Following the expulsion earlier this week of Hereford United for financial problems (they’ll be playing in the Southern League Premier next season), the Football Conference have taken action on Salisbury City. Both clubs were given action to complete at last weekend’s AGM. Some sympathy has to be with the Whites as they appear to have been the victim of a conman.
This is good news for Dartford who have been reinstated back in to the Premier Division. No doubt a major re-write of the draft fixtures list is under way.
The Conference statement in full says:-
The club has failed to meet the requirement to settle all football creditors in cleared funds by 5pm Thursday, 12th June 2014. Furthermore, it has also failed to provide a financial bond of £50,000 by the same time and date.
These elements constitute two of four requirements unanimously set by members of the Board of the Football Conference Ltd, in attendance and eligible to vote, on Friday, 6th June which, if fulfilled, would enable the club to retain its membership of the Conference National Division.
If unfulfilled the club was advised at the meeting it would be liable to be expelled from the Competition and the Company under Article 5.2 or be relegated.
At a Board meeting today (13 June) the Directors considered various issues relating to the club’s financial stability, in particular the club’s failure to provide the Bond and its failure to settle all its football creditors by the due date.
The Directors in attendance at the meeting, and eligible to vote, unanimously agreed to invoke the latter part of its previous decision and relegate Salisbury City FC from the Conference Premier to Conference South.
Furthermore, if a Bond of £50,000.00 (or a Bank Guarantee) is not deposited, and the football creditors have not been settled in cleared funds, by 5pm on Friday, 4th July 2014, the club will be expelled from the Competition and the Company.
The consequence of today’s decision means Dartford FC will be reprieved from relegation to Conference South and will be replaced in the constitution of this division by Salisbury City.
Salisbury’s statement earlier today:-
Salisbury City FC are facing expulsion from the Conference on Tuesday after the leagues board decided to consider relegating them today, despite meeting certain financial demands placed on them.
On Friday £75,000 was transferred into the club solicitors client account to meet unpaid debts. The Conference board have also been given assurances that in the next seven days, the funds to meet all outstanding club debts will be paid. However, because of a legal issue in relationship to ownership of the club, the Conference board have decided to throw Salisbury City FC out of the league on Tuesday. It staggers belief that this is a Conference board who were quite happy, along with the FA, to endorse the appointment of Otail Touzar but following forensic investigation by the club to expose his financial situation, are now using him as an excuse to throw Salisbury City FC out of the league.
Following legal advice, Salisbury City FC will now consider taking an injunction out on the Conference or taking the case to an FA independent appeal board. It is disappointing that the Conference have failed to give the club a 7 day extension to clear up their financial irregularities and as a result of their imminent action it leaves Salisbury City FC with no choice but to take legal steps to safeguard their future.