Crystal Palace enter Administration

Football League Championship play-off hopefuls Crystal Palace have revealed that they have slipped into Administration following a season blighted by financial problems with debts now reported to be up to around £30 million.

Under Football League rules, the administration will result in a 10 point deduction that will see Palace plummet down the league table, dropping 11 places to 20th. Sheffield based insolvency company The P & A Partnership have been appointed as Administrators on the case.

Chairman Simon Jordan has been looking for new investors in the club following his announcement last year that he is looking to sell due to the rising debt. Officials from the club are also due in court on Wednesday to face a winding-up order from HM Revenue and Customs.

The Palace players will now no doubt be anxious about their futures after already being paid late on a number of occasions over the past few months after being told by Jordan that he had ‘cash flow’ problems in November.

The clubs financial woes had been somewhat masked by a mini revival from the team, the Eagles were just two points outside the play-off position heading into Wednesday night’s game with league pace setters Newcastle United, however that game now promises to be far tougher than previous expected as Palace will now enter the relegation dogfight.

"The lads are obviously all terribly disappointed and the Newcastle game will be one of the toughest they have ever played, but I can promise the supporters who are coming that we will be focused on the match," the manager Neil Warnock told the Croydon Advertiser.

Further problems for the team will come from the almost inevitable sale of prize assets such as teenage striker Victor Moses, whilst this will bolster to clubs finances as they try to get out of Administration, it may cause more on the field problems as the team weakens.

"Our role is to find a buyer quickly to provide certainty for the future," said Administrator Brendan Guilfoyle of P & A. “This club has been in the spotlight with creditors pressing for payments and players anxious about wages. We are hoping our appointment will be short-lived as we understand there are many interested buyers."

As it stands, the club sit ninth in the league as the 10 point deduction will not take effect until the football league is formally informed. This will be expected to take place over the coming days.

Posted at 03:22PM Jan 27, 2010 by Kris Wigfield in Sport Finance  |  Comments[0]