Following the release of the annual report and accounts, representatives of BIFF and SUFC officials arranged a meeting at very short notice with Blades CEO Trevor Birch, who kindly agreed to give up his time to talk with those present. Mr Birch offered clarification on a number of facts from the annual report and answered questions from those around the table.
Mr Birch started with a brief summary of the accounts published on the 24th November 2010 and an explanation of what they actually mean. Beginning with a history of how the decisions were played out since relegation from the Premier League (before Trevor arrived at the club).
Relegation from the Premier League was a bitter blow to Kevin McCabe, who subsequently decided upon fighting the injustice that had occurred and went on the offensive.
The intention was to get promoted back to the Premier League at the first time of asking, whilst SUFC were receiving parachute payments.
Since that season, the club has done well to maintain attendances of 20-25k+.
Mr McCabe finally won a level of compensation from West Ham over the Tevez saga. This was to the tune of £18mil and will be paid in installments up until 2013.
What the accounts are actually saying:
After the purchase and building of the hotel, it had been subsidised by the Club during its opening few years. The club had also been paying a level of maintenance to Chengdu Blades for upkeep and development. The restructure has relieved the club of these burdens.
The hotel has now been transferred over to Scarborough Holdings with the option of a buy back open for the club, should the club find itself in a position where this would be of benefit.
The wage bill has been further reduced this season and Trevor Birch estimates it is currently around the £10mil mark.
The joint venture of Blades Realty Ltd has also been disposed of.
Due to the adverse banking conditions, SUFC have reviewed their situation and have subsequently moved their banking to the Santander group. All debts related to the football club will be dealt with over the next 3 years from the money owed from the Carlos Tevez situation.
The Stadium, Academy, Crookes Youth Development programme and John Street properties are all free of debt.
As long as the Club lives within its means, all external debts, other than those to Kevin McCabe will be clear by 2013.
A quick summary of the questions put to Mr Birch:
Q: The age old quote “We are a well run club”, are we really, looking at these figures?
A: We are a well run club, adverse conditions have led to us to take measures accordingly to ensure that we are run sensibly and within our means.
Q: Is it fair to say the Club has recognised problems and have therefore appointed Trevor Birch, Gary Speed and John Pemberton to run things and bring the club forward?
A: Yes, there is no quick fix, but we are confident that, given time, we are taking the right steps to move the club forward. I have confidence in Gary and John and their ability to continually improve SUFC.
Q: What is the situation regarding the “Buy Back” option on the Hotel?
A: SUFC do have the option of buying back the hotel. This would obviously be looked at in future years when the market is more favourable and it was believed it would be of the benefit of the football club.
Q: How are the club addressing the recession and the way it is affecting us all, particularly the fans?
A: We are in times of a global recession; there is no escaping this for anyone. The club are responding in a sensible way. We are restructuring finances to accommodate the situation we find ourselves in, but also doing what we can to help supporters in terms of admission prices and offers in what we recognise are difficult times.
Q: Where are we at now with fan expectation?
A: We have to maintain a realistic hope of promotion. We do however have to ensure that we live within our means and have a self sustaining football club.
Q: Is anything happening in regards to investment?
A: In terms of investment, at this present time, there is nothing in the immediate future. We’re exploring potential opportunities with people from India, the Middle East and in the U.S.A, but there aren’t currently any formal terms in the process of being concluded.
Q: Are we selling the club or seeking investment?
A: Kevin McCabe is flexible, if someone with “mega bucks” approached him, providing they had the right intentions, he’d be open to discuss that. Similarly, if someone is willing to come in as a partner and invest in the club, Kevin will happily work alongside them for the good of SUFC.
Q: What is the transfer policy?
A: We will always be looking to strengthen wherever possible, but it will be done prudently. Any transfers we make should be good investments and on the right terms for SUFC. We also have to use the academy and take advantage of the work John Pemberton and the rest of the staff are doing.
Q: The scouting is often asked about on internet forums, what changes have there been, if any?
A: Our scouting has been extended and will continue to be a very important part of the way in which we operate. It is important that as mentioned, any investments we make are good ones for the future of SUFC.
We would like to thank Mr Birch for the opportunity to seek some clarity and for answering the questions the group put forward to him.
