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Last Post sounds for Gretna, set up by war heroes to give village hope



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Published Date: 03 June 2008
JUST over 60 years ago, servicemen returning from the Second World War set up a village football team which helped to bring life back to normal after five years of tense conflict. For most of the six decades that have passed since then, Gretna Football Club have ticked along at the heart of the tiny local community – followed by only a few, but loved nevertheless.
Today as the Last Post sounds for the club, its official demise is no more than a formality with Raydale Park being put up for sale. Even if a new team rises from the ashes of the current club, the sale of Raydale would leave any reincarnation with nowhere to play. Just six years after their election to the Scottish Football League and subsequent extravagantly funded romp to the Scottish Premier League, with a Scottish Cup final appearance and Uefa Cup participation achieved along the way, the club who began life in the Dumfriesshire Junior League in 1946 has seen its romantic story come to a bitter end.

Demotion to the Third Division by the SFL last Thursday effectively killed off any prospect of an 11th-hour rescue for Gretna who entered administration in March with debts of around £4million after their benefactor Brooks Mileson withdrew his support for the club.

The SFL management committee considered a business plan from a Glasgow-based consortium interested in taking over Gretna as a First Division club to be "fundamentally flawed" and that potential lifeline was withdrawn over the weekend.

David Elliot, of Yorkshire-based administrators Wilson Field, informed the SFL yesterday that Gretna would not be able to fulfil their fixtures next season and anticipates their expulsion to be confirmed this week. While he confirmed that Gretna have now ceased trading as a football club, however, Elliot does not intend to put them into liquidation as that course of action would impact adversely on the plans to sell Raydale Park to "parties outside football".

In the last set of club accounts, the ground was valued at £850,000 but the attractiveness of the site for developers could be limited by local council policy which states the land is for sport and recreational use.

"We have been concentrating on our first objective, which is laid down in the Insolvency Act, of trying to save the business," said Elliot. "Well, I've come to the conclusion now that's not going to happen. So we go back to our agents to discuss how we now market it outside of football.

"I'm not thinking of formally putting it into liquidation because there may be some tax reasons for selling the ground in administration, but in effect there will be no trading. That's it.

"In terms of the wording of this, technically we still hold a share in the SFL's Third Division. But they are asking me today if I can fulfil fixtures next season and I now respond that I can't, so it will now be a matter of days before they come back and say the share is taken away. We are still in the Third Division of the SFL, but that is going to change within days just as soon as the formalities are completed."

While Gretna basked in what was painted as 'living the dream' under millionaire businessman Mileson's indulgence, Elliot believes they were effectively living a lie which has now been graphically exposed.

"The problem with this club is it started off in 1946 with a group of ex-serviceman coming back from World War Two setting up a village football team," Elliot told BBC Scotland. "Then a few years ago, Mr Mileson took over and injected a lot of money into the club and it enjoyed a lot of success on the football pitch. But if you take away the benefactor, the person supplying the money, then financially you have a real mess.

"The actual debt is made up of different parts. There is approximately £1.8million due to Mr Mileson, he is claiming, or is in the accounts to that amount. The Inland Revenue are owed approximately £500,000 and an ex-manager (Rowan Alexander] has put in a claim for breach of contract for £800,000. There are other trade creditors on top and amounts due to footballers of approximately £100,000.

"The prospective purchaser had produced a business plan based on First Division football, so he has formally withdrawn. One of the underlying points for the SFL is that they want the integrity of their competition to be protected. What they don't want is an administrator at the start of the season who will pack up after a couple of months.

"Quite clearly, I do not have any funds at all. I was being funded by the SPL to fulfil their fixtures and the SFL were not going to be in a position to fund me, so it was a fundamental breakdown that I couldn't do it. The only way it could be done was if a third party came, but that third party has withdrawn."

The SFL will invite applications to fill the vacancy in the Third Division, but their chief executive David Longmuir said last night the process would not begin until Gretna's position had been made absolutely clear.

