Sunday, June 10, 2012
At the Conference AGM yesterday, the big news was the postponement of new regulations on club budgets.
The proposed "Budget Monitoring Scheme" would have outlawed long term loans from club directors, effectively forcing ambitious owners to donate money to the clubs rather than loaning vast sums to them and then demanding the money back without warning, leading to financial meltdowns like those at Chester and Darlington.
The rules would have had disasterous consequences to some teams budgets. In February, when the rules were first proposed, York claimed their £650,000 annual budget would be slashed to £350,000 as the McGill family owners pump £300,000 a year into the club.
The postponement allows for the rules to be clarified, with several clubs concerned at the vague wording of the document.