Administrators David Elliott and David Walker from Barnsley-based BKR Haines Watts will take over the running of the club from directors Mark Knighton and Andrea Whittaker this week and attempt to find a way out of the hole United now find themselves in. The players remaining at the club have been told they won't be paid at all over the remainder of the close season unless the PFA provide another loan. Already they are owed some £40,000 from an original loan that was taken out by the cash-strapped Cumbrians last season. United face a winding-up order at the High Court on June 26 over an unpaid tax bill of £416,000 PAYE. Further outstanding VAT and corporation tax payments are thought to take the total owed up to over £700,000. Other creditors include the PFA, Shelbourne FC and out-of-contract players who have only been offered about 40% of the pay deal in their contracts. The administrators will almost certainly look to sell the club to either Dublin businessman John Courtenay or Carlisle entrepreneur Brooks Mileson. Both men have said they will work together if necessary to buy the club out of the trouble it is in. Creditors still have the power to reject a rescue package but the 75% approval necessary is thought likely if the amount on offer is substantially higher than what would be on the table in a liquidation. The club and the administrators issued a joint statement which said: "The purpose of the appointment is to allow the club to continue and whilst the season is currently closed, everyone is looking forward to the new season which commences in August. The directors are assisting the administration process by providing working capital for the club in the interim period. "The administrators are aware that the club was in the process of realising surplus land assets, the proceeds of which will restore the company's liquidity and provide a positive cash flow. The administrators are in the process of putting together a financial plan which would reschedule the repayment of the company's debts and a further statement will be made later on in the week." Although the PFA may provide temporary respite with their expected loan to help pay players' wages, the absence of key sponsors and a planned 90% boycott by supporters of home games will severely hamper any recovery plan. Fans have been campaigning for over three years to overthrow the Knighton regime and they will be encouraged by the news that Mark Knighton and Andrea Whittaker, the two incumbent directors have handed over control to a neutral third party. United have just 15 professionals left on their books, of whom six have minimal first-team experience. It is not yet clear whether the club will be allowed to sign any new players given their serious financial plight and the outstanding PFA loan. In the past, the Football League have strictly forbid clubs in receivership from kicking-off the new season, but under administration, the rules are generally more relaxed. The fixtures for the new season will be published on Thursday. Picture from News & Star www.newsandstar.co.uk |
