The club’s administrators have today released an announcement which is a major blow for the future Wigan Athletic.
The Latics have been up for sale since falling victim to one of the greatest sporting scandals of all time, and currently sit 22nd in the EFL League One table.
Wigan had been due to be under new ownership around the Christmas period, with interest from a Spanish group led by Leganes president Felipe Moreno Romero.
Unfortunately for the Latics, administrators had to break off negotiations with the Spanish group after the offer was reduced by almost 50 per cent.
A statement released on the club’s website says that would have resulted in Wigan being unable to pay non-football creditors and bring a 15-point deduction that would all-but guarantee relegation to League Two, having already been dealt a 12 point deduction at the end of last season, ultimately resulted in their relegation.
The sale of the club had first been agreed on September 30th, however the offer had to be restructured after the EFL rejected the takeover proposal in early December. The consortium has said EFLs legal requirements had not been satisfied.
It was hoped the creation of a new company, FLM Wigan Athletic Limited, would clear the way for a deal to be concluded but attentions have now been switched to alternative bidders.
–Joint administrators Statement–
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.
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To understand how Wigan came to be in such a precarious position read @marksparko’s twitter thread below…
In 2018 Dave Whelan sold Wigan Athletic to Hong Kong based International Entertainment Corporation (IEC) who specialise in gambling. Owned by professional poker player Stanley Choi of Hong Kong.
— mark ?? (@marksparko) July 3, 2020
June 2020. The club officially changed hands to Next Leader Fund (NLF) based in the Cayman Islands and only set up in January 2020. Majority share in NLF? You guessed it, Stanley Choi. How did NLF afford the takeover? A loan. pic.twitter.com/EZpbJcTW37
— mark ?? (@marksparko) July 3, 2020
IEC loaned NLF £28million with an interest rate of 8% rising to 20% if not paid back in 12 months. That’s £100,000 a week in payments which Wigan would not be able to afford. Sounds dodgy as hell right? Well the EFL didn’t seem to think swiftly approving the terms of sale. pic.twitter.com/bsgJ2QHU04
— mark ?? (@marksparko) July 3, 2020
On 24th June, NLF switched hands to a new majority stakeholder, Au Yeung Wai Kay. A week later, Chinese lawyers contacted administrators to instruct them to seize control of the club. The administrators themselves can’t even contact the owners, who have clearly ‘done a runner’.
— mark ?? (@marksparko) July 3, 2020
Has Au Yeung Wai Kay always dreamed of owning a football club in Lancashire? Doubt it. He paid £17million for the club + £28million in loan repayments. That’s £45million pounds to own a club for 7 days and then place it into admin. Why would anybody do that?
— mark ?? (@marksparko) July 3, 2020
Well, here’s why… This is a video of the head of the English Football League, Richard Parry, stating he’s heard a rumour that there was a big bet placed on Wigan’s relegation in the Philippines. Remember the past owner was a professional gambler who owned a string of casinos? pic.twitter.com/uW3PTkrOAL
— mark ?? (@marksparko) July 3, 2020
This video has since been confirmed as Rick Parry by the EFL. pic.twitter.com/ID43NgCrRP
— mark ?? (@marksparko) July 3, 2020
I wonder which Philippine-based gambling company could have been used? Well look no further than the front of Wigan’s shirts. KB88 bet. Director of KB88, Tat Man Cheung, left the company prior to take over then was reinstated 12 days before Wigan was placed into administration pic.twitter.com/9YjnnEiF2p
— mark ?? (@marksparko) July 3, 2020
KB88 brought into the club by the past owner and Darren Royle (Current Wigan Chairman). Royle used to work for KB88 Bet. He was also responsible for recommending IEC to Wigan Athletic when Whelan was looking to sell.
