Fallen property empire forces football club into administration

Fallen property empire forces football club into administration


Two weeks after a property developer come football chairman was declared bankrupt, the club he stepped down from has entered into administration.

Kevin Heaney, a property developer who has featured on the Sunday Times Rich List, was declared bankrupt on the 31 August and subsequently stepped down as the chairman of Truro City Football Club (TCFC).

An appointment of administrators note posted earlier this week has now confirmed Truro City’s fate.

The news follows months of uncertainty as the club had been pursued by HMRC since 2011 over an unpaid bill.

The club previously survived largely due to the generosity of Chairman Kevin Heaney and his Gibraltar-registered property firm, Bishop International.

Back in September, Heaney was reported as the preferred bidder to buy Plymouth Argyle having paid a six figure sum for exclusive negotiations.

Last July, the £1 take-over of Plymouth Argyle by former Leeds United Chairman Peter Ridsdale saw the club come out of administration, but the deal effectively stripped the club of all of its property assets, including its grounds.

These property assets were held by Heaney and include a portion of land which has the potential for development.

Because of Heaney’s part ownership of Truro City, he was not permitted under Football Association rules to hold a role in the playing side of the club’s business.

This is thought to be the reason why the property assets had to be separated from the football operation. 

It is common practice for a football club to separate its operations from its property, since this allows the clubs to utilise their fixed assets as security for borrowing from lenders who would be less likely to lend to a club.

Walsh Taylor has been appointed to handle the Truro City administration case and insolvency practitioner Kate Breese has been tasked with sorting through the affairs of the Blue Square Bet South Club.

Heaney led Truro City to its most successful period ever, with five promotions; the club also won the FA vase at Wembley stadium.

As a result of entering a formal insolvency, the club will be deducted 10 points jeopardising its future in the sixth tier of English football, reported Insolvency News.


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