Former Hereford United website contributer Stig feels that the CVA Proposal 'simply does not add up'.
Putting aside the fact that the share issue that eventually saw Tommy Agombar buy a majority shareholding in Hereford United from David Keyte may actually be invalid, looking at the CVA Proposal from the Insolvency Practitioner Mr Landsman it appears the projected net income for the SOUTHERN LEAGUE season Hereford United (1939) Limited has ahead of it is just under £845,000.
My understanding is, that if you exclude TV money and money from transfer fees, this is almost the same as the 2009/2010 League Two season when income was just over £850,000. That season the average gate was 2158.
Even in the League One season (2008/09) – when the average attendance was 3269 - the net income was only just under £1.2million.
When you consider that the club will be extremely lucky to see an average gate of more than 600 this year – I’m being generous here – how on earth can it be claimed the CVA proposal is sustainable (or with those attendances even the club itself for that matter) and how on earth are they going to keep up with the payments?
And when you take into account that three quarters of their projected income is supposedly going to come from ‘Sponsorship’ (£250k or just under £21k per month - really?) and ‘Suite Revenue’ (£492k or £9.5k per week - I know we have better facilities now but are you having a laugh?), you cannot possibly look at those figures and believe there’s any realistic possibility the creditors will get what they’re owed over the next three years.
Like most of Tommy’s actions so far, the proposal is just utter nonsense – fantasy even - and I sincerely hope HMRC and the other large creditors can see it. And it’s complete nonsense without even considering they’re budgeting for income from selling 200 season tickets when in fact they’ve sold none, and also that former club media man Jamie Griffiths has already made a mockery of the projected income figures they aim to make from programme sales and advertising.
I feel great sympathy for the club’s creditors but sadly I’m absolutely certain Hereford United (1939) Limited will be liquidated before they see much, if any of the money they’re owed. Significant sums of cash will not start getting paid back until February 2015 but I just don’t see how the club can function until then unless Tommy (or maybe his mysterious, faceless backer) funds the losses himself and we all know that he’s not particularly keen to part with any money unless he’s left no other option.
Look closely at the figures presented in the CVA - they simply do not add up. Not even close and whether the club goes under due to the CVA failing to go through now, or because Tommy fails to meet any payments due to running costs over the next few months, rest assured it will go bust eventually.
And by the way, please don’t think I take any pleasure in saying that. It breaks my heart but it will at least give us supporters half a chance of ensuring there is a footballing future for ‘our’ Edgar Street.
In my opinion creditors are much more likely to get money back through us supporters insisting a reformed 'phoenix' club play a number of fundraising games, than they are through Tommy’s comedy CVA proposal. With gates at an all time low – and the club deducted ten points if it goes into administration - the chances of any creditors getting any money in February, if indeed the cub survives till then, is virtually nil in my opinion.
However, I will admit I can see what a CVA would do. A CVA would give Tommy another six months to try to get his grubby hands on the Edgar Road leases and exploit what used to be our club before he fails to make the first round of CVA payments.
Putting aside the fact that the share issue that eventually saw Tommy Agombar buy a majority shareholding in Hereford United from David Keyte may actually be invalid, looking at the CVA Proposal from the Insolvency Practitioner Mr Landsman it appears the projected net income for the SOUTHERN LEAGUE season Hereford United (1939) Limited has ahead of it is just under £845,000.
My understanding is, that if you exclude TV money and money from transfer fees, this is almost the same as the 2009/2010 League Two season when income was just over £850,000. That season the average gate was 2158.
Even in the League One season (2008/09) – when the average attendance was 3269 - the net income was only just under £1.2million.
When you consider that the club will be extremely lucky to see an average gate of more than 600 this year – I’m being generous here – how on earth can it be claimed the CVA proposal is sustainable (or with those attendances even the club itself for that matter) and how on earth are they going to keep up with the payments?
And when you take into account that three quarters of their projected income is supposedly going to come from ‘Sponsorship’ (£250k or just under £21k per month - really?) and ‘Suite Revenue’ (£492k or £9.5k per week - I know we have better facilities now but are you having a laugh?), you cannot possibly look at those figures and believe there’s any realistic possibility the creditors will get what they’re owed over the next three years.
Like most of Tommy’s actions so far, the proposal is just utter nonsense – fantasy even - and I sincerely hope HMRC and the other large creditors can see it. And it’s complete nonsense without even considering they’re budgeting for income from selling 200 season tickets when in fact they’ve sold none, and also that former club media man Jamie Griffiths has already made a mockery of the projected income figures they aim to make from programme sales and advertising.
I feel great sympathy for the club’s creditors but sadly I’m absolutely certain Hereford United (1939) Limited will be liquidated before they see much, if any of the money they’re owed. Significant sums of cash will not start getting paid back until February 2015 but I just don’t see how the club can function until then unless Tommy (or maybe his mysterious, faceless backer) funds the losses himself and we all know that he’s not particularly keen to part with any money unless he’s left no other option.
Look closely at the figures presented in the CVA - they simply do not add up. Not even close and whether the club goes under due to the CVA failing to go through now, or because Tommy fails to meet any payments due to running costs over the next few months, rest assured it will go bust eventually.
And by the way, please don’t think I take any pleasure in saying that. It breaks my heart but it will at least give us supporters half a chance of ensuring there is a footballing future for ‘our’ Edgar Street.
In my opinion creditors are much more likely to get money back through us supporters insisting a reformed 'phoenix' club play a number of fundraising games, than they are through Tommy’s comedy CVA proposal. With gates at an all time low – and the club deducted ten points if it goes into administration - the chances of any creditors getting any money in February, if indeed the cub survives till then, is virtually nil in my opinion.
However, I will admit I can see what a CVA would do. A CVA would give Tommy another six months to try to get his grubby hands on the Edgar Road leases and exploit what used to be our club before he fails to make the first round of CVA payments.
The CVA Proposal Simply Does Not Add Up.