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Chairman Keyte reveals massive income cut for Hereford
9:20am Saturday 7th December 2013 in Sport By Steve Carley - Midlands Sports Journalist of the Year 2013, @stevecarleyWN
CHAIRMAN David Keyte has admitted Hereford United’s income has dropped by 70 per cent in just over 18 months.
The Edgar Street outfit are enduring a torrid time financially and have reportedly been losing £30,000 a month and, while the players have been paid this month, non-playing staff have not received their wages in full.
This week has also seen another round of cost-cutting with the club scaling back its catering operations, including the reduction in opening hours of Addison’s Bar and the Starlite Room.
In addition, Hereford’s exit from the FA Cup and FA Trophy has seen them miss out on potential prize money and gate receipts.
The new share scheme has raised £43,000 and the club have converted £365,000 of loans into shares but Keyte knows more work needs to be done.
He said: “Our football income has dropped by 70 per cent since May 2012 – any shop in the High Street which had seen a 70 per cent drop in income would be facing difficulties.
“While our off-field income has increased substantially, it will not cover all of that.”
He continued: “After consulting with the manager, the players were paid in full last Friday. We are in breach of contract if we don’t pay them and they can then walk away in 14 days.
“There has been a part payment to all the other staff which will be made up with the income that we receive from functions and from matches.
“It is the same situation as we were in last month.”
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