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Next Game: Darlington Away In The League On Saturday 23rd November At 3.00pm

Saturday, December 07, 2013

Income Down By 70% In Eighteen Months Says Keyte


Hereford United chairman David Keyte has told the Worcester News that income at Edgar Street has dropped substantially in the past eighteen months thereby putting continuing pressure on the finances at the club. 

"Our football income has dropped by 70 per cent since May 2012," said Keyte.

"Any shop in the High Street which had seen a 70 per cent drop in income would be facing difficulties."

There had been doubts that the players would receive all that was owed to them last month but Keyte confirmed they had been payed. 

"After consulting with the manager, the players were paid in full last Friday. We are in breach of contract if we don’t pay them and they can then walk away in 14 days.  

"There has been a part payment to all the other staff which will be made up with the income that we receive from functions and from matches.

"It is the same situation as we were in last month."

Meanwhile Keyte has also spoken to BBC Hereford and Worcester about the financial situation. He revealed that, as at mid-week, 107 new investors had purchased shares in the club, raising £43,000, since the issue was launched in October. He also said that directors had converted £365,000 of loans into shares

"It's not cash into the club but it does improve the balance sheet. 

"We had the option to covert the shares and it reduces the club debt markedly.

"It improves the balance sheet and most share investors will be looking at that more so than profit-and-loss accounts and it does improve that quite noticeably.

"We're grateful that just over 100 people have taken up the option to become a part owner of the football club and we'd welcome as many people as possible."

Finally a couple of paragraphs from the Conference site about the Bulls' situation.

Since May 2012, we have reduced wages and salaries by £603k and all other running costs by £197k, a total cost reduction of £800k. In the same period, our football related revenue has fallen by £977k but this has been partially offset by an increase in off-field revenues of £369k. A net fall in revenue of some £600k.

The above suggests progress of £200k has been made but the reason we remain in a 'standstill' financial position is due to the fact that donations of £231k were also made to the club in season 2011-12 and we have not budgeted same this season. We did however propose alternative options for supporters to take up Debentures and/or shares in the club, and this offer remains open to all supporters of the club...