Knitters try to unravel debts
Many non-league clubs are finding the recession challenging. At my own non-league club, a spell without home games has impaired cash flow, although we do have reserves and have had some success in renting out the clubhouse.
Hinckley United, who carry the historic nickname of the Knitters, have faced financial troubles for the last two years and the preceding four months have been particularly challenging. They still need £80,000 to pay off their creditors as well as £6,000 to lift their transfer embargo.
The board has paid out £105,000 since July, dealing with £30,000 in unpaid wages as well as a substantial tax bill. The immediate challenge is to meet September's wage bill which amounts to £13.000 and gives some indication of the running costs of a Level 2 club. Once that is done the club needs to find £80,000 in working capital.