Scunthorpe United are said to be ‘at risk of entering administration’ after a proposed takeover deal collapses, say reports on Wednesday.
Grimsby Telegraph state that the National League side have been searching for a buyer for the last few months with owner Peter Swann looking to sell his majority stake in the club following relegation out of the English Football League.
However, he confirmed last week that a potential deal had fallen through due to the takeover group failing to prove funds despite passing the Owners’ and Directors’ Test needed in non league.
Understand Scunthorpe United are in genuine danger of entering administration if a takeover deal cannot be done soon. Two interested parties atm
— Aidan McCartney (@aidanmccartney) September 14, 2022
Speaking to BBC Radio Humberside, he said: “We are still negotiating. The buyer has to have the funds and I’m afraid that they didn’t have them.
“I’ve been working with a couple of other groups at the minute and we start again, virtually, on some of the stuff. It’s not easy to sell the club, as you can imagine at this moment in time, but that’s why I stepped away so I can crack on with that.
Swann adds that two other parties have been in discussions about buying the Iron but neither are at any kind of advanced stage, spelling bad news for the club.
He added: “If they can’t prove they have proof of funds, how are we supposed to proceed? There are still a couple of others bubbling under the surface so we caught up with them again and started to move on with them.
“Hopefully, we can get something done as soon as we can. It’s not an easy task but I am trying various avenues to get this deal done.”
He said: “People want me out yet they still want me to finance the football club. At this moment in time, yes there will be a limit to that. I don’t know when that is, when that decision will be made but I’m doing my best to give the football club the best future it can. But it’s not great, we haven’t had great results over the last few years but I’m trying to make sure the club has a future. I’ve always said that since day one.”
But the way it’s looking, the future of Scunthorpe United is at serious risk, they currently find themselves bottom of the National League picking up just four points from the opening eight matches, administration and a points deduction now looks a possibility.
Asked by BBC Radio Humberside if the club could go into administration, Swann didn’t want to speak about that: “I’m not going there, I’m not going down that route. I’ve told you where we are and we’ll try to get a deal done.”
I’m told rumours of the club being set to go into administration are unfounded.#Iron interim manager Tony Daws also told me last night that Will Swann left his role as chief scout following the departures of Keith Hill and Tony McMahon.https://t.co/BxWuUYYGz5#UTI
— Ollie Turner (@olivercturner) September 14, 2022
The Swann family have been Scunthorpe owners since 2013, saw the side reach the League One playoffs, followed by relegations, ended their 72-year stay in the Football League and Swann previously claimed that they would have gone into administration had it not been for a EFL loan.
They continue to put money into the club, but with time running out to agree on a deal, the potential of the club being plunged into administration with Grimsby Telegraph adding it’s something we could see in a matter of weeks.
This is what fans had to say with Scunthorpe United ‘at risk of entering administration’ as the takeover deal reportedly collapses…
@GrouchoMarx79: We are definitely going down that route.
@rhpw: It’s looking increasingly likely.
@harryfinnigan: Which, in Peter Swann language means, we are definitely going down that route
@foreverayellow: getting steve dale vibes here, didnt he also say Bury wouldnt go into administration acting like he’d end up being the hero, where are they now?
@badapple365: If someone came along and said they had a new home and ground for the club he’d sell it for £1 straight away. The realisation that the club needs to find a new home very soon will be the stumbling block.
@41henshawstreet: Remember Scunthorpe beating #millwall in the play-off final in 2009? Remember Charlton singing “we’ll never play you again”? Have a think before you have a moan about not scoring enough goals or conceding too many. We’re doing alright boys.
@aaron_challoner: You do feel sorry for any fanbase that has to go through this kind of thing. Sad news to hear and hopefully the club sorts something out soon
@CFLfanUK: The decline has been so sad 💔
@Mikey20Wright: Props to you for asking the hard questions. The answer all but confirming that is the route we are going down. 9 years of lies #swannout
@LancsIron: Whilst it is a rumour am not sure it would suit the Swanns admin as if they are a owed money they too would only get 20p to the pound maybe or whatever or maybe even nothing back. May be better for them to lower the price at that point to make more back
@jtb150295: “I’m not going to apologise for keeping the club solvent or the investment I’ve made” – he has single-handedly made the club not solvent by chasing a fantasy that only he believed!
@northwestiron: A nasty, petulant, prick. Put him in the Stocks at Ashby Market.
@ironbru_net: Administration or not, we are going down.
@DaCo1974: I’d already accepted this pre season. Anything else other than that would be an unexpected bonus.
@capsnbovril: As things stand can’t see 4 worse teams than us come the end of the season 😕
@WitlessWolrab: Administration is the least of their worries, its all part of that fat cnuts game plan
Scunny fans were sold the dreams of a new stadium, new players and a push for the Championship & now look at what a sorry state they find themselves in – heartbreaking https://t.co/EIGQoLiA7u pic.twitter.com/yxYZCpqS6b
— Matthew Stanley (@jordichef) September 14, 2022