Guilfoyle admits he’s ‘pessimistic’ of Bradford Bulls’ prospects (From Bradford Telegraph and Argus)
Get involved: send your pictures, video, news and views by texting TANEWS to 80360, or email
Guilfoyle admits he’s ‘pessimistic’ of Bradford Bulls’ prospects
Brendan Guilfoyle thinks the Bulls look certain to enter administration after admitting the funds required to save the crisis-torn club were still not forthcoming.
Up to £1.2million is needed to safeguard the Bulls’ future until the end of the season, with HM Revenue & Customs having served a winding-up petition earlier this month over unpaid tax.
It is understood the club currently owes £98,000 in PAYE tax from May and the same amount for June, plus an outstanding VAT bill of £250,000 from the sale of the Odsal lease to the RFL, while the monthly wage bill is over £200,000.
The Bulls last week filed a notice of intention to enter administration, giving them a fortnight’s grace to complete negotiations with potential investors, but the moratorium keeping the taxman at bay ends on Tuesday.
Guilfoyle, an insolvency expert and partner in the P&A Group who conducted the independent financial review of the Bulls, would be the appointed administrator if the club are forced to enter administration.
Guilfoyle said: “I’m pessimistic about the prospect of avoiding it, but I think it’s going to go right to the wire.
“The moratorium expires on Tuesday and unless someone comes forward with the required funds then I don’t think the club will be able to avoid administration.
“The directors are trying very hard but I’m not currently aware of anybody who is willing to invest in the Bulls the kind of money that is needed. My own enquiries tell me that the club requires in excess of £1million to see out the season and I’ll find out early next week whether the notice of intention to appoint administrators will turn into an actual appointment.
“To be honest, the closer we get to that deadline on Tuesday the more likely administration is.”
Guilfoyle admitted potential investors could choose to wait until the club has entered administration and parked its debts to creditors before making their move.
He added: “If the club does go into administration it will be a very challenging administration for me because there’s no money.
“I’ll then have the immediate challenge of trying to secure the wages for July, which are due in the middle of next month.
“You’d be looking for a preferred bidder, someone who is going to fund you. Purchasers are interested by the assets but there aren’t any tangible assets at Bradford apart from the players.
“The amounts of money involved would obviously be reduced because you wouldn’t have to pay the creditors, but that’s not good either.
“You’d be looking to find someone to say ‘Okay, I will buy this club and I will stop it going out of business.’ “They would then provide the funding to enable you to pay the players’ wages while they did the deal. That’s the way you do it – find a preferred bidder and ask them to start funding immediately.
“There are lots of techniques to get you through it but none of them really work unless there is actually someone there willing to put money in.”
Mick Potter’s players will therefore go into tomorrow’s match against Wakefield with huge uncertainty over their heads.
Stand-off Jarrod Sammut has been named in the 19-man squad after recovering from a knee injury during the victory at Widnes on Easter Monday.