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| David Keyte Applauding the Players After This Afternoon's Game |
Talking to Trevor Owens of BBC Hereford and Worcester last week, before the Tamworth game, David Keyte tried to explain how this season's budget was agreed.
"Budgeting is your best estimate looking forward,"said the Hereford United chairman.
"A lot of our income lines are fixed. It's a very old record from me to be talking about £750,000 in League Two down to £47,000. But that's one line of external funding. The sponsors thankfully stayed with it so we knew that figure.
"The only variable is the gate money. The season money came in and we're working through this two or three year period post-relegation od steadying the ship.
"It's common knowledge that we used some of the season ticket money to get out of the previous year. If we hadn't done that we're have been going under a year ago.
"So you make these decisions as you go along and progress for us would be if we could get to a point where the season ticket money fell into the right financial year next time. Realistically it may not totally, it's one we've got to look at even now for an early bird to get money in for May.
"With the ins and outs to get a playing budget of £400,000 and a manager who if you recall saying what while my budget's been slashed what chance have I got at £400,000. We knew we had got a loss in front of us because there are some fixed costs around the club ie running the stadium is just short of a £100K.
"As soon as you open the door you are paying your power, light and heat, rent and rates and grass cutting and everything that goes with it.
"If you want to play football in a stadium at Edgar Street you've got something like £100,000.
"Obviously what we are looking at now is how we can take out pounds out of every single catagory. Do we get the lawn mower out now and cut it ourselves like Graham did?
"You assume you are going to have a management team, how much is that going to cost. You've got to have a physio. Then you've got an office staff which has been cut this winter, about £30K out of that last December.
"Which ever end you start at there's also playing budget needed. By not adjusting those other catagories of costs, we had £40,000 left for players. We pitched it at £400,000 therefore a loss of £360,000.
"Every club, I can assure you, at this level and above is making a trading loss. I'd be very surprised if somebody came back and said we're making a profit in terms of basic ins and outs.
"The higher up you go Chelsea reported a £50M loss.
"The name of the game is how you fund the loss and generally people look at boards of directors.
"We have taken it on the chin for the three years in my case. We put money in to stop going down from League Two. We had a £1.2M playing budget in League Two and still went down.
"And in the discussions I've had this week, these people are amazed we couldn't stay in League Two with a £1.2M budget.
"And, as you know, I've always been a bit gauled by the fact that five of those players immediately went to League One. Something adrift there in terms of management in that particular year.
"You'll make a trading loss at this level of football and I suspect League Two and League One. So it comes down to who funds it."
Owens then asked if there is no investment would 'that be game over by the end of May?'
"I've got to say that's the last thing we are entertaining. I've stood on the pitch and said it wouldn't go under whilst I'm here and that's still the plan.
"But there is only so much sensibley people should put into it and the current board will not be putting £300K a year into it having done so in the last three. It has to stop somewhere."
Finally Owens asked about paying football creditors by the Conference AGM whether in administration or not.
"You have to do that anyway. The Conference have the right to penalise you if you have not done so which could include relegation."
Owens - "Could that include out of the Conference altogether?"
"I don't quite know the worst penalty whether it's one League or what. The have the right to make such a decision if you've not cleared your football creditors."