As has been recently reported WCFC, along with many of its peers in lower league football (and football in general), has suffered badly from lack of income during the recent poor weather. In our case we have come close to reaching our overdraft limit which we had forecasted to breach by the middle of January. We talked to the bank who allowed us a modest increase in overdraft facility until the end of January but then required us to recover to our earlier position. Given the delay in playing postponed games, the need to keep to our payment schedule arising from the last year's debts and the continuing inability to make a monthly surplus the Board felt the need to find emergency support or face the risk of administration as has happened elsewhere.
Our most significant benefactor (with obvious commercial interest) has been Carey who have sponsored us with £62.5 k each year with the last payment due in June 2010. We requested that they bring this forward to help us but they have made a constructive suggestion that they should allow us to use a modest amount of the purchase price of St George's Lane as an advance to take us through to the end of this season. This will allow us to not inflict swingeing cuts on the players' budget – our most significant cost.
Given the circumstances the board have evaluated their options and now feel the need to take action to solve this problem of spending beyond our means. It is a matter of fundamental choice. We either
a) stay as a community based club owned by a wide number of shareholders, with much greater input from stakeholders to support running costs. or
b) we change our articles and welcome in one or two (or several) larger investors should there be an interest.
The Board have decided to run until the end of the season in our current community based structure but test the level of benevolence of the wider Worcester public to support the club financially. When the level of interest and support is ascertained then the budget will be fixed for next year.
In round terms if we take out the Carey support we have an expenditure that exceeds income by £100k.The biggest expenditure is playing staff which accounts for £175k (which we understand to be at the lower end in BSq S). In dialogue with Carl Heeley we have attempted to protect the level of player budget and resist asking the players to take a cut. At the same time we have asked all departments of the club, including the manager to take opportunities to control costs if consistent with maintaining our ability to fight the relegation battle.
We have an immediate need to increase revenue and ask people of Worcester who wish to support the club to consider how they might help. There are three immediate options for us.
1. We need to encourage the missing hundreds who have turned their back in the club due to despair at the politics to return. There are no politics left. We have a board of four directors whose only motive is to set up a survival structure for the club while attempting to maintain the good quality of football played this season. If you read this and have not been attending regularly please get along to the Lane starting with our next home game against Kidderminster. If you have a friend who has not been for a while because of the ‘politics’ enthuse him or her to get out to support us.
a) The players often say how much they appreciate the loyal support they get and just think how much better it could be. Long time Laneites think, on our day, we have as good a team, playing attractive football, as they have seen for a while. Perversely we have not harvested the points we would wish for! If we could get 300 more people to attend home games (our budget is based on 650) then we could generate another £3000 a game or £30k/£40k by the end of the season
b) An analysis of a 600 gate suggests we get about 200 people paying £11, about 250 people paying the concession rate of £5 and the balance season ticket holders or player passes etc. The resulting gross cash generated is about £3000. Our player wage bill is roughly £3500 a week. We need to get more people in. We are changing the policy on complimentary tickets. Unfortunately we are also need to increase the concession price to the level of other clubs in our league. This policy will start in February.
2. As most people know we have a weekly lottery called Super Gold. We want to encourage as many people as possible to take out a direct debit to the club for £5 per week to buy 20 entries. While the income will be a great boost it will also give those individuals a chance to win money each week. We will boost the prize money in proportion to the increase income. One very successful Supergold collector (who brings in £6.5k per annum and did not agree with the recent petition has suggested that if each of the 352 signatories contributed a fiver a week it would bring in 352X5X 52 = £91520 per year which after prize money would go a long way to wiping out our deficit. How about it? The Board are prepared to start the ball rolling and each one of them is signing up. Phil Williamson is going to distribute application forms at the next home games. Obviously if people can’t afford to pledge the price of less than two pints of beer per week then the cost of one will do!
3. We need to search the businesses of Worcester that might be willing and able to sponsor or advertise with the club. Our look-see at other clubs suggests that a target of 10 businesses offering £7500 a year is not impossible. (Or 20 offering £3750). To get to this target of £75,000 requires a volunteer workforce to put the message out and to work on the package that we might offer sponsors. We need volunteers to work within the club to help us engage with the people of Worcester who might be able to lend us a hand.
4. It appears that most of the clubs with a bigger player budget than ours (paradoxically often having smaller gates) only exist by a few wealthy benefactors who contribute interest free unconditional donations or loans to the club driven by their passion for football. We have not enjoyed such help to date. Of course we are interested in any individual who is interested in getting involved with the club and making a generous donation to help take the club forward. We have a need for new directors and those interested are invited to get in touch.
Our thinking is that by the end of this season we can gauge how much interest there is within the city to take the club in an upward direction both on the field and off. If we can develop an impetus then we can anticipate maintaining a similar playing budget and take the club on a quest to rise up the table. If we find it impossible to bridge the gap between income and current levels of expenditure then the Board will propose a much reduced budget for next season. This will inevitably put our ability to exist at this level in some doubt. The club is very much community based and it is now up to the community to step forward and do their bit. Individuals, shareholders, supporters club, supporters trust and businesses are all invited.
‘Use it or lose it’ is an overworked phrase but it might be appropriate in this case. One other course of action open to the Board is to propose to change the constitution of the club, in the appropriate democratic way, to allow large shareholding by either individuals or consortia who would then hold sway over the club’s direction. It should still be possible to control what assets exist by some sort of trust arrangement. All these options and possible routes forward will be discussed with stakeholders.
We need help and we need it now. Please respond positively and get down to the Lane. Make your opinions heard and volunteer to help. WCFC needs you and needs you now.