New Club Statement

[super_les_mcjannet]

Link below

http://www.darlington1883.co.uk/?p=4740#more-4740

Following yesterday’s very positive announcement regarding the prospect of forthcoming elections for the board of directors of Darlington Football Club CIC and for a CIC member to be elected to the board of Darlington Football Club, we are very pleased to confirm the £20 CIC membership contained within every season ticket sale has been “gifted” by the CIC to the football club in exchange for a further allotment of shares.

This additional support by the CIC represents a further significant development in our quest to be a community club which is fan owned (which will see a bigger share of the club in the hands of fans) and a welcome boost to the available cash within the football club.

It is very important that all fans continue to be fully aware of the financial challenges that exist within any football club let alone one which is fan owned and does not have a rich benefactor at the helm. Following the Fans’ Forum in March when it was announced that the club had narrowly avoided further significant financial difficulties, we are also pleased to report on some of the steady progress being made.

A final repayment of arrears due to Her Majesty’s Revenue & Customs (“HMRC”) has been made under a Time To Pay Agreement that was negotiated in February of this year to reschedule arrears in excess of £53,000 to be repaid in instalments to July. Without this welcome support from HMRC, and also the injection of further funds from Darlington Football Club CIC, the financial restructuring carried out in March 2013 would not have been possible.

The gift from the CIC means that the club already has around £13,000 additional funds available to put towards the costs of the return to Darlington and it is hoped that this figure will increase further as season ticket sales continue to be available. Fans who have not yet bought their season tickets are encouraged to buy them knowing that they will obtain a twofold benefit in that they will guarantee their right to participate in elections and that 100% of their CIC membership money is being put into the football club.

Martin Jesper, Chief Executive Officer, explains; “Yesterday was an exciting day in our fan owned club, where we announced democratic elections in the CIC and a seat on the football club board for an elected CIC member which will give effect to the true meaning of fan ownership. It is clear that the route back to Darlington lies in the hands of the fans, and now the fans can begin to see exactly how their ongoing support and financial contribution will be able to make that happen in the interest of the football club and the wider community.”

At the most recent Fans’ Forum, it was explained that, notwithstanding various legacy issues that remain and the challenges in raising essential commercial revenues whilst being a tenant in Bishop Auckland and 12 miles from the home of its fan base, the need to return to Darlington as soon as possible had become an absolute priority, subject to financial and logistical limitations.

All available options on the short list are being kept open though formal disclosure of those locations at this time is not possible as negotiations take place and planning and feasibility is explored further. Placing sensitive information into the public domain will no doubt limit the club’s opportunity to negotiate various matters on genuine commercial terms with those third parties and it is a difficult balance to strike as every fan is significant in our club but that does not mean that every piece of information can be readily available at all times.

Giving a firm moving date would be problematic due to so many factors being outside the immediate control of the club. However our intention remains to do all that is possible to return to Darlington for the start of the 2014/15 season. As soon as any definitive statement can be made to the fans of when and where, the directors will do so with immediate effect.

Further financial information will be released to shareholders at the forthcoming AGM, planned for late September (exact date will be circulated shortly), when the directors will give more details of the current position regarding the clubs finances, building on those that were announced at the Fans’ Forum in March.

Fans wishing to purchase a season ticket can still do so via the online shop or Quaker Retail in the covered market in Darlington.

[Darlospike]

Thanks for that Les, didn't realise we owed all that to HMRC mind?

[shawry]

Well that first bit is in direct contradiction to what the cic told me about not using the money it gains through the season ticket sales to increase its stake in the club.



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[Quakerz]

Yes, liked the way the HMRC thing was slipped in, like we all knew about it...

First I heard of it!

[divas]

Thought people knew that someone forgot to put tax into the budget plan?! Did that not come out into the public domain? It was one of the main reasons for shortfall.

[quakersam]

One of the many creditors we have unfortunately, and given its HMRC it's important it's paid

[quakersam]

Thought people knew that someone forgot to put tax into the budget plan?! Did that not come out into the public domain? It was one of the main reasons for shortfall.

