Darlington football club receives cash injection after suffering financial difficulties

6:45pm Monday 4th March 2013 in News Photograph of the Author By Joe Willis, Regional Chief Reporter

DARLINGTON FC has received a cash injection of more than £50,000 after running into financial difficulties.

Club bosses say the rescue package was needed to tackle a shortfall caused by budgeting errors, a drop in revenue and an overspend on playing costs.

The money has come from supporters groups and individuals who invested in Darlington FC Community Interest Company (CIC) - the body which holds a majority stake in the club.

Football club director Martin Jesper said: “There are a number of factors contributing to the immediate cash requirement including greater costs incurred and debts acquired as part of the deal to rescue the club from extinction in May 2012.

“A combination of inadequate financial awareness, a shortfall in revenues and an overspend on playing costs have also contributed to the cash demand.”

The club announced tonight (March 4) that work on the short-term rescue package had been underway for several weeks.

Officials said it would ensure the club could start to prepare for next season from a “more financially robust position”.

Ian Wilkinson, CIC director, said the terms of the rescue funding from the CIC had not changed the nature of the fans’ ownership of the club.

He added: “The future of the club is now firmly in the hands of the fans.

“In fact, these rescue funding terms outline the need to provide professional capability to stabilise and grow the business in a controlled and affordable manner off the pitch - thereby matching the high level of professionalism and performance given by Martin Gray and his team on the pitch.”

The club confirmed that the board of the football club now consisted of Martin Jesper and Laura Drew, following the resignations of chairman Denis Pinnegar, as well as Tori Gill, Pete Ashmore, Karen Glencross and Ian Wilkinson.

The board is accountable to the CIC under the new structure, which is run by a separate board of directors comprising of Ian Wilkinson, Andrew Cawkwell, Dave Mills and Paul Colman.

The CIC has 800 members and has a 52 per cent controlling interest in the club.

The club said Mr Jesper, an independent turnaround professional who specialises in managing financially stressed businesses, was brought in late last year to assess the financial position of the football club and was not being paid.

Details of a club shareholders meeting and fans forum are due to be announced later this week.

Comments(16)

swissball says...
7:46pm Mon 4 Mar 13

lol, that didn't take long - give the arena ring, they might take you back - at a price, lol

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greenfinger says...
8:28pm Mon 4 Mar 13

money missing from the club is the rumor! bust again within two years lol

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maclaren says...
8:32pm Mon 4 Mar 13

Like throwing money down the drain

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freelance says...
9:01pm Mon 4 Mar 13

We're being drip fed the truth -

'more than 50 grand' - how much more?

What would 50 grand do for an ailing enterprise the better players will soon be off to richer pastures.

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quakersam says...
10:40pm Mon 4 Mar 13

Didn't take long for the trolls to come back did it. Where were you all with the match reports when we're constantly winning, haven't seen any of you praise the team, 28 games we've won out of 33, top of the league since August. I don't see any of you then, because no, you thrive on negativity because you live sad little lives and you'll find anything you can to have a go at the club

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stevehutch says...
9:13am Tue 5 Mar 13

Yep, all the idiots are out in force again, 'we told you so'. Boring cynics who have to pull other peoples efforts to bits, but do nothing worthwhile themselves probably. This season was about finding our feet and was always going to be a steep learning curve. Mistakes have probably been made, who doesn't make mistakes, but the club are doing the honorable thing and paying off debts and they have only had 2 home games this year, that would hit the income of any team.
3 home games in a week will get the money rolling in, some positive Echo reporting to encourage fans to go would be useful, you do sponsor us after all.

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Quakerz says...
9:14am Tue 5 Mar 13

The usual suspects mouthing off like usual....

HOWEVER, as a fan ran club, especially at this level where we have a relatively massive turnover, we should not be running short of cash.

Hard questions need asking because if the same happens next year, will the CIC have the money to chuck another 50 grand in.

How on earth can you run at a loss at this level, with few overheads? Yes I realise we are paying off debt from the previous regime, and I heard we are ahead of schedule on that, so why no mention of that as a contributory factor - or is that untrue?

Has this happened simply because we really can't run a **** up in a brewery?

Whilst I applaud everyone who stepped up to run the club, this shouldn't mean that if it is run poorly that questions can't be asked. Also, several of the fans that stepped up are actually business people, why hasn't this been ran like a business?

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nigel d says...
11:00am Tue 5 Mar 13

Why did they build the temporary stand when the ground was already big enough
that money could have been better spent on essential things same old darlo clueless

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g8crasher says...
11:57am Tue 5 Mar 13

No changes then? Still run by idiots?

No wonder DMPRFC wants nothing to do with them

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bishopman says...
12:56pm Tue 5 Mar 13

It is easy to criticise but the true fact of the Northern League is that to get promotion (and you need to finish Champions to guarantee this) you need to spend more than at least four other clubs to get the players needed to succeed in this. In addition, I understand Darlington are still paying off some of last years' contracted players and without having a ground etc. it is no easy task for the Board or the fans (who have been superb in their support for the Club).

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Topcat28 says...
1:32pm Tue 5 Mar 13

If the club do manage promotion the concern must be increased running cost due to away travel. I suspect this is why many of the teams in the league choose to stay in it?

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60 years a Darlo Fan says...
1:32pm Tue 5 Mar 13

In june 2012 we had no club, after being ripped apart by Mr Singh and then well and truly stuffed by the FA. So I for one, as a life long Darlo fan applaud what these people have done to get us a team together and arranged for us to have somewhere to play. For me our glass is half full and not half empty as some of the the knockers on this site imply. I would like to know how many of these doom mongers actualy attend Darlo games, and will they be there on Wednesday, I think not. I for one will be there to cheer on Martin and our team, so doom mongers either put up or shut and let those of us who care about our club get on with it.

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the-big-yin says...
5:21pm Tue 5 Mar 13

Quakerz wrote:
The usual suspects mouthing off like usual....

HOWEVER, as a fan ran club, especially at this level where we have a relatively massive turnover, we should not be running short of cash.

Hard questions need asking because if the same happens next year, will the CIC have the money to chuck another 50 grand in.

How on earth can you run at a loss at this level, with few overheads? Yes I realise we are paying off debt from the previous regime, and I heard we are ahead of schedule on that, so why no mention of that as a contributory factor - or is that untrue?

Has this happened simply because we really can't run a **** up in a brewery?

Whilst I applaud everyone who stepped up to run the club, this shouldn't mean that if it is run poorly that questions can't be asked. Also, several of the fans that stepped up are actually business people, why hasn't this been ran like a business?
You had no debts..Administratio
n..Paid peanuts to creditors..Wonder who has the fingers in the pies this time... Another relegation looking likely....The northern league will not put up with that...There is a local 5 a side league you might be allowed to play in....

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Quaker79 says...
10:13pm Tue 5 Mar 13

I think what the-big-yin was trying to say was in fact "I know absolutely fook all about this situation but I'm bored, so I'll add a comment anyway".

At least that's the way I interpret his 'contribution'.

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Quaker79 says...
10:15pm Tue 5 Mar 13

I think what the-big-yin was trying to say was in fact "I know absolutely fook all about this situation but I'm bored, so I'll add a comment anyway".

At least that's the way I interpret his 'contribution'.

Report this post »

Quaker79 says...
10:45pm Tue 5 Mar 13

I think what the-big-yin was trying to say was in fact "I know absolutely fook all about this situation but I'm bored, so I'll add a comment anyway".

At least that's the way I interpret his 'contribution'.

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