Herefordshire Council committed to a future for Hereford United

HEREFORDSHIRE Council has this week committed itself to discuss “any suggestions” as to how it could help save Hereford United.

The commitment came from Councillor Harry Bramer, cabinet member for assets, who said the council is “very concerned”  about the preservation of football at Edgar Street.

That commitment, however, stops short of any cash bailout for the Bulls.

Both the council and the club worked closely to negotiate new leases on the ground to support the future sustainability of a club closely intwined with the county’s politics.

 

Assigning the Edgar Street leases – one for 75 years on the ground and terracing to the west, the other for 33 years for the stand and parking area to the east and both dating from 1982 - was one of the last big deals done by the former Hereford City Council.

During the late 1990s, with United facing severe financial problems, the leases were reassigned to property developers in return for a £1m capital injection into the club.

 

The money was made available through two companies, the BS (Bristol Stadium) Group and Chelverton.

BS and Chelverton took equal ownership of a special purpose company called Formsole Ltd which made the investment and held the leases – as the tenant under both – with the club holding sub-leases.

 

By August 2001, BS had sold its “loan” to Chelverton which ran into trouble little over a year later when control of the leases passed to Carillion Richardson.

United still owed £1m plus interest to Formsole which stayed solvent when Chelverton went into liquidation.

 

It was about this time there was talk of United leaving Edgar Street allowing Formsole to sell the site.

This talk came to nothing and by 2003 it was clear the club was staying at Edgar Street.

 

The reassignment of the leases was supported by Herefordshire Council when it took control of the former city council’s affairs.

Getting the leases back was pitched as a political priority when the news broke in April 2010 that then United chairman Graham Turner and vice chairman Joan Fennessy were ready to sell their majority shareholding in the club.

The club began negotiations with Carillion Richardson for the return of the leases almost as soon as the Keyte-Russon takeover was completed in June that year.

That deal was done by December with the club paying £452,000 to secure the return of the leases and settle a £1,069,500 debt to Richardsons Developments, clearing the way for a new single lease and the development opportunities that could bring.

Comments (5)

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6:30pm Tue 1 Apr 14

mr.dig says...

we are all concerned ,but some times we have to let go. remember bromsgrove rovers? good team. started again. darlington/maidstone
/chester

i know its not good news ,but if needs must..start again..
regards dig..
we are all concerned ,but some times we have to let go. remember bromsgrove rovers? good team. started again. darlington/maidstone /chester i know its not good news ,but if needs must..start again.. regards dig.. mr.dig
  • Score: 2

10:05pm Tue 1 Apr 14

ONFORM says...

How about Hereford Council find the 'lost' £100k that was left as a bond with a Bristol based solicitors. Surely Hereford Council can't just concede that it is a lost amount? Who are these people? Perhaps there was a lot of creative accounting going on, I think! The hard cash must be out there somewhere, those in authority should account for such apparent losses, or else in my view they are incompetent. This money would help considerably with the Hereford United financial situation, in the short term at least. However I'm sure that sum of money has long since gone, hopefully I'll be proven wrong but I wont hold my breath.
How about Hereford Council find the 'lost' £100k that was left as a bond with a Bristol based solicitors. Surely Hereford Council can't just concede that it is a lost amount? Who are these people? Perhaps there was a lot of creative accounting going on, I think! The hard cash must be out there somewhere, those in authority should account for such apparent losses, or else in my view they are incompetent. This money would help considerably with the Hereford United financial situation, in the short term at least. However I'm sure that sum of money has long since gone, hopefully I'll be proven wrong but I wont hold my breath. ONFORM
  • Score: 0

8:45am Wed 2 Apr 14

mizza21 says...

The best thing the council can do is keep well away.

No-one needs assistance from a bureaucratic beast that can't get it's own house in order.
In fact the only thing the council could have done was hand over some no strings cash but they've helpfully refused to do that so they should just keep away.
The best thing the council can do is keep well away. No-one needs assistance from a bureaucratic beast that can't get it's own house in order. In fact the only thing the council could have done was hand over some no strings cash but they've helpfully refused to do that so they should just keep away. mizza21
  • Score: 5

10:18am Wed 2 Apr 14

bobby47 says...

