Scunthorpe United announce owner David Hilton has withdrawn funding with the club forced to vacate their Glanford Park stadium amid an ongoing legal row
- Scunthorpe chairman David Hilton put the non-league club up for sale last week
- Hilton has now withdrawn funding as he actively seeks a way out of the club
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Scunthorpe United have announced the club’s owner David Hilton has withdrawn funding from the club moving forwards after deeming his position to be ‘untenable’.
David Hilton, who bought Scunthorpe in January, announced he was putting the club up for sale in a statement last week, revealing it was ‘available to purchase to the right people’.
In his statement, the Scunthorpe chairman urged that the National League North side had chalked up a ‘significant amount of debt’ and were also locked in ‘ongoing legal battles costing thousands each month’.
Hilton, who has become an unpopular figure at Glanford Park since his takeover, has controversially attempted to ban dissenting fans from the stadium this week.
Scunthorpe issued a statement confirming Hilton is ‘actively seeking a way out’, with board members Ian Dawson and Tahina Akther resigning from their positions.
Scunthorpe United’s chairman David Hilton (pictured) put the club up for sale last week
The club have announced they will vacate their Glanford Park stadium amid a legal row
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Cost-cutting measures will now take place ahead of a potential takeover of the club.
‘We can confirm that numerous parties have made contact with the club with a view to taking over, but faced with stadium issues, numerous litigation proceedings and winding up petitions no potential purchasers are looking to move forward,’ a club statement read.
‘This includes the consortium of local business people and supporters.
‘The Chairman and remaining board members have now set out a plan in order to very quickly make the club sustainable.
‘An outside company will be bought in to work closely with the club’s creditors to try and ensure all are paid in a timely and professional manner.’
The club also confirmed it will vacate their Glanford Park stadium following their upcoming match against Brackley Town on October 7.
Scunthorpe will play their remaining National League North fixtures at Gainsborough Trinity this season.
The move comes amid an ongoing legal battle between Hilton and Scunthorpe’s former owner Peter Swann, who still owns the ground through his company Coolsilk.
Scunthorpe will leave their stadium following their upcoming match against Brackley Town
‘This is not a day-to-day cost cutting exercise. This is due to Coolsilk refusing to engage with the club and demanding vacant possession before they will begin to do so,’ Scunthorpe’s statement continued.
‘This is also due to the risk the club faces of being liable for hundreds of thousands of pounds in legal fees and back dated market rent, along with significant monthly legal costs of our own that will certainly impact any attempts to create sustainability.
‘In any case, Coolsilk own the property and will undoubtedly get possession back at some point, and therefore it is no longer viable without the financial support of the Chairman to put the club at risk with such a gamble to merely guarantee a few extra months at the stadium.’
The club added that the move from Glanford Park will mean further cuts which will impact the playing squad and their aim for promotion.
Hilton, who earlier this month admitted he served time in prison for 15 counts of fraud, is the subject of an FA investigation.
‘Documentation is being provided to the FA in order to evidence the validity of his ownership rights and expect it to be concluded imminently,’ the club stated.
Scunthorpe are currently fourth in National League North, having won 18 points from their first nine games of the season.
Earlier this week, the club’s social media accounts were deactivated and later restored.
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