Welling owners seek fans' help to pay crippling £85,000 tax bill
Saturday 14th August 2010
WELLING UNITED owner Barrie Hobbins will stage crisis talks with supporters following today’s opening Blue Square Bet South game against Hampton & Richmond Borough, writes Stephen McCartney.
It was a surprise to many when, on Thursday, the Park View Road club revealed that it has been served with a winding-up petition brought by HMRC, which is due for hearing on 25 August, for an unpaid tax bill in the region of £85,000.
The club statement said: “The matter looked to have been resolved until last weekend when a new owner, who seemed certain to secure the club's long term future, disappeared just before completion of the deal.
“All season ticket holders have been sent full details of the situation, and other supporters will receive similar information at the match on Saturday, meanwhile the club remain optimistic that everything can be resolved with the backing of those who wish to see The Wings not only survive but prosper in the future.
“In addition, the club wish to mention a significant sum of £30,000 has been paid to the HMRC from funds gained via the pre-season friendlies.”
This caused panic among the Park View Road faithful, who felt player-manager Jamie Day had assembled the best playing squad going into another Blue Square South Bet campaign, and confidence was high on the back of five straight friendly wins.
But all attention ahead of today’s opening game is how supporters can raise the funds before the winding-up order on 25 August, to prevent the Kent club from going bust.
If any club decides to enter administration, then the club will automatically lose their current league status, as a recent statement from Maidstone United chairman Paul Bowden-Brown confirms.
He told www.maidstoneunited.co.uk: “In effect, what the newly adopted regulations state is that if any club enters into an Insolvency Event (e.g. administration or a CVA) then the club will be automatically relegated at the end of the playing season. On top of this penalty is the fact that if that club were relegated in the normal way as well, then they would suffer a double relegation.”
He added: “It is interesting to note that if this regulation had been in place last season, then Folkestone Invicta would not have just suffered a 10 point deduction. Instead of gaining promotion from Division One South to the Premier Division (of the Ryman League), they would have instead been automatically relegated to the Kent League.”
Welling Owners Barrie and Barry Hobbins have written to season ticket holders and www.kentishfootball.co.uk has obtained a copy of the letter that will be handed out to supporters before today’s match.
“In the 47 year history of the club this is probably the most unpleasant task that we’ve had to undertake, but as loyal followers it is only right that you are informed, before the gossip starts, that we have been served with a winding-up petition by HM Revenue & Customs, which will be heard on August 25th,” wrote the Hobbins.
“To put you in the picture, we have suffered losses of £48,000 in 2008/09, and what will be a similar loss when the latest accounts are audited.
“In the past we have had people close to or within the club offset such losses, but in the current financial climate this is no longer the case.
“Knowing this situation we have tried strenuously in recent months to attract investment and in June we were approached by a prospective financial backer, who is a local businessman. Since then countless hours have been spent in ensuring a stable future for the club, even to the extent that the Hobbins clan would step aside if it was right for Welling United.
“From day one we were ‘upfront’ as far as the finances of the club were concerned - a small bank overdraft of just £15,000, and creditors totalling around £150,000 (figures not particular sizeable for a club at our level).
“The agreement was for £30,000 to be paid (including a main sponsor) to the club, which itself would put an equal amount into the kitty from pre-season football matches, and a further £25,000 would be forthcoming prior to the start of the season. These sums would all but wipe out the demands made by HMRC.
“Furthermore, Jamie Day was told to his face that he would be given an extra £1,000 per week to add to his budget.
“Last week however, I could not make any contact whatsoever, and it transpired that the person in question was going on holiday to Spain, leaving the club completely in limbo.”
The Hobbins wrote about the options that they now have:
1) To go to the August 25th hearing and risk being wound-up although we have this week paid £30,000 to HMRC.
2) To consider going into Administration prior to August 25th
3) To seek ways of satisfying the HMRC debt by way of (a) a share issue which would be new to our club (b) shirt sponsorship - visiting local businesses to give them the chance of becoming the main sponsor for a season at a cost of £300 (or whatever figure), with a draw to decide the winner. (c) Donations, which may sound improbable, but with 500 hard core supporters this represents just £100 per person, accepting that £100 would be a lot for some. Lesser amounts could of course be paid.
The letter continued: “Time of course, is limited, but anyone who has any other ideas or wishes to contact me for any reason at all, is welcome to ring me at the ground on 301 1196 or at home 304-2006.
“Meanwhile the season will commence on Saturday, Jamie will have his original budget, and we must remain positive.”
Concerned supporters have discussed fund raising ideas on their unofficial fan’s forum, and have also pleaded with former Wings players, including Andy Townsend (who is now a pundit on ITV Sport) to help his first club in its hour of need.
Other ideas include playing a friendly match against a big club that will fill Park View Road up to the rafters; supporters donating £100 each towards the fighting fund, and supporters using the facilities at the club rather than local pubs.
It’s SICKENING that cash-rich Premier League club Manchester City can spend around £100m in summer transfer fees, whilst one of our Kent club’s is on its knees!
Back on the pitch, the Wings will be without midfielders Loick Pires (swollen knee) and Lee Clarke (fractured cheekbone) for three and six weeks respectively.
Meanwhile, any season tickets still yet to pick-up their pass can do so at today’s game by picking them up from the Complimentary/Press Pass turnstiles at Park View Road.
Any Season Ticket holders still yet to pick-up their pass can do so at the game on Saturday against Hampton & Richmond. Fans can pick them up from the Complimentary/Press Pass turnstiles at Park View Road on Saturday.
Visit Welling United’s website: www.wellingunited.com
Welling United v Hampton & Richmond Borough
Blue Square Bet South
Saturday 14th August 2010
Kick Off 3:00pm
At Park View Road, Welling, Kent DA16 1SY