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Championship News: Cardiff Face New Payment Demand

By Jon on Thursday, 22nd July 2010 Championship News: Cardiff Face New Payment Demand thumbnail

Debt-ridden Cardiff City are facing yet another demand for repayment of owed money from Scottish club Motherwell.

A statement on the Well’s official site said that the money, owed for defender Paul Quinn last summer, was overdue and would be recalled immediately.

Quinn, who transferred last summer for a fee in the region of £300,000, is apparently subject to a staggered payment agreement however Motherwell insist the monies owed go back to January.

A club statement read:

“The board have been very patient with Cardiff given the financial pressures they have faced,” said chief executive Leeann Dempster.

“However the interests of our shareholders, employees and fans are being jeopardised by the failure of Cardiff City to pay the debt that they have outstanding.

“We have made clear to the board of Cardiff that we are left with no option but to pursue every possible avenue of recourse to secure our own club’s interests. We hope that this matter can be resolved in an orderly manner.”

Cardiff have responded via a statement from chief executive Gethin Jenkins who said: “We are fully aware of the debt owed to Motherwell and we are working to resolve the issue as soon as possible.”

The Bluebirds are already subject to a transfer embargo due to monies owed to HMRC for owed sums of PAYE, and are not allowed to register any players that they sign. They have already taken on loan Danny Drinkwater and Tom Heaton, who are not allowed to play for Cardiff under the embargo.

It is the latest in a long recent line of problems to blight the club who are rumoured to be in as much as £66m worth of debt to various creditors.

It is not the only debt owed to another club over the transfer of players either, with £500,000 owed to Charlton for the transfer of Mark Hudson, and £1m to Sunderland for Michael Chopra.

The club face a winding-up order at the High Court on 11 August over an unpaid PAYE tax bill owed to Her Majesty’s Revenue and Customs which stands at £1.3m.

Cardiff released a statement earlier this month saying they had paid off one month of the bill but did not indicate whether the winding up order is still in place.

Cardiff received a £6m investment in May from a Malaysian consortium headed by Dato Chan Tien Ghee, who succeeded Peter Ridsdale as chairman.

Jon Osterland

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