Report of an open Club Meeting, 30 March 2002, at 1pm
The views expressed here are not necessarily those of Altrincham FC, except for content of the Board's Statement reproduced below.
Background
This Club Meeting was convened by the Board and attended by four Board members, Mark Harris, Dave Tracey (DT), Jeremy Pollitt (JP) and Bob Peters (BP). Apologies were given for the absence of Directors Kevan Guiney and Bob Green. Mark explained that as he was withdrawing as Chairman, he was handing the floor over for the meeting to the other three Directors. Amongst those present for at least part of the meeting were the manager Bernard Taylor, the coach Graham Heathcote (GH) and this season's club captains Steve Hawes and Mark Sertori. At the start of the meeting the following text was given to the audience of 80-100 supporters. Below the text is a summary of the meeting.
ALTRINCHAM FOOTBALL CLUB
STATEMENT FROM THE BOARD OF DIRECTORS
Issued Saturday 30 March 2002 to an open Club meeting.
As you will all be well aware, the financial situation of the club inherited by the present Board was extremely serious, to the extent that for the year ending May 2001 our accounts have been qualified by our Auditors. The club has made some progress during the year to repay some of the debt, and to manage to keep the club going. This includes recently avoiding a winding up order from the Inland Revenue for last year's tax arrears, which the Directors paid. We have enjoyed additional revenue for our F.A. Cup successes, SAFE has contributed almost £10,000 during the year and today will be working hard to increase this figure, and the present Board of Directors have together contributed around £60,000 to the club this season.
We have also taken steps to reduce the wage bill, the level of which was far in excess of what the club could afford. It has not been possible to cut these costs immediately, as many are tied in with contracts that last until the end of the season. While all has been enough to keep us afloat on a day-to-day basis. we are a long way from having solved all the club's financial problems and we are now looking to get Shareholders, Supporters and Directors alike involved in solving this problem "once and for all".
While looking after the day-to-day issues, the Board of Directors has also been trying to get an accurate assessment of the financial position of the club. Over the course of recent weeks, we have been made aware of additional financial commitments for which the club are liable. In total, the club still has around £200,000 of debts. A substantial investment into the club of the order of £50,000 is required within the next few months if Altrincham Football Club is to survive.
For this level of investment, the potential sources are as follows:
Each of the above options needs both the willing support of the existing major shareholders, and the financial support of those of us who have affection for the club and want to see it survive. Additionally, new initiatives are required to provide the club with a basis of secure regular income for the future. The board is extremely grateful for all the suggestions that have been put forward over the past few weeks, through the web site and in direct correspondence to the club.
Some of the most promising ideas are:
The income side has to be balanced with controlling costs. For 2002/2003, we have budgeted for a reduction of 40% in the overall wage bill (players and management), and we have to ensure that we work to this budget. As recent weeks have proven, player injuries take their toll and there is pressure to bring in new players to cover. This cannot be an excuse to exceed the cap on the total budget, or all our fundraising efforts will be pointless. The approach must be to develop players, through the youth and reserve teams, who can take their place in the first team squad. Rumours of the demise of youth and reserve teams are very much unfounded. They are the future of the club.
We hope this clearly sets out the task facing the club if it is to survive. We need immediate funding and support for this from shareholders. We need commitment from fans to support future fund raising initiatives to give us regular income. We need to ensure costs are tightly controlled. Finally we need to develop players with ability and commitment. We see this as the best strategy to help the club survive, but without the support of fans and shareholders, we cannot succeed.
The Club Meeting
DT (Dave Tracey) explained that the Club is still losing almost £2,000 a week. A budget for 2002-03 has been devised showing a deficit of £16,000 but this makes no allowance for income from cup runs. The auditors wanted the Board to guarantee any shortfalls in income so the Board is now approaching the supporters to look at ways of improving the financial situation. Customs and Excise (VAT) and the Inland Revenue are the major creditors. Only three weeks ago the Directors had to find £18,000 to avoid a winding up order and they have, in all, put £70,000 into the club over the last year or so. Debts are in the region of £200,000 despite the FA Cup income this season.GH (Graham Heathcote) asked why the financial crisis was being presented as a new problem when it had been aired four years ago; he asked what faith supporters could have in the budget next year when little had been done to rectify the deficit over the past year. JP (Jeremy Pollitt) responded that the reason for the current meeting was that the situation needed urgent action as the Board alone could not undertake to pay off future bills as it had done up to now.
A questioner from the floor asked why the Club had spent money on loan players recently when the financial situation was known to be weak. The Board responded that players had been released and that at the time we had been in a position where we might get promoted so the loan players were engaged with that in mind. Queried about the released players, it was revealed that apart from Carl Furlong, Chris Adams had also been released and another player had taken a pay cut. (NB This was subsequently corrected- Adams has not been released.) Another questioner asked why the promised cut of £800/week in wages had not been enacted and it emerged that the players had apparently refused to accept this. Another member of the audience indicated that the previous manager, Mark Ward, had been dismissed for, amongst other reasons, not keeping to the pay budget. There were also comments made from the floor about lurching from one crisis to another.
BP (Bob Peters) then itemised a number of possible fundraising schemes. These included:
The audience were asked to complete a form indicating their interest in these and other schemes such as converting their gas/electric supply to a supplier who might pay the Club a percentage on the new customers' bills. A "Can the Can" scheme was also suggested by the Board, whereby the Club would recycle aluminium cans.
In response to a question from the floor it was stated that schools were being encouraged to come to Moss Lane and that there would be a reinstatement of the schools' matches at Moss Lane at half-time in first team fixtures.
DT indicated that though he had wished to raise gate prices next season, he had been outvoted. however, a voice from the floor suggested a rise for adult entry would be acceptable.
In response to another question, MH (Mark Harris) revealed that Rod Thornley and Jason Gallagher were the only players contracted for 2002-03 though there was an option on Ian Craney's contract. Players such as Danny Murphy and Stuart Coburn were out of contract at the end of this season. JP concluded the meeting by underlining that the Club could not carry on as now and that new fundraising methods must be implemented as well as the new tighter budget.