The deal to take over Wigan Athletic Football Club has collapsed this morning after the administrators revealed that the Spanish bidder had reduced their offer by 50 per cent.
The offer would not have allowed the club to pay its non football creditors and would therefore have seen them effectively relegated this season to League 2
In a statement the joint administrators said:
As of 11 am today, the Administrators have broken off negotiations with the Spanish bidder. The facts are that as late as Christmas Eve the Bidder indicated that they wanted to complete the deal immediately and had wired money from Spain to their UK solicitors. This was confirmed as being received by their solicitors over the Christmas period. The sale contract was agreed, the documentation had been signed in relation to the assignment of the leases with the Council (Stadium) and College (Training Ground) and completion was planned to take place in between Christmas and New Year.
However, over this weekend we received a letter from the Bidder reducing the bid by almost 50%. This would not allow us to pay non-football creditors the required 25p in the £ to avoid further sanctions against the Club. This would result in a 15 point deduction and would effectively relegate the Club to League 2. The Purchaser was insistent on offering the reduced price but was not prepared to conclude the deal unless the 15 point deduction was waived. Under the EFL insolvency policy, this is not possible and the deal is therefore unable to be concluded.
We have informed the EFL and are now starting to talk to other bidders who have expressed interest and will provide an update when there is any definite news.
