Discuss Dundee FC at the Sport in General within the DigitalWorldz - Satellite, Cable, Console Forums; Dundee appear 99% certain to go into administration after the football club failed to pay players and staff outstanding wages on Tuesday.
It appears that only a late injection of cash from benefactor Calum Melville ...
6th October 2010, 00:00 #1
Dundee appear 99% certain to go into administration after the football club failed to pay players and staff outstanding wages on Tuesday.
It appears that only a late injection of cash from benefactor Calum Melville will prevent administration for the second time in seven years.
The Division One club are discussing a £350,000 debt with the tax authorities.
And former chairman Bob Brannan is set to write an open letter to fans blaming Melville for the club's plight.
Dundee failed to pay salaries last Thursday and have promised to pay half of what is owed on Wednesday.
But, ahead of the news of splits emerging within the Dundee boardroom, Player's union chief executive Fraser Wishart said: "Our opinion is that the club has fundamentally breached the players' contracts.
"Why is there money in the bank and yet the club can't pay the wages? That's the fundamental question that hasn't been answered.
"We have advised the players to continue to train, but there will come a time when players can't justify training because of the costs involved."
Team manager Gordon Chisholm revealed that the club were holding talks in Edinburgh on Tuesday afternoon, with insolvency practitioner Blair Nimmo brought in to liaise with Her Majesty's Revenue and Customs.
"We can only hope we get our half wages tomorrow and the rest of the balance before the end of the week," said the manager.
"Reasons were given for it only being half wages, but I'm not going to go into that.
"I don't think it's fair that it is dragging on. There are a lot of people in the dark here.
"Hopefully, there will be some sort of conclusion today and, hopefully, it's positive."
Asked whether administration was a real threat for the Dens Park club, Chisholm replied: "Without doubt." He also said that the players were in low spirits.
"Fortunately, we don't have a game this Saturday," he said. "But it's like anybody who hasn't received their wages, they are obviously down and they're concerned."
Speaking last week, chief executive Harry MacLean was adamant that the club will not go out of business.
"Absolutely. I hope that Dundee FC is still here in another 100 years' time," MacLean said.
Local businesses have already pledged to raise £75,000 towards the amount that is due in full to HMRC, but survival may rest on Melville agreeing to underwrite a further portion of the demand.
HMRC is seeking payment for the period between January and April 2010, when the club failed to pay their PAYE and National Insurance bill.
However, the taxman could lose out entirely with the club owing about £1.6m to directors Melville, Bob Brannan and landlord John Bennett in soft loans.
The trio could push through a creditors voluntary arrangement, which would apply to all creditors, writing off the money due and forcing the club into administration.
With HMRC no longer having preferred creditor status, it would lose out on almost all of the money due to them.
Penalties available to the Scottish Football League range from a points deduction to relegation, so the club are keen to come to a deal with the tax authorities.
A pledge made last weekend by Melville to lodge a six-figure down-payment and provide a legally-binding personal guarantee to cover the club paying the outstanding balance in instalments is the best hope of avoiding administration, if HMRC accepts that offer as opposed to its demand for immediate payment.
6th October 2010, 17:34 #2
re: Dundee FC
Dundee's players and backroom staff have been paid 50 per cent of their overdue salaries as promised on Wednesday. The cash-strapped First Division club had previously failed to pay the wages in full, due last week, by a previous deadline on Tuesday.
employees at Dens Park have been given assurances they will be paid up to date by the end of the week, as the club continues to try and stave off an imminent demand from HM Revenue and Customs for an unpaid tax bill.
15th October 2010, 11:48 #3
re: Dundee FC
CRISIS-HIT Dundee this morning will bin at least 10 first-team players as they bid to pull themselves back from the brink.
The Dens Park outfit were plunged into administration yesterday but even worse could follow today.
It is believed they have been given just four weeks to find more investment or the club founded in 1893 could die.
Director Calum Melville this week handed over more than £200,000 to stave off the threat but the club must find the same amount again.
Administrator Bryan Jackson, of Glasgow-based PKF, wi l l assume control at 10am today when he is set to carry out a brutal cost-cutting exercise that will see boss Gordon Chisholm, assistant Billy Dodds and a raft of top-earning players axed.
Last night Chisholm said: "Union chief Fraser Wishart met the players and pulled no punches. They were in a state of shock.
"The women who cook the food and work in the office were in tears. It feels like a slow death is finally coming to an end.
"It looks like the higher wage earners will go and offering to take a pay cut won't be an option.
"All I know is no good will come from what we're about to be told."
Dundee recently were hit with a £365,000 tax bill and have other debts of £1.6million as well as a monthly running five-figure loss.
It is understood skipper Gary Harkins and star striker Leigh Griffiths could be kept on with a view to selling them in January.
For tomorrow's match against Stirling Albion the team is likely to be made up of just a couple of senior players and kids.
Should Dundee go bust, the First Division would carry on with nine teams with all points won against them void.
A vacancy would open at the end of the season for a new club to petition for membership to the SFL starting in the Third Division.
In the lower league each case is dealt with individually when it comes to administration but a points deduction is almost certain.
Dundee chief executive Harry MacLean insisted the club would fulfil their fixture against Stirling Albion tomorrow but he could not guarantee they would be able to avoid liquidation.
He said: "Any business that goes into administration, that can happen. My personal opinion is it won't be allowed to happen.
"But the simple fact is unless we raise money and unless we raise it reasonably quickly, then any business could face that prospect.
"The business community have reacted well but a pledge is nothing until it's here as money."
Manager Gordon Chisholm and his assistant Billy Dodds have become the first casualties of the administration process at financially-stricken Dundee.
Last edited by RAB - P; 15th October 2010 at 14:22.
15th October 2010, 16:58 #4
re: Dundee FC
Manager Gordon Chisholm and his assistant Billy Dodds have been made redundant at Dundee, while nine players have had their contracts terminated.
With the First Division club in administration and mired in debt, drastic cuts have been made.
Mickael Antoine-Curier, Eric Paton, Dominic Shimmin, Njazi Kuqi, Paul McHale, Scott Fox, Colin McMenamin and Charlie Grant have been released.
Former Scotland midfielder Brian Kerr has also been axed by the club.
Youth coach John Holt and kit-man Neil Cosgrove have lost their jobs, while it remains unclear if four on-loan players, Milan Misun, David Witteveen, Jamie Adams and Scott Findlay, can stay on.
However, it is understood that the jobs of office staff at Dens Park have been secured until at least the end of the year.
By RAB - P in forum Sport in General
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