Press
Release
Trust to Question Board
over Debt
The
Walsall Supporters' Trust has submitted a series of questions to the
forthcoming AGM of Walsall FC. These questions focus upon the club’s
significant operating loss and its short-term financial management. The questions
are as follows.
1. The Club has successfully cut its operating costs by 10 per
cent and yet for the second consecutive year it made an operating loss of over
£900,000. Unlike the last financial year the club has required a £1 million
loan from Mr Bonser. How does the Board plan to recover the football club’s
overall financial position?
2. The loans that are secured, in part by way of a legal charge
over the football stadium, are over £1 million pounds and do not include
interest payments. These need to be paid within 5 years. On current projections
the rent owed by the club will have exceeded £500,000 per annum by the end of
that term. How does the Board intend to meet these commitments whilst
addressing current liabilities and maintaining the liquidity of the club? If
the club defaults on these payments will the stadium revert to the
Self-Invested Pension Plan of J.W. Bonser? What are the implications of this
approach for the financial future of the club?
3. According to note 24 (b), the club sold an area of land
covered by the long-lease back to Mr Bonser’s Self-Invested Personal Pension
Plan. Can the Board clarify how the club can sell land that is leasehold and
not freehold? Why does this not appear in note 10, under Tangible Fixed Assets?
4. The land covered by the long leasehold will now have reduced
by 9 per cent of its value. Will there be a concomitant decrease in annual rent
due from the club? Why do the Board feel that it is in the club's best
interests to sell off its assets in this way?
5. Gloucestershire County Cricket Club recently celebrated the
acquisition of their cricket ground. They claim that the move will "secure
their future and provide increased flexibility in taking the Club forward"
despite the fact that prior to the purchase they had "enjoyed a long term
lease at a favourable rent". Given that, at the current rate of growth,
Walsall Football Club will pay around £1 million in rent on the Bescot site
over the next 3 years, why does the Board feel that renting is still the best
business case for Walsall FC?
6. Will the Board supply written answers to each of the
questions submitted to the AGM to its shareholders, either at the meeting or on
request thereafter?
Trust
Chair Richard Hall hopes that the issues raised will be seen by the club in a
positive light. He noted that “with falling turnover and gate receipts,
operating losses appear to have been reduced by the sale of assets. The club
has also been supported by a loan from Mr Bonser. We feel that supporters and
shareholders should know how the club’s debts will be managed.”
In
line with the Board’s focus upon maintaining the financial stability of the
club, these questions are intended to help supporters to understand the actions
of the Directors.
Note to editors:
For more information contact the Trust press officer
Bob Barnard – 01922 624943.
The Walsall Supporters’ Trust is a membership organisation of dedicated Walsall FC supporters and has 230 paid-up members. These people are also major shareholders in the football club with 208 shares.