Hemmings foots Preston’s wage bill
LANCASHIRE tycoon Trevor Hemmings has again agreed to pay player wages at struggling football club Preston North End.
Hemmings is in the process of taking control of the club – more than 88% of shareholders have accepted his takeover bid.
The offer is still open but in the meantime a wage bill of £500,000 has been settled by Guild Ventures, a Hemmings vehicle.
The Championship club has long been dependent on Guild which is now owed £14.3m. Hemmings warned that he would withdraw his financial support if investors rejected his 5p-a-share offer, valuing the club at around £165,000.
He stepped in with a rescue takeover bid after Preston was served with a winding-up order for an unpaid tax bill from HM Revenue and Customs.
Preston, managed by Sir Alex Ferguson’s son Darren, made a pre-tax loss of £9.1m last year and has debts of £29.6m.
Following a financial review the club has concluded that without significant player sales and a reduction in player wages, a further injection of £5m is required to break even and fund the next football season.
