Football: Palace given lifeline with rescue package

Click to follow
MARK GOLDBERG, the Crystal Palace chairman, is confident his club face "a new beginning" after a rescue package to secure their survival was officially approved yesterday.

The First Division side's directors were granted a High Court administration order, allowing Palace to continue in business despite debts of pounds 22m.

The corporate recovery specialists, Moore Stephens Booth White, have been appointed as administrators to implement a cost-cutting rationalisation plan as quickly as possible. The new administrators have reported an "excellent prospect of survival", with creditors having a better chance of recovering their money than if the company had been placed in receivership.

A positive Goldberg, who will be funding the administration personally and not by player sales, said: "Today's court order marks a new beginning for Crystal Palace Football Club." The plan has the backing of Ron Noades, the Selhurst Park landlord and former Palace chairman.

A cash flow forecast showed total expenditure of pounds 1.8m up to the end of July, with funds available to cover this amount, including an immediate cash injection of pounds 750,000 on the making of the administration order.

Simon Paterson, of MSBW, added: "We have a united board behind us and look forward to working with Mr Goldberg and his team to bring this to a successful conclusion. Football clubs who have previously gone into administration have ended up leaner and fitter as a result, with a sound financial base."

As part of the expenditure plan, the defender Craig Moore has returned to Rangers on a free transfer.