Compare and Contrast – Administration for Dunfermline ’13 and Rangers ’12 + A Quick Solution?

Dunfermline Athletic Football Club Limited has entered administration. Facing a winding-up petition from HMRC, and unable to pay the taxman what was demanded, the only way to keep the business afloat was to appoint an administrator and to hope that the breathing space this gives the company will be enough to allow the season to be finished, and then for the necessary asset sale or CVA to take place to preserve the existence of the football club. As I mention at the end of this piece, there is one theoretical possibility which could provide a quick exit from administration, with bounty for the creditors (and if it did happen, undoubtedly a busy summer of blogging on my favourite issues of law and football!)

The man picked to be administrator is Bryan Jackson. As well as being a top quality Chartered Accountant and Insolvency Practitioner, he now has the accolade of having run more Scottish football teams than anyone else in the country’s football history (and if not then I have no idea who could surpass him).

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Panic Stations for the Pars? Leishman Warns of Dunfermline’s Possible Demise

The BBC reported last night that Dunfermline Athletic “could be out of business within three weeks”.

The piece quotes Jim Leishman, revered former manager and until October 2012, member of the Board, who is leading a group trying to save the “club” as saying:-

“The next two to three weeks will decide what kind of future the club has.”

Dunfermline has not had its troubles to seek this season.

• HMRC is “owed £134,000, with a payment due on Friday”.
• Its players have complained to the SFL about late payment of wages on more than one occasion this season.
• The SFA has issued a notice of complaint to Dunfermline for failing to pay Hamilton its share of gate money for a Scottish Cup tie on 2 February.