Welsh Wrexham could bust if not out of administration soon

Welsh Wrexham is on the verge of being saved � or on the edge of disaster � depending on if the club is brought out of administration before the start of the season Saturday.

The club's emergence from administration has been delayed because the Premier League believes a GBP 2.5 million loan to the club by Liverpool shareholder Steve Morgan has created a conflict of interest, according to the Western Mail.

Sources at the League Two club said unless the obstacle can be overcome in the next few days Wrexham could go out of business.

"I believe that if this is not resolved in the next day or two the club has gone," said the source. "Unlike all the other deadlines Wrexham have had there are no second chances with this one. The old business has effectively been dissolved and this wrangle means the new business has not got any money to proceed."

Morgan, whose wife is from Wrexham, said he has been working behind the scenes with Neville Dickens and Geoff Moss to secure the club's future, and feels frustrated by the Premier League's stance.

"I have worked very closely with Geoff Moss, Neville Dickens and the administrators for many, many months to try to guarantee a future for the club," Morgan said. "And to be thwarted at the death by red tape is not only very frustrating for me, but also the fans."

Morgan, who made his money by creating and then selling the Redrow Homes company, has offered the club a GBP 2.5 million bridging loan.

Morgan has a six percent stake in Liverpool, however, and Premier League rules say it was to rise above 10 percent, it would create a conflict of interest.

Morgan likely has no intention of being involved in the long-term, and his loan was to be repaid through the club's plans to sell off part of the Racecourse car park.

Wrexham was supposed to be officially handed over to Dickens and Moss at the end of June.

A spokesperson for the Football League refused to confirm the club would be out of business if nothing is agreed by Saturday, but described the matter as "pressing."

Spokesman John Nagle said the deal was in its "final stages."

Dickens said he remains confident a deal can still be struck with the Premier League.

"I'm hopeful we can get around it and I'm just waiting for the call," Dickens said. "I cannot bear to think what will happen if we're not out of administration, but I'm sure we will be because we're in the fixture list."

Source: euFootball.BIZ © Copyright 2006 - All rights reserved.