Chester FC need your help.

[Nytram]

Hi. Chester FC a fan owned club had a meeting tonight where our board informed the owners of the club - the fans - that £50,000 is needed in the coming weeks or the club could go out of business. That's right just £50,000. One of the items that was brought up was the subject of our ex player Sam Hughes. Your next installment of the transfer fee in the sum of £55,000 is due in June. The Chester board are in contact with Leicester to see if you could possibly bring forward the said payment as soon as possible. Apparently we are also thinking of selling you the sell on clause. This I hope will not be needed. So from a small fan owned club we hope Leicester will help us in our hour of need. Cheers.

[AKCJ]

Can't see why we'd refuse.

[surrifox]

100% think we should help out .

[sylofox]

I don't see our owners letting a club go bust for 50k that we owe anyway. I for one would be ashamed if they did let chester go bust.

[weller54]

£55k!..

That's a cheap bottle of wine for our owners!... 

That's how crazy and sad the gap has become between the top PL clubs and 'the rest'...

Very sad to see grass roots football suffer this way. 

[foxinsocks]

the practice of delaying (staging) a payment (especially without conditions) is rife - this is coz the fa insists that in the event of any kind of administration then the "football debts" have to be paid in full for the team to keep on playing.  This puts other football clubs  ahead of the woman who makes the pies and does the washing and other small businesses when the meage assets are divied up.  This rule just gives clubs the confidence to accept delayed payments.  If it were not there then a selling club would think twice about selling to a club that doesn't have the cash to hand.  Even the big clubs to this kind of delayed payement lark and so it means player prices are inflated....  The fa should re think this.

 

We should not have staged the payement to chester and should do what we can to help their cash flow situation asap.  Play a friendly too and let them keep the gate

 

[Steven]

8 hours ago, Nytram said:

Hi. Chester FC a fan owned club had a meeting tonight where our board informed the owners of the club - the fans - that £50,000 is needed in the coming weeks or the club could go out of business. That's right just £50,000. One of the items that was brought up was the subject of our ex player Sam Hughes. Your next installment of the transfer fee in the sum of £55,000 is due in June. The Chester board are in contact with Leicester to see if you could possibly bring forward the said payment as soon as possible. Apparently we are also thinking of selling you the sell on clause. This I hope will not be needed. So from a small fan owned club we hope Leicester will help us in our hour of need. Cheers.

I have some observations.

 

How did the fans let themselves get into this situation? Secondly how can you go bust when the outstanding amount is greater than your current liabilities? Lastly what evidence do we have that the fans have tried to raise the money amongst themselves? Two thousand Chester fans equals £25 each?

[Wymsey]

The thing is with this type of request in tough financial times for a club is that there's other clubs in need - especially Hartlepool, for example.

Reckon LCFC would be happy to move forward the payment date to meet finance requirements.

I think this type of request of clubs urging other clubs to donate money to safeguard their future needs to be more regionalised, where bigger clubs that aren't too far away from you could consider giving your club a long-term loan or a one-off cash injection.

Just feel a club that has no affinity to another one should feel any pressure donate to a club that they really know imo.

Edited 26 January 2018 by Wymeswold fox
Misunderstood thread intention.

[ozleicester]

8 minutes ago, Wymeswold fox said:

The thing is with this type of request is that there's other clubs in need - especially Hartlepool, for example.

I think this type of request needs to be more regionalised, where bigger clubs that aren't too far away from you could consider giving your club a long-term loan or a one-off cash injection.

Just feel a club that has no affinity to another one should feel any pressure donate to a club that they really know imo.

Dont think they are asking for donations, rather just that Leicester make their due payment early?

[davieG]

I'm assuming it was LCFC that insisted on payment by instalments, seems a bit of a mean/scrooge like approach from us if true and not really necessary considering the available funding we have.

 

If true I can't say I'm that impressed and certainly doesn't make me feel proud to be an LCFC fan.

[Wymsey]

7 minutes ago, ozleicester said:

Dont think they are asking for donations, rather just that Leicester make their due payment early?

Apologies, I admit I thought this was a thread about a supporter from another club urging opposition football fans to donate to their club to safeguard their club's finances.

Initial comment has now been altered.

[norwichfox]

46 minutes ago, davieG said:

I'm assuming it was LCFC that insisted on payment by instalments, seems a bit of a mean/scrooge like approach from us if true and not really necessary considering the available funding we have.

 

If true I can't say I'm that impressed and certainly doesn't make me feel proud to be an LCFC fan.

I agree with this, very petty to defer such a small payment (in the overall scheme of club finance). I sincerely hope we settle up immediately.

[stripeyfox]

It shouldn't be too much hassle for us to pay early BUT if you are already in the shit then it isn't solving the underlying financial problems. 

 

Good luck with it though

[Dan]

Hope we do it although ultimately hope this is just a one off and you don't end up back in trouble as a result of not actually solving your problem.

[David Hankey]

I wonder if Chester FC have tried tapping up their big-money neighbours Man City & Man Utd? Cash in the back pockets for them.

[AKCJ]

2 hours ago, davieG said:

I'm assuming it was LCFC that insisted on payment by instalments, seems a bit of a mean/scrooge like approach from us if true and not really necessary considering the available funding we have.

 

If true I can't say I'm that impressed and certainly doesn't make me feel proud to be an LCFC fan.

I would assume that Chester would prefer constant smaller instalments rather than one lump sum.

 

There's no sense in us stringing it out like that but there is sense in Chester preferring it that way.

[Fox92]

I can't believe we have the richest league in the World yet still have clubs struggling. Money should be reinvested to keep lower league clubs like Chester, like Hartlepool alive.

[davieG]

1 hour ago, AKCJ said:

I would assume that Chester would prefer constant smaller instalments rather than one lump sum.

 

There's no sense in us stringing it out like that but there is sense in Chester preferring it that way.

Why would Chester want it in instalments, I can see no reason for that all well maybe some tax reasons.

[AKCJ]

3 minutes ago, davieG said:

Why would Chester want it in instalments, I can see no reason for that all well maybe some tax reasons.

They might prefer to have a consistent and reliable income.

[davieG]

9 minutes ago, AKCJ said:

They might prefer to have a consistent and reliable income.

They could get that by having it in the bank and drawing on it in a controlled way.

[kyleolly]

I think we should let Chester go to the wall and the £55k we save should be divided by our season ticket holders.

[Steven]

1 hour ago, Fox92 said:

I can't believe we have the richest league in the World yet still have clubs struggling. Money should be reinvested to keep lower league clubs like Chester, like Hartlepool alive.

I am all for this but I fear such a safety net will only encouraged recklessness, I would prefer a scheme whereby Clubs are bonded for their outstanding debt and then if they can no longer be bonded for a higher amount than the current bonding level or pay the bond then the safety net comes in and takes over the Club, pays the debts and sells it on to recover the initial outlay.

[Donut]

What is the reason that your club is in such a bad financial state?

 

Leicester City are one of your debtors so you cant go bankrupt. It would be on your balance sheet.

 

But how do you intend to rectify this situation so this doesn't happen again?

 

 

Edited 26 January 2018 by Donut

[AKCJ]

14 minutes ago, kyleolly said:

I think we should let Chester go to the wall and the £55k we save should be divided by our season ticket holders.

Alternatively each season ticket holder could muster up £2.50 each and we could help Chester out without putting financial strain on our own club  

[Voll Blau]

Hope we can help them out, but it's fairly dismaying to see a supporter-owned club (something I'm very much in favour of) have allowed themselves to get into this state.