It's time clubs started living within their means

It's time clubs started living within their means

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Library filer dated 20/04/2003 of English One Pound Coins. Children have seen pocket money levels rise by more than four times the rate of inflation over the last year, the Halifax bank said Friday April 1, 2005. Two-thirds (66%) of seven-to-16-year-olds

First published in Sport

FOOTBALL clubs getting themselves into financial difficulties is nothing new.

Hardly a week seems to go by without one facing the threat of administration or a winding-up order.

Hereford United are the latest to find themselves in the mire, while Kidderminster Harriers and Worcester City have experienced it too in recent years.

This is going to sound harsh, but I have little sympathy with them.

While I accept not all are of their own making, the familiar tales of woe are too much of a coincidence for them to be bad luck stories.

It is long overdue that clubs started to live within their means. Any other business running like that would have been wound-up by now.

Football clubs, although often community-focused, should not be special cases and Hereford are a case in point.

Here we have a club that patently cannot support themselves at the level they operate. They, seemingly, have not cut their cloth to suit following relegation from the Football League and are now paying the price.

Already this season they have been served with two winding-up orders for unpaid tax bills and that is just the tip of the iceberg.

Chairman David Keyte last month revealed the club lost around half-a-million pounds up to April 2013 and needed £300,000 to get them through to the end of next month.

That is before next season is considered, with the financial forecast equally as bleak. Players are still owed money, as are a number of creditors.

Yesterday, they were granted an extension to pay their latest HM Revenues and Customs demand of £78,000. Fans and club officials have worked wonders to get the money together, a true show of what can be achieved in times of adversity.

But this is only a short-term fix. They might avoid this winding-up order, but there will likely be more on the way.

Clubs should not continuously go begging to supporters by playing on their emotions. Fans will stump up the cash because they care but, in Hereford's case, are they simply not throwing away their hard-earned in delaying the inevitable?

I'm not suggesting they give up, far from it, but they need to be realistic.

Hereford need a long-term solution of major investment, not stop-gaps.

Comments (4)

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4:04pm Tue 8 Apr 14

Handcart says...

Could Bulls ground share with WCFC? OK, perhaps not... Mind you, if Warriors get relegated is that financially punishing for them like it is in the Premiership, and would they be happier to open their gates to City? The OBVIOUS solution - Please say yes!
Could Bulls ground share with WCFC? OK, perhaps not... Mind you, if Warriors get relegated is that financially punishing for them like it is in the Premiership, and would they be happier to open their gates to City? The OBVIOUS solution - Please say yes! Handcart
  • Score: -3

4:06pm Tue 8 Apr 14

liketoknow says...

I can't understand how they are allowed to continue trading when they are obviously insolvent
I can't understand how they are allowed to continue trading when they are obviously insolvent liketoknow
  • Score: 1

11:42am Thu 10 Apr 14

CityBlueBoy says...

HOW MANY TIMES ! Warriors and City will NOT be sharing.

(1) Theres the whole FA and RFU and their rules and regs etc etc
(2) Warriors have now rejected WCFC on more than one occasion, but for some reason they are happy enough to lose £3 million in 12 months
(3) The state of the pitch

Could WCFC afford the ridiculous amount of rent that Warriors would want ? As this news piece is all about 'living within means' I think the board of WCFC wouldnt even consider it if the price is higher than what they are paying for Aggborough !!

This is why WCFC needs a new home back in their own City, that way the crowds increase again, the business is run correctly like the current board are currently doing and have been since they chased off the old chairman a few years ago and we can have a well run club that the community can be proud of !
HOW MANY TIMES ! Warriors and City will NOT be sharing. (1) Theres the whole FA and RFU and their rules and regs etc etc (2) Warriors have now rejected WCFC on more than one occasion, but for some reason they are happy enough to lose £3 million in 12 months (3) The state of the pitch Could WCFC afford the ridiculous amount of rent that Warriors would want ? As this news piece is all about 'living within means' I think the board of WCFC wouldnt even consider it if the price is higher than what they are paying for Aggborough !! This is why WCFC needs a new home back in their own City, that way the crowds increase again, the business is run correctly like the current board are currently doing and have been since they chased off the old chairman a few years ago and we can have a well run club that the community can be proud of ! CityBlueBoy
  • Score: 1

10:37pm Thu 10 Apr 14

Hillbilly1 says...

CityBlueBoy wrote:
HOW MANY TIMES ! Warriors and City will NOT be sharing.

(1) Theres the whole FA and RFU and their rules and regs etc etc
(2) Warriors have now rejected WCFC on more than one occasion, but for some reason they are happy enough to lose £3 million in 12 months
(3) The state of the pitch

Could WCFC afford the ridiculous amount of rent that Warriors would want ? As this news piece is all about 'living within means' I think the board of WCFC wouldnt even consider it if the price is higher than what they are paying for Aggborough !!

This is why WCFC needs a new home back in their own City, that way the crowds increase again, the business is run correctly like the current board are currently doing and have been since they chased off the old chairman a few years ago and we can have a well run club that the community can be proud of !
Thats just not true

1. The 'primacy of tenure' argument is a myth put around by teams who don't want to share. There are plenty of football teams sharing with rugby teams in top divisions. Sale Sharks might be returning to Edgeley Park soon, it won't cause a problem.
2. The offers put forward to Warriors were not acceptable, and in fact WCFC rejected Warriors as well.
3. The state of the pitch is not an unsurmountable issue, the idea that rugby is played on cabbage patches is 20 years out of date. Rugby even has a latest technology 3G pitch where Saracens play.
WCFC could easily share facilities at Sixways if there was a will to do it. There are plenty of pitches, which could be developed to Conference North standard on the site, in fact this was an offer put forward by Warriors once, rejected by WCFC.
[quote][p][bold]CityBlueBoy[/bold] wrote: HOW MANY TIMES ! Warriors and City will NOT be sharing. (1) Theres the whole FA and RFU and their rules and regs etc etc (2) Warriors have now rejected WCFC on more than one occasion, but for some reason they are happy enough to lose £3 million in 12 months (3) The state of the pitch Could WCFC afford the ridiculous amount of rent that Warriors would want ? As this news piece is all about 'living within means' I think the board of WCFC wouldnt even consider it if the price is higher than what they are paying for Aggborough !! This is why WCFC needs a new home back in their own City, that way the crowds increase again, the business is run correctly like the current board are currently doing and have been since they chased off the old chairman a few years ago and we can have a well run club that the community can be proud of ![/p][/quote]Thats just not true 1. The 'primacy of tenure' argument is a myth put around by teams who don't want to share. There are plenty of football teams sharing with rugby teams in top divisions. Sale Sharks might be returning to Edgeley Park soon, it won't cause a problem. 2. The offers put forward to Warriors were not acceptable, and in fact WCFC rejected Warriors as well. 3. The state of the pitch is not an unsurmountable issue, the idea that rugby is played on cabbage patches is 20 years out of date. Rugby even has a latest technology 3G pitch where Saracens play. WCFC could easily share facilities at Sixways if there was a will to do it. There are plenty of pitches, which could be developed to Conference North standard on the site, in fact this was an offer put forward by Warriors once, rejected by WCFC. Hillbilly1
  • Score: -1

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