Cardiff City are in court Wednesday for the winding up order sort by Her Majesty’s Revenue & Customs for the outstanding bill of £2.7m, the only question on the mind of Cardiff City fan, will it be paid. The Wales on Sunday are indicating the issue will be settled this week with Ridsdale coming to an agreement with the taxman.
By agreement/ arrangement to pay does that mean in full or will Ridsdale be looking to pay through another but after defaulting on an arrangement before it would be unlikely the taxman would agree to another payment plan. The sale of the land which was agree with Cardiff City Council will bring in £1.8m still there is a short fall of £900,000 on the amount owed. He will probably use the fact that Cardiff has a big FA Cup payday next Saturday against Chelsea has a barging chip to the taxman.
It looks like the only way will we ever find out the true financial position of the club is if the Cardiff City Trust can get a General Meeting of Shareholder organized. If the club can please the taxman, there are other problems around the corner. The Wales on Sunday asked Keith Morgan, partner at accountants PKF, a specialist in sport finance and also a member of the Cardiff City Supporters Trust what was the future in the taxman was paid, “The fact is, when the club gets over this hurdle they will face another and another.
“If the club manages to get past this issue over the tax, they are then in a situation of each and every month finding the money to pay the wages – including the PAYE – and other running costs.
“If the debt is at an extent that it has put the club in this situation, it is difficult to see where the extra money is going to come from for the rest of the season.
“It is one reason why the Trust have been so eager to have a meeting so directors can be asked to explain that, while getting past stage one is one thing, how do they plan to deal with stage two, stage three and four?
“These issues are not going to disappear overnight.
“It appears the only way out of it is either through substantial new investment or promotion to the Premier League, neither of which are guarantees by any stretch.”
No wonder the takeover chatter has died down with had administration hanging over the head of the club. Who in their right mind would what to payout £20million for the club and take on the debts when all the need do is sit back a wait for
administration and the appointment of an administrator.
We will not be alone in court; other clubs could probably be joining us that day. Premiership club Portsmouth are due in court even after the club gain their fourth owner this season.
The financial position sound dyer and the chances of Cardiff City boss Dave Jones bring in a loan player or two that are sorely need, but with loan signing on fee and wages it would be nice if the club would make a statement on if there is a possible of players coming in.
Chairman Peter Ridsdale only real chance of saving the club is a buyout or some big money investment. The great hope was the Malaysian. Ridsdale spent a lot of time and energy on courting the Malaysian making a number of trips that resulted in Dato Chan Tien Ghee joining the board after making a small investing according to rumours. However the Wales on Sunday are reporting at Companies House have yet to receive any notification of this – despite rules outlining that all names of directors should be lodged with them within 14 days of their appointment. The real moneyman in the Malaysian deal is Vincent Tan billionaire business associate of Tien Ghee but he is yet to be convinced, although it is rumoured.
Guernsey-based businessman Ben Steele never had the money really to be sole owner of a football club which he admitted say he would need backs to help push the Bluebirds forward. This American group have had had representatives at the Cardiff City Stadium to watch a game and general talk’s but they seem to be clouded secrecy.
What would be great come Wednesday Peter Ridsdale stands on the step of the High Court and announces the taxman has been pay; Dave Jones can sign as many loan players that he need and can introduce you to the new chairman of Cardiff City Bill Gates.