Bury face threat of expulsion from EFL if they cannot pay debts
The Football League board will meet on Friday to consider the financial crisis at Bury after issuing a real threat of expulsion to the club on Thursday because the owner, Steve Dale, had not provided evidence that he has the money to pay its substantial debts and ensure it is able to field a team.
The EFL gave Dale a deadline of Thursday to provide full financial details, saying in a statement that if he failed it would consider issuing a formal 14-day notice to withdraw Bury’s membership.
“The EFL board is working diligently to avoid this situation but ultimately can only act upon information received or not received from the club,” the statement said. “The board has suspended the activation of this notice initially until close of business today [25 July] in order to give the club additional time to provide the outstanding information it has requested on a number of occasions, which includes the means of payment of outstanding football creditor debts and source and sufficiency of funding.” After the close of business on Thursday an EFL spokesman said the board would meet “to consider the various matters in respect of Bury FC following the expiry of today’s deadline”, but the league did not clarify whether Dale had provided the necessary information.
The Guardian revealed this month that Dale bought the club from Stewart Day in December without having satisfied the EFL, according to its regulations, that he had enough money to ensure its viability, and that he had still not provided the necessary information. Dale, whose business career has involved making money by taking over and selling the assets of financially troubled companies, had a company voluntary arrangement voted through last week which offers to pay 25p in the pound to unsecured creditors owed almost £4m.
EFL rules require Bury to pay in full the almost £1m they owe to “football creditors” – players, former managers, other clubs and agents. The EFL state
ment emphasises that Dale has not satisfied the league he has the money to do so, nor the necessary information on “the source and sufficiency of funding” required to be sure Bury can complete their fixtures.
There is also doubt, the EFL said, over whether Bury have “sufficient resources and facilities” to meet the safety requirements for Gigg Lane to host the club’s first scheduled League One game, against MK Dons, on 3 August. If the club’s safety advisory group does not approve the stadium arrangements, the league said, it could suspend Bury’s fixtures on that basis.
Dale has been contacted for his response to the EFL’s statement.