Scottish Premier League side Gretna F.C may be about to hear the full time whistle as the threat of insolvency looms large over. Gretna is just one of a string of teams who have been affected by insolvency in recent times.
Insolvency in football is quite a regular occurrence and many teams both in England and Scotland struggle to keep on top of their finances and, in many cases, have no option but to file for insolvency and enter into administration. Gretna F.C are the latest team to experience this financial problem.
Insolvency – Financial Football
According to a report in the Times, Gretna F.C are struggling to avoid the threat of insolvency and are petitioning to be allowed to enter administration in order to avoid liquidation and being wiped off the footballing map indefinitely. The threat of insolvency hangs over Gretna due to debt management problems which have caused turmoil to their financial situation. According to the report in the Times, the club's debts have risen to in excess of £4 million despite steps being taken to trim the club's budget. Entering into insolvency or liquidation, however, would be likely to have a catastrophic effect on the club and may even see them fold completely.
Insolvency – Big Business
Football is obviously one of the most popular sports in the world and is capable of generating massive revenue for clubs. However, many fail to balance their books successfully and the massive outgoings that are associated with running a successful football can cause many to fall into insolvency. In the case of Gretna F.C, there reasons behind their financial woes are multiple but chief amongst them is the fact that they set a new record low for attendance in the Scottish Premier League. Having met with insolvency experts, Gretna's financial future was still not resolved as the club continue to negotiate with the creditors in the hope of establishing some sort of debt management plan that will allow them to continue to play.
Speak To Varden Nuttall About Insolvency
Varden Nuttall has been established for over 15 years and is dedicated to helping people in financial difficulty find a debt management solution through an Individual Voluntary Arrangement (IVA). Employing 90 people, including trained and skilled IVA administrators, we are one of the largest IVA companies in the UK and handle over 3% of all IVA applications. To find out more about the company, or to make an appointment to talk about putting an IVA in place, call us today on 0870 977 8100 or fill in our online enquiry form.