Cash-strapped Magpies pay penalty for ambition (24.11.05)

Members will be told ‘change is crucial’

MAIDENHEAD United is facing one of the most crucial decisions in its 135-year history after the Advertiser learned the club is financially crippled with debts spiralling out of control.
The situation is so desperate that the officers of the club have called an extraordinary general meeting which will be held at York Road on Thursday, December 1, starting at 8pm.
At this meeting the members, of which there are approximately 50, will be told that the club cannot continue to meet its short term obligations without some form of restructuring.
Although club officers cannot preempt the decisions to be made at the EGM or even publicly discuss United’s impending cash crisis, a source close to the Magpies confirmed to the Advertiser that United are ‘up to their eyes in debt’ and that the finances are on a ‘downward cycle’.
The insider continued: “The club is running at a loss to the tune of between £1,000-1,500 per week. Income bears no relation to expenditure.
“We need to do something soon otherwise the club will collapse.
“We are in a situation now where we may not be able to pay the players’ wages even with three home games coming up.”
The Magpies are also thought to be in debt to the Inland Revenue, VAT and coach hire company. The club’s overdraft at the bank cannot be extended any further.
Although the club sits on a potential gold mine in the form of the ground at York Road, the long awaited ground sale – which will generate millions of pounds – has stalled and the long term nature of the project does not assist the club with its immediate problems.
Recently, United has sailed close to the wind financially, similar to the majority of semi-professional clubs, to maintain their standard of football.
But a dwindling fan base coupled with the extra expense of paying Nationwide Conference level wages – thought to have reached a minimum of £250 per player per week at one stage – means that the club has reached a crossroads.
It will not come as a complete surprise to the members who were told at a previous recent EGM that the club was £80,000 in debt and struggling to keep its head above water.
Our source confirmed the position could not continue and that the club’s reach had exceeded its grasp.
He said: “Things must change. We are at a financial turning point.
“The members know we have problems, but they do not fully realise the situation we found ourselves in.
“It’s important for members to understand what’s happening and that some form of restructuring must happen if the club is not to completely collapse.”
It is understood that members will be presented with options at the crisis meeting, and there is a rumour of a potential rescue package on the horizon.
Club chairman Jon Swan was contacted for his views but refused to comment on any specifics about the meeting but did stress its importance
He said: “All I am prepared to say is that it is crucial that all members make an effort to attend.”