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> Hereford AGM, Outline's current state of finances
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post Mar 17 2014, 08:03 PM
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From HUFC OWS -

Brief details on the club's financial position as being presented and discussed at this evening's AGM.


The Hereford United FC AGM is taking place as this article is published. Here we briefly cover some details of the financial situation as raised by the Chairman is his report.

The financial year 2012-13 proved to be a difficult one following the club's relegation from the Football League in May 2012.

Excluding the income generated by the Supporter's club, football related turnover fell from £1,783,157 up to May 2012, to £1,242,020 to May 2013. A reduction of 30.3%.

League funding reduced from £717,83 to £280,738, including the parachute payment.

Gate receipts fell from £480,000 in League 2 to £332,00 in United's first season in the Football Conference.

During that period a further cost post-relegation was that 24 players were paid as per their FL contracts for the months of June and July 2012. The total cost for the nine week period was £145,000. A large expense as 14 of those players were released while ten were retained for the following season.

Donations fell from £200,000 to £105,000, while the good FA Cup run that season brought in a very welcome £119,000 from prize money and TV rights.

To compensate for the above football related outgoings were cut from £2,032,246 to £1,467,418, a reduction of 27.8%

Overheads remained static at around £370,000. There was a like for like reduction but the club incurred additional costs on professional fees, revised ground leases and pitch improvements.

As a result the club reduced costs by almost 30% but in effect this matched the income lost following relegation from the FL, therefore a similar loss was recorded in 2013-13 as that of 2011-12.

On the current situation the Chairman reports that the value of the company as of May 2013 is a similar one to that of May 2006, - the last time the club was in the Conference - Shareholders deficit funds totalling approximately £750k.

This financial year is heading for a similar loss, the club does hold potentially valuable ground leases though, that could eventually rectify the situation. Further reductions will be necessary in the next year.

Income this year, excluding the Supporters Club, will have fallen once again to approximately £800,000 from £1,242.000 in the year 2012-13. This is due mainly to the end of the parachute payments, a fall in attendances and no money spinning FA Cup run.

Further cuts in expenditure, staff hours and posts, will save approx. £100k this financial year, but won't avoid a further loss of around £400,000 this May 2014.

The club's attempts to fund the ongoing loss through schemes such as the new share issue and debenture scheme has not been as successful as had been hoped. The share issue did achieve partial success in that 200 new shareholders invested £60,000, sadly the debenture scheme proved less attractive.

As a result the club has a severe cash flow crisis that has resulted in employees going without payment on occasions between November and the present day. At present the club is failing each month to meet HMRC debts incurred for PAYE, NIC and VAT.

A number of clubs are owed monies for the use of loan players. The club has a transfer embargo placed upon us until the HMRC debts and football creditors are paid.
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I O CITY CITY I ...
post Mar 17 2014, 08:14 PM
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If it meant us staying in the Conference, would people be happy that Hereford going bust was the condition of that?


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Che Guevara
post Mar 17 2014, 08:16 PM
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QUOTE (I O CITY CITY I O @ Mar 17 2014, 08:14 PM) *
If it meant us staying in the Conference, would people be happy that Hereford going bust was the condition of that?



Yes, nothing against them personally but they are spending money they haven't got, on players who are taking point off teams who are playing it right and living within their means.


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rimmersring
post Mar 17 2014, 08:23 PM
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QUOTE (Che Guevara @ Mar 17 2014, 08:16 PM) *
QUOTE (I O CITY CITY I O @ Mar 17 2014, 08:14 PM) *
If it meant us staying in the Conference, would people be happy that Hereford going bust was the condition of that?



Yes, nothing against them personally but they are spending money they haven't got, on players who are taking point off teams who are playing it right and living within their means.


No, i just hate the thought of any club going to the wall...they(the clubs) are the reason for us being football SUPPORTERS
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Che Guevara
post Mar 17 2014, 08:24 PM
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QUOTE (rimmersring @ Mar 17 2014, 08:23 PM) *
QUOTE (Che Guevara @ Mar 17 2014, 08:16 PM) *
QUOTE (I O CITY CITY I O @ Mar 17 2014, 08:14 PM) *
If it meant us staying in the Conference, would people be happy that Hereford going bust was the condition of that?



Yes, nothing against them personally but they are spending money they haven't got, on players who are taking point off teams who are playing it right and living within their means.


No, i just hate the thought of any club going to the wall...they(the clubs) are the reason for us being football SUPPORTERS



So you would prefer us relegated by living within our means, rather than a team which has spent money it doesn't have to gain an advantage ?


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ShrewdBlue
post Mar 17 2014, 08:30 PM
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It would be a shame but if it meant us staying up then surely any chester fan would prefer to see them to under. Harsh yes but we have to think of what is best for us.

As Che says, it isn't fair on clubs like ourselves that are living within our means while others rack up debts.
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Big Si
post Mar 17 2014, 08:32 PM
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They sound like a club that need to go under in order to get their house in order, a bit like we did. Nobody likes to see it, especially for a proud club like Hereford, but it is unfair if they are gaining a playing advantage by spending money they can't possibly hope to recoup.


