Board meeting: Thursday 22nd November, 7:30pm, Boston SRC
Boston United FC Supporters Trust is a registered Industrial and Provident Society, company No. IP30051R
Letter in Lincolnshire Standard - 30/09/05
Concern over the stewardship of Boston United
I am not opposed to the relocation of Boston United Football club per se as has been reported in some quarters. However, what does concern me as a Boston United Supporter is the stewardship of the club at present.
There are outstanding debts of £1.3 million, and although relating to times previous to the current Chairman, it would appear that no attempt has been made to reduce them. Furthermore, Lavaflow Ltd, which owns 75.2% of the shares in Boston United, has loaned the club, we are told, up to £1 million. By my sums that is a total indebtedness of £2.3 million pounds. So the constant refrain of relocate or bust uses this fact, amongst others, as the main justification for the proposed move.
As I understand it, Mr Sotnick will ask Lavaflow to write off £250,000 of this current debt when the club moves to the Boardsides. This will still leave the club in a significantly parlous financial position and BUFC will still not in control of its destiny as Lavaflow Ltd will be its landlord.
There are further glaringly obvious, but still unanswered questions. How will the construction of new stadium be financed? You cannot develop the York Street site until you have completed the new stadium so presumably some form of bridging loan will be required. How much of the profit from the proposed residential development of York Street and Tattershall Road will go to pay for the two new football grounds? And what will the additional debt be if there is a shortfall?
These are all pretty basic questions in terms of how everything adds up and yet we’ve seen nothing apart from attractive architects’ drawings. We’ve been told on numerous occasions by the chairman that relocation will mean the club will be debt-free, but we have yet to see his income and expenditure forecasts. He refers to the variable price of steel as an excuse, but he forgets to tell us how you can hedge on steel costs on the futures market to minimise the risk of price fluctuations. And has he not heard of fixed price contracts such as the New Wembley Stadium?
And now the latest saga is the pending criminal proceedings for conspiracy to defraud the public revenue. I just wonder if all the pressure being heaped on the club at the moment by the HM Inspector of Taxes may have something to do with the appearance of three current members of BUFC staff at Bow Street Magistrates Court this coming Friday, and the fact that the chairman has taken the very loyal and bold step of not suspending those concerned.