Statement from the Board

[Seasider9601]

Just released.

https://www.morecambefc.com/news/2023/m ... -chairmen/

[marky No.1]

Bleeding us to death

[P/T Indie]

I don't understand though how come we were able to pay off the loan and be debt free one minute and then the next there is a £800K loss.

[Old Man Kensey]

Does the Board addressing the Bond Group in a public statement, to basically hurry up and fook off, mean that internal communication with them is somewhat limited?

[Keith]

So basically, Bond Group have made a fortune as loan sharks, charging us a "high rate of interest".

Now you've made your money, will you just f*** *** and sell up. Debts are being wracked up again, as "a mixture of loans and equity investment from Sarb Capital" and now we're a League Two side again, income will be reduced and the value diminished, so the longer this goes on, the less value there is in the club.

The EFL need to make a decision. Either Sarbjot Johal is a realistic owner, in which case approve his purchase, or he isn't, in which case, stop it now, and hopefully a genuine option will become available. But they need to make a decision NOW!

[marky No.1]

I don't understand though how come we were able to pay off the loan and be debt free one minute and then the next there is a £800K loss.

The debt free came in the period of covid grants, fa cup runs, tv money, large ticket sales and player sales, none of which was reinvested into the playing budget.

This last year we've had none of that revenue and have been left to scrape around from a blank start.

[Keith]

Does the Board addressing the Bond Group in a public statement, to basically hurry up and fook off, mean that internal communication with them is somewhat limited?

Or, simply the fans are getting increasingly restless, and they know they need to communicate with us, and demonstrate that they are 'with us'? This statement has been needed for over a week, but the board will have been trying to remain on-side with the owners.

I really think the Trust need to be contacting the EFL & Secretary of State for Sport, so we get some 'noise'. This statement helps in that sense.

[P/T Indie]

I get that we used the extra income to pay off the debt but then surely we didn't budget for last season thinking we would get similar income as it was never going to happen and you shouldn't really include cup runs in the budget.

Unless the board budgeted thinking some of the extra income might have been available to spend on the team and then Jason changed his mind.

[P/T Indie]

I really think the Trust need to be contacting the EFL & Secretary of State for Sport, so we get some 'noise'. This statement helps in that sense.

We should have been doing that last week!

[Keith]

I'd love to know what Peter McGuigan thinks of all this? His legacy at Morecambe FC should be that of a hero, but we're rapidly heading to it being the provider of a white elephant, and the slow death of the club.

I get that we used the extra income to pay off the debt but then surely we didn't budget for last season thinking we would get similar income as it was never going to happen and you shouldn't really include cup runs in the budget.

Unless the board budgeted thinking some of the extra income might have been available to spend on the team and then Jason changed his mind.

I read it as, using the additional income to pay off the debt that attracted a particularly high rate of interest, and, because Bond Group wanted their cash back ASAP. We knew we'd then return to being in debt, but it is elsewhere and [presumably] not as expensive.

[Old Man Kensey]

Would letting the club go under, if the sale falls through, be the quickest and cheapest route for the Bond group to make their exit?

[marky No.1]

We budgeted for last season when we got promoted cos most of Robinsons signings were for 2 years.
The money was taken out after the first season so we had to pay the contracted players out of a virtually pot of zero hence the £800K loss.

As it says, our L1 budget was virtually doubled which clearly now has to be halved again, or worse

[Gone_Shrimping]

I can see Mayor being sold to provide funds for the playing budget. We can't allow the club to drop into the Vanarama.

[P/T Indie]

I'm seriously starting to think administration might not be a bad idea and it would at least force a sale through, Jason wouldn't get to choose who he sold to either.

Take the points deduction early in the season and see what happened worst will be we end up back in the National League which is we have to be self sufficient is probably where we need to be.

[Old Man Kensey]

I'm seriously starting to think administration might not be a bad idea and it would at least force a sale through, Jason wouldn't get to choose who he sold to either.

Take the points deduction early in the season and see what happened worst will be we end up back in the National League which is we have to be self sufficient is probably where we need to be.

I worry about us actually starting next season. I'm normally very positive about things but this seems to be getting darker and darker.

