The risk of bankrupt football clubs keeps on increasing as clubs continue to spend outrageously on player wages.
Bankrupt Football Clubs
Bankrupt football clubs are becoming a common theme as clubs are spending on player wages well beyond their means. In the English Championship, the average wage-turnover ratio is at an alarming 107% as teams battle for promotion into the Premier League.
Let’s take a look at six English clubs that went bankrupt. These clubs have ceased to exist, were liquidated and then completely expelled from English football.
6. Aldershot FC
Founded in 1926, a 66-year history came to an end in the fourth-tier of football as Aldershot FC fell into bankruptcy after only three wins from 36 league games. The club’s spending was unsustainable as it spent way outside it’s means in an effort to stay in the Football League
Aldershot FC only gained promotion into the Football League in 1973. In 1987 the club made history when it beat Wolverhampton Wanderers in the inaugural Football League play-off, winning promotion into the third-tier.
Phoenix club Aldershot Town FC replaced Aldershot FC shortly after bankruptcy and started five-tiers below where the original club folded. A target for many Aldershot fans is to play at Wembley Stadium. Its a goal they were unfortunate to miss out on as the redevelopment of Wembley meant their 2004 Conference play-off against Shrewsbury Town FC was played at Britannia Stadium instead.
Aldershot Town FC in 1992 after Aldershot were liquidated. They play in the same stadium as the former Aldershot and same colours. They have a phoenix on the badge to recognise they started a new club to succeed the old one that was liquidated and thus no longer exists pic.twitter.com/EAsUE0pSe8
— Liam Kelly (@cfcliamk96) December 29, 2020
5. Maidstone United
Maidstone United joined the list of bankrupt football clubs just five months after Aldershot FC went bankrupt in 1992. After forming in 1897, Maidstone United only became a Football League team in 1989 after spending large sums of money.
After racking up unsustainable debts of £650,000, Maidstone United sold its stadium for development a year before entering the Football League. The club purchased a piece of land east of Maidstone for £400,000 with big plans to build a stadium. When council rejected the proposal the club had no backup plans.
Maidstone United’s bankruptcy changed the rules, with teams gaining promotion into the Football League now having to meet stadium requirements of a minimum 6,000 capacity, and at least 1,000 of those being seated.
Its a high stakes game for football clubs who aim for promotion into the Football League. Maidstone United have since been replaced by Maidstone United FC.
The last ‘bye’ in ‘Proper’ Rounds of #FACup was in 1992-93 season when Swansea City were due to play Maidstone Utd who had folded
The last ‘bye’ in the FA Cup though was just last season when @Shildon_AFC were drawn to play Team Northumbria in the EP Rd who decided to withdraw. https://t.co/4BEIVdFZV2
— FA Cup Factfile / Phil Annets (@FACupFactfile) October 21, 2019
4. Macclesfield Town FC
Macclesfield Town went bankrupt in 2020 after 146 years of existence, and with debts of £500,000. After an 11-year hiatus from the Football League the club survived a season of League Two football in 2018-19.
The club had a strong history of mostly non-league football, but the club did win the FA Trophy twice, and earned promotion to the Football League for the first time in 1997. Back-to-back promotions from the Conference earned Macclesfield Town their highest ever league position, earning a place in the third-tier of English football for the 1998-99 season.
Macclesfield Town’s relegation at the end of the 2019-20 season was too much for the club to survive. At seasons end they were deducted points for non-payment of player salaries and a failure to fulfil fixtures.
Stevenage FC benefited from Macclesfield Town’s bankruptcy as their relegation out of the Football League was reversed after initially finishing bottom of the table.
The club has since been replaced by Macclesfield Football Club who restarted their journey in the ninth-tier of English football.
Re Macclesfield Town FC: #SWA #TRFC #timeforaregulator pic.twitter.com/MYT7nDhqAY
— Mark Palios (@markpalios1) September 16, 2020
3. Chester City FC
After a 125-year history Chester City FC went bankrupt in 2010. Chester City in its prime was competing in the third-tier of English football, and the former club can boast a proud history which included the finding of Liverpool and Welsh legend Ian Rush.
Rush made the move to Anfield, 45 minutes away from Deva Stadium and he went on to become Liverpool’s all-time leading goalscorer.
Chester City FC were relegated out of the Football League at the end of the 2008-09 season after finishing 23rd. They would enter into administration only two weeks later. The club only managed to fulfil 28 league fixtures in the 2009-10 Conference season before expulsion from the league.
The club then joined the list of bankrupt football clubs, folding as a result of debts above £7m. . Phoenix club Chester FC would begin play from the 2011-12 in the eight-tier.
Three years ago today we were reporting on the death of a great football club, Chester City FC. pic.twitter.com/OjaUlF4D8o
— Paul Wheelock (@PaulWheelock) March 10, 2013
2. Rushden & Diamonds FC
Rushden & Diamonds were founded in 1992 and was bankrolled by the owner of the Dr. Martens shoe company, Max Griggs. Griggs merged two non-league clubs, Rushden Town FC and Irthlingborough Diamonds FC.
In 2001 Rushden & Diamonds earned promotion into the Football League and quickly reached the third-tier of English football in 2003. Griggs proceeded to transform the club’s home ground Nene Park into a Championship-worthy stadium, building state-of-the-art training facilities next to it.
By 2003 Dr. Martens almost went bankrupt, and Rushden & Diamonds was losing £2.5 million a year in operating costs. Griggs eventually sold the club in 2005, and the club lost its Football League status the very next year.
Less than 20 years since forming Rushden and Diamonds went bankrupt in 2011 and were expelled from the Conference. Phoenix club AFC Rushden & Diamonds was formed in 2011 and the club resumed football a year later in the ninth-tier.
A sad sight for those in our competition who recall going here over the years.
Rushden & Diamonds FC #NenePark pic.twitter.com/NCwIdx9xGw— The National League (@TheVanaramaNL) March 1, 2017
1. Bury FC
Bury FC was expelled from the English Football League in 2019 after 125 years in the Football League. The club played as high as the second-tier in late 90’s and their expulsion from the Football League was the first since Leeds City in 1919.
The first sign that an English football club is going bankrupt is late or failed player payments. That’s exactly what happened with Bury. Cash flow dried up as a result of poor financial management and Bury FC didn’t receive their salaries for 12-weeks.
Bury FC still remains dormant with debts in excess of £12.5 million. The club had created significant sums of money for the local Bury economy and their bankruptcy highlights the risk on small town economies when English football clubs go bankrupt.
A new club Bury AFC won promotion to the ninth-tier but there has been attempts to merge the two clubs to reignite football back at Gigg Lane.
League One club @buryfcofficial have been expelled from the English Football League.
They become the first team to drop out of the Football League since Maidstone’s liquidation in 1992. pic.twitter.com/rwHGczBsP1
— GOAL (@goal) August 27, 2019
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