Darlington football club receives cash injection after suffering financial difficulties (From The Northern Echo)
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Darlington football club receives cash injection after suffering financial difficulties
6:45pm Monday 4th March 2013 in News
By Joe Willis, Regional Chief Reporter
DARLINGTON FC has received a cash injection of more than £50,000 after running into financial difficulties.
Club bosses say the rescue package was needed to tackle a shortfall caused by budgeting errors, a drop in revenue and an overspend on playing costs.
The money has come from supporters groups and individuals who invested in Darlington FC Community Interest Company (CIC) - the body which holds a majority stake in the club.
Football club director Martin Jesper said: “There are a number of factors contributing to the immediate cash requirement including greater costs incurred and debts acquired as part of the deal to rescue the club from extinction in May 2012.
“A combination of inadequate financial awareness, a shortfall in revenues and an overspend on playing costs have also contributed to the cash demand.”
The club announced tonight (March 4) that work on the short-term rescue package had been underway for several weeks.
Officials said it would ensure the club could start to prepare for next season from a “more financially robust position”.
Ian Wilkinson, CIC director, said the terms of the rescue funding from the CIC had not changed the nature of the fans’ ownership of the club.
He added: “The future of the club is now firmly in the hands of the fans.
“In fact, these rescue funding terms outline the need to provide professional capability to stabilise and grow the business in a controlled and affordable manner off the pitch - thereby matching the high level of professionalism and performance given by Martin Gray and his team on the pitch.”
The club confirmed that the board of the football club now consisted of Martin Jesper and Laura Drew, following the resignations of chairman Denis Pinnegar, as well as Tori Gill, Pete Ashmore, Karen Glencross and Ian Wilkinson.
The board is accountable to the CIC under the new structure, which is run by a separate board of directors comprising of Ian Wilkinson, Andrew Cawkwell, Dave Mills and Paul Colman.
The CIC has 800 members and has a 52 per cent controlling interest in the club.
The club said Mr Jesper, an independent turnaround professional who specialises in managing financially stressed businesses, was brought in late last year to assess the financial position of the football club and was not being paid.
Details of a club shareholders meeting and fans forum are due to be announced later this week.
Comments(16)
greenfinger
says...
8:28pm Mon 4 Mar 13
maclaren
says...
8:32pm Mon 4 Mar 13
freelance
says...
9:01pm Mon 4 Mar 13
'more than 50 grand' - how much more?
What would 50 grand do for an ailing enterprise the better players will soon be off to richer pastures.
quakersam
says...
10:40pm Mon 4 Mar 13
stevehutch
says...
9:13am Tue 5 Mar 13
3 home games in a week will get the money rolling in, some positive Echo reporting to encourage fans to go would be useful, you do sponsor us after all.
Quakerz
says...
9:14am Tue 5 Mar 13
HOWEVER, as a fan ran club, especially at this level where we have a relatively massive turnover, we should not be running short of cash.
Hard questions need asking because if the same happens next year, will the CIC have the money to chuck another 50 grand in.
How on earth can you run at a loss at this level, with few overheads? Yes I realise we are paying off debt from the previous regime, and I heard we are ahead of schedule on that, so why no mention of that as a contributory factor - or is that untrue?
Has this happened simply because we really can't run a **** up in a brewery?
Whilst I applaud everyone who stepped up to run the club, this shouldn't mean that if it is run poorly that questions can't be asked. Also, several of the fans that stepped up are actually business people, why hasn't this been ran like a business?
nigel d
says...
11:00am Tue 5 Mar 13
that money could have been better spent on essential things same old darlo clueless
g8crasher
says...
11:57am Tue 5 Mar 13
No wonder DMPRFC wants nothing to do with them
bishopman
says...
12:56pm Tue 5 Mar 13
Topcat28
says...
1:32pm Tue 5 Mar 13
60 years a Darlo Fan
says...
1:32pm Tue 5 Mar 13
the-big-yin
says...
5:21pm Tue 5 Mar 13
Quakerz wrote:You had no debts..Administratio
The usual suspects mouthing off like usual....
HOWEVER, as a fan ran club, especially at this level where we have a relatively massive turnover, we should not be running short of cash.
Hard questions need asking because if the same happens next year, will the CIC have the money to chuck another 50 grand in.
How on earth can you run at a loss at this level, with few overheads? Yes I realise we are paying off debt from the previous regime, and I heard we are ahead of schedule on that, so why no mention of that as a contributory factor - or is that untrue?
Has this happened simply because we really can't run a **** up in a brewery?
Whilst I applaud everyone who stepped up to run the club, this shouldn't mean that if it is run poorly that questions can't be asked. Also, several of the fans that stepped up are actually business people, why hasn't this been ran like a business?
n..Paid peanuts to creditors..Wonder who has the fingers in the pies this time... Another relegation looking likely....The northern league will not put up with that...There is a local 5 a side league you might be allowed to play in....
Quaker79
says...
10:13pm Tue 5 Mar 13
At least that's the way I interpret his 'contribution'.
Quaker79
says...
10:15pm Tue 5 Mar 13
At least that's the way I interpret his 'contribution'.
Quaker79
says...
10:45pm Tue 5 Mar 13
At least that's the way I interpret his 'contribution'.
swissball says...
7:46pm Mon 4 Mar 13