Wrexham FC are facing financial trouble as the co-owner of the club admits they have run out of money.
A number of pre-season friendlies were cancelled after the management were unable to pay their players’ wages. The 2011 – 2012 season is due to kick off on 13 August, but this could be in doubt if the club isn’t sold in the next few weeks.
Manager Dean Saunders said: “The players are due to be paid at the end of the month and I’ve been told that they’re not going to be paid, so I’ve informed the players so that they they’re not shocked.
“I’ve come in after training, they’ve had a meeting among themselves and they don’t want to play.”
Football clubs who are struggling with money can choose to enter administration as a way of dealing with their debts and cash flow problems. League One club Plymouth Argyle called in the administrators earlier this year and in 2010 Portsmouth became the first Premiership club go in administration.
However, this isn’t a risk free option for clubs as any team who enters administration is automatically docked 10 points, which could see them relegated so owners and chairpersons of clubs need to consider all their options carefully.
It’s not just football clubs who need to think carefully about their financial decisions. Any company who is facing money worries has a number of options, from receivership to members voluntary liquidation, but any decision must not been taken lightly. Here at Real Business Recovery, we can offer expert advice on all aspects of business bankruptcy and always suggest the best solution for your needs, not those of your creditors.