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rimmersring
post Mar 17 2014, 08:38 PM
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QUOTE (Che Guevara @ Mar 17 2014, 08:24 PM) *
QUOTE (rimmersring @ Mar 17 2014, 08:23 PM) *
QUOTE (Che Guevara @ Mar 17 2014, 08:16 PM) *
QUOTE (I O CITY CITY I O @ Mar 17 2014, 08:14 PM) *
If it meant us staying in the Conference, would people be happy that Hereford going bust was the condition of that?



Yes, nothing against them personally but they are spending money they haven't got, on players who are taking point off teams who are playing it right and living within their means.


No, i just hate the thought of any club going to the wall...they(the clubs) are the reason for us being football SUPPORTERS



So you would prefer us relegated by living within our means, rather than a team which has spent money it doesn't have to gain an advantage ?

its a very emotive question, let me just say that if Hereford football club would fold, finish and disappear off the map altogether..yes....if it was to go into perhaps go into liquidation and come back as a phoenix supporter run club like ourselves .... well perhaps that might be their best option.... and my answer then would be ..no

This post has been edited by rimmersring: Mar 17 2014, 08:39 PM
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ShrewdBlue
post Mar 17 2014, 08:45 PM
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The 10 point deduction would be given next season if they go into admin. If that happens and we go down while living within our means... glare.gif dry.gif
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MPW
post Mar 17 2014, 08:47 PM
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QUOTE (ShrewdBlue @ Mar 17 2014, 08:45 PM) *
The 10 point deduction would be given next season if they go into admin. If that happens and we go down while living within our means... glare.gif dry.gif


I thought it would come into effect this season?
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ShrewdBlue
post Mar 17 2014, 08:53 PM
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QUOTE (MPW @ Mar 17 2014, 10:47 PM) *
QUOTE (ShrewdBlue @ Mar 17 2014, 08:45 PM) *
The 10 point deduction would be given next season if they go into admin. If that happens and we go down while living within our means... glare.gif dry.gif


I thought it would come into effect this season?


Says on the statement on their official site that it would be next season.

Edit: just re-read it. It says it will be next season if they go into admin after a week on Thursday.

This post has been edited by ShrewdBlue: Mar 17 2014, 08:55 PM
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ANDERS
post Mar 17 2014, 09:01 PM
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QUOTE (ShrewdBlue @ Mar 17 2014, 08:53 PM) *
QUOTE (MPW @ Mar 17 2014, 10:47 PM) *
QUOTE (ShrewdBlue @ Mar 17 2014, 08:45 PM) *
The 10 point deduction would be given next season if they go into admin. If that happens and we go down while living within our means... glare.gif dry.gif


I thought it would come into effect this season?


Says on the statement on their official site that it would be next season.

Edit: just re-read it. It says it will be next season if they go into admin after a week on Thursday.

Yeah there's a deadline late in March after Boston flouted the rules during their game down the road a few years ago, I'm not certain that if would definitely mean next season though from what I remember, thought the decision would be suspended until it was known what effect the punishement would have?

EDIT: Just had a look through the rule book, their OWS is correct, it's one way or another depending on 5pm next Thursday.

This post has been edited by ANDERS: Mar 17 2014, 09:10 PM


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a view from outs...
post Mar 17 2014, 09:06 PM
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Listing of key issues arrising from tonight's AGM


There has been a big drop in football related income.

Chairman is reviewing accounts, loss of £529K or near figure.

Significant investment is required soon to guarantee club's future.

A telecom company are in the process of talks with HUFC. A previous deal fell through due to leases not being completed in time to secure long term security of deal.

Balance sheet figure is same as 2006 figure, but club future is better secure with future development hopeful.

The Conference deadline for 10 point deduction for going into administration is a week Thursday, after that a club would start next season with 10 point deduction.

Two possible investors have been in negotiation with club. Talks are set to be concluded with a deadline set to the end of this week.

Part-Time football is a possibility next season.

Player and loan budget was £440,000 for this season, it could be £200K to 250K next season to meet budget.

Billy Murphy has a one year contract, Cory Williams two. Other youth team players being considered.

The pathway for local footballers to remain at Edgar Street through Community Trust will not continue next season.

Current youth team to complete fixtures this season. Development squad to to form U18's next season, with no link to Football League.
This season's first year scholars are free trial at other clubs to complete second year of scholarship.

Directors have big decisions to make over future of club. Including administration timing if that route is required.

Football creditors are needed to be cleared before Conference AGM to avoid any possible sanctions. A double relegation could be the outcome if not.

Insolvency affects the leases, becoming void and returning to council. £300K needed before end of May to keep the club going.

Nick Nenadich to become Chairman of Community Trust, with Bob Pritchard as a trustee. Bob is standing down as a director.

Nick N wants to fundraise for the youth team and re-instate its Academy Status. He is keen to bring through youth players.

Chairman thanked Nick N for his contribution.

Dave Preedy is the only other director standing for re-election, this was passed.

Thorne re-appointed as auditors.

Any Other Business:

Council have confirmed that the much of the talked about bond money held with them was spent during 2005-2007 period on floodlight improvements and work carried out at the ground. The amount adds to £88,000. £12,000 remains held by council.

