Generic clubs in financial crisis Thread

[Barry the bird boggler]

From the Darlington & Stockton Times, a round up of the key moments in Darlington's recent history that led them to where they are now

These are dark days for Darlington as they again endure turmoil that threatens the existence of the club. The Northern Echo looks at five key decisions which have culminated in pushing Quakers towards the brink.

AUGUST 2003

Moving to the Arena

Feethams was not perfect, nobody argued that it was, but there was potential for improvement. The main stand was only five years old and, moreover, the place was fit for purpose, which is something the Reynolds Arena, as it was titled, never has been.

Why was the monument to George Reynolds' ego allowed to be built? Set in his ways and too stubborn to admit his plans were lacking in logic, the club's owner was determined and Darlington Borough Council let him do as he pleased.

The council allowed the ludicrously large stadium to be built and thus a club, whose highest attendance stands at 21,023, was dragged to a 25,000-seater stadium and became set on a collision course with disaster.

Devoid of atmosphere and character and seemingly always colder than anywhere else in the town, the Arena is a soulless place - it may be where the club plays its matches, but it has never truly felt like home.

DECEMBER 2003
Administration: Part 1

On December 23 supporters were given the worst Christmas present imaginable when the club plunged into administration.

Reynolds had invested more than £20m in the Arena and had placed the club in administration to prevent it being wound up by the Inland Revenue.

John Williams, leader of Darlington Borough Council, said at the time: "It is very sad and we hope that they can get out of the situation they are in. Darlington needs a football club. The council has done everything over the years to support them."

The future appeared bleak, but a successful charity game, organised by manager David Hodgson, helped keep the club afloat in the early part of 2004, raising more than £130,000.

Eventually the Sterling Consortium, led by Stewart Davies, which had lent £4m to Reynolds, stepped in, took over and the club exited administration in September 2004.

FEBRUARY 2009
Administration: Part 2

Promotion hopes the previous season was unexpectedly blown off course due to a spate of injuries late in the season, but this time it came without warning as chairman George Houghton placed the club into administration.

Quakers were in the play-off places, but a day after a home defeat to Rochdale, Houghton announced his surprise move and the team were docked ten points. Chances of promotion gradually evaporated, as did the spirit of the players and supporters.

The town's apathy for the club was apparent. Perhaps sick of hearing about financial strife, the first home match after the Rochdale game saw only 2,450 in attendance - so much for rallying around the club in its hour of need.

Loan players had to be sent back and Dave Penney was unable to strengthen the squad, yet the team finished just seven points outside the play-offs.

If only Houghton had waited until the end of the season, the situation could have been so different.

Not gaining promotion meant Darlington missed out on the increased cash-flow and increased revenue that a season in League One would have brought.

Attendances would have been boosted as opposition would have included Carlisle, Hartlepool, Huddersfield, Norwich, Leeds and Southampton, but instead Quakers were left to contemplate yet another in the basement division.

Houghton's arrival as successor to Davies in 2006 was meant to herald a new beginning.

Davies was the "accidental chairman" having taken the club on from Reynolds following the previous administration, but to many Darlington supporters, George Mk II is viewed as the bigger villain.

It was during his tenure that businessmen Philip Scott and Graham Sizer loaned the club £1.7m at an annual interest rate of ten per cent - a loan which led to the pair taking conrol of the stadium site earlier this year.

OCTOBER 2009
Staunton's appointment

Prior to joining Darlington, Steve Stanunton had not managed before at club level before and it would defy belief if he ever got the chance again. His short spell in 2009-10 was a disaster.

The club exited administration on the eve of the season with Raj Singh becoming chairman and after only nine games Colin Todd was axed as manager.

That gave Staunton plenty of time to lift Quakers from the bottom of the table where they lay five points adrift of safety. By the time Staunton was replaced 23 league games later, the gap had increased to 19 points and relegation was as good as assured.

His spell included only four wins, while all sorts of statistics can be used to convey the level of ineptitude: they lost 32 of their 46 matches and set a new benchmark for the club's lowest points total since three points for a win was introduced.

A club record was also created for the number of players used. An astonishing total of 54 came represented the club with Singh giving Staunton a free reign to bring in a raft of out-of-depth individuals such as Moses Barnett, Noel Whelan, Simon Madden, Andrew Milne and Patrick Deane, plus many others, who struggled to make a positive impact. Of course, Staunton's mid-game temper tantrums did little to engender belief into a side already short on confidence.

Relegation became inevitable with six games to go, by which stage Staunton had been replaced by Simon Davey who arrived too late, the damage had been done.

NOVEMBER 2011
Singh's ultimatum

Though not another administration, this latest episode marks yet another financial crisis.

Singh is undertaking wage negotiations with the players while he has pleaded with Darlington Borough Council to lift covenants that allow it to take 75 per cent of any profits generated from the sale of land at The Northern Echo Arena.

Earlier this year businessmen Philip Scott and Graham Sizer called in a debt of more than £2m to become owners of the Arena and the land at the stadium.

The debt, dating from when Houghton owned the club, was initially £1.7m, but rose to more than £2m with interest.

The pair called in the receivers and instructed property firm Edward Symmons to sell the ground. However, because no buyer matched the asking price, the two businessmen took ownership as first-ranking creditors.

