A very sad day for small-town football as Bury FC was expelled from the English Football League...
A small team hailing from Bury, greater Manchester has been expelled from the football league after 125 years. There was a last minute takeover bid from C&N Sporting Risk an analytics firm but the deal collapsed.
Harsh realities for other small-town teams with terrible financial histories. Their past accounts from 2016 and 2017 show that the club lost 5.3 million pounds on annual turnover of approximately 4.5 million pounds.
"We have considered the financial statements concerning the company's ability to continue as an on going concern. They indicate the existence of material uncertainty, which may cast significant doubt on the company's ability to continue as a going concern," Kay Johnson Gee LLP auditors warned in 2017.
A winding-up petition was filed against the club was adjourned three times before eventually being dismissed by the High Court on July 31.
Potential new owners were also put off by a mortgage on their stadium, Gigg Lane.
Capital Bridging Finance Solutions was the lender and they are owed 3.7 million pounds whereby mortgaging Gigg Lane to a company based in Malta whose own lenders were 8 companies registered in tax haven in the British Virgin Island.
A substantial percentage of the borrowed money never showed up at the club, because 40% was paid as "introduction fees" to unnamed third parties.
It is sad for a team founded in 1885 and with so much sentimental values for families who live around that area to just shut-down with no help from the "rich" clubs of Manchester City and Manchester United just 10 kilometers away.
Business is business but at times sentimental values surpass the mighty pound because it is the life of the people concerned and their community as well.
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| Stewart Day |
Steward Day is someone Bury fans wont forget. Financials started to show cracks under his ownership.
The Blackburn based property developer who focused on building accommodation for students saw his company borrow money on secured on Gigg Lane at 10% interest a month in 2014.
The interest compounded into 138% annual interest. From there on cracks showed unnoticed or rather ignored while Day continued building his flats and loading borrowing to Bury.
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| Steve Dale |
He later sold his club for 1 pound to Steve Dale and soon after that his companies folded into insolvency and administration.
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