BusinessBusiness RecoveryWimbledon FC slides into administration

Wimbledon FC slides into administration

Critical cash-flow problems have pushed Wimbledon Football Club into financial dire straits causing the High Court to appoint Grant Thornton as administrators.

Link: Insolvent football clubs face points penalty

Grant Thornton partners Andy Hosking and Nick Wood, were appointed joint administrators yesterday.

Wood said the administration was yet another example of the intrinsic problems facing football clubs. ‘Wimbledon’s problems have been well documented and, like so many clubs, the short term cash flow has become critical.’

Like most clubs, Wimbledon saw its financial difficulties increase with the loss of television money after ITV Digital collapsed last year.

But the club’s problems were exacerbated when it decided to transfer its home ground to Milton Keynes, a move seen by many as an own-goal. A large group of revolted fans abandoned the club, setting up an alternative club, Wimbledon AFC, which remained in the area.

And although the club was already cash-strapped, it decided to build a multi-million pound stadium in Milton Keynes.

But the administrators say the move to Milton Keynes is ‘a key element in ensuring the club has the facilities commensurate with its ambitions.’ They claim that over 60% of the club’s current season ticket capacity has been filled.

Wood added: ‘We and the directors believe that, with the enthusiasm shown in Milton Keynes and the dedicated efforts of the Club’s staff we will, in due course, see a successful outcome.’

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