Chester next to go?

[SMH]

How humiliating must it be for Chester fans to be so close to going pop less than 10 years since reforming while under a fan owned structure, which is supposedly the safest way to run a club. I feel sorry for them though, just like us they are trapped right in the middle of that horrible axis between Manchester and Liverpool where it’s so difficult to attract support, not to mention a ground in the middle of nowhere far away from the city centre. I suspect we’d be in the same league and attracting the same gates as them without Uncle Dave’s intervention.

 

[Bluandwite]

How humiliating must it be for Chester fans to be so close to going pop less than 10 years since reforming while under a fan owned structure, which is supposedly the safest way to run a club. I feel sorry for them though, just like us they are trapped right in the middle of that horrible axis between Manchester and Liverpool where it’s so difficult to attract support, not to mention a ground in the middle of nowhere far away from the city centre. I suspect we’d be in the same league and attracting the same gates as them without Uncle Dave’s intervention.

My train got back in to Chester after our away day down at Maidenhead at 8.45pm tonight, went in to a local pub and watched the second half of Liverpool v West Brom. It was packed. A Liverpool fan I know who had been at their game walked in and started chatting to me 35 minutes after the final whistle. Everton are exactly the same distance away and it’s easy as you like to get to Manchester for either of their two as well. Christ you've also got Wrexham and Tranmere in even closer distance if you'd weirdly prefer.

Not really arsed about feeling humiliated, we have no debt whatsoever, we have a projected loss and we need to improve our current cash flow to avoid running in to trouble. We’ve raised a good amount in just one day. We’ll be fine, might just be another hard year upcoming.

 

[SoutheySWFC]

I don't know if owning a business turning over £1.7 million with a profit of £200,000 is considered a good financial return on an investment of £3 million. But in footballing terms it's probably highly unusual. I know of clubs whose owners have spent many times more than that and are still making a loss. Think of Maidstone being more like Amazon; a profitable business, but every penny reinvested for future growth rather than dividends.

Of course, it could all go wrong, but the current owners have shown over the years that they seem to know what they are doing. Quite a few lower non league clubs have also gone 3G in the hope of "doing a Maidstone". I wonder if it works with lower attendances.

Drilling down into the figures a little, apparently player and management wages are 30% of turnover, or around £500,000. Divide that by a modest squad of 20 and 43 weeks a year, that is around £580 a week. Not a fortune, but a decent wage apart from the unpaid summer. I don't know how that compares to other clubs in this league. I guess the £1 million a year that's not profit goes on wages, stewards, police, bar staff, utility bills etc.

12% net profit is decent.

 

[Railway Blue]

Then you are gonna really struggle to raise the extra revenue in my opinion, you are in a town that predominately attracts supporters of the merseyside and manchester clubs , you have a council that couldnt wait to get you out of the city and , correct me if im wrong, tried to stop you holding an open top bus parade when you won the league as it would have affected retailers, and a board who from what seals have told me have not got a clue what they are doing commercially.

I know you have to take in 75-90 k a month to break even... how short are you a month?

We need £50k in 6 weeks.

On the positive side we are owed £55k by Leicester City for Sam Hughes and are asking them to pay us now rather than next year. We will eventually receive anything from £10-£45k for James Alabi from yourselves. Fund raising is gathering pace and we are playing a Youth team Cup Tie on Wednesday and people are being asked to attend and pay as if they are watching the first team. The Exiles were collecting money at yesterday's game at Maidenhead.

The problem was known to the board in September, but they chose to bury their heads in the sand. Believe me they are being vilified on Deva Chat. The chairman, a man called Johnny Hughes, who I wouldn't know if I sat next to on a bus has refused to stand down. He was described at the CFU meeting as a man totally out of his depth. We are partly to blame because good men have left the board in the past to be replaced by incompetents. There is a working group working behind the scenes while names are gathered to force an EGM, so we can get rid of these so-called fans. CEO Mark Maguire is being allowed to work his notice (on over a grand a week). We knew about his history with Hull City and Stockport County, so God knows who appointed him. We'll hopefully regroup and spend the next 4 or 5 years with Stockport County, Kidderminster and York City. The problem is multi-faceted, but the whole mess is down to Jon McCarthy's being given a 2-year contract extension by this board, sanctioned by MM and allowed to spent the budget (on dross), which was our biggest since reformation when he should have been sacked in May. We took 400 to Maidenhead yesterday, so the Dunkirk spirit is there.