Singh has issued an ultimatum to the local council, claiming he will walk away from the club, into which he says he has invested £3m of his money, within two weeks if they do not lift covenants that allow them to take 75 per cent of any profits generated from the land

[Wycombe Royal]

Burnley have just announced a £4m loss. And some Reading fans think we are run badly.......

[roadrunner]

Burnley have just announced a £4m loss. And some Reading fans think we are run badly.......

Are there Reading fans who think we're run badly? I think it's more a case of you can't run the club to be selfsufficiant and be successful at the same time, and that for many is very frustrating.

I assume we made similar losses after our first season back in the Championship? We kept most of the Premiership squad together and boosted a few wages.

[Tony Le Mesmer]

Burnley have just announced a £4m loss. And some Reading fans think we are run badly.......

Are there Reading fans who think we're run badly? I think it's more a case of you can't run the club to be selfsufficiant and be successful at the same time, and that for many is very frustrating.

I assume we made similar losses after our first season back in the Championship? We kept most of the Premiership squad together and boosted a few wages.

I could be wrong, but i think we lost £7m+ in our first season back.

[Ian Royal]

Taking into account player sales I believe we made a profit of about £2m - £6m. Discount the sales and it was probably a loss of about the same amount as Burnley.

[Friday's Legacy]

Taking into account player sales I believe we made a profit of about £2m - £6m. Discount the sales and it was probably a loss of about the same amount as Burnley.

in our first season back in the championship? i'm sure it was a loss too. the following summer sales were part of the second seasons accounts i thought. anyone?

[Friday's Legacy]

man city record losses of £194.9m for the last financial year. takes a lot of money to win an fa cup these days.

[Jerry St Clair]

Have no links to back this up but I'm told that Darlington's financial position is untenable and their only hope of survival is as an "AFC-Darlo" supporter-startup.

The stadium-related debts they've got hanging round their necks are killing them.

There was an article in WSC a few moths ago. The fans think liquidation is inevitable and are already putting plans in place for a successor club. Going back to Feethams is still possible, though it needs a lot of work.

[Bowman's Quiver]

man city record losses of £194.9m for the last financial year. takes a lot of money to win an fa cup these days.

It's repulsive.
You could change the world with that money.
Building a school in Africa costs £25k, I know this because I got in touch with a charity with regards to funding one.
That's what they quoted me, and that's for two school buildings, landscaping and playground etc.

So that's what, 779 schools they could have built in Africa in deprived countries where people starve to death.

oxf*rd off all of you, I'm disgusted by this.

Never thought I'd say this about the game that's dominated my life for nearly 50 years but sadly, so am I.

[melonhead]

Burnley have just announced a £4m loss. And some Reading fans think we are run badly.......

we would have if have hadnt sold long/sig......

[melonhead]

Truro City owe over £100,000 to HM Revenue and Customs

how is it even possible they owe that much just in taxes.
ridiculous

[Uke]

man city record losses of £194.9m for the last financial year. takes a lot of money to win an fa cup these days.

It's repulsive.
You could change the world with that money.
Building a school in Africa costs £25k, I know this because I got in touch with a charity with regards to funding one.
That's what they quoted me, and that's for two school buildings, landscaping and playground etc.

So that's what, 779 schools they could have built in Africa in deprived countries where people starve to death.

oxf*rd off all of you, I'm disgusted by this.

Never thought I'd say this about the game that's dominated my life for nearly 50 years but sadly, so am I.

Meanwhile

The BBC's annual Children in Need show has raised a record on-the-night total of £26,332,334 - £8m more than 2010.

Half a Torres

The world is phucked, phucked, phucked

[Barry the bird boggler]

As I've said previously the authorites should start a campaign to kick the greed out of football and quite simply any club, no matter by whom they are backed, should be allowed to operate with a loss of more than £10 million

[Arch]

Yes.... wait.... no!

[Wax Jacket]

The BBC's annual Children in Need show has raised a record on-the-night total of £26,332,334 - £8m more than 2010.

Half a Torres

The world is phucked, phucked, phucked

I'd be interested to know how much you spend on season tickets and how much you donate to charity

[Silver Fox]

But if everyone donated all the money they spent on everything to Children In Need instead the world would be a much better place m'kay

[Uke]

The BBC's annual Children in Need show has raised a record on-the-night total of £26,332,334 - £8m more than 2010.

Half a Torres

The world is phucked, phucked, phucked

I'd be interested to know how much you spend on season tickets and how much you donate to charity

Much more to charities than I do on footie tickets- I'm not a season ticket holder and have several direct debits

And you, as you asked me?

[Ferris]

Donated a fiver to Children in Need last year, next day I won £80 on a football bet. Karma FTW

[Wax Jacket]

Much more to charities than I do on footie tickets- I'm not a season ticket holder and have several direct debits

And you, as you asked me?

I barely watch football tbh and give plenty to charity.

I only ask because of the amount of STHs who shake their heads at the state of modern football and then validate it by being part of the show when they show up week in, week out.

but you're in the clear

[Barry the bird boggler]

Difference between being a STH and an armchair SKY supporter methinks... If you want to take action to start improving things then begin by dumping SKY.