Post by QPR Report on Feb 12, 2010 7:43:13 GMT
The Times
February 12, 2010
Crystal Palace sale hit by legal complexities over Selhurst Park
Crystal Palace's hopes of leaving administration are handicapped by difficult issues over the ownership of Selhurst Park
Gary Jacob
A complex legal wrangle over the control of Selhurst Park is hindering the potential sale of Crystal Palace.
The battle has significant repercussions because the Coca-Cola Championship club, who are in administration, are unlikely to be sold unless stadium ownership is part of any deal.
That is not certain because the company that owns the ground is under the control of a separate administrator, PricewaterhouseCoopers. But the accountancy company does not yet have the authority to take control of the ground and set a price on the site because of legal obstacles. Until those are resolved, Palace are in limbo.
Concerns have led Andrew Pelling, the MP for Central Croydon, to write to Lloyds, which holds the £12 million mortgage on the ground, and Croydon Council is adamant that the site must remain the club’s home or at the very least a sports stadium, effectively issuing a warning to property developers considering buying the site.
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More pressing, however, is that Brendan Guilfoyle, a joint-administrator from P&A Partnership, had believed that he had obtained sufficient money, through the sale of Victor Moses for an initial £2 million to Wigan Athletic, to run the club until the end of the season.
But now Guilfoyle has received a demand for £1 million in unpaid rent and the club must also pay another £1 million to the stadium owner in April as part of a rental agreement made when the ground changed hands in 2008. That deal meant the club’s rent increased from £350,000 to £1.2 million, for which Palace agreed also to pay a £2 million fee, half of which has been paid.
Even exiting administration will be an onerous task. The club have debts of £32 million, about £20 million of which is owed to Simon Jordan, who bought the club ten years ago.
Jordan’s concern that he could receive a fraction of that amount means that he could choose not to endorse a potential takeover if other creditors are paid higher proportions. That could lead to a further points penalty for not exiting in accordance with Football League demands.
Victory at home to Aston Villa in the FA Cup fifth round on Sunday would earn the club £180,000, small change in relation to their problems.
www.timesonline.co.uk/tol/sport/football/football_league/article7024224.ece
February 12, 2010
Crystal Palace sale hit by legal complexities over Selhurst Park
Crystal Palace's hopes of leaving administration are handicapped by difficult issues over the ownership of Selhurst Park
Gary Jacob
A complex legal wrangle over the control of Selhurst Park is hindering the potential sale of Crystal Palace.
The battle has significant repercussions because the Coca-Cola Championship club, who are in administration, are unlikely to be sold unless stadium ownership is part of any deal.
That is not certain because the company that owns the ground is under the control of a separate administrator, PricewaterhouseCoopers. But the accountancy company does not yet have the authority to take control of the ground and set a price on the site because of legal obstacles. Until those are resolved, Palace are in limbo.
Concerns have led Andrew Pelling, the MP for Central Croydon, to write to Lloyds, which holds the £12 million mortgage on the ground, and Croydon Council is adamant that the site must remain the club’s home or at the very least a sports stadium, effectively issuing a warning to property developers considering buying the site.
Related Links
* ‘Small fish’ waits for Portsmouth to pay up
* Fearn gets official backing from Hackett
* Clough still stung by Gascoigne's wild tackling
More pressing, however, is that Brendan Guilfoyle, a joint-administrator from P&A Partnership, had believed that he had obtained sufficient money, through the sale of Victor Moses for an initial £2 million to Wigan Athletic, to run the club until the end of the season.
But now Guilfoyle has received a demand for £1 million in unpaid rent and the club must also pay another £1 million to the stadium owner in April as part of a rental agreement made when the ground changed hands in 2008. That deal meant the club’s rent increased from £350,000 to £1.2 million, for which Palace agreed also to pay a £2 million fee, half of which has been paid.
Even exiting administration will be an onerous task. The club have debts of £32 million, about £20 million of which is owed to Simon Jordan, who bought the club ten years ago.
Jordan’s concern that he could receive a fraction of that amount means that he could choose not to endorse a potential takeover if other creditors are paid higher proportions. That could lead to a further points penalty for not exiting in accordance with Football League demands.
Victory at home to Aston Villa in the FA Cup fifth round on Sunday would earn the club £180,000, small change in relation to their problems.
www.timesonline.co.uk/tol/sport/football/football_league/article7024224.ece