Edinburgh, 25 November 2003 - The joint receivers of Dundee Football Club,
today confirmed that 25 full time employees have been made redundant.
It follows the announcement yesterday of the decision by the company's
directors to appoint Tom Burton and Fiona Taylor of Ernst & Young as joint
administrators to the company.
Tom Burton, corporate restructuring partner at Ernst & Young said:
"Our priority is to move the club as quickly as possible towards the
position where it can survive as a going concern.
"We have taken the first step towards this end by ensuring that Dundee
Football Club has sufficient playing staff to fulfil its commitments whilst
taking action to significantly reduce the cost to the club.
"Regrettably this means that 25 of the 70 full time staff employed at
Dundee have had their contracts terminated. This includes 15 players and 10
backroom staff.
"The effect of reducing the numbers of full time staff by a third has
served to reduce the club's wage bill by 45%.
"It is important to stress that this action only begins to address the
challenges faced by the club. The organisation has some £20 million of debt
and is losing £100,000 each week.
"We have started the process of stemming these week by week losses but
there remains considerable work to do to secure the long term viability of
Dundee Football Club.
"Administration does however, give us the opportunity to take these
necessary actions, and we are encouraged with the support being shown by
creditors, staff, fans and Scottish football in general at this difficult
time."
Ends