"We are still waiting on total clarity from the administrator on Gretna's situation," said Longmuir, "so we can't open up a vacancy at the moment. If we have one, then we would hope to elect a new member of the SFL before the end of the month."

As for the future of football in Gretna, there is one possible lifeline for the game if not for the club. The land at Raydale is earmarked for sport and recreational use by the council, and any non-football development could be rejected. But today, with league membership slipping away and the club having no employees to its name, this technicality looks like the proverbial straw to be clutched at.



The full article contains 1008 words and appears in The Scotsman newspaper.
Page 1 of 1

  • Last Updated: 02 June 2008 10:46 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Gretna FC
 
1

Jock MacSprog,

03/06/2008 00:45:22
in an open and free market, some things need to be allowed to fail. Artificially keeping this mess of a business on life support just because it is a football team serves no one.
2

GeorgeCowieOrWalterKidd?,

03/06/2008 00:51:37
Maybe in future our esteemed football administrators should insist that any club coming into the top league in the country has... hmmm, I don't know... a ground!

Call me crazy but at least that way they have a chance of attracting supporters to their games, building community and generating income. The SFA and SPL hastened Gretna's demise by allowing them in despite no ground. Since when did a club with no support or ground ever have a chance of doing anything, with or without a millionaire owner. They should have been left in Div 1 until they had a ground and got promoted again.

Mistake two by the SPL/SFA - allowing Gretna to continue operating just because they wanted to avoid upsetting either of the OF by discounting all games vs. Gretna. I'm sure those owed money were delighted that salaries, ground rent etc continued to be paid out while they sat waiting for their money.
3

Der Kaiser,

03/06/2008 01:13:33
Being let into the SPl ultimately resorted in their demise. In my opinion the hypocrisy shown by the SFA to allow them in when bigger clubs were being knocked back previously for stadium reasons was disgraceful. It's sad but at least now when my son is older I'll tell him all about the 2006 Scottish Cup Final.

"Dad...who were Gretna?"
"Oh...they were an amazing team, full of superstars. Everyone thought they'd walk the cup final but Hearts battled like warriors to take them to penalties before bravely killing them off to lift the trophy"

Hopefully his next question isn't
"Dad....who were Hearts?"
4

GeorgeCowieOrWalterKidd?,

03/06/2008 01:21:39
#3 Hearts will always be around in some form. If the worst happens and they go into administration or whatever, they'll be back, just as Livingston, Motherwell, Dunfermline, Hibs, Celtic, Dundee... have all been in admin or close enough, only to come back - and all but one of those have smaller fanbases. If we don't appoint a manager because Romanov refuses to hand over control, then dropping down the leagues or whatever will be my preference to another wasteful season like the last one.
5

SAME RULES APPLY !!!,

03/06/2008 01:58:56
#4
I hope you are right, but the demise of Gretna is down to the folly of one wealthy man.
The bigger fanbase will not allow Hearts to suffer the same fate hopefully, but the huge expenditure on the new stand could be a highly significant factor.

I'm not going to get in a daft financial debate with anyone, (there have been enough of them in the past)but when a team are offloading players and cutting wages, it seems crazy to be investing massively in an over-elaborate stand. There is just not a lot of money around in Scottish football outside the OF. It's a boring league format and the SPL leadership is a joke as you rightly point out in post #2.

I don't know anything about hotels, but the one next door to me is doing B&B at £25 a night just to fill the rooms. Hardly looks like the goose that lays golden eggs to me.

SAME RULES APPLY !!!

6

,

03/06/2008 02:38:20
Comment Removed By Administrator
Reason:
7

GeorgeCowieOrWalterKidd?,

03/06/2008 02:40:39
#5 The stand is being financed separately, with costs being offset by partnerships and sponsorships. Income generating aspects of the project include about 5000 extra seats. That's an extra 750,000 quid or so a year just for the guaranteed six sell-outs during OF games plus derbies - no small potatoes. Plus 25 new corporate boxes plus extra snacks, programmes, matchday dining and merchandise sales.

