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Hereford United: Chairman's full statement on the Bulls' finances
1:07pm Wednesday 17th October 2012 in News
The following statement was published on herefordunited.co.uk this morning (Wednesday).
At last night’s meeting of the Shareholders, David Keyte the Club Chairman presented a detailed breakdown of the difficulties that the club is facing at this time and into the near future. The Chairman was keen to not discuss the possibility of Administration and at this stage was openly sharing as much information with the wider shareholding and fans base. He used the term. "Many hands make light work".
The presentation also reminded the meeting that beyond the immediate cash shortfall, there remains a number of positives including the Supporters Club becoming a source of much needed income and strong bookings already received throughout the Christmas period.
The fixture list, however, continues to add to the difficulties as we enter a six week period up to 1 st December with just one home fixture and that on a Tuesday evening. Although there are four home fixtures in the month of December, with Christmas this may not be ideal, but at least it gives the supporters the opportunity to rally round the club.
Keyte explained in detail the cost of relegation to the Club. Football League funding and the League 2 share of Premiership TV monies resulted in £734k funding for the Club last year. This will be £251k for one season and £50k as of 1st June 2013.
Although budgeted cutbacks in costs and continued loans from Directors had negated the near half a million pounds reduction in income, the fall in matchday attendances has created a further shortfall of £66k in the 8 matches to date. For the first time the Club had been unable to meet its PAYE commitments (£34k)and as of next week, the HMRC were likely to commence proceedings to recover the debt.
With just one home fixture over the next six weeks period, Keyte explained the likely shortfall for the month of November as £140k plus an inability to pay wages this month (£77k) due next Friday 26 th October.
The flow of FL/Premiership money whilst in the Football League included two payments of £108k in the months of September and January. This season this is zero. A further regular monthly sum of £40k was also received from the FL. This year the total received is £16k per month.
Keyte stated that Martin Foyle had done an excellent job in gathering a squad together on a greatly reduced budget. It was the case however, he added, that we need our “1 st XI” to be fit in order to be competitive and to have six players injured at one time was stretching our resources enormously.
Colin Addison told the meeting that he felt the Chairman and Directors “deserved better”. Having experienced first-hand the time and effort and money that they were putting into the Club. The players here last season, as shown by the fact that six of them were now playing in League 1, should not have been a relegation team.
Colin went on to say that we have an FA Cup tie on Saturday that can be the start of a cup run that will turn things around and we should all get behind Martin and his players.
The Club would welcome any suggestion it its continued effort to meet its commitments and of course, there still remains all the commercial options ranging from sponsoring a player to matchday hospitality, six match season tickets etc.