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Rotherham have filed a Notice of Intention to appoint an Administrator with the courts after failing to find extra investment.
A lengthy statement, issued on the club website, confirms the move is not actual Administration but provides some protection from it's creditors:
"The Club has accumulated a large debt with P.A.Y.E. We are on good terms with HMRC, with whom we have weekly discussions. They have been very sympathetic of the need for the Club to secure its future funding. We have nothing but praise for their considerate yet professional approach. However, it is plain that things can not continue like this and that time is not on our side."
The statement continues: "Clearly the threat of administration will recede if a serious investor can now be found. This is something we all want, and something the Club needs quickly. However, if no deal can be brokered then administration would be the only option for the Club and that would be a great shame as it would mean a points deduction."
Entry into Administration would effectively end their promotion hopes, dumping them down to 12th on the current table once the ten point penalty had been applied.
It is only two years since the club staved off liquidation. Their cash bank was set to run completely dry in February 2006 before a last minute deal was struck to keep the club afloat. They agreed a CVA in May on their £3.7million debt but the club continued to trade at a loss.
They started last season with a ten point deduction, and sold players for a total of £1.2million - a deal that was claimed at a time to cover all losses until the end of 2008. Relegation followed and, with gates continuing to fall, the club have had to face mounting losses.