 

[Mark kavanagh]

Can you not move a fixture to say a sunday and invite supporters from other clubs to come down? If you could get 1000 , and in sure the media would help, theres 20k raised.. i for one would be there and use it as an opportunity to catch up with mates from chester and tarvin.... theres a hundred quid, i couldnt see lads who tell me chester is their second club not wanting to come..... especially if the first round is mine

 

[CestrianHawk]

[QUOTE="Railway Blue, post: 730101, member: 751"
The problem was known to the board in September, but they chose to bury their heads in the sand. [/QUOTE]
The only thing they knew in September was that the home match income to-date was less than projected, and that, if this continued, the shortfall would eat into the rainy-day fund. The problem that created a major increase in the shortfall was the sacking of the manager and installing Bignot. I don't think the fan base was in any mood to consider the financial consequences of the sacking, particularly so early in the season. Unfortunately the current board lacks the leadership required for the fan-owned model to be successful and to deal with the current situation: we have had several very good leaders previously, but those individuals appeared to be driven out of office (that is my impression).
As 'Bluandwite' pointed out above "we have no debt whatsoever, we have a projected loss and we need to improve our current cash flow to avoid running in to trouble". Quite simply it's now in our own hands. The sum of money needing to be raised to get to the end of the season isn't that great, and once there we'll be able to survive, even if with more modest means for the near future.
Sadly too many fans are expending their energies indulging in the blame game, something that should be left until the summer after we survive. Being part of a fan-owned club is different to being simply a fan, in that we have to take responsibility for the actions we're clamouring the club to take.

 

[Gibber_McGee]

What's the actual structure at Chester?

Someone on our forum thinks you're set up as an Industrial and Provident Society, which effectively means that there is no opportunity to buy any additional shareholding in the Club. If that's the case, it seems an unusual way of doing the whole fan owned thing and you've effectively strangled yourself. There's basically no room for error that way.

Not sure how Wrexham are set-up?

Wrexham AFC are 100% owned by the Wrexham Supporters Trust (WST), which is an Industrial and Provident Society (details below). I think Chester have a very similar structure. We have two separate boards - the WST board are elected and they in turn nominate a separate board to run the football club (some people are members of both boards).

I don’t see the ownership model as restrictive at all. There’s nothing to stop either supporters trust selling a percentage of the football club they own, if they wanted to. So at Wrexham, for example, the club could be 51% owned by the WST, and 49% owned by Bill Gates. Or 75% owned by Bill Gates. Come on Bill, you know you want to...

In all seriousness, for us the Co-operative structure has worked superbly. But you need to have the right people in charge. It’s unlikely that I would ever want the club to be owned by a single unaccountable individual again. It’s just too risky.

http://www.wst.org.uk/www3/index.ph...ist/user/720-wrexhamsupporterstrust?start=216

 

[JackCFC]

Our board have an awful lot to answer for.

We've basically gambled the future of the club on a run for the play offs this season, with absolutely no vote put to membership to do so. We've budgeted for gates of 2100, when Chester fan will tell you that if we're in the bottom 6 or 7 post-January we're looking at 1600 tops.

Not only that, but we've lumped all of the Sam Hughes money into this season's pot too. Completely reckless for a fan-owned club, who should have known better. The most laughable thing of all, is that they gave this budget and play-off tilt to Jon McCarthy, a man who clung to his job over summer and presided over one of the worst slumps in the club's history.

The most abhorrent part of this all, is that the fans have been absolutely kept in the dark. There was no hint of the severity of the issue until Thursday night, when all of a sudden we were told we needed 50K imminently or the club will cease to exist. The board is full of no-marks, who promised the world and have put the very future of the club at risk. When it was under Vaughan's control, we were pretty powerless to stop what happened. What is so sickening is that those days should have been behind us, and our own elected leaders have put us there again.

