A Dundee business leader says it is up to each business to decide whether it wants to get onside with Dundee Football Club again.
Alan Mitchell, chief executive of Dundee and Angus Chamber of Commerce, said he could not second guess the attitude of the business community about trading with the Dens Park outfit after their latest survival battle.
On Tuesday a Creditors’ Voluntary Arrangement was reached to keep the club in existence despite it entering administration for the second time in seven years with debts of £3.84 million. Creditors will receive only 6p in the pound for the sums they were due, however.
On the previous occasion the club’s total debts amounted to £23 million although that included a £4.5 million valuation of Dens Park. The actual deficit in 2003 was put at £18.2 million.
In terms of numbers, most of the latest creditors are small businesses owed sums of between three and four figures cash that may be significant for their operations.
Asked if he thought the bruising experience would scare them away from doing business with Dundee FC again, Mr Mitchell said, “All business relationships are ultimately based on mutual confidence and it is not for me to second guess the extent to which the business community will have more or less confidence in Dundee FC as a commercial partner in the future.
“Each individual business will reach its own decision. Part of that decision will be about business but the reality is there is a degree of romanticism about football and people can behave differently when football clubs are involved.”
Mr Mitchell added that these were challenging times for businesses and Dundee FC was not the first commercial venture to run into difficulty.
The CVA is costing the public purse over £460,000 with Revenue and Customs, whose action to recover its debt prompted the club’s latest administration, owed that sum.
HMRC, which opposed the CVA, was on Wednesday still considering its position but it may mount a legal challenge to what it regards as its defeat.
Tayside Joint Police Board was due £31,535 in payment for policing matches at Dens Park. The amount due the last time the club went into administration was £25,386.
A force spokeswoman said, “Tayside Police will continue to police matches at Dens Park. However, should the club come out of administration, we will enter into a discussion with the new directors with a view to ensuring this situation does not arise again.”
Dundee University was due £14,003, a sum understood to include the hire of training facilities at Riverside. Dundee City Council was due £6164 covering rates, waste collection and the hire of training facilities at Caird Park. A spokesman said, “We will be discussing the situation with the club in looking for a way forward.”