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Next Game: Marine At Edgar Street On Saturday 9th November At 3.00pm

Wednesday, December 14, 2011

Hereford has to be a selling club says Keyte

Hereford United chairman David Keyte has said that during most seasons the club needs to sell players to balance the books.

His comments come as the club struggles with the current trading position and the need to keep turnover as high as possible so that the 55% wage cap is not exceeded.

During last season players were sold to the value of £297,730 but there's little sign of reaching anywhere near that figure this season. To date only one player has been sold - Stuart Fleetwood moved to Luton for, reportedly, £50,000.

"There appears to be a case to say that, based on limited gate money and little additional income, the Club needs to sell players to have a chance of reaching a break-even/or profit situation," said Keyte.

"Looking ahead to the current 2011/12 financial year, the prize money will be zero and with transfer fees budgeted to be £50,000 we face a potential reduction in turnover of £300,000 before ever we discuss falling gate revenue."

Keyte has also given an insight into the true cost of players wages at Edgar Street.

"It is clear that a new player is not just an agreed weekly wage, nor just the traditional on-costs for PAYE and Pension but, significently for us in Hereford, carries quite costly travel and accomodation costs also.

"An exercise Gary Peters and I are currently working on suggests the true player cost is approx 150% of the agreed weekly wage."

All in all the immediate future, off the pitch, isn't very rosy at Edgar Street.

"Sadly, falling gates across the country, no FA Cup run and lack of movement in expenditure constrained by contractual agreements will result in a significant loss in the 2011/12 financial year."