Source: Bournemouth_Echo
Cherries: The debt laid bare
CHAIRMAN Eddie Mitchell today throws open the club's books to lay bare Cherries' current financial position.[LNB] Mitchell has taken the unprecedented step in an attempt to give supporters a thorough insight into the parlous state of affairs at Dean Court.[LNB] The move comes just a week after Mitchell revealed the club had been served with another winding-up petition by HM Revenue & Customs.[LNB] And Mitchell's decision to outline the finances in detail follows on from the club raising almost £300,000 from the sale of advanced season tickets.[LNB] In his Halfway There' statement, Mitchell writes: The figures published today are true and accurate and will be updated periodically as the debt diminishes. We all know the task ahead so please join in.[LNB] In the coming days, the board will announce various initiatives whereby you, the supporters, can help us finally rid ourselves of the club's legacy debt, try to lift the embargo and give Eddie Howe and the lads every chance of achieving the success this club so deserves.[LNB] The financial overview reveals that more than a third of Cherries' total debt is to the taxman, with HMRC pursuing the club for £314,000.[LNB] Cherries' current debt is just over £846,000 with commitments to landlord Structadene and creditors of the old company accounting for around 60 per cent.[LNB] Although the figures may seem alarming, they are a drop in the ocean compared with the club's plight when the Murry Group took control in June.[LNB] According to Mitchell's statement, Cherries were more than £1.78m in debt haemorr-|haging money on a daily basis and seemingly heading into oblivion.[LNB] The inherited debt included a bill of £16,800 to the Royal Bath Hotel, a figure which has now been reduced to just £3,100. It is understood DeVere Hotels had issued a county court judgement on the club before an agreed payment plan was struck up, which included costs.[LNB] Cherries also owed almost £20,000 to Seward for the lease of cars, with one club insider claiming under the previous regime, anybody who had a drivers' licence, had a company car.[LNB] The current liability to HMRC, listed in the statement at £286,000, will reduce to £214,000 with £100,000 set aside for the taxman but has increased due to this month's PAYE contributions.[LNB] None of the £40,850 owed to football creditors is believed to be pressing, while the club is up to date with payment of wages and salaries to players and staff.[LNB] The debt to landlord Structadene has increased by £63,205 as the club only paid half rent on the stadium for the first five months of the Murry Group's tenure. The club's previous owners had made this arrangement, although full rent, believed to be around £33,000 per month, was paid in December, January and February.[LNB] A deferred liquidation payment often mistaken as a CVA payment of £146,666 is due to be paid on April 1 when the club will receive a basic award payment from the Football League.[LNB] Under Mitchell's stewardship, Cherries have brought in £862,624 and paid out £755,886.[LNB] The difference has gone on the day-to-day running costs of the club.[LNB] A full list of Cherries' liabilities, investment and fundraising is in today's Daily Echo.[LNB]
