Dundee Football Club face administration
Wed 6th Oct 2010 | Football Club Administration
Dundee Football Club looks certain to go into administration after they failed to pay players and staff outstanding wages on Tuesday.
The Scottish Division One club are discussing a £350,000 debt with the HMRC.
Dundee failed to pay salaries last Thursday and have promised to pay half of what is owed on Wednesday.
But, ahead of the news of splits emerging within the Dundee boardroom, Player's union chief executive Fraser Wishart told the BBC: "Our opinion is that the club has fundamentally breached the players' contracts.
"Why is there money in the bank and yet the club can't pay the wages? That's the fundamental question that hasn't been answered.
"We have advised the players to continue to train, but there will come a time when players can't justify training because of the costs involved."
HMRC is seeking payment for the period between January and April 2010, when the club failed to pay their PAYE and National Insurance bill.
It is however, the taxman who could lose out entirely with the club owing about £1.6m to directors Melville, Bob Brannan and landlord John Bennett in soft loans.
The trio could push through a creditors voluntary arrangement, which would apply to all creditors, writing off the money due and forcing the club into administration.
With HMRC no longer having preferred creditor status, it would lose out on almost all of the money due to them.
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