CASH-STRAPPED Leigh Centurions will stay in business despite going into administration.

The legal move has been made by the Hilton Park board to safeguard the club which is reportedly over £500,000 in debt.

But there is no question of the club going under and they will start the new season January 19.

Leigh's place in the new National League One is safe, according to the RFL Finance Director, Nigel Wood. He says: "A bylaw due to take effect at the end of January relegating National League One clubs going into administration would not apply to clubs already in administration. That bylaw still has to be accepted by the game and, even if it is, it will not apply retrospectively."

The appointed Administrator will take over the running of the club's financial affairs to prevent further losses.

Once the club's future is assured, chairman Mike Nolan says he will resign.

That would leave the way open for an eight-man consortium to take over at Hilton Park although there are now unconfirmed reports of a second bid from an unknown party being lodged with the Administrator.

The consortium made it's move several weeks ago and already have a £225,000 fund in place to buy out Leigh at Hilton Park and replace it with their own company, Sporting Club Leigh Ltd.

"Presumably the consortium will now bid to buy the club from the Administrator," said Mr Nolan at the weekend. "I have to consider my future and I will probably resign this week."

It is understood that the club's major creditors are the Inland Revenue, Customs and Excise (VAT) and Grundy Hill Estates (owners of Hilton Park).

Leading consortium member Derek Beaumont has confirmed that the takeover group has made an offer to the Administrator for the assets of Leigh at Hilton Park Ltd. The consortium would inherit and maintain all coaching and playing contracts without exception and will also honour any season tickets that have already been purchased.

Opened talks

The group has also opened talks with Hilton Park landlords Grundy Hill Estates and Leigh RMI and provisionally agreed terms to remain at the ground until the proposed new stadium is available for possession.

"The talks have been very positive and encouraging and the potential is there to bring both codes together within one business structure," adds Mr Beaumont.

He adds: "Some of Mr Nolan's comments regarding the club going into administration seems to be tainting the consortium against existing creditors.

"The majority of these debts are old debts and been unpaid for a long period of time, during which Mr Nolan has been in charge. Mr Nolan states that he would pay 100 pence in the pound to all creditors. How on earth can he pay that with £225,000 when the debts amount to £500,000? If £225,000 was placed directly into Leigh at Hilton Park Ltd it would be paid to preferential creditors such as the Inland Revenue and Customs and Excise, leaving very little for other creditors.

"A Due Diligence report provided by Mr Nolan to the consortium regarding the club expresses great concerns regarding the present cash controls, credit controls and management controls. The debt is out of control and it is not the consortium that is responsible for this. In fact the wages of the past few weeks have been continuously met by consortium member Steve Blakeley."

The consortium say that it is still their ambition to take the Centurions into Super League.

"The majority of the consortium have been principal sponsors and still have that burning desire running through their veins," says Mr Beaumont.

Full support

"At present Paul Terzis has a squad of 21 in place and I can categorically state that the coach will have the full support of the consortium. We will have no authority in choosing players and teams.

"At the right time of the season Paul will be asked what player requirements he needs to get us into Super League and we will rally round to put resources in place to achieve that.

"When the consortium is appointed it is our intention to hold a fans' forum to answer any questions supporters may have. It is time for forward planning and positive thinking, not doom and gloom."