The Manchester Giants basketball franchise is seeking a new investor after being bought out of administration, it has been revealed.
The British Basketball League (BBL) has taken control of the club in a pre-packaged deal and has now launched a search for a new backer.
Jamie Edwards, who has been described as a driving force behind the franchise, said it is "still a bit raw" but "the most important thing" is that the club will continue.
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According to a document seen by the Manchester Evening News, Manchester Giants Limited formally entered administration on March 23 and was immediately sold in a pre-packaged deal.
The MEN understands that the BBL has now taken full control of the franchise until a new investor can be found.
According to sources close to the deal, all jobs have been secured.
It is also understood that the club owed around £500,000 to creditors including the BBL, Sport England and through a Covid Bounce Back Loan.
Paul Barber and Paul Stanley of Begbies Traynor in Manchester oversaw the administration process and sale.
Mr Stanley was the lead administrator of Wigan Athletic between 2020 and 2021 and is currently acting a receiver over Peterborough United's stadium.
Begbies, which is headquartered in Manchester, is also currently acting as administrators to rugby union club Worcester Warriors.
Speaking to the Manchester Evening News, Mr Edwards said: "Unfortunately the timing was not quite right. The intention was for a five to ten-year vision. This was the third year, with one of those being Covid with no fans and the second year being a move to Belle Vue.
"Coming out of a pandemic it was about building on the momentum but it was always going to need third-party investment.
"The city demands a brand of basketball. There are some great sports franchises in the city and the Giants needed to be back at that level. From a vision point of view that's ultimately what was being worked towards.
"The great thing is that the brand and the club will move on and will continue. That's the most important thing.
"In a short period of time Manchester Giants have come a long way. The team have gone from the bottom of the league to a team that's very competitive and will one day win the title.
"It has been a very challenging period, there is no getting away from that, but the most important thing is that the club is here because it could have been very different.
"My initial vision of the club was to give the city a basketball franchise that could compete in Europe.
"I'm glad that the club is going to continue. It has come at a cost, unfortunately. There has been great support from different people.
"There's lots of red in the city, lots of blue and there is plenty of room for green."
The revelation that Manchester Giants have been sold out of administration comes after the BBL issued a press release last week saying the league was "exploring offers from prospective third-party investors" for the franchise. No mention was made of the administration or sale.
At the time the league confirmed it was inviting offers from potential buyers "who can help redevelop the franchise in the long term both on and off the court".
The BBL itself was backed by £7m from Miami-based investment firm 777 Partners in December 2021 in return for a 45% stake.
A BBL spokesperson said: "We have very carefully restructured the relationship with the club, securing the assets required to enable a new potential investor to successfully manage and grow the franchise."
Speaking last week, BBL chief executive Aaron Radin said: "Manchester has an illustrious history within the British Basketball League, making the Manchester Giants an extremely attractive proposition for potential third party investors.
"British Basketball is experiencing its most exciting period of growth at present and is at a critical point in its history as momentum continues to grow.
"Between the new investment of capital into the league, the creation of exciting partnerships, the high calibre of players in the league and the return to European competition, the BBL is just beginning to deliver on its goal to create a compelling entertainment product for our fans and marketing and distribution partners.
"The BBL is in a unique position given its popularity in the UK and our ambition is to attract interested partners who share the league’s ambition for growth and who are well equipped to support and accelerate the long growth of the Manchester Giants, it’s players, partners and fans and more broadly, the basketball community in Manchester.
"We want to become one of the most competitive and exciting basketball leagues in the world and I look forward to identifying and supporting the right investor to take the Manchester Giants forward into a revolutionary new era, setting up the club to be as successful as possible."
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