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Post by strangelybrown on Sept 4, 2009 8:38:31 GMT
Two years after beating us in the Play-off Final at Stevenage, they're bankrupt!  Give me a well run club anyday. Link: news.bbc.co.uk/sport2/hi/football/teams/s/salisbury/8236641.stmSalisbury go into administration
Salisbury City have gone into administration and will incur an automatic 10-point deduction in the Blue Square Premier.
The club owes around £200,000 to HM Revenue & Customs, who have brought a winding-up petition against the club.
The move offers Salisbury protection from their creditors, but means they are now second bottom on zero points.
The administrators are in talks with a couple of potential buyers and are confident the club will survive.
"There are a couple of interested parties who have been in discussion with the club for a number of months," Mike Fortune, the club's joint administrator, told BBC Wiltshire.
"I'm very hopeful that the deal that can be put to the creditors will be accepted and the club will continue for the foreseeable future.
"The club is on a very tight cash flow so the more people that turn up and support will strengthen the chances of survival and the long term future of the club.
"Had the club not gone into administration they would have ceased trading probably at the end of October possibly earlier." |
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Post by securityrob on Sept 4, 2009 17:54:49 GMT
Not good to see another club go into administration.
Farsley celtic seem to be in even more trouble with ground being closed and league to decide there future of forthcoming fixtures.
The future is not bright.
How many more clubs will go same way this season. NONE I HOPE
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Post by chelmerboy on Sept 4, 2009 19:14:32 GMT
Those two won't be the last, not by a long way. What seems strange is that while the 3rd/4th division (or whatever it is called now) teams look to regionalisation to improve the crowds and reduce the costs of travelling, teams like us are desperate to climb up to leagues where the crowds are low and the distances are ridiculous. Even clubs like AFC Wimbledon and FC United can't be showing a profit surely. Then take a look at the amount of teams struggling along on crowds of under 300 in the Blue Square and the Northern equivalents. You only have to look at the crowds generated on a Bank holiday to see that what people want are local games against real rivals. Until people realise that although football is a sport, clubs have to be run as businesses, we will see more clubs go to the wall.
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saamedi1
One of the youngsters
Posts: 13
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Post by saamedi1 on Sept 4, 2009 21:16:41 GMT
Withregards FC United, they would turn a decent profit, were it not for paying rent to Bury FC for playing at Gigg Lane. Rumours of a new ground abound, so we'll have to wait and see.
Agree that 'living the dream' appears to be a poisoned chalice for many clubs. Good to see the Board at Cressing Road are planning sensibly for the future.
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Post by ozbrit on Sept 5, 2009 1:53:57 GMT
Withregards FC United, they would turn a decent profit, were it not for paying rent to Bury FC for playing at Gigg Lane. Rumours of a new ground abound, so we'll have to wait and see. Agree that 'living the dream' appears to be a poisoned chalice for many clubs. Good to see the Board at Cressing Road are planning sensibly for the future. Surely for the short term its better to pay rent than to develop a new ground? Unless of course FC United are being gifted one. Better than renting is owning one mortgage free ;D You don't need to look at Premier clubs to see failures, they get 'em in the Ryman as well. Its as much about managing the finances and spending what you can afford as it is about the level your club is playing at. Performing at a higher level should generate more income as well as increasing expenses. No club at any level can expect to live on attendances alone and that's been proven time and again. Ambition has to be ever-present in football, if a club sits back on its laurels, then relegation will never be far away. Its not like most Businesses where the board can choose whether or not to increase its product range or territory. With football you start the season with the aim of winning the league - right! If it then eventuates do you expect the club to say oh heck! We didn't really want to do that? Although I expect that that has happened at a few clubs lol. |
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Post by 1672 on Sept 5, 2009 8:27:07 GMT
Lee Harding's comments in the Braintree v Chelmsford City match programme:
"Next month will also see our annual general meeting. At that meeting the Board of Directors will be able to confirm to shareholders that we made a six-figure profit for our latest financial year and that our corporation and capital gains tax liabilities were paid in full on the due date"
Q1: If we can do that why can't other clubs?
q2: What happens to that "six-figure profit? Is it paid out to the shareholders or does it stay in the club?
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Post by mjt on Sept 5, 2009 14:23:11 GMT
Does the six figure sum not come from the sale of land though
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Post by jimbo on Sept 5, 2009 15:02:26 GMT
I was born in Salisbury, so I keep an eye on them and enjoyed the last time we played them at the Salisbury ground. This illustrates the difference when you go up to the Conference amongst the big boys with ex-League teams, full time players and clubs getting regular crowds of 2,000 or more. Salisbury's last home crowd was only 750 and they could not compete. The Directors are an absolute disgrace to know the financial problems and massive tax bill and do nothing except wait for a fairy godmother to appear with a magic wand.
This is why we should be very very grateful that we have honourable men like Lee and Barry and the other directors. However, they must be suffering from the credit crunch just like the rest of us and we have to be very careful if we do go up and there will be some very difficult decisions to be made. In short, we will desperately need the new stadium and we will need regular crowds of 2,000 or more. Anyone have the phone number of a fairy godmother?
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Post by Iron Webbo on Sept 6, 2009 19:40:43 GMT
"If we can do that why can't other clubs?"
Good point 1672, first we make sure the bills are going to be paid, then we set a playing budget, based on what will be left after the 'nightmare scenario' of being knocked out of all the cup competitions away from home in the first round. Any windfalls are ploughed back in. Too many clubs spend their turnover and not their profit - they seem to let sensible business practice go out of the window. I know of one local club that have put in place a budget until October - just to see if they make progress in the FA Cup. Our budgets are in place from week 1 in August to week 37 in April.
If we did go up, we would apply the same cash-flow forecasting. For us, it is better to be here in a fit financial shape next year and the years that follow, rather than have one great boom and bust campaign. No houses made of glass, built on sand - that's why we own Cressing Road and (credit to George and Alex before me) no Braintree club has ever had to sell its ground or had to contemplate an insolvency event. That ol'Iron tortoise often catches the boom & bust hare!
"What happens to that "six-figure profit? Is it paid out to the shareholders or does it stay in the club?"
No dividends are paid, any profits are allocated for future years. The board either help with finance, provide goods and/or services free of charge or both. Nobody takes out, we all put in. I am proud to be chairman of a very hard-working and committed board.
"Does the six figure sum not come from the sale of land though"
The 2/3rd acre site sale proceeds are included, together with all other income and expenditure items. Our tax liabilities were planned for and paid on the due date. Credit to Kim Cowell for ensuring we remain on the straight & narrow.
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