Chester City F.C. - History - Repeated Financial Problems and Eventual Collapse

Repeated Financial Problems and Eventual Collapse

Under owner Mark Guterman, Chester entered Administration in October 1998. The club consolidated their position in Third Division under Kevin Ratcliffe in 1998–99 and were bought by the American Terry Smith in July 1999. Ratcliffe resigned the following month and Smith took over as manager, overseeing just four league wins in as many months in charge. Ian Atkins was brought in as manager, but Chester lost their 69-year long Football League status on 6 May 2000 on goal difference after losing to Peterborough United.

The first season in the Football Conference saw Chester finish 8th, but the campaign was overshadowed by continuing off-field problems. By the summer of 2001, Chester were in grave danger of going out of business and the appointment of the owner's friend Gordon Hill as manager was deeply unpopular with fans. The arrival of new chairman Stephen Vaughan in September 2001 saw Mark Wright appointed as manager and Chester avoided relegation in 2002. A year later they qualified for the Conference play-offs, but missed out on promotion by losing a penalty shoot out to Doncaster Rovers.

Starting the 2003–04 season as favourites to win the Football Conference, Chester suffered just four defeats during the campaign, winning the title and promotion back to the Football League with a 1–0 victory over Scarborough in the penultimate match of the season. It was the club's first national league title. The day before the start of the 2004–05 season Mark Wright resigned. Ray Mathias was left as the caretaker charge and by the end of August, Chester were bottom of the League. New manager, Ian Rush, helped the club avoid relegation, but was criticised by opposing managers for using "long ball" tactics.

In April 2005, Keith Curle took over. A series of poor results saw Chester fall from fourth to bottom in Football League Two. Mark Wright surprisingly returned to the club and a run of five successive wins late in the season secured another campaign in the Football League. The 2006–07 season was most notable for the club's reinstatement in the FA Cup after Bury, who had beaten Chester 3–1 in a second round replay, were thrown out for fielding an ineligible player, Stephen Turnbull. Wright was sacked in April 2007, being replaced by Scotsman Bobby Williamson. Williamson was sacked as manager in March 2008, after Chester had won only one of their last fourteen games. Club coach Simon Davies replaced him after a spell as caretaker manager. Survival was clinched in the penultimate game of the season after a 0–0 draw with Stockport County. They ended their season at 22nd, their lowest position at the time since returning to the Football League in 2004-05.

A poor start to 2008–09 saw Davies sacked in November 2008 with the club out of all cup competitions and struggling in the league table. Mark Wright returned for his third spell as manager on a non-contract basis. Beset by an ongoing transfer embargo, Chester continued to struggle throughout the remainder of the campaign, and a 2–1 home defeat by Darlington on the final day of the season sealed Chester's demise and a return to non-league football after five years back in The Football League. Two weeks after the final match the club entered administration.

The following month, creditors voted in favour of a rescue package by Stephen Vaughan's family, ahead of the Football Conference board's AGM where the club was accepted into the Conference National with a 10 point deduction. He was replaced as manager by Mick Wadsworth.

In the summer of 2009 Chester City was placed into the hands of administrators with debts of £7m, inclusive of Stephen Vaughan's £5.5m investments, which incurred a 10 point penalty. This in turn was increased to a 25 point penalty after further financial irregularities came to light. A potential buyer emerged over the summer, when local fan Mike Green sought to create a consortium with northern businessman Andy Jinks. However, any potential deal fell through due to Jinks's commitment issues. A new buyer was found for the club on 26 May 2009 in the shape of Chester City FC (2004) Ltd, a company set up by former chairman Stephen Vaughan and his family. The Football Association withheld the transfer of the affiliation membership from Chester City Football Club to Chester City Football Club 2004 Ltd, and on the eve of the new season stopped Chester City FC playing the first game of the 2009/2010 season away at Grays Athletic. This came less than 24 hours after the Football Conference released an "interim" press release stating Chester could take their place in the fifth tier of English football. The club reluctantly cut back on the Centre of Excellence youth training scheme by retaining only their youth team. Fans waited at the Deva Stadium for a meeting with Stephen Vaughan and other board representatives to find out the truth regarding the future and showed their support for the club by meeting in the city at the time that they should be kicking off the new season.

Chester City FC released a press release on Monday 10 August 2009 describing the meetings that took place between the club, FA and Football Conference regarding the transfer of the FA membership at the beginning of the 2009-2010 season. They confirmed that the home match versus Gateshead FC had also been called off by the Football Conference, and that the FA had asked the other clubs to vote on whether Chester City should be allowed to continue in the division. The press release ended: We have now been informed that we must again await an FA decision which will be taken at some time on Thursday and can do no more than publicly express our ever increasing frustration with the entire process. The FA granted the transfer of membership to Chester City Football Club 2004 Ltd at 16:00hrs on Thursday 13 August 2009.

On the pitch, Mick Wadsworth was sacked after a bad start to the season, during which he branded the club's atmosphere even worse than that of the original Gretna F.C., which he had managed during the club's final months of existence. Jim Harvey replaced Wadsworth and managed an immediate upturn in form, which gave fans some slim hope that the club might still survive in the Conference National. However, dwindling attendances, a pitch protest and continued financial problems meant that the playing squad was gradually released to cut the wage bill though, and Chester's improved form did not last. Harvey was himself sacked in January 2010 by Morrell Maison, the club's new director of football, who then installed himself as the new manager. He oversaw what was arguably the club's lowest moment when just 518 people turned up to see the team beaten 1-0 by lower-league Fleetwood Town in the FA Trophy. By this point Chester were well adrift at the bottom of the table, and results did not improve. What proved to be the club's final match was a 2-1 home defeat against Ebbsfleet United.

On 9 February 2010, Chester City failed to fulfill a fixture at Forest Green Rovers. It was reported by the BBC that the players refused to get on the team bus and that the players had also threatened twice to strike following non payment of wages. Three days later the Football Conference suspended Chester from the league for a period of seven days, during which their fixtures were suspended.

The suspension was to allow them to put their finances in order and respond to the charge of breaking five separate Conference rules. The breaches include the abandoned game against Forest Green and the cancelling of a game due to an unpaid police bill. At a meeting of the Football Conference board on 18 February 2010, it was recommended that Chester be expelled from the league because the members of the board "failed to be convinced" that the club would fulfill its fixtures. The decision ultimately rested with the other member clubs. An independent valuation at the time valued the club at just £1 (although any prospective buyers would have to pay off the enormous debt the Vaughan family generated).

At this point Chester remained anchored to the bottom of the Conference National on minus three points. The club was expelled following a vote at a general meeting between the member clubs of the league on 26 February 2010 at Nene Park. The results for the season so far were expunged from the record. The club was wound up on 10 March 2010, and announced that they were looking to reform in the lower pyramids of the English football hierarchy, with a supporters spokesman claiming the club would play football once again in the pre-season.

Falling attendances had done the club no favours during its final few years. The club's average attendance had stood at nearly 3,000 in the 2005-06 season, but in the relegation season of three years later it fell below the 2,000 mark. In the club's final season, attendances average less than 1,300; the lowest attendance on 19 January was a mere 425 (the lowest league attendance in the club's history in any division) and the attendance at the club's final home game on 6 February was 460.

On 25 March 2010 it was announced that the new club would be called Chester F.C. and would play at the Deva Stadium.