Accountancy Age adds fuel to the fire

Last updated : 26 June 2003 By Dave Moore

An online information source for business and financial professionals drove another nail into Athletic’s coffin with the following statement:

“Oldham admitted last week it was in a cash crisis and needed a buyer because its former chairman, Chris Moore, who normally funds the club, said he could no longer afford to pay for its losses. Although the club is not yet in administration it faces a heavy debt burden and could be wound up by the Inland Revenue if it is unable to meet its next payment instalment.

Jon Newell told AccountancyAge.com: 'The Revenue did a deal with Oldham some months ago. It froze its debts and asked for them to be repaid on a monthly basis. 'There is a chance that it could try to wind the club up if it does not pay its next instalment. The Revenue payment is due on the 19th of every month.' He confirmed that the club's only chance of survival until the next season is to find a buyer who is willing to take on the debt and is willing to write off £2m at the start.

The club has admitted it is losing about £50,000 per week. Besides this it has contracts and commitments that have to be met each month. 'The business is heavily insolvent and has been for years,' said Newell. Former chairman, Chris Moore, who is the company's biggest shareholder, is not seeking repayment for the outstanding debt he is owed. The adviser said: 'He is willing to continue funding the club but does not want to be the only one going forward. 'But this leaves the club in the position that is it not able to meet its liabilities going forward.'”

Is there no hope?