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Page last updated at 09:25 GMT, Thursday, 18 March 2010

Cardiff City fans warn administration could happen soon

Cardiff City

Cardiff fans fear it is "virtually inevitable" the club will go into administration by the end of March if no new investment is forthcoming.

In a joint statement, Cardiff City Supporters Club and Trust said the investment needs to be "significant".

"The situation is clearly perilous," the statement said.

"Although we are led to believe there may be light at the end of the tunnel thanks to a written offer of investment from a Malaysian consortium."

The club has yet to comment.

In November, Malaysian businessman Datuk Chan Tien Ghee was given a place on the Cardiff board after investing in the club.

His arrival came on the day that the club were given 70 days to settle the tax bill after facing the first winding-up order in the High Court.

When the club returned to court in February, a second winding-up order was adjourned for 28 days after Cardiff paid £1m towards the tax bill, which then stood at £2.7m, leaving £1.7m to pay.

Then last week, the High Court gave Cardiff until 5 May, three days after the final game of the regular season, to pay their debt in full to Her Majesty's Revenue & Customs.

Half of the remaining £1.7m was paid last Tuesday, leaving £850,000. However, the HMRC counsel said club the payment was only possible after the club had defaulted on its ongoing obligations to pay PAYE and VAT.

Now the total stands at £1.9m.

The Bluebirds hope to raise an estimated £2.25m from the sale of two plots of land around the Cardiff City Stadium.

The club are also due to hold talks with Datuk Chan Tien Ghee over further potential investment.

Cardiff are currently sixth in the Championship and occupy the last play-off spot.

If they were to go into administration by Thursday, 25 March, they would be docked 10 points by the Football League, severely damaging their play-off hopes.

Any date after that, the penalty is carried over to next season if a club is automatically relegated.

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see also
Cardiff given tax bill deadline
10 Mar 10 |  Cardiff
BBC Sport Wales coverage
03 Oct 11 |  Wales

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