happened to the £13 million debt Swindon Town had?

Around £9.5m of unsecured debt is set to be written off by members of the original consortium who bought into Swindon in 2008. There is roughly £3.5m of debt which remains, which is secured against assets in the club.

Who does the club still owe money to?

Effectively, the club will be debt-free upon the sale. The money owed was to Andrew Black, Sir Martyn Arbib, Andrew Fitton and Jeremy Wray in unsecured debt in the club’s holding company, which will be written off. There is no outstanding amount due to small business, minor creditors, HRMC or the banks.

Will Jed McCrory own the club?

Details regarding the prospective new owners remain hazy. It is understood that Mr McCrory is fronting a five-man group but until the deal is complete we won’t learn much. When everything has gone through it is the consortium which will own the majority shareholding, of around 75 per cent, in the club.

So what’s in it for him?

Mr McCrory is a football fan and by all accounts he has taken on the task at hand at Swindon as he didn’t want to see the club fall into administration or possibly even worse. As a business, football clubs are hardly profitable enterprises, so personal gain is always unlikely.

How much money has been put in by the new owners?

Again, that will not be known until the deal is finalised and Football League approval received. They would have been able to acquire the controlling stake in the club for a small, nominal fee (ie £1), picking up the running costs in the process.

What happens to Sir William Patey and Nick Watkins?

It is expected that chairman Sir William Patey, who was more or less brought in in order to facilitate a sale, will leave the club upon the completion of the takeover. Chief executive Watkins’ future remains unclear, and he would not be drawn on the issue when questioned yesterday.

Why did the club have to sell Matt Ritchie?

Ritchie’s sale raised the funds to satisfy the club’s running costs during the interim period between the exchanging of contracts, which happened on Wednesday, and the new consortium receiving Football League approval, which could take up to a week.

Where did the money from his sale go?

Around £500,000 was raised by the transfer, of which a percentage goes to agents and a sell-on clause is due to Ritchie’s previous club Portsmouth. The rest will be used to keep Swindon running on a day-to-day basis until such time as the new consortium is given the green light.