Statement from Hereford FC Board following club AGM on Thursday 26 January
Earlier this evening Hereford FC’s Board of Directors met with shareholders at the club’s Annual General Meeting, (AGM), to discuss the financial results to the year-end 31st May 2022. Speaking on behalf of the Board, Bulls’ Chairman, Jon Hale, has today provided the following update for supporters:
As a Board of Directors we are clear that last season was financially very disappointing, with a loss bigger than we had anticipated, which is in part due to situations that could not have been predicted.
Many different factors contributed to the loss, including increased match day costs (security/medical/pitch), staffing infrastructure improvements, a first year of taking the bars in house with associated costs, and a loss on matchday programmes. Coupled with this we saw shortfalls on sponsorship alongside matchday revenue and facility sales.
We did go over-budget on the playing side due to injuries above and beyond the contingency we had in place, and also through a desire to support the Manager achieve a play-off spot. However, this overspend was not huge.
At the AGM, we know it is important to answer questions from shareholders and we also wanted to demonstrate that we are working tirelessly behind the scenes to ensure we get it right from top to bottom across the club, to make it sustainable and to support the playing side as much as possible.
While last year’s loss is disappointing, the overall financial picture this year is positive. We expect to be reporting a profit in our next accounts, which will be very welcome news to all supporters, shareholders, sponsors and Directors.
There can be no doubt it is hard work to keep the ship steady, with so many variables in the football industry against which you are instantly rated. The annual budgeting process is fraught with difficult decisions and predictions, many of which can fluctuate in their eventualities at the drop of a hat, and we are now in that period of the year where we make those key forecasts which will determine important funding pots for next season – critically the playing budget.
We do appreciate it is frustrating for supporters when things don’t go well on the pitch, and positive results are clearly what we all want. As Directors, we have never hidden away from criticism, which often comes from people who want greater investment in the team. We cannot just provide that because our finances won’t allow it, even though at times, as fans, we might like to.
However, when we can, we do increase the playing budget in line with above-budget revenue. Josh has been able to bring in a couple of new faces recently as a result of us doing exactly that, but he knows and respects that we have to be prudent and a certain amount of ‘outs’ before the ‘ins’ is what this level is all about.
The Directors of our football club give up their free time and expertise for the club we love on a voluntary basis, and rest assured it gets to us just as much you when things don’t go well on the pitch. This can quickly lead to a downturn in attendances, bar sales, programme sales, shop turnover, sponsorships, commercial ventures and general interest in the club – all of which waves a red flag in our faces, naturally, as we have wider responsibilities to consider than normal match-going fans.
The club was built on safe foundations, and while we may not get every decision right in everyone’s eyes, we are committed to ensuring Hereford FC continues to build in the right direction. Therefore, it is particularly pleasing to again be talking about possible play-off opportunities if we can keep winning games. Be in no doubt that the Directors want on-field success as much as every other supporter of this fabulous club.
Volunteers are a key part of this football club, and without their ongoing support we would not be able to operate. From Stadium Maintenance to Ticket Sales and Turnstile Operators, and pretty much everything in between, there are very few areas of the business that don’t have some form of volunteer involvement. The board would like to thank every single volunteer for their dedication and support.
Finally, I’d just like to put on record once again that we all genuinely appreciate the magnificent support our fans offer the team home and away, and that we very much look forward to seeing you again at Edgar Street tomorrow, when Banbury United are our visitors.
Jon Hale
Chairman