Bulls close to administration
Bulls face race against time to find way out of financial crisis
Last Updated: 26/06/12 11:34am
Bradford Bulls: Administration close
Stobart Super League side Bradford Bulls have just three days left to avoid going into administration.
Up to £1.2million is needed to safeguard Bradford's 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 thought the club currently owe £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.
Brendan Guilfoyle, an insolvency expert from the P&A Group who were asked to conduct a financial review of the club, admits he is not optimistic over their chances of pulling through their current crisis.
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, who would be the appointed administrator, told the Bradford Telegraph & Argus: "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 £1m 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."
If the Bulls go into administration they would almost certainly be docked league points - four if the recent examples of Crusaders and Wakefield were followed - but, more importantly, it would leave the club vulnerable to losing some of their best players.