Cardiff stave off tax man…for the moment

Cardiff City are set to settle their issue with the taxman this week – but the Bluebirds’ financial future is still shrouded in uncertainty, reports WalesOnline.

Cardiff City are set to settle their issue with the taxman this week – but the Bluebirds’ financial future is still shrouded in uncertainty, reports WalesOnline.

Under-fire chairman Peter Ridsdale is due at the High Court on Wednesday as Her Majesty’s Revenue & Customs seek to wind up the club over an outstanding bill of £2.7m.

Recent deals to sell off land near the Bluebirds’ stadium at Leckwith is thought to be enough to ensure Cardiff can at least come to an arrangement to end the threat of administration that HMRC currently carry.

But staving off the winding up petition will not signal the end of the issue for Ridsdale and the club’s money men.

And one financial expert has suggested the only way out will be securing major investment through a takeover or achieving promotion to the cash-rich Premier League.

"The fact is, when the club gets over this hurdle they will face another and another," said Keith Morgan, partner at accountants PKF, a specialist in sport finance and also a member of the Cardiff City Supporters Trust.

"If the club manages to get past this issue over the tax, they are then in a situation of each and every month finding the money to pay the wages – including the PAYE – and other running costs.

"If the debt is at an extent that it has put the club in this situation, it is difficult to see where the extra money is going to come from for the rest of the season.

"It is one reason why the Trust have been so eager to have a meeting so directors can be asked to explain that, while getting past stage one is one thing, how do they plan to deal with stage two, stage three and four?

"These issues are not going to disappear overnight.

"It appears the only way out of it is either through substantial new investment or promotion to the Premier League, neither of which are guarantees by any stretch."

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