25/8/09

Lewes Football Club is calling for the help of its supporters and the people of Lewes in its battle for survival.

The Rooks face a Winding Up Order from HM Revenue and Customs on September 2nd, which club owner Martin Elliott and the Management Committee are working hard to avoid.

The club owes £110,000 to the HMRC and despite a repayment agreement being reached with the Southampton tax office earlier this year, the case was referred to the Worthing office which has not confirmed that this agreement will remain in place.

Legal Advice

Mr Elliott has been seeking legal advice from a local firm of solicitors and will appoint a barrister when the case is heard. Lewes MP Norman Baker has pledged his support to the club during their negotiations with the HMRC, whilst the advice of the Conference League and the FA, through the Sussex FA, is also being sought.

Indications are that the HMRC might not oppose a staged repayment plan if the judge sees that Lewes FC has funds and, furthermore, can demonstrate a serious intention to manage their way through the debt.

Financial Situation

The volunteer Management Committee has been addressing the seriousness of the club’s financial situation.  For instance, this season, the player’s budget has been significantly cut, the First Team manager, assistant and coach are not being paid and other substantial cost savings have been identified to help steer the club through this difficult time.

It is fact that, if the club was able to function without the threat of being wound-up, the financial outlook over the coming season would be an advantageous one, offering a clear opportunity to greatly reduce all outstanding debts, be they monies owed to HMRC or to local suppliers.

Fund Raising

Lewes FC has recently been pledged £30,000 from a private donor, an exceptionally generous gesture for which the club is extremely grateful, providing a similar sum can be raised from other individual pledges before September 2nd.  Fund raising would then continue throughout the season.

Individuals or companies who are interested in helping Lewes Football Club survive can contribute any sum of money in a number of ways:

• Make a donation to the club; or
• Offer money as an interest-free loan; or
• Buy shares in the club, for instance £1,000 will buy a 1% stake.

Some individuals have already indicated that they would be prepared to help subject to the HMRC lifting the winding up order.  Please contact Martin Elliott (07775 732 400) or Steve Ibbitson (07704089509) in confidence if you wish to discuss this further.

Difficulties

Lewes FC have found it very difficult to trade in recent months with the Winding Up Order in place, and hope that this will be lifted by the judge so that the club can operate normally, albeit in a difficult economic climate.

The club’s legal advisors believe that a down payment of £30,000, with another similar sum pledged by supporters and local businesses - which will only be used if a repayment plan is accepted by the HMRC - is an indication that the club intends to meet debt repayments in full, given an appropriate time to do so.  This will also be supported by the Club’s budget forecast for the year.

Administration

Going into Administration can’t been ruled out as a last resort, but this might also mean that the club will not be able to meet existing debts in full; will incur the additional cost of the administrators; could still be wound up if the administrator cannot find a buyer; and would trigger a 10 point reduction in Blue Square South.

Proud History

The current situation is very serious for Lewes FC, which not only threatens the future of the First Team but also the successful Ladies and Under 18 sides, and the esteemed Community and Education Scheme.

Lewes FC has a proud history and is well respected in the town and surrounding areas. The club is fortunate to have some of the finest supporters in Sussex who have helped the club through difficult times before, although none are as grave as the one faced now.

Pull Together

The high cost of getting to the Blue Square Premier and the expense of operating in that league has been compounded by the current economic situation.  A lot of people have come together over the last six months in a bid to help the Club through its current crisis and to ensure that it operates prudently in future. 

The club is asking for wider help in the hope that everyone will pull together over the next week, in order to ensure that the current financial problems are resolved and that Lewes FC can look forward to a secure future.