Hereford United's board have said that they need £35K to pay the staff and players wages this month and are appealing for supporters for donations.
They describe it as needing a 'short-term fix to secure the long term future'.
The full statement reads as follows:-
“The club has recently undertaken a series of cuts to its
cost base in an attempt to bring revenues and costs further into line.
“This decision was taken after a full review of current
business activities and in light of revenues from attendances at home matches
and off field activities.
“Additionally, the club received 50% less than budgeted from
the transfers of Sam Clucas, Ryan Bowman and Marley Watkins. Although we hope
press speculation is correct and Sam Clucas gets a move in January, as the club
will be set to receive a 15% add on fee.
“Whilst we have generated close to £50,000 from the recent
share issue and are truly grateful to those supporters that have contributed to
this and other schemes, the club has continued to lose money on a month by
month basis. To date this deficit has been underpinned by a small number of
people most notably the current Board of Directors.
“We are at the final hurdle for signing the revised leases
with the Herefordshire Council that will, at last, enable us to approach
developers with regard to the Blackfriars and Meadow End sites. This is an
exciting development which, quite frankly has taken too long to complete but we
are nearly there.
“Upon completion of the leases, which we now estimate to be
during the first week of January, the club will also be able to secure a 30
year contract that will see us receive an upfront six figure sum to support the
club through the remainder of the season.
“Discussions are also underway with a high profile developer
on the Blackfriars End and a development agreement has been prepared by our
solicitor for discussions on a confidential basis.
“We have thought for the past four months that the new
leases and therefore the new commercial contract would be secured ‘at any
time’. Whilst the delay continued the shortfall has increased so we have needed
to make further cuts around the club this month.
“We have also missed the recent PAYE payment to the HMRC and
will no doubt hear shortly that legal proceedings have begun that will make the
club the subject of a Winding-Up Order, most likely in early February
2014.
“You will recall that we were in a similar position this
time last year, but we benefitted from the televised cup match against
Cheltenham. The sums involved were actually worse last year.
“This year we will be able to settle with the HMRC before
going to Court by using some of the contract monies expected to arrive in
January.
“Despite the positive news that we are close to finally
agreeing the new leases, the club needs your help today. A
short-term fix to secure the long-term future, if you will.
“We need to raise £35,000 over the next fourteen
days to ensure that the club can meet its obligations to staff over
this period.
“We are asking all season ticket holders if they would
consider paying £10, or whatever they can afford, at the ground for the next
three matches and all other supporters if they would donate a similar amount
each to achieve this goal. Donations can also be made online.
“In recognition of any help received, the club will offer an
equivalent sum in return through:-
a) a discount off next year's season ticket prices; b)
shares in the club
“All of the Club Directors are 100% committed to the fight
to ensure the long term future of Hereford United Football Club in its present
form and would like to re-assure all supporters that moving forward, this
football club will run on a budget based in line with current revenues and
gates and will only deviate from that position as and when we have seen a
consistent upturn in revenues or when we have received substantial investment
from outside parties.
“It has not proved possible to adjust to the significant
loss of Football League funding in a much shorter timescale than now due to
such things as contractual obligations.
“However, whilst the current Board of Directors remains in
situ, its intention is to adjust the cost base still further in order to
produce a break-even budget for the season 2014-15, commencing on 1stJune 2014.
“To achieve this we will be evaluating further changes over
the next two months whilst also trying to support the Manager to ensure we
improve on our current league position.
“We equate the present situation to the very difficult and
challenging period in the mid to late nineties following the club’s previous
relegation from the Football League in the knowledge and belief that there will
be an upturn and we have to all keep working together to achieve that
upturn.
“The Board would ask you to please support your club at this
difficult time, as you have on many occasions over the years. We see both the
Supporters Trust (HUST) and HUISA organisations as an added strength to this
great club and also welcome their considered views on the present situation.”