Macclesfield, Founded In 1874, Wound Up Over 500,000 Debt

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Macclesfield, founded in 1874, wound up over 500,000 debt

London, Sept 16 (UrduPoint / Pakistan Point News - 17th Sep, 2020 ) :Macclesfield Town became the latest English football club to go to the wall after a winding up order was granted on Wednesday over debts of more than 500,000 ($650,000) The club, founded in 1874, were relegated from League Two last season due to a series of points deductions for the non-payment of wages.

An insolvency hearing heard that the club owe nearly 190,000 in tax and more than 170,000 to two other creditors.

A judge found he could see nothing which gave him "any comfort" that the club can pay the debts.

Bury became the first club expelled from the English Football League (EFL) since 1992 last year after going bust, while Bolton, who were in the Premier League just eight years ago, narrowly avoided the same fate.

There are fears many more lower league clubs face dire economic consequences in the season ahead if supporters are not allowed to return to stadiums due to ongoing coronavirus restrictions.

League Two club Southend United have also been granted six weeks by the High Court to settle a debt of 500,000.

The Championship, League One and League Two returned last weekend, but only a limited number of pilot events with a maximum capacity of 1,000 have so far been permitted by the UK government.

Nine matches across the three divisions will host crowds of up to 1,000 this weekend.

Initial plans for supporters to be readmitted more widely from October 1 are under review after a spike in positive cases.

"The requirement to welcome spectators back through turnstiles has not diminished in any way," said EFL chairman Rick Parry.

"The financial challenges facing EFL clubs have been explained on numerous occasions, they are substantial and a problem that requires immediate solutions."The EFL is hoping to secure a rescue package from Premier League clubs to ease the estimated 200 million hole in their finances should the whole of the 2020-21 season be played behind closed doors.