THE chief executive of Durham County Cricket said tonight work is underway to secure a "positive and sustainable" future for the club, despite its latest published accounts showing debts have spiralled to almost £7.5m.

The account statement, which runs up to September 30 last year, has only just been published, and reflects an operating profit of £653,805, compared with a loss of more than £1m the previous year.

But increasing loans to pay for ground development and floodlights saw the overall debt increase by £700,000, to £7,484,532, and the statement, signed by club chairman Clive Leach, forecasts that insufficient cash will be generated over the ensuing 12 months to meet liabilities as they fall due.

The Northern Echo: CHAIRMAN: Clive Leach

Durham chairman Clive Leach

However the club believes a restructure will cement a more stable future.
Club chief executive David Harker told The Northern Echo: “In order to continue as a going concern we need the ongoing support of the ECB (England and Wales Cricket Board), which is something we are working on.

“Part of that support was to go through a restructure.

“The first stage is to adopt articles consistent with a CIC (Community Interest Company) to ensure there’s a sustainable future for the club.

“We have a plan, we are working to that plan.”

He said he was “confident” it would give the club a, “positive and sustainable” future, once that plan is delivered, which it is hoped will be by the end of the year.

An ECB spokesperson said: “ECB talks regularly with all first-class counties to ensure they each have sustainable long-term plans. 

“It’s well known that we’ve had several conversations throughout the season with Durham CCC about the opportunities and challenges facing the club. 

“We are fully committed to supporting the game in the North-East and are working closely with the club to ensure a successful and sustainable future.”

The account statement says: “There is a plan to secure additional funding and an offer is in place, but not all the conditions have yet been met. 

“We fully expect that the conditions will be met, but since the funding is not fully secured, at the date of approving these financial statements, a material uncertainty exists which may cast significant doubt on the company’s ability to continue as a going concern.”

The club’s loans and borrowings totalled £6,758,252 and the annual interest was £308,538, a rise of £75,000 from the previous year.

Two council loans, totalling almost £4m, were being repaid at 4.7 and 6.5 per cent, while the charge to the Local Enterprise Partnership was 7.49 per cent on a loan which fell from a little more than £1m, to £842,852.

There also existed bank loans, of almost £1m, charged at two per cent, as was a loan of £1,400,000 from the ECB.

The statement adds: “The directors have proposed that the company changes its constitution to take on the characteristics of a Community Interest Company (CIC). 

“This was approved at an EGM on September 7. The directors believe this will secure the long-term future by giving access to sources of finance, principally the ECB, which might not be available with the existing company structure.”

The accounts showed staff costs reduced by eight per cent and it is understood conditions have been imposed by the ECB to control expenditure.

As Durham's financial problems were highlighted in the national press, other counties have taken an interest in their playing squad, resulting in the departure of long-serving players.

Skipper Mark Stoneman and England Test all-rounder Scott Borthwick are heading to Surrey next season, while popular wicketkeeper/batsman Phil Mustard has been released and another long-servant, Gordon Muchall, has taken up a teaching post.

The statement adds: “The focus will remain on controlling staff costs and all other overheads, while pursuing additional sources of income. The commercial development of the ground will be a key initiative in this.

“The long-term strategy of stadium development, including hotel, conference and banqueting facilities, will mitigate against the risk of over-dependence on international cricket.”

Durham’s Emirates Riverside ground, at Chester-le-Street, has been selected to stage one-day or T20 England international fixtures against the West Indies, South Africa, Pakistan and Australia over the coming three seasons, while it will also host three matches in the ICC World Cup, of 2019.