Administrators Sunday Thoughts

Appointment of an administrator for East End Park Ltd could improve Pars chances of survival

Administrator Bryan Jackson feels that the appointment of an administrator for East End Park Ltd on Friday 24th May will increase the prospects of successfully concluding a deal that would allow Dunfermline Athletic to stay at East End Park. He reviewed the situation with the website on Sunday at the Pars Convention held at the stadium.

"The good thing is that the Club is still alive. We might be in administration but we are still here. People sometimes forget that we were just an hour away from extinction. When we went into court to try and get appointed as administrators there was another petition in the same day from HMRC. That is how close it really was."

Focussing on the positives Bryan Jackson praised the work of Pars United with their fund raising efforts and "Save the Pars"and now "Buy the Pars" campaigns.

"That is essential because they are the most likely buyers of the shares. The play offs were a good thing financially but a bad thing overall. In the short term the money from the play offs should be enough now to see us through June. Those two home games have been a great help. "

In addition to that the bulk of the creditors are associated with the Club and that is seen as helpful in the quest to get a CVA approved.

"That should help in getting through the CVA because we need over 75% of the value. Then the recent development you might argue is also a help. That is an administrator being appointed over East End Park Ltd last Friday. We now need to talk to Blair Nimmo of KPMG Ltd about a licence to occupy the ground or short term lease to the Club. This would ensure that there is a ground to play on and allow time to sort something out in the longer term.

"Will other people be interested in the ground? There is a danger but not that realistic a danger. It may have development value but that is more longer term. Also I understand that the bank is sympathetic to the ground being used for football purposes. So I hope that there is a deal to be done and that should remove the suspicion of Gavin Masterton's involvement in the property. He owns East End Park Ltd. and that company is now in administration, and he has nothing else to do directly with this property.

"There is no requirement to talk to Gavin Masterton any more about this matter and that should restore fans confidence."

The administrator added that further positives are that there is the nucleus of a team both on and off the field, young talented players hopefully under the leadership of Jim Jefferies. He understood that JJ had agreed in principle to staying on but that would depend on those in control after administration.

Now the administrator's task is to submit a CVA for approval by mid July. If the CVA is approved before the start of the season in August then the 10 point penalty or requirement for a £150,000 bond would be removed.

Obstacles in the administrator's path are firstly raising enough money, estimated to be in the region of £500,000. There is football debt of between £150,000 and £200,000, (This is money due to other clubs and to players) then there is an identified need of £200,000 for working capital and a contribution to the CVA of £150,000.

The second obstacle is to do a deal on the ground or at least a deal on the licence to play on the ground. Bryan Jackson who has seen all his five previous football club administrations through to successful conclusions feels that a five year view is required. Fans need to accept that the Club was on the brink of extinction, we have a squad of young boys, a grossly reduced budget and need to rebuild against a background of debt and very very tight cash flow.

When in position the new board would bring a freshness. He praised the siege mentality that has brought in fantastic responses in donations and he felt that post administration it would be much easier to attract sponsorship that was not currently coming forward because of uncertainty.

On the subject of other potential bidders the administrator added:-

"I have had interest from two individuals who have appeared to have shown a genuine interest, verbal only at this stage. They appear credible and seem amenable that if we were successful in some part of what we are doing that they would potentially link up with Pars United.  I am not sure that is seen as a threat in any way to what Pars United are trying to do. One was interested in the ground and the other, I believe is a supporter of the Club who is interested in getting more involved. I can clearly state that Gavin Masterton is not one of those two individuals and has not made any offer to me verbally or otherwise."

Jackson would not go further in rating his possibility of success as any more than 50/50. He has previous experience at Clydebank (now Airdrie United), Motherwell, Clyde, Dundee and Portsmouth. At Motherwell there has been a good example of financial discipline post administration, developing young players and finishing second in the SPL. That is for now, probably just too fanciful an ending for Dunfermline Athletic but he stressed that the ability of Pars United to raise money was crucial. He closed by pointing out that his last two administrations had ended with purchases by Supporters Trusts.