Darlington Saved - For Now!

Darlington Saved - For Now!

Sterling have bought the Reynolds Arena and become the new owners of the 25,000 seater ground on Neasham Road. The move comes as Sterling attempt to buy the club to protect a massive loan taken out by George Reynolds. The sale of the ground is not likely to increase the club's funds but could help reduce the debt.

This could make life easier for Sterling as they attempt to buy the playing side of the club however they still must reach a deal with all the creditors and crucially George Reynolds. The group are keen to buy the playing assets of the club however Reynolds has already insisted that Sterling must drop any bankruptcy proceedings against him.

The move to buy the ground could be considered quite a risky move. If the club is liquidated then Sterling will be left with no club to play in the ground and a worthless building. However Sterling's decision to buy the ground could allow a third party to come in and buy the playing side and rent the ground. However this seems very unlikely as there is no one else interested in the club.

This seems to be the equivalent of the bank repossessing your house after failing to pay the mortgage. However unlike houses football grounds are worthless if they have nothing to play in them. It seems on the surface not a lot will change from this development.

Taken from The-Tinshed.co.uk
Picture by Dafts.co.uk

Administrator David Field added: "The sale of the stadium to the Sterling Group has gone through, which means the club will be able to fulfil their fixtures until the end of the season.

"However, this is merely a short-term measure which gives us a little more time to negotiate the sale of the club. The club is continuing to lose money, and if no deal can be reached then the club will fold."

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