Non-league clubs often find themselves in financial trouble because their revenue streams are often uncertain and vulnerable and players want the going rate or more. The temptation is to over spend in pursuit of promotion. League clubs may offer a rival attraction. Directors may be asked to dig into their own pockets, but they are not always that deep.
Lowestoft Town have run into serious problems. The Trawlerboys, who play in the Step 3, Bostik Premier, have cited a big drop in attendance figures as one reason for their difficulties.
The Blues were relegated from the Conference North two seasons ago and are currently on a poor run of league form, having won just one in 12 Bostik Premier games. They are currently fourth bottom in the table. Only the bottom side is relegated to Step 4.
The club has issued the following statement: 'As you all may be aware, Lowestoft Town FC has been experiencing financial difficulties all the way through the season. It has now come to a point where we need to relay more information to our dedicated and loyal fans, sponsors and followers of Lowestoft Town Football Club.'
‘At this moment in time the situation is now become near critical where we are quickly running out of money. This is down to a number of factors, including a big drop in our attendance figures meaning less match day revenue coming into the club, the club attempting to manage large outstanding supplier invoices and managing an extremely high wage structure which would no doubt be at the higher end of the Bostik Premier in regards to wage costs.'
‘The club can confirm that the players and coaching staff have gone unpaid for the month of January which was due in February, because of the massive cash flow problems, with called off games not helping the situation. The club plan to meet players this week to discuss the plan going forward in regards to pay for the rest of the season, money owed for February and the futures of specific individuals.'
‘Looking at the club’s projected income for the remaining nine weeks of the season, current supplier debts and our running costs (which we are constantly trying to decrease every day) for the remaining weeks of the season, our current deficit means the club is forecasting a significant shortfall for the rest of the season.
‘The club has had to utilise current Directors personal finances, and club overdraft to cover the shortfall up until this point, some Directors are still inputting cash when and where they can, however we are now near a position where we are unable to put further funds into the club. We recognise and understand this will be a cause of great concern to supporters and there are questions that will need to be answered. In light of this the club will release details of a supporter meeting in due course.'
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