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There are currently serious cash flow problems at Hereford United and unless some extra money can be found in the next few weeks, there is a possibility that the club could go into administration.
That was the stark message from chairman David Keyte at last night's shareholders meeting.
The meeting attended by around 40 shareholders including the directors started with a run down of the latest financial position.
Keyte went through the main reasons the club finds itself in difficulty. A drop in gate receipts, less funding from the League, less sponsorship, ten players on FL contracts, an unexpected £44K VAT bill from 2008 and no transfer money coming in.
The income from the Starlite Rooms was the only positive news Keyte had.
The figures were worse than most shareholders had realised and the problem of funding the shortfall was discussed in detail.
Keyte then told shareholders that some £67K for PAYE was due to the HM Revenue and Customs shortly. As at last evening the club can't pay this bill.
Various ideas were put forward including extra shares being made available but whilst this was accepted by Keyte, it would not help in the immediate short-term.
Questions were asked about the £100K bond 'given' to the council by the BS group back in 1997. This bond was supposed to be for the reinstatement of the Starlite Rooms which had been gutted by fire. It believed that £80K may still be with the Herefordshire council. Director Nick Nenadich, who is a councillor, said he would look into it.
Another query was about the role of director of football, Gary Peters. Keyte had spoken to him and asked if he would consider his position. However Peters is still on the pay-role. Asked by another shareholders what he did, Keyte replied that he watches whoever the club are playing next. Apparantly it would cost more to sack Peters than he is being paid.
After the meeting director Dave Preedy told BN that if funds could be found to cover the immediate shortfall, then he felt the club would cope.
Part of the problem is that there is just one home game in November which will only make the problem worse. However there are four homes games in December and lots of events at the Starlite Rooms.
So the message was that the club needs some sort of an immediate cash injection to take it to December.
The board of directors are talking to possible investors including the gentleman who has purchased nearly 5,000 shares from former vice- chairman Tim Russon. It has to be hoped that there will be some positive news as soon as possible.