Non-league football: Hinckley reveal extent of their financial problems
Hinckley United have revealed the extent of their financial woes for the first time.
In a statement released by the board of the Blue Square Bet North club, they announced that "£105,000 has been paid to aged creditors to avert the threat of legal action" since July.
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It also described that "many creditors had been left unmanaged and debts had spiralled totally out of control."
The club's company secretary and financial controller, Ku Akeredolu, told the Mercury that the funding had come from the income of the club, including money from gate receipts and sponsorship.
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The Knitters have been in dire straits both on and off the field. They are currently rock-bottom of the table, having lost 10 of their 11 games, and the only manager in the United's history, Dean Thomas, resigned because the club's damaged reputation for non-payment of wages had stopped fresh blood wanting to sign for the club.
Within the overall sum of £105,000, more than £30,000 had been used to pay the wages of unpaid players from last season. Due to a continued dispute over unpaid wages with four players from last season, the club has been placed under a transfer embargo by the Football Conference.
They must find another £6,000 to remove the embargo, as well as meet last month's wage bill of around £13,000.
The club has also confirmed that, on Monday, it paid the monthly wages for all the current players and the staff at the club.
However, Akeredolu said this is a separate issue to the dispute with the players from last season which resulted in the embargo.
The statement also explained that, last month, the club "broke the back of the HMRC arrears" by paying more than £18,000. This month, £18,000 was paid to utilities companies alongside another £5,000 to local tradesmen and suppliers.
On top of this, the club had to pay a monthly installment of nearly £3,000 and a payment of £2,166 to keep the main stand open.
"Despite the horrendous financial journey of the last four months, there is now definitely light at the end of the tunnel because we know our cost of operation is now affordable," the statement read.
However, it also explained that they require a further £80,000 to pay off all remaining creditors.
"Until we have raised this additional working capital, it is going to be a long hard winter and some brave decisions will have to be made to keep Hinckley United afloat."
To see the full statement, go to:
www.pitchero.com/clubs/ hinckleyunited
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