Zonnebloem
10-20-2005, 08:38 PM
Tykes reveal massive losses
Thu 20 Oct, 9:05 PM
Barnsley have revealed losses of over £3.5m for the year ending 31 May 2004.
The League One club cite their exit from administration for the severity of the financial problems, and admit the losses are "significantly in excess of those forecast in the business plans drawn up by Peter Ridsdale at the time of his takeover in 2003".
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Chairman Gordon Shepherd said: "When I joined the board in mid-April 2004 the club's financial position was less than clear but over the next few months it become increasingly obvious that cash outflow was unacceptably high and was rapidly devouring the club's available funding.
"Peter tried to secure additional funding but was unsuccessful and this subsequently led to board changes and a new management regime.
"Whilst I am very disappointed at the result for the year ending 31 May 2004 I am not entirely surprised by it.
"However it is my firm belief that we will see a significant improvement in the accounts for the year ending 31 May 2005 - but it must be stated that the club will remain technically insolvent.
"I must stress we are only able to continue operating because of the working capital support generously provided by Patrick Cryne. No interest on this working capital has been demanded or paid, it has all been waived.
"Patrick steadfastly declines any direct operational involvement at board or other levels and I do not envisage a change in that situation."
Shepherd added: "It is therefore incumbent on the board and management team to continue to work toward the self sufficiency objective which we have set.
"I truly believe we are making steady progress toward that end."
Thu 20 Oct, 9:05 PM
Barnsley have revealed losses of over £3.5m for the year ending 31 May 2004.
The League One club cite their exit from administration for the severity of the financial problems, and admit the losses are "significantly in excess of those forecast in the business plans drawn up by Peter Ridsdale at the time of his takeover in 2003".
ADVERTISEMENT
Chairman Gordon Shepherd said: "When I joined the board in mid-April 2004 the club's financial position was less than clear but over the next few months it become increasingly obvious that cash outflow was unacceptably high and was rapidly devouring the club's available funding.
"Peter tried to secure additional funding but was unsuccessful and this subsequently led to board changes and a new management regime.
"Whilst I am very disappointed at the result for the year ending 31 May 2004 I am not entirely surprised by it.
"However it is my firm belief that we will see a significant improvement in the accounts for the year ending 31 May 2005 - but it must be stated that the club will remain technically insolvent.
"I must stress we are only able to continue operating because of the working capital support generously provided by Patrick Cryne. No interest on this working capital has been demanded or paid, it has all been waived.
"Patrick steadfastly declines any direct operational involvement at board or other levels and I do not envisage a change in that situation."
Shepherd added: "It is therefore incumbent on the board and management team to continue to work toward the self sufficiency objective which we have set.
"I truly believe we are making steady progress toward that end."