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Tuesday, 1 June 2010

Liquidation for Crystal Palace Football Club?

Crystal Palace has been in administration for several months. The club's ground is owned by Bank of Scotland which seems to have a different view as to the future value of the ground if developed, than that held by the ONLY prospective purchaser of the club.

If no buyer can be found the likely fate of the club is voluntary liquidation. After that, extinction as the club will be expelled from the Football League.

The club's administrator Brendan Guilfoyle admitted he was "genuinely concerned" about the liquidation threat and said if a deal was not reached he would have to start selling Palace's best players.

The statement from the buyer (CPFC 2010): "We are trying to acquire both Crystal Palace Football Club and Selhurst Park.

"Everyone would agree Selhurst Park is pivotal to the long-term future of the club and CPFC 2010 have always made it clear they will not proceed without securing it.

"We reached what we thought was an agreement with Bank of Scotland, who are the major creditor of Selhurst Park Ltd.

"Subsequent to this agreement we have been sent a contract that does not reflect this agreement and is unworkable."

The sticking point in the negotiations appears to be over how much money the bank would receive if Selhurst Park was resold in the future.

Bank of Scotland has agreed to sell the ground to CPFC 2010 for a price lower than what a property developer may be prepared to pay but has asked for a share of any profit if it was sold again.

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