> Why? If we're debt-free, with all the big-money earners finally off the > books, a solid support base and new sponsorship deals being done, why do > you assume we're on the verge of disaster? I'm not saying we're not, but > I'd like to know what exactly is leading you to that conclusion?
This summer was supposed to be the time when all the big money earners had gone. They should have all be paid off during last season so that they were eroded down to near zero. Instead it is obvious that the club had not been paying them and instead they have now been crystalized into "football creditors". The Football League will not let Leeds United regain the "Golden Share" if these football creditors are not paid in full by the new owners of the club. It may be that the Newco can negotiate something with these football creditors but given their recent experiences and the reported mood of other clubs chairmen and agents I'm not sure that there will be a great deal of understanding or co-operation and that it may all need to be settled as lump sums on the nail. That would be an instant drain on capital. Then the club is likely to face a situation of having to pay in advance for all goods and services and possibly to be required to hand over VAT collected and PAYE/NI perhaps even weekly. That represents an up front funding requirment and no cashflow "subsidy" from the tax collected prior to its being paid over to HMRC. If any credit card companies are involved in season ticket or match day ticket receipts they may be unwilling to take on the liability for services which have not yet been delivered by the club. This again would hold back the cashflow. How will other clubs require payment for away tickets ? I don't know. Sponsors may wish to make their payments as we go through the season rather than upfront (as we have already been reading in some instances). All of this funding and cashflow requirement has to be budgeted for BEFORE there is any kitty available for transfer fees on incoming players. Will selling clubs give us credit or terms or will they demand full payment immediately ? Some clubs may and some may not but this could affect who we can buy. I'm not expecting the club to fall off a cliff but I can see how our squad might be underfunded if considerable capital isn't available very soon. Hopefully this is all in hand and is all part of the plan. Hopefully. Nobody wants any doom and gloom at this time of the year. This club in particular needs to be on an upbeat note and we certainly don't want to be hearing complaints from the boardroom that the business community of Leeds is not coming up with money to fulfil Bates' expectations. I suspect that the money is going to have to come from the same offshore sources as before. The 28 days will soon be up and we will be able to see if any money is available to spend. We need a squad capable of winning from the outset so that we generate increasing match day ticket sales and other receipts and so that we get onto an upward path and release the pent up energy of the fanbase. It can be done but I think it will need an injection of capital right now. Please do me a favour and show me the flaws in my thinking. Show me why and where I am wrong. My sincere hope is that I have simply got too close to the window and I can't see this all properly any more. I hope that I have missed some totally obvious and simple factors that make all of this posting a load of rubbish and a waste of my time writing it and your time in reading it. I sincerely wish to be hopelessly wrong here. I'll feel a bit silly no doubt but it will be worth it. _______________________________________________ the Leeds List is an unmoderated mailing list and the list administrators accept no liability for the personal views and opinions of contributors. Leedslist mailing list [email protected] http://list.zetnet.co.uk/mailman/listinfo/leedslist Join The Leeds United Supporters Trust at www.lufctrust.org
