Dundee to go into administration
Dundee will go into administration after they failed to negotiate a deal with Her Majesty’s Revenue and Customs over their tax debt of £365,000.
This will be the second time in seven years that the club has gone into administration and the club is now expected to be deducted points and for a number of the staff and players to receive redundancy
packages.
The Dundee club have yet to issue a statement about the club entering administration, but a number of leading officials have stated that the move is “imminent”.
Dundee benefactor Callum Melville had committed his future to the club by guaranteeing Dundee’s future for the next five years.
However, Melville has experienced difficulties in his company Cosalt and has backed away from his earlier position. The businessman has invested over £1.3 million in the club, but has stated that he cannot
put the same amount of investment into the club and has indicated he can’t commit to Dundee.
Dundee had hoped to arrange a settlement with Her Majesty’s Revenue and Customs by providing a one of payment and negotiating a loan agreement for the remaining deficit.
Melville is believed to have offered £200,000 to further negotiations with the tax collectors and to provide the staff and players of Dundee with their wages.
The players and staff at Dundee received only half of their wages on Wednesday and their future at the club is now in doubt. Manager Gordon Chisholm said, “I don't think it's fair that it is dragging on.
There are a lot of people in the dark here.”
Local businesses had also stated that they would offer £75,000 as a further payment to Melville’s to insure the future of the club.
Yet, negotiations have seemed to fail and the only way forward for the club seems to be to enter into administration.
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