You've got to be kidding me Good job Jesper came in when he did

[super_les_mcjannet]

Some steep learning curves for the old board I guess, hoepfully we have learnt these lessons and can budget/plan accurately now.

[al_quaker]

Thought people knew that someone forgot to put tax into the budget plan?! Did that not come out into the public domain? It was one of the main reasons for shortfall.

I didn't know that! That's a pretty basic error to make.

It's good that the CIC are becoming more important, although we do seem to be still in a somewhat precarious financial position.

[quakerlady]

Yes, liked the way the HMRC thing was slipped in, like we all knew about it...

First I heard of it!

Thought people knew that someone forgot to put tax into the budget plan?! Did that not come out into the public domain? It was one of the main reasons for shortfall.

I have been to most fans forums, read numerous press releases, fundraising meetings and this is the first mention of owing HMRC that I have heard of too.
Seems to be a few people in the know and a lot of us fans left in the dark!

Can only hope this is all there is and we can push on to a quick return to stability financially and a move back to Darlington

[Darlofan97]

Yes, liked the way the HMRC thing was slipped in, like we all knew about it...

First I heard of it!

Thought people knew that someone forgot to put tax into the budget plan?! Did that not come out into the public domain? It was one of the main reasons for shortfall.

I have been to most fans forums, read numerous press releases, fundraising meetings and this is the first mention of owing HMRC that I have heard of too.
Seems to be a few people in the know and a lot of us fans left in the dark!

Can only hope this is all there is and we can push on to a quick return to stability financially and a move back to Darlington

That's probably because confidentiality agreements had to be signed, and rightly so. We were previously in an insecure financial position and I hope I'm right in thinking that these details couldn't be disclosed as we were looking for fresh investment.

I don't think that this information was kept away from us by choice, that's my take on it anyway.

[shawry]

Yes, liked the way the HMRC thing was slipped in, like we all knew about it...

First I heard of it!

Thought people knew that someone forgot to put tax into the budget plan?! Did that not come out into the public domain? It was one of the main reasons for shortfall.

I have been to most fans forums, read numerous press releases, fundraising meetings and this is the first mention of owing HMRC that I have heard of too.
Seems to be a few people in the know and a lot of us fans left in the dark!

Can only hope this is all there is and we can push on to a quick return to stability financially and a move back to Darlington

That's probably because confidentiality agreements had to be signed, and rightly so. We were previously in an insecure financial position and I hope I'm right in thinking that these details couldn't be disclosed as we were looking for fresh investment.

I don't think that this information was kept away from us by choice, that's my take on it anyway.

Dont get me wrong, but that argument was always used by chairman in the past and it didnt wash for anyone so im not sure this should either.

Everyone knew we were on life support! I think telling us that we owed hmrc due to a mistake in not including it in the budget would of been better as we wouldnt of appeared to of been throwing money at budgets in an attempt to get promoted

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[divas]

Thought people knew that someone forgot to put tax into the budget plan?! Did that not come out into the public domain? It was one of the main reasons for shortfall.

You've got to be kidding me Good job Jesper came in when he did

He's actually been involved longer than you think - he was involved in negotiations to buy the assets of the old club

[Darlofan97]

Yes, liked the way the HMRC thing was slipped in, like we all knew about it...

First I heard of it!

Thought people knew that someone forgot to put tax into the budget plan?! Did that not come out into the public domain? It was one of the main reasons for shortfall.

I have been to most fans forums, read numerous press releases, fundraising meetings and this is the first mention of owing HMRC that I have heard of too.
Seems to be a few people in the know and a lot of us fans left in the dark!

Can only hope this is all there is and we can push on to a quick return to stability financially and a move back to Darlington

That's probably because confidentiality agreements had to be signed, and rightly so. We were previously in an insecure financial position and I hope I'm right in thinking that these details couldn't be disclosed as we were looking for fresh investment.

I don't think that this information was kept away from us by choice, that's my take on it anyway.

Dont get me wrong, but that argument was always used by chairman in the past and it didnt wash for anyone so im not sure this should either.

