More bad news this morning that Preston North End have been served with a winding-up petition from Her Majesty’s Revenue and Customs.
Apparently the Lancashire club has failed to pay some liabilities, and because of that were served with the order, and become the latest of a number of English clubs in financial distress.
Preston finished in 17th position last season in the Championship and are reported to have borrowed £550K from Guild Ventures, owned by businessman Trevor Hemmings last Thursday to “meet the cost of players’ wages due this month”.
That doesn’t sound too good does it?
In spite of taking out the loan, the Winding-Up petition was still issued which suggests the financial state of the Lancashire club is certainly not good.
And news that Preston North End PLC will be suspended from trading from Monday morning.
The Preston club issued a statement on their troubles:
“The board of Preston North End, announces that, having received a winding-up petition from HM Revenue and Customs, following failure to pay certain liabilities, the company’s ordinary shares will be suspended from trading on AIM.
“The suspension will take effect from 7am on 17 May 2010 pending clarification of the company’s financial position. The board are currently considering the options available and a further announcement will be made as soon as possible.”
Financial messes at football clubs seem rampant these days, and certainly the financial management of a lot of clubs, especially in England seems to be reckless, to say the least.
This state of affairs right now is completely ridiculous and the sooner UEFA President Michel Platini makes clubs live within their means the better.
Platini has threatened to do just that where clubs transfer amounts they can use each summer, will effectively be based on the club revenues.
Newcastle United have earlier this week announced that Newcastle manager Chris Hughton will need to do with free agents and loan signings this summer.
That didn’t go over too well with Newcastle fans, which is hardly surprising, but we’d rather be doing that than have the club end up bankrupt.
The Tyneside side club has lost £70M over the last two turbulent seasons, and is currently surviving with an interest-free loan of over £111M from owner Mike Ashley.
Newcastle’s losses cannot continue, otherwise the famous Tyneside club could be in severe financial difficulties too.