Taking Crystal Palace out of administration is being complicated by the fact that two administrators are involved. The company that owns the ground is under the control of a separate administrator, PricewaterhouseCoopers, who are acting on behalf of Lloyds Bank which owns the £12 mortgage on the ground. The ground is worth much more without the club on it given its real estate potential. However, Croydon Council is insisting that it remains a sports facility to put off any property developers.
Taking Crystal Palace out of administration is being complicated by the fact that two administrators are involved. The company that owns the ground is under the control of a separate administrator, PricewaterhouseCoopers, who are acting on behalf of Lloyds Bank which owns the £12 mortgage on the ground. The ground is worth much more without the club on it given its real estate potential. However, Croydon Council is insisting that it remains a sports facility to put off any property developers.
The administrator of the club believed that he had received enough money from the sale of Victor Moses to Wigan Athletic for an initial £2m to keep the club going. However, he has now received a demand for £1m in unpaid rent and the club must also pay a separate £1m to the stadium owner in April as part of a rental agreement made when the ground changed hands in 2008.
The club was effectively kept going for some time by Simon Jordan who eventually ran out of cash. In the last available accounts to June 2008 it made an annual loss of £8.1m after tax. Turnover fell from £18m to £12m. The wage bill was £11.7m which accounted for an eye watering 97.5 per cent of turnover, although it has fallen since then. The club have debts of £32m, £20m of which is owed to Simon Jordan who bought the club ten years ago, Jordan’s concern that he could receive a fraction of that amount means that he could choose not to endorse a potential takeover if other creditors are paid higher proportions. That could lead to a further points penalty for not exiting in accordance with Football League rules.
However, there is some positive news for Palace fans. They have a home cup tie against Aston Villa on Sunday. Sir Richard Branson has expressed an interest in buying the club. And the two administrators are going to meet on Tuesday to try and sort out the legal complexities.