20/11/09

Lewes Football Club (LFC) is due in the High Court again next Wednesday 25 November as HMRC seeks a Winding Up Order on the club’s outstanding debts.

At the first hearing in September, the club faced a total debt to HMRC of about £115k, made up of £107k debt from the previous tax year and about £8k of current tax due for payment. The judge granted LFC a three month adjournment, with the club having paid the current tax due and a lump sum of £30k, with further payments due to be made in the interim.

This adjournment expires on Wednesday with the second hearing.

With the help of loans from supporters and well wishers, LFC has paid £10k instalments for both September and October, and the money is in place for a further payment of £10k this month. The club is also up to date with VAT and PAYE payments for the current financial year.

The club debt to HMRC will therefore have been reduced by £60k in little over three months, leaving a total remaining figure due to HMRC of about £47k.

However, HMRC are insisting that the club reduces the outstanding debt to £27k before next week’s hearing, and they will then cancel the winding up petition and expect the club to pay the remaining debt in instalments of £10k per month.

As it stands, the club is being forced to find an immediate additional £20k on top of the existing payments made of £60k (including £10k pending for November) to avoid the High Court next week.

Lewes Football Club owner Martin Elliott is meeting his legal advisers today to discuss what the club can do, but HMRC have shown little sign of relaxing their demands, and the club is in danger of being wound up for £47k - or a further interim payment of £20k - on Wednesday.

Martin Elliott and the Management Committee have done much work since the summer to keep the Club operating and have put in place a number of new initiatives intended to both save and generate more money.

Significant cuts have had to be made on the playing budget and on administrative costs. In addition, changes have been made to try and ensure that the bar and catering areas run more profitably.

Other good work by fans and volunteers has ensured that the club operates more efficiently.  In addition initiatives have been introduced like “Kids go Free” which has been extended until the end of the season and allows accompanied children under 14 to watch matches for free at the Dripping Pan.

All of these changes will benefit the club but the full effects are going to take some time to come through.

With the challenging financial situation continuing, LFC must continue to call on fans, supporters and other local people to help the club through the difficult scenario it finds itself in.

Everyone connected with the club was buoyed by the response in September to a similar call for help and with the goodwill of the local community, it is hoped that the club can avoid administration or a Winding Up Order, both of which are very real at this moment in time.

If you feel you can help the club, please call Martin Elliott (07775 732 400) or Steve Ibbitson (07704089509) in confidence if you wish to discuss this further.