[Wild Bill]

Sad truth is we have been in the shit since PMG first sold the club. Always questioned the motive of Del Boy and Rodney and now the board has finally told it like it is. Let's hope someone of better motives comes in now and pays enough to make them disappear.

[CityShrimp]

I get that we used the extra income to pay off the debt but then surely we didn't budget for last season thinking we would get similar income as it was never going to happen and you shouldn't really include cup runs in the budget.

Unless the board budgeted thinking some of the extra income might have been available to spend on the team and then Jason changed his mind.

I think it’s just taken as a given that the club (and most clubs for that matter) loses money and the job of the owner is to cover those losses. The statement mentions a profit of £1m and then states that £2.4m of income was ‘one off’. So despite using language like ‘the club posted a healthy profit’, the reality is that the club wasn’t and isn’t breaking even/wiping its face.

It sounds like the directors are being forced to run the club at break even point, which you might say doesn’t sound like such a bad thing and we might actually be alright from a business/financial point of view but the major concern is can we field a team capable of surviving in league two on the budget imposed? It sounds like the budget is going to have to go from (say) £2m to £750k this season.

[marky No.1]

It sounds like the budget is going to have to go from (say) £2m to £750k this season.

22 players on £600 a week sounds tricky, particulary when 5 of them we be on a lot more

[Wild Bill]

I think if all the fans stick with the club we will turnover enough to sustain a L2 budget. Let's hope they do but I guess an honest statement from the board is a good starting point.

[P/T Indie]

Teams in Conference North pay more that

Would be interesting to find out from the board how much income they think we need to be sustainable and how much short we are so supporters could do something to try and fill the gap.

[redrobo]

Thanks to our BoD for telling us as it is and not glossing over the situation. Just wish they had issued this statement sooner but better late than never.

I have to admit that balance sheets and the like are not my strong point BUT it would appear that the high rate of interest involved in the initial purchase by the Bond Group has really caused the issue regarding the current financial state of the club. Shafted comes to mind....

As much as i would hate for OUR club to be put into Administration if that forces a sale through as a matter of urgency then so be it. A points deduction is better than OUR club to go the way of Bury and others.

Cheers for nothing Bond Group.....

Wonder if this statement was the rumoured embargoed statement of last week ....where it mentions the releasing of players 'earlier in the week'...

[jbc.shrimp]

The more support we have at the upcoming meeting the better, wherever it is to be, I like others would have hoped the Maz but that's up to the organisers. I know as fans we can only watch from the sidelines, but we can try to play our own part in our own best way.

[black morse]

I notice the board statement gives the reasons for the reduction in playing staff but makes no mention of off field support jobs which, according to some on here, have been rising steadily over the past couple of years.

[KenH]

I notice the board statement gives the reasons for the reduction in playing staff but makes no mention of off field support jobs which, according to some on here, have been rising steadily over the past couple of years.

Sadly, unless new owners come in who are able to pump in lots of money, I think it's inevitable that some of the additional jobs will be made redundant this Summer so their wages can be diverted to players which is far more important. We survived previously without the extra off-the-field management/support jobs, and I think that may have to be the sacrifice to put a team of players together this Summer capable of competing. It wouldn't surprise me if the Board are holding back from making such decisions to see what, if anything, happens with the ownership situation.

[Gone_Shrimping]

I notice the board statement gives the reasons for the reduction in playing staff but makes no mention of off field support jobs which, according to some on here, have been rising steadily over the past couple of years.

Sadly, unless new owners come in who are able to pump in lots of money, I think it's inevitable that some of the additional jobs will be made redundant this Summer so their wages can be diverted to players which is far more important. We survived previously without the extra off-the-field management/support jobs, and I think that may have to be the sacrifice to put a team of players together this Summer capable of competing. It wouldn't surprise me if the Board are holding back from making such decisions to see what, if anything, happens with the ownership situation.

Agreed KenH. The board maybe are thinking that if someone comes in soon and can finance the off-field jobs then they will hold off from redundancies. Certainly you have to think that in EFL 2 a centre forward and decent goalkeeper must come before a HR Manager and a qualified accountant.
Does anyone know how much less the solidarity payments from the EFL are and how much is the parachute payment ?
Am I correct in thinking that the club receives finance for the Academy and the manager , staff and coaches and this will continue in EFL 2 ?