Football expert predicts 'legal route' to avoid Wigan Athletic paying £25m loan

Wigan Athletic have been in administration since July 1

The hefty sum - owed to Next Leader Fund - is on a list of Latics' creditors.

The prospect of handing over any money to the former owners would be difficult for many fans to stomach following their shock plunge into administration last month.

But any prospective new owner would need to pay 25p in a £ of all non-football creditors to avoid a 15 point penalty.

Co-administrator Gerald Krasner has previously spoken of a "strategy" to try and avoid it.

And British academic Kieran Maguire, author of The Price of Football, said: "I think they'll be looking at all legal options.

"Unless you pay 25 per cent of all non-football creditors there can be a 15 point penalty when a club comes out of administration and so, as it is, they would have to pay around £6m.

"That would be very challenging, given the price they are likely to get for the club.

"If they can classify it as some sort of a bad faith contract and therefore the club isn't liable, I'm guessing that's the legal route they may go down - and I'm not a lawyer, I'm a teacher - then it could be it wouldn't be included on the list.

"And that would increase the chances of hitting the 25 per cent threshold (for paying non-football creditors)."

On Thursday evening the administrators issued a statement threatening to reconsider their position if a buyer isn't found by the end of this month - leading to fears Latics may be liquidated.

Maguire, who co-presents the podcast, The Price of Football, said: "From the administrators' point of view they don't want to commit to running the club, and don't want to adopt players contracts because they are potentially liable for paying them."

Asked if Latics could be placed into liquidation if, for example, a low bid is received, Maguire said: "They can only go down the liquidation route if the expected liquidation price exceeds the bid, they have obligations to the person who appointed them to sell for the best price.

"There will be a tipping point.

"A liquidator is a corporate undertaker, an administrator is a surgeon in A and E.

"The first thing the liquidator would do is cancel employees' contracts. Wigan Athletic would cease to exist as a legal entity.

"There is a case now for carrying on running the club while the transfer window is in existence because they've sold three players, this is normal to see the most valuable assets sold. But that can't go on forever."