If we make it through, we need to cut our cloth accordingly. Budget for 1400, utilise our youth academy, sign players only under the age of 25 with potential for resale. We've just totally lost our way, but it can be done.

 

[AnimoEtFide]

What on earth were Chester thinking appointing Mark Maguire? Did no one raise questions about the fact that he led us into financial oblivion when we were a fan-owned club?!

 

[SMH]

Wrexham AFC are 100% owned by the Wrexham Supporters Trust (WST), which is an Industrial and Provident Society (details below). I think Chester have a very similar structure. We have two separate boards - the WST board are elected and they in turn nominate a separate board to run the football club (some people are members of both boards).

I don’t see the ownership model as restrictive at all. There’s nothing to stop either supporters trust selling a percentage of the football club they own, if they wanted to. So at Wrexham, for example, the club could be 51% owned by the WST, and 49% owned by Bill Gates. Or 75% owned by Bill Gates. Come on Bill, you know you want to...

In all seriousness, for us the Co-operative structure has worked superbly. But you need to have the right people in charge. It’s unlikely that I would ever want the club to be owned by a single unaccountable individual again. It’s just too risky.

http://www.wst.org.uk/www3/index.ph...ist/user/720-wrexhamsupporterstrust?start=216

The difference being that you have far more support to call upon than Chester. Which is to be expected considering your catchment area spreads into North Wales and you’ve always historically been a well known Football League club. I’ve been to Chester’s ground before and I reckon the only way they’ll ever get their support up to a level where they can stand up on their own two feet and compete in the National League or even the Football League whilst spending within their means, is by building a new stadium in the middle of the city centre that isn’t 45 minutes away from the train and bus station and at the arse end of an industrial estate like the current ground is. Only problem is, where the hell are they getting the money to do this? Then again, FCUM managed it.

 

[iesty wfc]

3 members of chesters board have walked away, sense prevails at last?

 

[Master D]

What on earth were Chester thinking appointing Mark Maguire? Did no one raise questions about the fact that he led us into financial oblivion when we were a fan-owned club?!

Quite incredible really.

 

[Railway Blue]

[QUOTE="Railway Blue, post: 730101, member: 751"
The problem was known to the board in September, but they chose to bury their heads in the sand.

The only thing they knew in September was that the home match income to-date was less than projected, and that, if this continued, the shortfall would eat into the rainy-day fund. The problem that created a major increase in the shortfall was the sacking of the manager and installing Bignot. I don't think the fan base was in any mood to consider the financial consequences of the sacking, particularly so early in the season. Unfortunately the current board lacks the leadership required for the fan-owned model to be successful and to deal with the current situation: we have had several very good leaders previously, but those individuals appeared to be driven out of office (that is my impression).
As 'Bluandwite' pointed out above "we have no debt whatsoever, we have a projected loss and we need to improve our current cash flow to avoid running in to trouble". Quite simply it's now in our own hands. The sum of money needing to be raised to get to the end of the season isn't that great, and once there we'll be able to survive, even if with more modest means for the near future.
Sadly too many fans are expending their energies indulging in the blame game, something that should be left until the summer after we survive. Being part of a fan-owned club is different to being simply a fan, in that we have to take responsibility for the actions we're clamouring the club to take.[/QUOTE]

There's no blame game. The board have failed to communicate and have blown our reserve without consulting the fans/owners. For that they must go. Three of them including the chairman have resigned today. Hopefully the other 7 will go soon. There are good people ready to step up to the plate including Simon Ollerenshaw and Mark H. Banksy will also return. I'm confident we can put this awful period of mismanagement behind us starting on Wednesday at the Youth Cup game. We're almost certain to be entertained by the young lads which we haven't been by the seniors for more than 12 months

 

[CestrianHawk]

There's no blame game.

You don't read DevaChat then . As with previous years the reserve was used as a buffer. Had they put it to you in September that changing managers would use up the reserve, what would you have voted for? There are no easy decisions to be had.
Thankfully we have the prospect of having proper leadership on the board now, and the core supporters will dig deep into their pockets to keep us alive.

