Hereford United financial woe deepens

Hereford United financial woe deepens

Hereford United financial woe deepens

First published in Sport

HEREFORD United are facing administration and a 10-point penalty after revealing £300,000 is needed before the end of May to keep the club afloat.

The figure came to light as the full extent of the Edgar Street club’s plight was announced to shareholders at the club’s annual general meeting.

A further £300,000 would be needed to fund the club next season as well, according to chairman David Keyte.

A mammoth loss of £528,994 to the year ending April 2013, the worst by far in the club’s history, was also reported with Keyte saying the current year’s deficit could top £400,000 despite ongoing cost-cutting.

In addition, the club are facing the prospect of another winding-up order for an unpaid tax bill of £78,000, while salaries for February have not been met in full.

Keyte said the possibility of placing Hereford into administration was being investigated with the Football Conference’s deadline for a 10-point penalty for such an action coming next Thursday.

That would drop Martin Foyle’s side firmly into the relegation zone.

After the deadline, any points deduction would be made at the beginning of next season.

United also risk being relegated under Conference rules if they don’t clear their debts to football creditors by the time of the league’s AGM in June.

Hereford still owe other clubs for this season’s loan players.

The fall of £541,000 in football-related income – sponsorship and Football League income had reduced from more than £804,000 to just under £358,000 – accounted for a large amount of the drop in turnover.

With no parachute payment to be included within this year’s accounts, just £47,000 in Conference funding will be forthcoming.

Keyte said the board had been talking to two potential investors but time was now pressing and the club had closely been examining the rules regarding administration.

He also admitted the case for using part-time players next season was “very strong”.

“There are some good players out there with ‘professional’ jobs such as teachers and accountants but the question is would they come across here for training and matches on two or three nights a week,” he said.

“It could be that we would need to alter things like training venues. For example, Barrow train just outside Manchester and go to Barrow only on matchdays.

“It is a changing world and we have got to get through it. In five years’ time, I expect this to be a part-time level of football and that may even push up into League Two.”

Comments (5)

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11:22pm Tue 18 Mar 14

liketoknow says...

is it not illegal to keep trading when insolvent?
is it not illegal to keep trading when insolvent? liketoknow
  • Score: 0

8:23am Wed 19 Mar 14

old misery says...

Why do these clubs bury their heads in the sand you don't run up debts of this size over night they all keep chasing the golden rainbow and as we all know its not possible. I feel sorry for the die hard fans but they have to face reality non league football is in decline, just look through the leagues and see how many ex league clubs are now non league and still struggling.
Why do these clubs bury their heads in the sand you don't run up debts of this size over night they all keep chasing the golden rainbow and as we all know its not possible. I feel sorry for the die hard fans but they have to face reality non league football is in decline, just look through the leagues and see how many ex league clubs are now non league and still struggling. old misery
  • Score: 0

9:58am Wed 19 Mar 14

MJI says...

Why don't Bulmers sponsor them again, local team and good advertising.
Why don't Bulmers sponsor them again, local team and good advertising. MJI
  • Score: 0

11:10am Wed 19 Mar 14

liketoknow says...

I keep thinking one day the great big football bubble is going to burst. there must be only a handful of clubs in the whole country than truly maintain the ridiculous cost of success, and frighteningly; nearly all of those are backed by foreign investment. one as to wonder where our game would end up if they suddenly decided to pull the finances. we tend to forget that it is a leisure industry and there are a finite number of things that can happen on a football pitch. the sport thrives on passion but it must not be taken for granted. they need to get their house in order.
I keep thinking one day the great big football bubble is going to burst. there must be only a handful of clubs in the whole country than truly maintain the ridiculous cost of success, and frighteningly; nearly all of those are backed by foreign investment. one as to wonder where our game would end up if they suddenly decided to pull the finances. we tend to forget that it is a leisure industry and there are a finite number of things that can happen on a football pitch. the sport thrives on passion but it must not be taken for granted. they need to get their house in order. liketoknow
  • Score: 0

11:30am Wed 19 Mar 14

CYNIC_AL says...

And at the other end of the footballing spectrum, £300,000 is Wayne Rooney's weekly wage at Man United...
And at the other end of the footballing spectrum, £300,000 is Wayne Rooney's weekly wage at Man United... CYNIC_AL
  • Score: 0
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