THE Swindon Advertiser can exclusively reveal the extent of Town's financial woes today as we lay bare the takeover deal that could cost £18 million.

A source close to the negotiations between club suitors Best Holdings and the current shareholders has disclosed the full extent of Town's financial precipice.

Immediate debts total more than £4m, far more than first thought, but it is estimated the final deal could cost the Portuguese company about £18m.

It is believed that major shareholders, the Wills family, would receive £8m in instalments over five years, while a 75 per cent stake in the club would cost an additional £3m.

Best Holdings would be expected to pay £8m up front but, taking debts to property developers St Modwen and a potential £1.2m owed to Bill Power into account, the deal would eventually rise to about £18m.

Chairman designate Jim Little declined to comment but insisted rumours of the deal breaking up were not true.

But it is believed constant talks are being held to try and smooth the way for the agreement.

TrustSTFC chairman Paul Davis admitted he was "shocked" by the level of the debts and has questioned whether there will still be a club for the League One clash with Tranmere the Saturday after next.

With the Inland Revenue owed almost £1.8m it is believed their patience is running out and, with two administration spells already behind them, a winding up order could be the next course of action.

Davis said: "These figures really crystalise the situation.

"I think all our worries about the nature of the prospective buyers still remain.

"But the future of the club is a much more pressing issue. If they can't do a deal the worry is what is going to happen to the club.

"It is almost a case of the devil and the deep blue sea really. There is the real prospect of this club going to extinction."

The initial fears among supporters when it was first announced Best Holdings were interested in the club were what it would mean for the future of manager Paul Sturrock.

The appointment of Rufus Brevett as a sporting director and Jose Veiga as general manager raised worries that Sturrock would go elsewhere.

"The immediate worry is now the club," said Davis. "We don't want to lose our best ever manager but it is incredible how we have got ourselves in such a mess."

The numbers

Terms of the proposed deal

  • Almost £2.8m owed to St Modwyn, due August 2008.
  • Purchase of 75 per cent of stocks/shares £3m.
  • Loan from new investors to cover debts of £3m.
  • £8m to the Wills family in five annual instalments.
  • Provision for Bill Power's investment £1.2m, depending on judicial court judgment.

Initial payment will be more or less £8m, but the investors should have provision for payment of the balance.

Debts

  • CVA £900,000
  • Inland Revenue almost £1.8m
  • Day Creditors almost £1.5m

Club still need additional funding to cover more or less £1m