Gizmo
22-12-2006, 23:24
Lancaster City's relegation from Nationwide North was virtually assured this week when the club went into administration.
The Giant Axe club are expected to finish this season, but with a ten-point deduction expected after this week's development, City would be twenty-one points adrift of safety.
And with the whole club's future in doubt, they may be forced to drop more than just one division from next season.
City officials called in the administrator to protect themselves from creditors calling in debts, the level of which has not been revealed.
Administrator Edwin Kirkwood has now started the task of trying to meet the demands of those who are owed money, but still keep the club alive.
However, if this can't be done and the club does fold then they will have to apply to the Football Association to rejoin the non-League Pyramid.
This could mean dropping down to UniBond League Division One or even down four divisions to the North West Counties League Division Two.
Kirkwood met with chairman of the club's shareholders, Mick Hoyle, on Wednesday. Hoyle has put together a group of four, himself, Ian Sharp, John Bagguley and David Needham, who have said they will keep the club going until the end of the season.
They are also prepared to support the club whatever league they end up in next August.
Kirkwood said: "There are a group of people, most of whom have a long association with the football club, who are interested in keeping it going.
"There will be football played until the end of the season based on the arrangements I have seen so far.
"It is reasonable to assume there will be some sort of future for football."
This group will have to ensure that any outgoings from the club are met by the income until the end of the season.
Hoyle was appointed chairman by the shareholders last month after a vote of no confidence was passed in former chairman, Charlie Moore, and vice-chairman, Ian Clarke.
Since then, Hoyle has been looking into the best way forward for the club given their debts.
He said: "I looked into it with Ian Sharp, David Needham and John Bagguley and with the results of our findings we took legal advice and have gone down the road that we have gone down.
"We will work with the administrator until the end of the season and we have given the undertaking that we will fulfil fixtures in Conference North and take it on the chin come what may next season."
A drop to the North West Counties League – which happened to the club in 1982 – would be 'the worst case scenario', said Hoyle.
He was hopeful that with the proposed expansion of the UniBond League Division One into north and south divisions, City might be able to join that league.
But applying to rejoin the Pyramid will only happen if the club cannot continue after the end of the season – and Kirkwood was keeping the options open this week.
He has eight weeks to decide on the way forward for the club. He will then inform creditors of his strategy.
This could be a company voluntary arrangement (CVA). This would mean that the creditors would get a percentage of the money that they are owed over a determined period of time.
However, that has to be agreed by the creditors. This could be the only way the creditors get any money and it would mean the club could continue.
CVAs have been put in place at several football clubs, including Worksop Town from Nationwide North two seasons ago.
If a new investor came in, then that would change the situation and the creditors might get more of the money they are owed.
Kirkwood, who has worked in similar situations before, said: If something that can be agreed that means the existing company continues to trade the club, it is my understanding that the ten-point penalty ought to be the limit.
"If the existing company cannot continue and a new club is formed, that is when a two-level drop comes into play."
"It is far too early to say," he added.
Leeds-based Kirkwood had a simple message for fans: "The more support that they give, the more likely they will have a club. That is always the message and it is always true.
"It is vital in the short-term, and even more so in the long-term."
Hoyle said: "It is a very disappointing end to the last month but I feel that the position is totally untenable and for the future of Lancaster City playing football every week, we did not have any option but to take this direction."
Since Hoyle returned to the club, he has reduced the wage bill and the players are only getting expenses.
"Massive action was made to reduce everything down to live within our means, which obviously has not happened over the last few years.
"On appointing Barrie Stimpson as manager, he was made well aware of the situation.
"He has, however, assembled a squad of players who have performed very well in their four or five games so far and I am sure will do so wearing their heart on their sleeve until the end of the season.
"We have to dig together as a club from within the reserves and under-18 to be able to fulfil the fixtures."
www.lancastertoday.co.uk
The Giant Axe club are expected to finish this season, but with a ten-point deduction expected after this week's development, City would be twenty-one points adrift of safety.
And with the whole club's future in doubt, they may be forced to drop more than just one division from next season.
City officials called in the administrator to protect themselves from creditors calling in debts, the level of which has not been revealed.
Administrator Edwin Kirkwood has now started the task of trying to meet the demands of those who are owed money, but still keep the club alive.
However, if this can't be done and the club does fold then they will have to apply to the Football Association to rejoin the non-League Pyramid.
This could mean dropping down to UniBond League Division One or even down four divisions to the North West Counties League Division Two.
Kirkwood met with chairman of the club's shareholders, Mick Hoyle, on Wednesday. Hoyle has put together a group of four, himself, Ian Sharp, John Bagguley and David Needham, who have said they will keep the club going until the end of the season.
They are also prepared to support the club whatever league they end up in next August.
Kirkwood said: "There are a group of people, most of whom have a long association with the football club, who are interested in keeping it going.
"There will be football played until the end of the season based on the arrangements I have seen so far.
"It is reasonable to assume there will be some sort of future for football."
This group will have to ensure that any outgoings from the club are met by the income until the end of the season.
Hoyle was appointed chairman by the shareholders last month after a vote of no confidence was passed in former chairman, Charlie Moore, and vice-chairman, Ian Clarke.
Since then, Hoyle has been looking into the best way forward for the club given their debts.
He said: "I looked into it with Ian Sharp, David Needham and John Bagguley and with the results of our findings we took legal advice and have gone down the road that we have gone down.
"We will work with the administrator until the end of the season and we have given the undertaking that we will fulfil fixtures in Conference North and take it on the chin come what may next season."
A drop to the North West Counties League – which happened to the club in 1982 – would be 'the worst case scenario', said Hoyle.
He was hopeful that with the proposed expansion of the UniBond League Division One into north and south divisions, City might be able to join that league.
But applying to rejoin the Pyramid will only happen if the club cannot continue after the end of the season – and Kirkwood was keeping the options open this week.
He has eight weeks to decide on the way forward for the club. He will then inform creditors of his strategy.
This could be a company voluntary arrangement (CVA). This would mean that the creditors would get a percentage of the money that they are owed over a determined period of time.
However, that has to be agreed by the creditors. This could be the only way the creditors get any money and it would mean the club could continue.
CVAs have been put in place at several football clubs, including Worksop Town from Nationwide North two seasons ago.
If a new investor came in, then that would change the situation and the creditors might get more of the money they are owed.
Kirkwood, who has worked in similar situations before, said: If something that can be agreed that means the existing company continues to trade the club, it is my understanding that the ten-point penalty ought to be the limit.
"If the existing company cannot continue and a new club is formed, that is when a two-level drop comes into play."
"It is far too early to say," he added.
Leeds-based Kirkwood had a simple message for fans: "The more support that they give, the more likely they will have a club. That is always the message and it is always true.
"It is vital in the short-term, and even more so in the long-term."
Hoyle said: "It is a very disappointing end to the last month but I feel that the position is totally untenable and for the future of Lancaster City playing football every week, we did not have any option but to take this direction."
Since Hoyle returned to the club, he has reduced the wage bill and the players are only getting expenses.
"Massive action was made to reduce everything down to live within our means, which obviously has not happened over the last few years.
"On appointing Barrie Stimpson as manager, he was made well aware of the situation.
"He has, however, assembled a squad of players who have performed very well in their four or five games so far and I am sure will do so wearing their heart on their sleeve until the end of the season.
"We have to dig together as a club from within the reserves and under-18 to be able to fulfil the fixtures."
www.lancastertoday.co.uk