Wed, 27 Mar 2013 | ADMINISTRATION
Dunfermline Football Club has applied to enter administration over an unpaid tax bill.
HM Revenue & Customs (HMRC) issued the club with a petition for liquidation at the Court of Session regarding the bill of £134,000. The petition had a deadline of 17:00 GMT yesterday (26 March).
As the deadline expired, the directors of the club announced that their "only option is to place the club into administration". A group of fans have agreed that they will underwrite the administrators' fees if the application for administration is successful.
Jim Leishman, the club's honorary director, said that he is "really proud" of the group of supporters who have come forward to help with administration costs. He added that choosing to enter administration will give the club a chance to recover: "It was either liquidation, where you're done and dusted and you've nothing [or] what we've done. We're giving it a chance.
"It's good news; I wouldn't say we're saved – there's a lot of hard work to be done. We've underwritten the administrator and hopefully now he can do his job and we can look for the long-term sustainability of Dunfermline."
A statement from the club read: "The administration appointment is expected to take effect within the next couple of days and the directors have approached Bryan Jackson, of accountants PKF, to consider being appointed administrator.
"The directors have taken this decision with considerable regret but believe that they have no other choice in the current circumstances. Until the administration is effective all staff will remain in post and the club will continue to operate normally."
The club will face being docked points by the Scottish Football League as a punishment if the administration goes ahead, but there is not fixed amount of what this might be.
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Related articles:
Dunfermline Athletic issued with a winding-up order
Administration could be just around the corner for Scottish football clubs
Keep an eye out for football club failures
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