Wrexham FC Takeover Hits Deadlock

Deal for Wrexham FC hangs in the balance

News emerged from Wrexham Football club today of some staff wages not being paid and takeover deal stalling. This all against the backdrop of an embryonic cup run and the best league start and position in years.

The Wrexham Supporters Trust have been locked in firm talks since May and have recently been running the club ‘under license’ which in practical terms means they have been injecting cash into the club and preparing the ground for taking it over. Tonight they issued a statement to update their members, and wider fanbase of Wrexham FC to say:

“We believe there is now only one outstanding issue remaining in order to satisfy the Football Authorities. The Football Association has requested clarity about a guarantee for any future “contingent liabilities”. The Wrexham Supporters’ Trust believed that an arrangement with the current owners was in place to satisfy this requirement.

Yesterday, the current owners expressed a different view on this arrangement. The Wrexham Supporters Trust is now awaiting clarity of the owners’ position. Over the last six weeks, the WST has provided significant financial support to Wrexham FC within the context of its members’ mandate, but staff payroll remains the responsibility of the present owners.”

Speculation had grown with fans about the cause of the delay, with many blaming both the Football Association (FA) and the Football Conference. Tonights insight points to that being partially true, in terms of the FA requesting further information and guarantees before rubber stamping and authorising any takeover, however many fans assumed the ‘deal’ element was done and dusted.

The sticking point appears according to the WST to be over ‘contingent liabilities’ , which is a hypothetical liability that may or may not become reality in the future. This is likely to be related to taxation issues, for example VAT or National Insurance. The crux appears to be that the WST believed this had been agreed, and they say the existing owners have a ‘different view’.

The FA require information and guarantees to avoid a situation along the lines of Chester City FC (deceased) which failed to complete its fixtures after going bust.

Wrexham FC’s directors are Geoff Moss and Ian Roberts, both who were involved with two failed sporting ventures in terms of the Crusaders Rugby League, with the initial version of the team entering administration and the latter version being in the process of being liquidated. The Racecourse ground itself was recently sold to Glyndwr University, and land around the ground had previously been separated from the football club and now contains private student accommodation. This development has been retained by the current directors in a private capacity, not connected to the football club.

Wrexham.com understands Geoff Moss is due to issue a statement tomorrow (Friday) to explain his side of this story, and we will update as and when we have more.