Early season ticket sales may start to help bridge the cash shortfall. The club are considering all avenues.

Club thankful for support received from Cargill and it's other sponsors over a long period of time. And very thankful to all of it's supporters for their superb support.


Read more at http://www.herefordunited.co.uk/news/artic...TLj7u1iMfUM3.99
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JEPSON
post Mar 17 2014, 09:20 PM
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in my opinion if they go into administration it should be this season not next

a club living within their means should not be relegated if hereford are cheating

if they enter administration after the march date whats to say it wont go tits up

next season after a few games and they go totally to the wall

in my opinion and its probably worth s**t it should not be allowed

going to hide in a dark cupboard now


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a view from outs...
post Mar 17 2014, 09:22 PM
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Some additional comments from their chairman that did not make the official statement courtesy of Bulls News (DK =David Keyte chairman) -

"We are in a cash crisis"

"Significant outside investment" needed within weeks -

Profit from Starlite Rooms " (their function rooms) about one Conference players' wages"

Responding to question, dk says Board can either wait until winding up order arrives or seek Administration if no investor

Dk making it clear current board will not cover losses.

300k needed to end of May and £300k for next season.

Dk - taxman owed £78k to end of February

Dk rounds on the supporters trust. Complains they aren't being clear with their members and not doing enough to 'save the club'

Dk claims no side in Conf has budgeted to break even purely on normal trading.

Auditors warn of 'significant doubt' of the club's ability to continue

This post has been edited by a view from outside: Mar 17 2014, 09:37 PM
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post Mar 18 2014, 11:40 AM
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It's a big risk if they wait until after next Thursday to go into admin. They could go down this season and then be hit with a 10 deduction as well for next season. I think they are going down anyway this year so being cynical I would do it now and take the hit this season.
They are in freefall already and with the figures they are talking admin is their only option. Shame really for a once proud club dying a slow, painful demise.


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ShrewdBlue
post Mar 18 2014, 11:46 AM
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Looking at their options, I'd also say taking the deduction now would be the best thing for them. Could actually have a worse affect on them next season.
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post Mar 18 2014, 11:54 AM
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QUOTE (a view from outside @ Mar 17 2014, 08:03 PM) *
From HUFC OWS -

A number of clubs are owed monies for the use of loan players. The club has a transfer embargo placed upon us until the HMRC debts and football creditors are paid.[/b]

Thats the part that really goads me.
Surely as part of any transfer embargo for non payment of players wages, all loanees should return to their parent clubs immediately.

We had one of our loanees go back to his parent club last week as a result of a clause, yet as far as i am aware we were paying him his wages as per contract.

Really annoyed now.


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post Mar 18 2014, 12:50 PM
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QUOTE (open yer eyes man @ Mar 18 2014, 11:54 AM) *
QUOTE (a view from outside @ Mar 17 2014, 08:03 PM) *
From HUFC OWS -

A number of clubs are owed monies for the use of loan players. The club has a transfer embargo placed upon us until the HMRC debts and football creditors are paid.[/b]

Thats the part that really goads me.
Surely as part of any transfer embargo for non payment of players wages, all loanees should return to their parent clubs immediately.

We had one of our loanees go back to his parent club last week as a result of a clause, yet as far as i am aware we were paying him his wages as per contract.

Really annoyed now.


I doubt that!
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Lobster
post Mar 18 2014, 01:06 PM
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We should be capable of finishing out of the bottom four anyway. If Hereford go and we finish fourth bottom, we'd all take the reprieve of course, but if we start thinking it's a cert it will not help our objective.
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ShrewdBlue
post Mar 18 2014, 01:29 PM
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What would happen if Hereford did finish in the bottom four and also go under? One more up into North/South from the Evo-Stik?
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Marty Funkhouser
post Mar 18 2014, 01:33 PM
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I reckon Hereford will limp on until deadline day, a week on Thursday, and then go into Administration.


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post Mar 18 2014, 01:43 PM
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I just hope we can stay up with enough points and Hereford don't go bust!


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ShrewdBlue
post Mar 18 2014, 01:54 PM
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QUOTE (Marty Funkhouser @ Mar 18 2014, 02:33 PM) *
I reckon Hereford will limp on until deadline day, a week on Thursday, and then go into Administration.


I think the problem they will face if they do that is if they don't get out of admin by the conference AGM ahead of the 14/15 season they will be thrown out of the league and into the equivalent level of the vodkat leagues.
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Marty Funkhouser
post Mar 18 2014, 03:08 PM
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QUOTE (ShrewdBlue @ Mar 18 2014, 01:54 PM) *
QUOTE (Marty Funkhouser @ Mar 18 2014, 02:33 PM) *
I reckon Hereford will limp on until deadline day, a week on Thursday, and then go into Administration.


I think the problem they will face if they do that is if they don't get out of admin by the conference AGM ahead of the 14/15 season they will be thrown out of the league and into the equivalent level of the vodkat leagues.

Yes, logic and common sense suggest they should take the hit and enter administration immediately, but looking at the state of their finances it appears that Hereford's Board no longer live in the real world.


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