Is the Club dying?

[malcolms]

I might have read your post wrongly, but the decision to change the Trust money from a loan to a donation didn't affect what had been given up until the change. That remains as a big minus on the club accounts.

So you are saying that the money given by the Trust membership in previous years is a continuing liability?

 

[Fareham Grecian]

The club need to be brutally honest. Publish the full accounts, if things are ok I can see no reason why there should be a problem doing this. If things are going tits up then let us know, for myself even if the football was dire if I trusted those running the club and knew they needed my money I would be far more likely to increase trust subs and buy a season ticket to do what I could to help. I don't think I would be alone either.

I think the little that is published of the accounts tell you more than enough about where we are. We have no money, so we live from hand to mouth, and we have no prospect of improving that without some sort of massive windfall, but equally we have virtually no debt so I cannot see that we are in any immediate danger of going bust again.

 

[richard_portland]

I think the little that is published of the accounts tell you more than enough about where we are. We have no money, so we live from hand to mouth, and we have no prospect of improving that without some sort of massive windfall, but equally we have virtually no debt so I cannot see that we are in any immediate danger of going bust again.

I hope you are right, but in that scenario and with lack of engagement with its fanbase it is hardly surprising people are taking the view that football is poor so I will give games a miss and not buy a season ticket until it improves. The club needs to do more either way.

 

[Fareham Grecian]

I wouldn't disagree with most of that statement except that I think you must have been listening to the Tagg School of Accountancy with regard to the debt.

Steve Williams said a couple of years ago that our historic debt was about £300,000 and net current liabilities have risen substantially every year since then. This season, with vastly declining gate income, I have a fear that they might go into orbit.

That debt though only matters, as you have just accepted, if it is unserviceable or needs sudden repayment. There are no debts shown on the balance sheet that fall into either of those categories.

 

[LOG]

So you are saying that the money given by the Trust membership in previous years is a continuing liability?

Yes. I can't remember whether it was confirmed on here by someone involved at the time of the change from a loan to donation or whether it was in the official announcement, but the money passed from the Trust to the club in previous years was fixed when it happened and only money given after that is to be considered a donation.

 

[SezLez]

The club need to be brutally honest. Publish the full accounts, if things are ok I can see no reason why there should be a problem doing this. If things are going tits up then let us know, for myself even if the football was dire if I trusted those running the club and knew they needed my money I would be far more likely to increase trust subs and buy a season ticket to do what I could to help. I don't think I would be alone either.

I agree with you Richard. If the fans were better informed they would be more likely to get behind the club both financially and vocally on match days.

 

[Fareham Grecian]

I hope you are right, but in that scenario and with lack of engagement with its fanbase it is hardly surprising people are taking the view that football is poor so I will give games a miss and not buy a season ticket until it improves. The club needs to do more either way.

Nothing to disagree with there. But that is not what the OP was about - RW claimed the club was dying.

 

[malcolms]

Yes. I can't remember whether it was confirmed on here by someone involved at the time of the change from a loan to donation or whether it was in the official announcement, but the money passed from the Trust to the club in previous years was fixed when it happened and only money given after that is to be considered a donation.

So the Trust, if it saw fit, could ask the club to repay the outstanding debt over time?..If so, this would create a fairer comparison with the commercial conditions I referred to earlier in the thread....

 

[LOG]

So the Trust, if it saw fit, could ask the club to repay the outstanding debt over time?..If so, this would create a fairer comparison with the commercial conditions I referred to earlier in the thread....

Potentially, yes. It may, however, present a problem with having the club accounts signed off by the auditor although that would be determined by the level of repayments i'd have thought. It would also weaken the Trust's position.

 

[DB9]

Nothing to disagree with there. But that is not what the OP was about - RW claimed the club was dying.

Maybe RW's wording is a bit over dramatic but he does have a fair point, Even though as you say we have no serviceable debt. We have no money in the bank, Postponements are costing us dearly and those day to day debts have to be paid, They are the ones that can pull the rug from us and even though those games will get played we will probably lose money on the reduced gates etc.