Then there's the hotel (Edinburgh has a shortage of rooms plus opposing teams might stay there and visiting fans), gym (cash cow), bar (ditto), restaurant (ditto) and flats (ditto).

Then there's the prospect that a better Tynecastle will attract more internationals and high-profile games. Plus more money and jobs for the community.

It's a great project but until the cooncil approve it, nothing's getting built anyhow and if Romanov keeps messing with the team there's no point really.
8

Louis Catorze,

03/06/2008 08:01:01
#8....Can anyone who wants to buy it what?
9

CondoleezzaCousCous,

03/06/2008 08:21:29
Typical. Hearts fans hijacking a thread that's supposed to be about Gretna.

10

Brother Walfrid,

03/06/2008 08:43:13
Hearts have yet to make a clear statement as regards how the finance for the new stand is to be raised.
They have given an outline of the mechanisms by which they hope to raise the finance, but they have not identified ACTUAL sources of cash.
11

Iain Bhern,

03/06/2008 08:53:45
#5 interesting point but I doubt visiting teams would stay in the hotel. They tend to stay well away from grounds and try where possible to keep their location quiet, so that it is just that, quiet. Remember tales of UK teams being kept awake at their hotels by fans when abroad! However it has to be said that if Hearts achieve regular European football then the opportunity is there to offer visiting fans a package deal of match tickets allied to B&B in the hotel. That's always assuming that the hotel isn't five start standard and is affordable for fans to stay there.
12

Iain Bhern,

03/06/2008 08:54:55
sorry my post #12 was responding to #7 not #5
13

Boris,

Top of the curtain pole 03/06/2008 09:01:00
The SPL allowed Inverness to play at Pittodrie, and once the Caledonian Stadium had been upgraded there were no problems. The distance between Gretna and Motherwell is 75 miles up the M74. Inverness to Aberdeen is 100 miles along the utterly crap A96. Why should the SPL doubt that Gretna, with a millionaire benefactor, not be able to achieve what Inverness had done? The fault is Mileson's, and Mileson's alone.
14

Alastair the First,

03/06/2008 09:03:03
2: Agreed, quite disgraceful that the club was allowed to continue to trade for two and a half months when the administrator siad that as soon as he arrived he realised the business was non-viable. He has hoovered up hundreds of thousands of pounds that should have gone to the creditors. The SPL come out of this with no credit - they poured money into David Elliot's pockets just out of self-interest. And they claim to be creditors - if so why did they continue putting money in after the club went into administration.

Whole thing stinks to high heaven.
15

McGinty,

03/06/2008 09:21:54
Without a decent fanbase they were always going to struggle, maybe they should have joined up with Lockerbie or something, give the Lockerbie neds something to think about.
16

Iain Bhern,

03/06/2008 09:23:33
#15 the money that the SPL gave to Gretna was money that was due to them. Normally it would have been paid at the end of the season but was paid early so Gretna could fulfill their fixtures. It is not the first time money has been paid early to a club in financial trouble so a precedent had been set.
17

Cathcart Boy,

London 03/06/2008 09:42:11
I never believed the Gretna dream, never bought into the Mileson hype. I have been critical of the Administrator's approach from day one. Let's look at the debts.
Total alleged = £4m. Less due to Mileson £1.8m = £2.2m Less Rowan Alexander £800K = £1.4m. Ground value = £850K
Looks like we're talking about a manageable sum to refinance.
Director / shareholder loan ranks last for apyout in liquidation, only ahead of shareholders. Rowan Alexander was reportedly dismissed due to personal problems, so a credible defence leading to settlement ought to be available.
A liquidator would look properly at Mileson's conduct as a director, and Mileson may be liable to make a further contribution to the deficit incurred whilst Gretna was trading whilst insolvent. A further £1m from Mileson alongside sensible negotiation of other liabilities may have enabled the club to continue.
Maybe I'm wrong.
18

hibbyspurs,

03/06/2008 10:54:50
Dramatic expansion has nearly always ended in disaster or near disaster. Wimbeldon? Propelled through the English leagues to the top flight and survived for sometime but eventually could no longer compete because of a poor fan base and lack of revenues. Where are they now? Playing in Milton Keynes and on a slow road to recovery only because someone had the guts to shift them out of London to somewhere they may ctually develop a fan base.

