DARLINGTON Football Club took the first steps to survival last night when the businessman who put the club into administration announced he had secured a funding lifeline.

George Houghton said he planned to remain at the club for the foreseeable future until “a person can offer the club more than I.”

But he warned that budgets would have to be tightened and warned it could not rely on “wealthy benefactors” any longer.

The move clears the way for the appointment of former Middlesbrough boss Colin Todd as manager.

The announcement, which Darlington fans hope will preserve the club’s Football League status, still leaves a number of key questions unanswered.

Mr Houghton said: “I never thought I would be making this statement today. The reason is quite simple – I do not want the club to die.

“The club is still in administration and will be for the next couple of months, but I am not going to let the club die. I still have a couple of options to consider how the future will unfold, but now we need to get on and prepare for next season. The global meltdown meant that until now it was impossible to raise the necessary funds to keep the club out of administration.

“But events of the past few weeks have allowed me to reflect on the whole situation and listen to what the fans have been saying.

“It’s fair to say mistakes have been made, and for that I apologise, but I have funded the club up until now and will continue to do so until a person can offer the club more than I.”

Mr Houghton was unavailable for further comment last night.

He told The Northern Echo on Monday he would return as chairman, but it remains unclear what position he will have at the new club.

His former director, David Jones, said: “To get the club out of administration, we need to take certain steps. The ex-chairman has taken those steps. He is in negotiations with various parties to get the club out of administration.

Those steps are happening, but the details aren’t going to come out for at least another seven or eight days. This is a promising announcement that the club looks like it is going to be saved.”

The news came as a result of discussions between administrators, Mr Houghton, the council and MP Alan Milburn.

Mr Houghton said: “We have a fantastic facility here in Darlington, which the community needs to make the most of.

“I continue to work in close partnership with Darlington Borough Council regarding the surrounding land.

“Darlington council had been very helpful in advising the club of the best way forward.

“We want to develop the indoor and outdoor sports facilities, which will be a huge benefit to the club, the community, schools and colleges.

“We hope to make a joint announcement soon about the development.”

A council spokesman said: “The council has worked hard to support the administrator and all interested parties to try and find a way of saving Darlington Football Club and to secure its future.

“Before it went into administration, the council had already agreed how it would make land next to the stadium available for development.

“Discussions continued after the club went into administration and an agreement has been reached as to how this land could be made available for development to any future owner of the club.

“Our focus has been in ensuring any development helps the club to survive, while also being fair to council taxpayers.”

Mr Milburn said: “There has been a lot of work going on behind the scenes to rescue the club.

“Darlington cannot afford to lose the Quakers. I hope this’s announcement means that we can now have a viable successful football league club in the town.”

Scott Thornberry, who runs fans’ website Darlo Uncovered, said it was a “good news” day after two months of uncertainty but added a number of questions would remain unanswered.

He added: “We all want promotion and all want success, but not at the cost of putting the club on the verge of extinction.

“We are just a small club, unfortunately in a big stadium, but we have to find some way to function and sustain on the crowds we are getting, and not by borrowing money.”

As part of the announcement, Colin Todd has been appointed as manager.

He will work alongside youth team managers Craig Liddle and Neil Maddison.

Mr Houghton added: “Colin comes with a superb track record and aptitude for spotting talent.

“He is a great asset to the club with experience and willingness to take on the challenge.

“We are all looking forward to rebuilding the side and the public confidence in the club.”

Questions remain despite the optimism

CHAIRMAN George Houghton filed for administration on February 25 because he said the club was more than £5m in debt and losing £54,000 a week.

He said he was unable to keep financing it, but was not prepared to let it close.

Two deadlines set by the administrator Brackenbury Clark and Co passed without a deal being accepted. The only person known to have made a bid was former vice-chairman Raj Singh, on behalf of a three-man consortium.

He withdrew his first bid and his second was rejected because he and Mr Houghton could not reach an agreed price for the stadium and land. In order to protect his £3m-plus investment, Mr Houghton has negotiated further finance to keep the club going and exit administration, but the club remains for sale.

WHAT HAPPENS NOW?

THE process to emerge from administration takes two months to complete. New owners sign an exclusivity agreement to put together a sale agreement and a company voluntary arrangement (CVA). The CVA is sent to creditors to be voted on, which takes 28 days. A further 28-day appeal process takes place.

The Football League must also approve the process to return the league share to the club, and pass any new owner under the fit and proper persons’ test. Football creditors, including the players, are paid in full. Other unsecured creditors will only receive a percentage of what they are owed.

IS THIS A SIMILAR CASE TO LEEDS UNITED?

NO. Ken Bates put Leeds United into administration in May 2007 and had his first attempt to buy it back blocked by the Inland Revenue.

He subsequently bought it back for an undisclosed sum with MPs calling for an inquiry because of the use of offshore companies.

The club risked losing its Football League share and was only able to start the new season under “exceptional circumstances”. Fifteen points were deducted for failure to comply with rules on insolvency. Leeds’ subsequent appeal was rejected at the High Court.

CAN THE INLAND REVENUE BLOCK ANY CVA AND WILL DARLINGTON FACE ANY FURTHER POINTS DEDUCTIONS?

DARLINGTON’S rivals Rotherham United, Bournemouth and Luton Town all started last season with points deductions because they could not pass their CVA. Any CVA requires 75 per cent of the vote to be passed. The Inland Revenue is not a football creditor. Because any football creditors are paid in full and Mr Houghton is owed more than £3m of the debt, the CVA is expected to be passed without approval of the Inland Revenue. As long as the CVA is passed, Darlington is unlikely to face further sanction.

HOW CAN THE CLUB APPOINT PEOPLE WHILE STILL IN ADMINISTRATION?

ANY new appointments are tied into contracts subject to the administration process being completed.

The club are also trying to persuade players, who have been available for transfer since earlier this month, to stay.

IS THERE ANYTHING TO STOP GEORGE HOUGHTON RETURNING AS CHAIRMAN?

ANY director must pass The Football League’s fit and proper person’s test. Disqualifying conditions include being banned by a Sport Governing Body; having unspent convictions for offences, including those under fraud or theft acts; disqualified as a director under the Company Directors Disqualification Act; subject to a bankrupcy order or has being involved as a club director subject to two periods of administration under the Insolvency Act.

CAN THE CLUB NOW SELL SEASON TICKETS?

THE club was unable to sell season tickets while it was in administration.

Now the process has started to exit administration, it can. The club will open an account to protect customers’ cash in case it does not start the season.