Everyone knew we were on life support! I think telling us that we owed hmrc due to a mistake in not including it in the budget would of been better as we wouldnt of appeared to of been throwing money at budgets in an attempt to get promoted

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I see your point, however there and plenty of 'ifs' 'buts' and 'maybes'. Jesper did what he thought was necessary for the clubs' best interests and I support his judgement.

[divas]

Some steep learning curves for the old board I guess, hoepfully we have learnt these lessons and can budget/plan accurately now.

Hopefully, given the person responsible for that budget wasn't one of the outgoing board members....

[super_les_mcjannet]

Some steep learning curves for the old board I guess, hoepfully we have learnt these lessons and can budget/plan accurately now.

Hopefully, given the person responsible for that budget wasn't one of the outgoing board members....

Surely we didn't have only one person who took responsibility though, sensible management would be another director would check things over for each area. I guess as a board they would of been given or asked for full financial overviews every monthly meeting and surely someone would of spotted it.

[Robbie Painter]

I wish whoever writes these statements would just give us the facts and actions taken and drop all the accompanying fluff that surrounds them. Ignoring that, it's obviously good news that we have paid down debt.

On the detail of the statement:

£53k is a load of tax on just 9 months trading, were we not accounting for something as simple as VAT on ticket sales?

£13k equates to 650 season tickets sold excluding any costs of the share issue, etc. It seems a rather pointless dance to route what was effectively season ticket money via the CIC back to the football club but perhaps there is a tax benefit.

The gift from the CIC means that the club already has around £13,000 additional funds available to put towards the costs of the return to Darlington and it is hoped that this figure will increase further as season ticket sales continue to be available.

First I've heard of money specifically being allocated for a return to Darlo. I'm unclear how this stacks up against the challenging average breakeven attendance figure in MJ's last statement (before debt repayments) of circa 1450. How can this £13k can be allocated as surplus at this point in the season? The cynical side of me is saying that this paragraph has been put in as a ploy to boost season ticket sales.

This additional support by the CIC represents a further significant development in our quest to be a community club which is fan owned (which will see a bigger share of the club in the hands of fans) and a welcome boost to the available cash within the football club.

This whole paragraph is nonsense:
A) The CIC merely re-injected season ticket money which would have gone to the club anyway

B) The entire share capital is already in the hands of fans in one form or another

C) The CIC already held over 50% of the voting rights so any additional equity makes little difference to its control of the football club

[divas]

£53k is a load of tax on just 9 months trading, were we not accounting for something as simple as VAT on ticket sales?

Memory is a bit hazy but I'm sure it was to do with tax & NI on wages.

[divas]

B) The entire share capital is already in the hands of fans in one form or another

C) The CIC already held over 50% of the voting rights so any additional equity makes little difference to its control of the football club

Are you sure the entire share capital is issued? This is going back a bit but I have a feeling there was some un-allocated so that the CIC could expand their stake. The plan was always to try and grow the CIC stake to 75%

If the CIC get to 75% shareholding then they will have ultimate power over the club and won't need to engage the personal investors in decisions - at 75% shareholding you can pass special resolutions which allow you greater power than if you were simply majority shareholder. I'm no expert in this field so that may not be 100% accurate but it's certainly along those lines.

I guess the ST CIC membership thing has been done that way to specifically grow the CIC shareholding.

[TDS]

Divas, I have no personal issue with you, but why is it you and a couple of others stay quiet most of the time about issues that really should be given light?

This example is included (it's not like there was no confusion over this fuck up on the board, so you had chance to relay the knowledge you seem privy to) but there is probably much more you and others who are in the know could put on here and make sure things are open and transparent.

Us plebs with no mates would love to get the real story.

[charlie]

Sick and tired of off hand comments if something needs saying then say it

[DTID]

Yes, liked the way the HMRC thing was slipped in, like we all knew about it...

First I heard of it!

Thought people knew that someone forgot to put tax into the budget plan?! Did that not come out into the public domain? It was one of the main reasons for shortfall.

I have been to most fans forums, read numerous press releases, fundraising meetings and this is the first mention of owing HMRC that I have heard of too.
Seems to be a few people in the know and a lot of us fans left in the dark!

