Playing expenses run at approximately £20,000 per month whilst ‘gate/programme’ income stands at £12,000 per month. The current budget for Sponsorship revenue is £106,000 for the current year. Whilst there will be revenue from membership subscriptions, bar and other sources, the budget indicates a very modest surplus for the year.
As stated earlier, the current indebtedness stands at £403,069.61 currently costing £49,240 per annum.
The club’s Management Committee has produced a 5 Year Cash Projection Summary which projects that for each of the next five years the club will generate net funds of £50,400 per annum which the committee states “ is very achievable and could even be bettered ”. The Summary shows small profits for four years including servicing all debts and then in year 5 a sharp increase in profits. That projection will not result in a significant reduction in the club’s capital indebtedness nor will it provide sufficient funds for any major improvements. However, the funds generated will provide extremely helpful monies to pay for essential maintenance, upkeep and some improvements. The Management Committee believes the club would no longer be classed as a distressed business and as long as a sensible business model is followed we can build on the current position. In considering the ‘pros & cons’ of Op tion 1, it will take 10 – 15 years to clear the current debt provided revenue streams continue and members support the efforts of the committee to maintain the club’s facilities.
Option 1 would also mean:
- No clubhouse extension (changing and/or social) - No car parking extensions - No Artificial or Hybrid pitches - Continuing significant reliance on the existing ‘faithful few’.
Option 2 - Sell part
The idea of selling a portion of th e club’s land has been discussed by the Futures Group for many years – as a realistic alternative in the absence of a suitable alternative site.
A number of options have been considered including:
Option 1 – Sell Pitch 5 with Frontage plus half of Pitch 4 – which might realise £3,750,000 Net Option 2 – Sell Pitch 5 with Frontage only – which might realise £2,000,000 Net Option 3 – Sell Frontage only of Pitch 5 – which might realise £600,000 Net Option 4 – Sell Frontage only of Pitch 6 – which might realise £475,000 Net These figures are all Provisional and are shown Net of CIL (Community Infrastructure Levy).
Depending on the net sum raised, the sale of part could provide funds for, inter alia, clearing debt and improving the club’s existing facilities.
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