Cardiff City On The Brink. No Cash Reserves, Administration Highly Likely

[chowie]

FINANCES AT CARDIFF ON A KNIFE EDGE - ADMINISTRATION CLOSE

A JOINT STATEMENT FROM CARDIFF CITY SUPPORTERS' TRUST and CARDIFF CITY SUPPORTERS' CLUB

Despite being granted a 56-day stay of execution in the High Court last week, it appears that Cardiff City Football Club's future is once again on a knife edge.

We have been reliably informed that administration is virtually inevitable before the end of March if significant new investment in the club has not materialised by then. We understand the Bluebirds' cash reserves are practically exhausted, there is little money available to pay this month's wage bill and debts are now estimated at almost £40 million.

The situation is clearly perilous, although we are led to believe there may be light at the end of the tunnel thanks to a written offer of investment from a Malaysian consortium. The group's front-man, Dato Chan Tien Ghee, is said to be arriving in the UK on Thursday for a series of meetings with Bluebirds' officials, during which the club's fate will effectively be sealed.

The men who appear to hold the key to the football club's future are Cardiff-based property developers Paul Guy and Mike Hall. Their company, PMG, is the club's biggest shareholder and also its largest secured creditor. Consequently, they are certain to be central to any takeover negotiations.

During recent years, PMG has benefited from a series of lucrative land deals connected to the Cardiff City Stadium project. Not only did the company become the sole owner of the successful Capital Retail Park, but it was also chosen to develop and build the Glamorgan Records Office, which stands adjacent to the new stadium.

In addition, PMG recently purchased another large plot of land on the stadium site, upon which a hotel will eventually be developed.

It is clear that PMG has been doing very nicely from its relationship with Cardiff City, but the current state of the football club's finances suggest the benefits of this association have not been entirely mutual.

It should be acknowledged that Paul Guy and Mike Hall were largely instrumental in getting the new stadium project off the ground. They advised on all stadium development issues, while PMG advanced the club £9 million of the funding required to build it. The loan was secured against future income from the Premier Club seating area and attracts interest estimated at £500,000 pa.

In December 2006, while he and his colleagues were in the process of taking control of Cardiff City, Mike Hall claimed the new investors were local people who were interested in the football club's long-term future. He also described former-owner Sam Hammam as being motivated by "total greed and self-interest."

We sincerely hope that Messrs Guy and Hall will not put themselves in a position whereby they will be open to similar accusations from Bluebirds' supporters in the coming weeks. We therefore call upon them to set aside their personal interests and do what is right for Cardiff City Football Club during the critical days ahead.

[SimonL]

Does anyone think that if this happens Dave Jones might be interested or approached. Whats peoples opinion of him if he were to become manager?

[The Casual Connoisseur]

No to Dave Jones as I have previously stated, what has Dave Jones achieved on a far larger budget than Gary Johnson, play offs???

Cardiff have to decide if they are going into admin by monday if they ho in any later then potential defecit points will be taken next season rather than this, nothing new here I am afraid.

[Portland Bill]

Does anyone think that if this happens Dave Jones might be interested or approached. Whats peoples opinion of him if he were to become manager?

Ive been thinking the same thing, would be a very good choice IMO.

[Cyderman]

Hasn't Cardiff's form recently been similar to ours? Although I accept there are distractions there. I wouldn't be against Dave Jones but I think Curbishley or O Driscoll would be better.

[reddogkev]

Can we have Chopra please?

[Midge]

Does anyone think that if this happens Dave Jones might be interested or approached. Whats peoples opinion of him if he were to become manager?

No thanks, dont rate him at all

[Pezo]

No to Dave Jones as I have previously stated, what has Dave Jones achieved on a far larger budget than Gary Johnson, play offs???

Cardiff have to decide if they are going into admin by monday if they ho in any later then potential defecit points will be taken next season rather than this, nothing new here I am afraid.

Im not entirely sure of the rules any more around Administration but could they decide to go into Administration next week take the 10 point deduction for next season but be in the prem with "loads a money" and no debts. Or would the chance of promotion be taken away from them if they were in the playoffs by 9 points at the end of the season.

[The Casual Connoisseur]

Im not entirely sure of the rules any more around Administration but could they decide to go into Administration next week take the 10 point deduction for next season but be in the prem with "loads a money" and no debts. Or would the chance of promotion be taken away from them if they were in the playoffs by 9 points at the end of the season.

don't know mate, unsure, the clubs are locked in talks with the malaysians at the mo, I think it's all sealed and done as I know for a fact the Borleys went out to Malaysia in feb to visit the family of the main investor, they are on very good terms and surely will do negoiate an 11th hour deal that saves them, they ALWAYS come up smelling of roses!

[BS3_RED]

The point deduction can still be this season if it has a bearing on Cardiffs final position i.e in the ply offs. If not then it will be next season

[Robbored]

With Cardiff in deep financial shite Dave Jones would an ideal City manager especially if he brought Gerrard, Whittingham, Burke and Chopra with him. He would not even have to move house....

[Dolman Block B]

With Cardiff in deep financial shite Dave Jones would an ideal City manager especially if he brought Gerrard, Whittingham, Burke and Chopra with him. He would not even have to move house....

Blimey Robbo/red you are a genius, Dave Jones No1 with his best buddy GJ No2............................................

Im out of here

[The Casual Connoisseur]

Sorry to soak everyones cops in piss, so to speak but I have just heard this:

" The Malaysian deal has been signed. All debt has been paid off(I assumed that was immediate debt), Riddler has gone, announcing Sunday. Borley chairman."

I really hope the above is rubbish, just thought I would share.

[Bristol Rob]

With Cardiff in deep financial shite Dave Jones would an ideal City manager especially if he brought Gerrard, Whittingham, Burke and Chopra with him. He would not even have to move house....

His personal terms would be beyond us. Imagine if we had to pay him a salary AND provide him with one of those TAG things to get over the bridge every day.

No. Too expensive.

[lenred]

Sorry to soak everyones cops in piss, so to speak but I have just heard this:

" The Malaysian deal has been signed. All debt has been paid off(I assumed that was immediate debt), Riddler has gone, announcing Sunday. Borley chairman."

I really hope the above is rubbish, just thought I would share.

Bugger......double ******* bugger!! Hope you're wrong Mr Wolf but doubt it..........

[The Casual Connoisseur]

I usually am mate.

Think I may be correct though on this, makes complete sense, They will have to reduce the wage bill massively but that won't be hard considering the number of players out of contract.

The only thing I don't get is the timing, if they go into admin then the takeover would be considerably cheaper, something smells fishy, I presume that's where risdale comes in.

[22A]