Another business had plans to propel itself to the top of its market with an outrageous business plan that proved totally unsustainable and now finds itself under the ownership of the state.

Both these show that Milesons business plan for Gretna was pure fiction and relied on him propping up the business with his own money. Whilst Mileson was no doubt wealthy he was never going to have a bottomless pit and when he fell ill I'm assuming that some sort of power of attorney was granted to his son to deal his affairs, most likely his son was faced with a straight choice between keeping his family afloat or keeping Gretna going in the short term until both went under anyway it wasnt such a hard decision for him to take.

The problem here is that Gretna FC allowed themselves to be taken on a ride by a philantrophist who wanted his ego massaging so much that the only way to do it was to run as hard as they could in an attempt to conquer Scottish football. Rather than put a sound business plan in place and build the club up over a decade or more, Mileson wanted it now, now, now and ploughed money into he playing side with scant regard for the ground or infrastructure of the club. He achieved his dream of taking Gretna to a cup final, the SPL & European football and lapped up all the plaudits and fairy tale story tellers along the way. Now its all gone bristols up hes sloped off with his family and their silence is deafaning. Gretna have paid the ultimate price for being one mans play thing.

All clubs should be wary of prospective
19

Robert de Nero,

03/06/2008 10:57:14
This is a shame, dont think greta were ever excepted.
20

hibbyspurs,

03/06/2008 10:59:47
#19 cont....

All clubs should be wary of prosepctive "sugar daddy" type benefactors and even more so the handful of clubs up and down Britain who already have one in place (Thats a general statement, not a dig at any particular club). When these guys lose interest, become unwell, die, lose their money they will just withdraw the funding and leave the club to carry the can and ultimately the supporters will lose the club they follow as well and thats probably the saddest part of this.

I'm sure Gretna fans would be delighted today if their club was an SFL club still in Division 2 but building slowly towards the first division and sustainable SPL status. Instead they have suffered the tragedy that "boom or bust" often brings and now have no club at all to follow.

RIP GRETNA FC.....
21

Rolland,

03/06/2008 12:11:58
Sad, but thanks for the memories it really was a great day out at hampden with you boys in 2006.

You can at least hold your heads high in te knowledge you came closer to seeing your team win the cup than any living hobo.
22

hibbyspurs,

03/06/2008 12:15:47
#22

Rolland.... Ssshhhh lad..... Your just being sill again.
23

JT fae Cardiff,

Edinburgh 03/06/2008 12:33:18
what hearts need to be wary of about the gretna fiasco is 1.8m of the 3.8m debt which is crippling them is owed to mileson himself.

So much for "its like owing money to yourself". If mileson wants his dough back you can rest assured ukio will want their overdraft paid up.
24

GersFanOfFitba,

03/06/2008 13:41:51
#18. As I understand it, Alexander was able to get a summary judgement against gretna because they didn't have funds to be able to pay the lawyers to defend the case. This all happened before the club went into Admin, which means that they have to pay it!

What a shame, eh?
25

Gerry M,

03/06/2008 13:56:23
2

Gretna were not allowed to stay on to keep the "OF" (not my terminology) happy, they were kept on to keep Rangers happy. HAd points been deducted from the Gretna games then Celtic, who had played them one less time than Scotland´s Shame would have gone top. And the SPL couldn´t have that now, could they?

Still, in spite of the cheating in all corners Celtic are deservedly Champions.
26

Daillyman,

03/06/2008 15:12:00
A club passes into the abyss and you go on about CFC/RFC. What a silly comment, stop moaning you won the league.
27

,

03/06/2008 19:16:19
Comment Removed By Administrator
Reason:

 

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