— mark ?? (@marksparko) July 3, 2020
Royle, since the administration news, has deleted his LinkedIn account. A coincidence or to cover up communications? pic.twitter.com/6TBYo9y9hc
— mark ?? (@marksparko) July 3, 2020
So why would somebody place a club into admin 7 days after owning them and only 6 games before the end of the season? -12 points is the sanction from the EFL, dragging Wigan back into the relegation places. Nobody would want that surely?
— mark ?? (@marksparko) July 3, 2020
Unless maybe you (or a close ally) gambled on the club going down and panicked as they started to pick up points and climb away. Does Au Yeung Wai Kay even exist? Or is he a fictional front man to keep Choi out of trouble? https://t.co/7RxxacU3dB
— mark ?? (@marksparko) July 3, 2020
Let me now take you back to August 2019, witnesses in the stand saw somebody get thrown out of the stadium for being wired up and illegally betting. Where in the world was he wired up to? Hong Kong. There’s a history of betting scams. pic.twitter.com/SB4Q96EKL0
— mark ?? (@marksparko) July 3, 2020
“It’s a well run club and the oddest situation I’ve ever seen” was the verdict of administrator Gerald Krasner. Wigan have always been a well run club, loss making, but controlled. We rely on funding from owners and have only spent money we either had or believed was incoming pic.twitter.com/sZ2kylzBal
— mark ?? (@marksparko) July 3, 2020
This money was quickly pulled from under the club’s feet by a transaction that was sanctioned by the EFL only weeks prior. The same EFL that then issued a -12 point penalty, punishing the club but potentially rewarding the owners and their carefully constructed plan.
— mark ?? (@marksparko) July 3, 2020
This is an international scandal that requires investigation at the highest level. Facilitated willingly by the EFL who proceeded to punish innocent people based on their own failings. We may be too far down the line to save Wigan but this CANNOT be allowed to happen to others.
— mark ?? (@marksparko) July 3, 2020
https://t.co/LRIDuz0WSRhttps://t.co/1bP08JaqA2
— mark ?? (@marksparko) July 3, 2020
Finally, a massive thanks to @sammorsy08 Paul Cook and the rest of the lads. You are all heroes as I hear despite looking at 20% pay you’re all on the bus to Brentford.
Please share this thread, this is potentially the greatest football scandal of all time!
— mark ?? (@marksparko) July 3, 2020
I must state, there’s no actual evidence for a bet placed with KB88. Not yet anyway.
— mark ?? (@marksparko) July 3, 2020
Important info in here, the Royles planned to vote AGAINST administration. Another board member, Chun Yiu Thomas Chan, was forced out to swing the vote in Wai Kay’s favour.
Despite any links, it looks like the Royles were on our side. https://t.co/0tQRSNuwtF
— mark ?? (@marksparko) July 4, 2020
Another theory for the motives behind this scandal….https://t.co/QN7x7wcOur https://t.co/sLRnetafMQ
— mark ?? (@marksparko) July 4, 2020
What happens next?
Wigan have been in desperate need of new owners since they were placed in administration when still a Championship club last season. A fire-sale of players has followed and Wigan have struggled at the foot of the League One table.
The administrators, however, are hopeful alternative buyers will now fill the void.
“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,” a statement added.
Fans have taken to social media to give their opinions…
I would never laugh at something like this. My club was days away from going bust a few years ago and it’s one of the worst feelings
— Mark Tompkins (@Mark_cobbler) January 5, 2021
Got to feel for Wigan Athletic and their fans.
Takeover has been confirmed by current chairman that its collapsed.
In these times, it’s going to be difficult to find a buyer but hope they do!#WAFC #Wigan pic.twitter.com/TOSHgyqirU
— Antonio Mango (@AntonioMango4) January 5, 2021
Sounds like Wigan are fucked, takeover off and a 15point deduction possible. From a late playoff push to get into the premier league to league 2 in the blink of an eye.
— Antoni Gostomski (@gompstomp78) January 5, 2021
HAPPY NEW YEAR 🤦♂️😂
This is pain!
The Spanish ruined us— Jake Nicholson (@jakenich1999) January 5, 2021
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