WEYMOUTH Football Club is on the brink of collapse.

The board say that unless £50,000 is found in the next week the club will be placed in administration.

And director Dave Higson warned that with few tangible assets to its name liquidation could soon follow.

Mr Higson admitted the Terras are in ‘dire straits’ and that the club’s future was uncertain unless a substantial investor is found.

Mr Higson’s stark words came after the board released a statement revealing that they will be forced to call in the administrators if £50,000 is not found before September 8.

Administration would not only see the Terras receive a 10-point deduction but it would also threaten the club’s very existence.

Mr Higson, who was due take over as chairman today following Ian Ridley’s decision to take a backseat due to ill health, said: “No one is coming forward with any money and that includes sponsors as well.

“At the last home match we had no main sponsor for the first time ever and that was a bit of a blow.

“In short, the club is in dire straits and that is why we will not put any more money in ourselves because it would be like just throwing it away.

“You see we have all put in a lot of money already but it is just not happening and the only way the situation is going to turn around is with a substantial investment.

“It is a downward spiral. You cut your cloth accordingly but then gates end up going down because people do not want to spend their hard-earned money only to see the team lose.

“At the start of the season we looked at our first four home games and thought, with good backing, it would give us a good chance to keep the club going.

“The first one brought in a crowd of just over 900 but when it dropped to 600, which only covers the players’ wages, it was clear a decision had to be made.

“That is why we decided to give it until September 8 to see if there is a wealthy person out there who is willing to come in and take on some of the debt.

“If there isn’t then administration is our only option.

“The big concern with that though is that administration could then become liquidation because the club has no assets.

“The job of the administrator is to come in and try and keep the business going to pay its creditors but that is going to be extremely difficult with nothing to sell and the ground land locked.”

Mr Higson added: “To be honest I cannot see any way out of it unless someone comes in.

“Ian Ridley will officially take a back seat as of today and I have said I will head the board the best I can in his absence.

“Ian is very clever and has a lot of contacts within the game whereas all I can do is look at the facts. And all I can see is no money coming in and a lot going out.

“All we can hope for is that the board’s statement might help bring somebody forward with a loan of £50,000 to get us over this because the frustrating part of it is that the board have actually put together a forward plan and budget that can help the club survive.

“With nearly £40,000 having gone to the ex-players that needed paying all the money that has been raised has gone towards paying the debts we have inherited and that is what is hammering us.”

Fellow board member Ian Winsor, who is the director of the club’s majority shareholding company Make It So Ltd, is also struggling to see any light at the end of tunnel.

He said: “I cannot really add anything to the statement at the moment.

“The club has done well to deal with day-to-day debts, but the debts that have been inherited are huge. And with not enough people coming through the gates and commercial partners unwilling to come on board because of the club’s uncertain future the board had to make a decision.

“We do not want to be accused of trading while insolvent and that is why we put out the statement informing people that unless an investor comes forward the only responsible decision will be to put the club into administration.

“With the intention being not to destroy it but get it out the other side with some of the debts gone.”

When asked whether any potential investors have shown an interest, Mr Winsor added: “No, not at the moment, and to be honest I think most interested parties will only be willing to take the club out of administration when all the hard work will have been done for them.

“Someone may come out of the woodwork before then but we will have to wait and see.”

THE TERRAS STATEMENT IN FULL

THE board of directors of Weymouth Football Club have today (Saturday) set a deadline of 10 days to find new investment and/or sponsorship of around £50,000 before they regretfully have to consider the painful decision of the club going into administration.

Since taking over in March, the new board have worked hard to overcome the club’s problems, chief among them an inherited debt of around £500,000.

At first, with share money from fans, they managed to keep the club going until the end of the season, though sadly relegation from Blue Square Premier resulted.

They also put in considerable amounts of their own money both to pay off some pressing creditors threatening to close the club down and then over the summer to fund the running costs of the club due to it no longer having outside income.

That lack of income is due to the club no longer being due revenue from speedway and receiving only a small percentage of the profits from its bars and catering facilities. It has meant that attempting to organise events on the land surrounding the stadium or in the lounges would not yield sums to make some of them worthwhile.

The board also negotiated payment plans with certain creditors and even managed to settle around 80 per cent of debts to football creditors – including the majority of the 10 ex-players unpaid by the club last winter – thus avoiding any sanctions from the Football Association. Indeed, the club has managed to reduce its overall debt by at least 10 per cent in the last six months and the board have been relieved to get this far.

All this on top of appointing a manager and allowing him to recruit a part-time squad, albeit it on a shoestring budget that is roughly £500,000 less than last season’s, to enable us to compete in Blue Square South this season.

It all meant that with the income from the club, in crowds and sponsorship, the board hoped they would be able to manage costs – which have been slashed – and finance a squad, which has been well assembled by Matt Hale.

On top, they had a series of meetings with potential investors in a variety of locations around the country, with things looking encouraging on several occasions. In addition, thanks to a diligent commercial department, they hoped to attract back increased sponsorship funds along with more fans by offering a more vibrant, competitive and well-run squad and club. All this, they hoped, would be sufficient both to run the club and to service the manifold debts, with new ones even emerging over the summer.

While it has just about proved possible thus far, things are not looking good for the next few months. The club has just about been taking enough revenue to pay for the squad and its running costs, thus making Weymouth FC a viable concern in the medium to long term, but the board will soon find it impossible in the short term to meet repayments to certain creditors who have become more pressing in their demands.

The projected deficit in income to outgoings over the next few months before we clear the worst of the debt and see daylight is that £50,000. It is not helping that several concerns who owe us considerable amounts seem unable to pay us what we are due.

We would therefore appeal for help from whatever source wishes to invest in and/or sponsor the club. The current board is even willing to step aside if there are persons who believe they can do better. The board would, too, invite offers to buy the club and take on its debt should those persons demonstrate their feeling for Weymouth Football Club.

Should there be nothing forthcoming by Tuesday, September 8, the board then believes it will have no choice but to consider the unpalatable step of inviting in an administrator to sort out the club’s financial affairs, for which the current board, despite the horrendous situation which they took on, take full responsibility.

This will be done by the board with a view to safeguarding the club and protecting its shareholders and sponsors, along with providing a way forward for the club and retaining the management and squad for when the club comes out of administration. The club and the board are most certainly looking to honour their commitments to all those parties.

It has been with great sadness that the board have reached this conclusion, having always tried to honour the debts that may have belonged to previous regimes but remain the responsibility of the club, involving as they do many local companies.

Our first duty, however, is to the club and its employees and supporters and we may well have to take a tough decision for the greater good.