Aldershot Town FC have entered administration following their relegation from League 2. They have debts totalling £1m, of which £300k is owed to football creditors. Player wages for April were not paid.
Club chairman Shahid Azeem had been in talks with owner and majority shareholder Kris Machala over acquiring his stake in the club, but the talks broke down after Machala demanded proof of funds.
Aldershot Town FC have entered administration following their relegation from League 2. They have debts totalling £1m, of which £300k is owed to football creditors. Player wages for April were not paid.
Club chairman Shahid Azeem had been in talks with owner and majority shareholder Kris Machala over acquiring his stake in the club, but the talks broke down after Machala demanded proof of funds.
Aldershot Town were founded as a phoenix club in 1992 after the old Aldershot FC was wound up. The club will survive this present crisis as administration is a reorganisation device, albeit at the expense of creditors.
It is challenging for a lower league club to prosper in a medium-sized town with travelling distance of London and the lure of top flight clubs. Admittedly, Crawley Town FC have done it, but with a substantial injection of funds. Whether they have a sustainable model remains to be seen.
Of course, the risk for a football club in Aldershot’s position is that of a second relegation to the Blue Square South.