Can only hope this is all there is and we can push on to a quick return to stability financially and a move back to Darlington

This boils down to a complete lack of transparency. It probably wasn't mentioned as it could have scared off potential investors/sponsors and would recreate uncertainty around the club.

That said, I don't like the fact fans who've invested money in the club have simply been left in the dark (yet again). I have become completely disillusioned with how the club has been run of late.

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[divas]

Divas, I have no personal issue with you, but why is it you and a couple of others stay quiet most of the time about issues that really should be given light?

This example is included (it's not like there was no confusion over this fuck up on the board, so you had chance to relay the knowledge you seem privy to) but there is probably much more you and others who are in the know could put on here and make sure things are open and transparent.

Us plebs with no mates would love to get the real story.

I'll tell you why shall I.....there's a certain section of people on here that don't like it when issues with the club are mentioned. They can't accept certain that there may be a need for criticism of the board over certain issues.

I've tried to highlight issues on here plenty of times in the past - I'm sure if you check back you'll actually see reference to this somewhere. It came about when the issue of us needing a cash injection came about - I mentioned plenty of things at the time but people were keen to either bury their heads in the sand or accuse me of having an agenda, or of sour grapes - since then I've stopped bothering highlighting issues as to be honest I can't be arsed with the chew.

What would you have done/what are you going to do now you have the information?

Damned if you do, damned if you don't....

[Tori_Gill]

Some steep learning curves for the old board I guess, hoepfully we have learnt these lessons and can budget/plan accurately now.

Steep learning curves indeed. I'm just grateful to Denis for ensuring that our feelings and frustrations were minuted every time we continuously didn't get the information we had asked for. Perhaps new CIC board members will take some hours out to read past DFC board meeting minutes.

[lo36789]

£50k cash injection. £53k of non-budgeted tax with additional amounts being used to pay off debt right?

I can't believe that those things were missed when we were discussing ways around tax & NI on here that other Northern League clubs use but nevermind, it's happened now.

So long as everything is in budget now then we should be sound moving forward. I assume that Martin's 1,300 attendances (is that right?) is to have an identical budget this season. Cut our cloth accordingly this year with everything in the budget.

As for the share allotment I was under the impression that not all shares had been alloted. Divas is right though at 75% special resolutions can be passed but so long as CIC can vote on a proportional basis as opposed to a bulk vote (based on majority/winner). Then everyone still has equal say.

The tax benefits would be on the basis that. 20% VAT on ST sales. Assumption must be that membership fees for a CIC must be tax exempt and then club doesn't pay tax on shares sold.

I don't know what reaction/response they would have given had the tax shortfall been announced ages ago? Shouting loudly at Laura for all the good that would have done!? Season start soon, budget sorted, shortfalls have been met, let the football begin.

[Darlodfc]

Some steep learning curves for the old board I guess, hoepfully we have learnt these lessons and can budget/plan accurately now.

Steep learning curves indeed. I'm just grateful to Denis for ensuring that our feelings and frustrations were minuted every time we continuously didn't get the information we had asked for. Perhaps new CIC board members will take some hours out to read past DFC board meeting minutes.

But surely Ian Wilkinson and Andrew Caukwell would know all about this as they were on the original board?

Now that Dave Mills has resigned that only leaves Paul Coleman with 4 people who were already 'in the know' as they were all part of last financial year planning.

[lo36789]

Thought they were on CIC board not the football club?

[Quakerz]

53k owed to the HMRC...

If it was tax and NI it would mean a wage bill knocking on for 200k between taking over the club and January - about 6 months. That can't be right.

More likely it could be VAT on ticket sales or something, or maybe a combination of both.

Who knows? Now this is the problem!

They sit on something for months, decide to slip it into a statement as if we'd always knew, and of course we're given no idea how this extra debt was accrued. What are people going to do in that situation? Guess. And another thread like this is born.

[super_les_mcjannet]

The old player wages has been mooted as the reason for the tax/NI bill.

[Quakerz]

No wonder Singh wanted out, those wasters were on far too much. We owed them hundreds of thousands in back pay and the remainder of their contracts.