Reviewed: 4th December 2015
A cash flow crisis and mounting debts have left Bolton Wanderers Football Club in real danger of entering administration.
According to reports, the club could soon be hit by a winding up petition from HM Revenues & Customs (HMRC) and be left with no choice but to enter administration.
The dire financial position and the extent of the cash flow crisis at the football club was brought into sharp focus in recent days when the wages of senior players went unpaid.
Plans are in place to see the club sold to new owners, with three different consortiums apparently interested in taking over ownership but no deal yet having been struck.
Meanwhile, the club, which is the most heavily indebted in the Championship, continues to head further into the red and to lose money at a rate of close to £1 million every month.
The Telegraph reports that Bolton’s non-playing staff and its youth players have all been paid as normal but PAYE tax demands for the month have gone unmet.
The result of which is understood to be that club is not paying the relevant tax authorities close to £300,000 that it should be paying each month, with the risk therefore increasing that HMRC will see fit to issue a winding up petition against it.
Such a petition could see Bolton entered into administration and hit with a 12-point deduction in the Championship that would make it extremely difficult for the club to avoid relegation from the second to the third tier of English football next year.
For now though the hope is that one of the three interested consortiums will manage to complete their takeover of the beleaguered club.
However, time will be needed for due diligence to be carried out in relation to any prospective new owners and their offers, which would potentially leave some members of Bolton Wanderers’ playing staff going without their usual wages over the Christmas and new year period.
A winding up petition issued by HMRC would give the club an 18-day period in which to demonstrate how it intends to pay in full money owed as taxes. We have an extensive network of 76 offices offering confidential director support across the UK.