Bloody Council! Of course they can't give the Club public funds and I've no issue with that.
Mind, they've no problem bunging Stanhope five hundred thousand pounds to sate their appetite for a 'good deal', they've no issue with paying their staff vast sums of money so their secrets remain secreted forever and they've no problem cozying up to property developers and asset strippers as we sit back and watch our heritage and economic wealth disappear in the blink of an eye.
Did the Council ever find this hundred thousand that they owed the Club? God only knows. Im given to understand that it was lost and chewed up by this bureaucratic beast of burden we call Herefordshire Council.
Bloody council! I'd say to the Club, keep well away from this collection of incompetent bungling idiots. Before they finish with you they'll have handed the home and away kit to Stanhope to aid the removal of the salt from that monstrous hulk of a building.
This Council are in no position to help the Club. They're in no position to add up money, help themselves or even us, so its highly unlikely they'll ever come up with anything that'll ease the pain of Hereford United.
I saw Johnson on the television and he doesn't scare me. Never has and never will. Get him to agree to attend the next home game and I'll fight him before kick off for charity. Tell him to bring his duelling pistols if he wants because if he does, and were are instructed to walk backwards ten paces and fire, I'll walk seven, turn and fire and if I bloody miss I'll take his bullet and still grab time to throttle him before I race off toward the light.
Tell the Club to keep well away from this collection of fools!
Bloody Council! Of course they can't give the Club public funds and I've no issue with that. Mind, they've no problem bunging Stanhope five hundred thousand pounds to sate their appetite for a 'good deal', they've no issue with paying their staff vast sums of money so their secrets remain secreted forever and they've no problem cozying up to property developers and asset strippers as we sit back and watch our heritage and economic wealth disappear in the blink of an eye. Did the Council ever find this hundred thousand that they owed the Club? God only knows. Im given to understand that it was lost and chewed up by this bureaucratic beast of burden we call Herefordshire Council. Bloody council! I'd say to the Club, keep well away from this collection of incompetent bungling idiots. Before they finish with you they'll have handed the home and away kit to Stanhope to aid the removal of the salt from that monstrous hulk of a building. This Council are in no position to help the Club. They're in no position to add up money, help themselves or even us, so its highly unlikely they'll ever come up with anything that'll ease the pain of Hereford United. I saw Johnson on the television and he doesn't scare me. Never has and never will. Get him to agree to attend the next home game and I'll fight him before kick off for charity. Tell him to bring his duelling pistols if he wants because if he does, and were are instructed to walk backwards ten paces and fire, I'll walk seven, turn and fire and if I bloody miss I'll take his bullet and still grab time to throttle him before I race off toward the light. Tell the Club to keep well away from this collection of fools! bobby47
  • Score: 1

12:32pm Wed 2 Apr 14

littlewhitebull says...

I agree with the above posters. The council should stay well away - they certainly have no great track record with finance and the thought of putting any taxpayers' money into the club is obviously out of the question.
As a lifelong supporter of the club, I have no wish to see the Bulls go under. But if the club can't get enough supporters into the ground, and run the club efficiently, we have to face the fact that great changes may be imminent.
It is not the end of the world, but very sad - at least, from my point of view.
Will Mizza and I (plus many others) be able to watch footie at Edgar Street next season? I hope so, but I have no right to expect it.
I agree with the above posters. The council should stay well away - they certainly have no great track record with finance and the thought of putting any taxpayers' money into the club is obviously out of the question. As a lifelong supporter of the club, I have no wish to see the Bulls go under. But if the club can't get enough supporters into the ground, and run the club efficiently, we have to face the fact that great changes may be imminent. It is not the end of the world, but very sad - at least, from my point of view. Will Mizza and I (plus many others) be able to watch footie at Edgar Street next season? I hope so, but I have no right to expect it. littlewhitebull
  • Score: 0

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