Southampton's owners in administration
Southampton have confirmed that their parent company, Southampton Leisure Holdings plc, has gone into administration.
Shares in the company, chaired by Saints chief executive Rupert Lowe, were suspended from trading yesterday and accountants from recovery and restructuring specialists Begbies Traynor have today been appointed administrators.
Southampton have debts estimated at £30million and are lying second from bottom in the Coca-Cola Championship, but they should avoid a 10-point penalty from the Football League as the club itself is not in administration.
Lowe, Saints chairman Michael Wilde and director Andrew Cowen have resigned from the company with immediate effect, although a statement from SLH said the club is "unaffected by these insolvency proceedings".
The controversial Lowe was chairman at the club for 10 years until his removal in 2006 but linked up with Wilde, the man who initially replaced him, to return to the boardroom last summer.
But despite introducing a number of cost-cutting measures, including loaning out big earners and closing parts of St Mary's Stadium on match days, the south-coast club remain in desperate financial trouble.
Lowe stated yesterday that placing the company in the hands of administrators was the only way to ensure the club's survival, and hopes the move will help attract much-needed new investment.
In a statement, joint-administrator Mark Fry said: "Southampton Football Club has a long history in English football and could be an extremely attractive investment for the right buyer.
"We are working hard to preserve the value of the football club and produce a positive outcome for all stakeholders, and I ask that fans continue to show their support for the team for the remainder of the season as we seek to show the best face possible to potential investors."
Saints are currently three points from safety and face rock-bottom Charlton at St Mary's on Saturday - and the news that they will not be deducted 10 points is unlikely to sit well with the teams around them in the relegation scrap.
