Wigan Athletic: Worries, hopes and what happens next

The administrators have set a deadline of August 31 to sell the club - what happens if that doesn't happen?

They say they will 'reconsider their position' but on face value, it doesn't sound good. We can only speculate whether they may extend the deadline - if, for example, they are deep in negotiations and hopeful of a sale.

But if there is no buyer, liquidation would seem inevitable. Wigan Athletic - as a business - would end, the contracts voided, and the assets sold.

If the club goes bust, what would happen then?

Wigan Athletic would be expelled from League One and have to reapply to rejoin the football pyramid, much further down. A new club could be started at a new ground - that's what's happened at Bury who were expelled from League One last season. The phoenix club (Bury AFC) are starting the coming season in North West Counties Division One North, alongside Ashton Town, Atherton LR. and Daisy Hill. The original Bury FC had their application to rejoin rejected.

Can a club start a new season in administration?

Yes. The EFL confirmed as much - a club can stay in administration for up to 18 months (though only starting one new campaign in administration. Bolton started last season in administration. But in the statement issued by the administrators - Paul Stanley, Gerald Krasner and Dean Watson of Begbies Traynor - they make it clear they don't want that responsibility.

They were brought in to sell the club and pay the creditors as much as they can; not be responsible for a team fulfilling its fixtures.

"If no buyer is available, we do not wish to commit to something we cannot see through," they said.

Could the club still be liquidated if bids come in which they don't think is good enough?

Yes, potentially. If they were confident liquidating the club and selling the assets - such as the DW Stadium, two training grounds, the site of Sharpy's chippy - would generate more income than the highest bid. But how much are those sites really worth, and who'd want to buy them?

So Wigan Athletic are doomed then?

Not necessarily. The administrators are "still hopeful" they will secure the sale of the club in the next 17 days.

There are still people and groups interested in buying Wigan Athletic. The administrators are speaking to a number of them - and are in talks with four bidders.

Best case scenario, this statement is intended as a warning to try and hurry them up.

Stanley revealed this week the interested parties are doing their due-diligence on the club, the contracts, the covenants, the assets... but they haven't got long, if they are keen on Latics.

Nobody, so far, has paid the £100,000 the administrators are demanding to enter the 'exclusivity' period of negotiations.

What's the £100,000 for?

It's a non-refundable bond to cover the administrators' costs and legal fees, should the bidder withdraw. The first preferred bidder, last month, withdrew after refusing to pay the £100,000.

Who are the four bidders?

It's unknown. A consortium led by Warriors owner Ian Lenagan is the only party to publicly declare interest in buying the club. He has not returned requests for comment this week.

Rumours of a bid from America, and another involving former Salford rugby league club owner Dr Marwan Koukash, have not been substantiated. Koukash has not returned a request for comment.

Stanley confirmed interested parties have been local, national and international, without providing details.

Will the club survive until August 31?

It seems so, yes. Last month's wages were paid in full to all current staff. The sale of Joe Gelhardt covered the players' wages and future sales are expected to cover this month's bill. Meanwhile, money raised by fans - via the supporters' club - paid the wages of the office and stadium staff. That fund is nearing £200,000, which would cover August's wages.

Is that why players are being sold? To pay wages?

Partly. The administrators met with EFL officials last Friday and were given the green light to use transfer fees to keep the club going in the short-term.

Gelhardt - a beacon of the club's academy system - went to Leeds United for around £1m, and that money went towards clearing July's wage-bill for players. Some players who have left the club are still owed money and any future transfer fees will go towards paying them what they're owed.

But Kieffer Moore's transfer to Cardiff City yesterday was also to reduce Wigan Athletic's football creditors' debt.

Football creditors' debt... explain that?

It's any money owed to players, agents... and unpaid transfer fees. It's not uncommon when clubs sign players to pay in installments. In the case of Moore, who arrived last summer from Barnsley, Latics still owed the Yorkshire club around £1.5m. His move to Cardiff City is thought to have been for £2m, meaning Latics 'made' £500,000.

When a club exits administration, all football creditors debts must be cleared - regardless of any prior arrangements (for example, to pay in instalments).

Who else do Latics still owe money for?

It is understood to be Antonee Robinson (£500,000, Everton), Jamal Lowe (£750,000, Portsmouth), Joe Williams (£350,000, Everton) and Josh Windass (£500,000, Rangers).

Which is why it would seem likely they will be sold as a priority, to reduce the football creditors' debts.

Ideally, they would sell those players for more than they owe their previous clubs, so any excess money can go towards the upkeep of the club during this period in limbo without an owner.

So if a buyer is found, who else will need to be paid when the club is sold?

The administrators - they aren't working for free.

And then non-football creditors must be paid at least 25 per cent. So if, for example, Latics owed a company £1,000 for work undertaken - they must pay at least £250.

If they fail to do that, they will incur a 15 point penalty.

How much is the non-football creditors' debt?

Three weeks ago, it was reported to be around £5m - of which half was to HMRC. But that figure does not include the previous owners' loan.

How much is that for?

Around £24m. Krasner has previously spoken about a "strategy" to try and ensure that hefty sum is not added to the list of creditors, without divulging any details.

But clearly, with the threat of a 15 point penalty if a quarter of that loan (£6m) is not paid, it is something the bidders will want clarification about.

As an aside, it is interesting that the EFL asked barrister Jonathan Taylor to carry out an independent review following Bury FC's financial troubles.

As part of the section on new owners - and future financial information - it states the EFL may ask for a letter of support that "commits the owner to provide the funding to the club" and "confirms funding is not repayable by the club".

Whether that occurred and - crucially - whether it carries any weight if it did, is unclear.

Is the club planning for League One?

Yes. The players returned to training on Wednesday, and the new fixtures are out next Friday. They have even bought the first team strip, which has been paid for by the supporters' club, and will carry their logo at the start of the season.

If Latics are sold, will there be a transfer ban in place?

Not necessarily. If a sale goes through, there will be conditions imposed by the EFL - as there would be for any club exiting administration.

And some will be tied with recruitment. But that doesn't necessarily mean there will be a ban on making signings, providing they fit within the new owners' finances and plans.