Reassurances of future engagement were given.
Mr Birch started with a brief summary of the accounts published on the 24th November 2010 and an explanation of what they actually mean. Beginning with a history of how the decisions were played out since relegation from the Premier League (before Trevor arrived at the club).
Relegation from the Premier League was a bitter blow to Kevin McCabe, who subsequently decided upon fighting the injustice that had occurred and went on the offensive.
The intention was to get promoted back to the Premier League at the first time of asking, whilst SUFC were receiving parachute payments.
Since that season, the club has done well to maintain attendances of 20-25k+.
Mr McCabe finally won a level of compensation from West Ham over the Tevez saga. This was to the tune of £18mil and will be paid in installments up until 2013.
What the accounts are actually saying:
After the purchase and building of the hotel, it had been subsidised by the Club during its opening few years. The club had also been paying a level of maintenance to Chengdu Blades for upkeep and development. The restructure has relieved the club of these burdens.
The hotel has now been transferred over to Scarborough Holdings with the option of a buy back open for the club, should the club find itself in a position where this would be of benefit.
The wage bill has been further reduced this season and Trevor Birch estimates it is currently around the £10mil mark.
The joint venture of Blades Realty Ltd has also been disposed of.
Due to the adverse banking conditions, SUFC have reviewed their situation and have subsequently moved their banking to the Santander group. All debts related to the football club will be dealt with over the next 3 years from the money owed from the Carlos Tevez situation.
The Stadium, Academy, Crookes Youth Development programme and John Street properties are all free of debt.
As long as the Club lives within its means, all external debts, other than those to Kevin McCabe will be clear by 2013.
A quick summary of the questions put to Mr Birch:
Q: The age old quote “We are a well run club”, are we really, looking at these figures?
A: We are a well run club, adverse conditions have led to us to take measures accordingly to ensure that we are run sensibly and within our means.
Q: Is it fair to say the Club has recognised problems and have therefore appointed Trevor Birch, Gary Speed and John Pemberton to run things and bring the club forward?
A: Yes, there is no quick fix, but we are confident that, given time, we are taking the right steps to move the club forward. I have confidence in Gary and John and their ability to continually improve SUFC.
Q: What is the situation regarding the “Buy Back” option on the Hotel?
A: SUFC do have the option of buying back the hotel. This would obviously be looked at in future years when the market is more favourable and it was believed it would be of the benefit of the football club.
Q: How are the club addressing the recession and the way it is affecting us all, particularly the fans?
A: We are in times of a global recession; there is no escaping this for anyone. The club are responding in a sensible way. We are restructuring finances to accommodate the situation we find ourselves in, but also doing what we can to help supporters in terms of admission prices and offers in what we recognise are difficult times.
Q: Where are we at now with fan expectation?
A: We have to maintain a realistic hope of promotion. We do however have to ensure that we live within our means and have a self sustaining football club.
Q: Is anything happening in regards to investment?
A: In terms of investment, at this present time, there is nothing in the immediate future. We’re exploring potential opportunities with people from India, the Middle East and in the U.S.A, but there aren’t currently any formal terms in the process of being concluded.
Q: Are we selling the club or seeking investment?
A: Kevin McCabe is flexible, if someone with “mega bucks” approached him, providing they had the right intentions, he’d be open to discuss that. Similarly, if someone is willing to come in as a partner and invest in the club, Kevin will happily work alongside them for the good of SUFC.
Q: What is the transfer policy?
A: We will always be looking to strengthen wherever possible, but it will be done prudently. Any transfers we make should be good investments and on the right terms for SUFC. We also have to use the academy and take advantage of the work John Pemberton and the rest of the staff are doing.
Q: The scouting is often asked about on internet forums, what changes have there been, if any?
A: Our scouting has been extended and will continue to be a very important part of the way in which we operate. It is important that as mentioned, any investments we make are good ones for the future of SUFC.
We would like to thank Mr Birch for the opportunity to seek some clarity and for answering the questions the group put forward to him.
Reassurances of future engagement were given.
...... McWobblegob cud have structured it so the freehold of the hotel stayed with the Blades.......buyback my arse!
