Friday, 12 November 2010

Crusaders go into administration

Crusaders have gone into administration. Here's the official statement from the club:

Today (12 November 2010), the Welsh Super league club Celtic Crusaders Limited has entered administration pursuant to an application to the High Court of Justice, Leeds District Registry by the clubs shareholder. Peter O'Hara and Simon Weir of O'Hara & Co have been appointed as administrators.
Over the last year, the club has undergone financial difficulties including significant inherited debt which has made the business untenable.
Joint administrator Peter O'Hara commented: "There was a high level of support and enthusiasm towards Super League rugby in its first season in Wrexham which exceeded the club's expectations.
"We are currently pursuing a number of options and are talking to interested parties and the RFL in the hope that a solution can be found to the club's current difficulties which would enable it to go forward and maintain rugby league in Wales."
The administrators are being advised by legal firm Clarion.

From speaking to the administrator this morning, it appears that a draft sale document has been put together and the intention is to try to find an acceptable new owner as soon as possible. Most of the debt is related to the previous period down in Bridgend but the HMRC tax bill "accrued this year".

It's also unlikely that this administration will be anything like as costly as the WAFC administration period under Begbies, which eventually cost the club £1.5m in fees.

Let's hope the decision to go into administration will resolve the ongoing disputes regarding debt. Crusaders fans, players and coaches alike need financial stability so they can plan for the future - whether it's Iestyn buying players or fans investing in season tickets. The adminstrators have a track record of dealing with Rugby League clubs in this situation and I hope it will be a short-term situation that will see a new owner emerge to take the Crusaders forward to a higher level.

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