Author Topic: Reality Check  (Read 816 times)

0 Members and 1 Guest are viewing this topic.

abovepars

  • Posts: 2
    • View Profile
Reality Check
« on: March 25, 2020, 10:30:58 PM »
I'm not a frequent poster on this forum but felt that some reality should be brought to some of the recent posts debated on here.  I must agree that we have witnessed some fantastic football at the Walks in recent years, with a great team under a great manager and his assistant.  Credit must also go the Steven Cleeve for financing the Club.  However, what has been the financial impact of this success.  The figures I am about to reveal can be seen by all by visiting Companies House website.  The accounts for Lynn FC dated reveal liabilities of 231,658.  The accounts for Blue & Gold Holdings (formerly Yellow Holdings) reveal liabilities of 235,634.  These are figures from May 2019.  This means that potentially the Football Club was in debt to the tune of 467,292.  What are the current liabilities nearly one year later? It could be assumed that Steven has injected these sums by means of Directors loans.  The accounts for another of his companies, First Class Traveller reveal that First Class Traveller has loaned Blue & Gold Holdings the sum of 245,978.  This must raise the question, is the Club sustainable at this level, never mind in the National League were cost will increase substantially?  I personally would love the Club to succeed in the National League, but these figures raise some serious doubts.  We must also remember that the Club was awarded a grant of 71,000 towards the recent ground improvement and the Trust helped by raising some 4,000.  Additionally, the Friends of The Linnets have raised a not unsubstantial some of monies over the years on behalf of the football club.  How long can the Club survive accruing such debts? Only one person can answer this question.  Perhaps Steven could choose to allay any fears by writing off his Directors loans or at least give some explanation for the size of the apparent debt. It surely must be hard to attract "investors" into a business with such debt.  Of course the current Corona Virus crisis only adds to financial concerns for all football clubs, particularly at Non-League level.  I sincerely hope that King's Lynn Town Football Club survive not only through the CV crisis but also to continue operating on a stable financial footing.  I personally contributed to the Ground Development Fund as did many others and many are contributing to the latest Crowd Funding project.  Again, I sincerely hope that it is not all in vain.

Mallard

  • Posts: 3793
    • View Profile
Re: Reality Check
« Reply #1 on: March 26, 2020, 09:01:46 AM »
In Fairness to SC he has said he is not prepared to bank roll the Club going forward after this season.  So for the club to continue to play at step 2 ( or even step 1).  The Club as a whole has to find away forward to fill that void that Chairman has currently been prepared to cover.

The appointment of a Commercial Manager is a big step in the right direction. 


Blue_and_Gold

  • Independent Moderator
  • Posts: 1766
  • Observing the Ubermensch.
    • View Profile
Re: Reality Check
« Reply #2 on: March 26, 2020, 12:35:28 PM »
How long can the Club survive accruing such debts? Only one person can answer this question.  Perhaps Steven could choose to allay any fears by writing off his Directors loans or at least give some explanation for the size of the apparent debt. It surely must be hard to attract "investors" into a business with such debt. 

He doesn't even need to write off the loans. He could convert the loans into shares. IMO, potential investors would look at that far more favorably and if SC is convinced the Club is viable, then he's lost nothing by doing this.

Don't stop and never give up. If you have achieved all your objectives, you have set your targets too low!