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Administration beckons for cash-strapped Bulls
3:29pm Thursday 20th March 2014 in Sport
Hereford United FC v Torquay United FC. Npower League 2. Edgar Street, Hereford. United are relegated. Hereford fans 121926-19 (4672901)
HEREFORD United chairman David Keyte continues to insist that administration for the cash-strapped Conference club is a 'last resort'.
But after this week's annual meeting, which announced losses of more than £528,000 for the year ended on May 31, 2013 and predicted further losses in excess of £400,000 for the current financial year, it is becoming increasingly difficult to see any other outcome.
Keyte admitted to shareholders that, while the January wage bill had been settled, 'little headway' had been made on the February salaries.
With player wages amounting to around £10,000 per week and management and office-staff wages on top of that, it would appear that around £100,000 must be outstanding to club employees.
And that isin addition to the £78,000 which Keyte admitted was owed to HMRC at the end of February.
This tax debt will surely lead to a winding-up order against the club, following on from the one which was avoided in January.
The debt to the taxman has also led to the imposition of a transfer embargo.
The continuing shambolic nature of events around the club saw the team arriving at Wrexham by car and in the club mini-bus rather than the usual team coach.
In their search for althernative ways out of the crisis, the board are still in talks with potential investors.
"We are talking to two potential investors," Keyte told the annual meeting.
"One is more a property developer than from the football side, the other is more football but could come to the property side through that.
"They are fully aware of the facts and figures as well as the deadlines."
United's deadlines regarding administration are quite specific.
If they go into administration by the fourth Thursday in March, they will immediately be docked 10 points.
If they go into administration after that date, then the points deduction would take place at the start of next season.
If, however, they are still in administration at the time of the Conference AGM in June and still have money outstanding to football creditors, then they could be relegated by a further tier.
An immediate 10-point deduction would almost certainly see the Bulls relegated to the Conference North, so they could, in theory, be relegated further to the Southern League Premier Division.