 

[Bluandwite]

Update – (Things looking up)

- Shake up on the board with previous (popular) members returning.
- £35k raised in less than a week (Roughly £50k needed by March, down to £15k now)
- CFU Membership swelled
- Four figure attendance for youth game v Gateshead tonight
- Positive talks with Leicester regarding early payment of Hughes fee
- Alabi tribunal set for Feb 15th
- ‘All Star’ game organised by Colin Murray and Michael Owen set up for mid Feb.

 

[John Still]

Keep this seat warm for us lads!

 

[Railway Blue]

Like Blue and White I watched the Youth team beat Gateshead 1-0 last night in front of 1,065 fans on a freezing cold night which raised £12,800 towards our target. The main point being I saw the best game of football I've seen at the Deva since December 2016. If the seniors had shown half the passion and skill that these youngsters did last night we wouldn't be in this mess. Hope for the future!

 

[GuiseleySteve]

Like Blue and White I watched the Youth team beat Gateshead 1-0 last night in front of 1,065 fans on a freezing cold night which raised £12,800 towards our target. The main point being I saw the best game of football I've seen at the Deva since December 2016. If the seniors had shown half the passion and skill that these youngsters did last night we wouldn't be in this mess. Hope for the future!

Exactly the same with us, the academy teams play some cracking football and are a pleasure to watch. First team not so much.

 

[Railway Blue]

We need to be more cute with the money we generate. We must have wasted £200k on paying off managers and duff 2-year contracts. We need to talk to Halifax, who know how to look after their money. They still haven't spend all the Vardy money yet have they?

 

[B2TF]

Update – (Things looking up)
- Four figure attendance for youth game v Gateshead tonight
.

Fair play, that IS outstanding.

 

[Luke Imp]

We need to be more cute with the money we generate. We must have wasted £200k on paying off managers and duff 2-year contracts. We need to talk to Halifax, who know how to look after their money. They still haven't spend all the Vardy money yet have they?

You'll have had some sort of clause in there that doesn't require a full pay-off.

 

[Railway Blue]

A week on Thursday we have Michael Owen XI against a Colin Murray XI. Should take us over the line this one.
£10 adults, £5 concs. Should be fun. Last time we had a game like this was for a young fan with a terminal illness. John Bishop turned out for one team and he was class.

 

[RLC]

John Bishop turned out for one team and he was class.

His brother Eddie was a cracking player, a real cult hero at Prenton Park for those old enough to remember him.

 

[Bluandwite]

His brother Eddie was a cracking player, a real cult hero at Prenton Park for those old enough to remember him.

Same for us, loved and here's his finest moment whilst sitting out a pre-season friendly.
https://www.youtube.com/watch?v=nb4-WJmPEHE

 

[John Still]

Our Captain has now left after the announcement last week the tap has been turned off. Many rumours about wages won't be paid this month etc.

 

[Craig Harrison]

A cannit bear to see Chesta strugglin with nee pot to waz in. Ave still got me Blacon penthoose that a shared with Luke George when a woz winnin aal me trophies at TNS.

Divvant worry lads. If yaz gan pop, yous can play in me back garden, it’s not big like but the dimensions will let ya play betta footbaal than yous got unda that nee mark Neil Young in the pub leagues.

 

[Railway Blue]

You don't read DevaChat then . As with previous years the reserve was used as a buffer. Had they put it to you in September that changing managers would use up the reserve, what would you have voted for? There are no easy decisions to be had.
Thankfully we have the prospect of having proper leadership on the board now, and the core supporters will dig deep into their pockets to keep us alive.

You seem to disagree with me and then repeat all the points I've made .. bizarre.

 

[John Still]

Two best players this season now gone. What odds on us going down?

 

[CestrianHawk]

You seem to disagree with me and then repeat all the points I've made .. bizarre.

If I disagreed with you I'm not sure how I repeated all your points.
You didn't answer the question I raised tho', which was "Had they put it to you in September that changing managers would use up the reserve, what would you have voted for? "

 

[DarkSithLord]

Chester FC approached by wealthy entrepreneur over 'potentially substantial' investment
Blues board to consult with City Fans United members but insist approach will not dilute fan-owned model
https://www.chesterchronicle.co.uk/...r-fc-approached-wealthy-entrepreneur-14517831