£800,000 in Bank Claim Challenged

Bulls News has been challenged over their claim that Hereford United could have around £800,000 in the bank.

In an article on September 23rd about Worcester's current financial problems it was stated:

In contrast Hereford United owe developers around £1M but are thought to have around £800,000 in the bank after a successful campaign last season and player sales.

Two high profile Hereford United supporters have challenged the figures on the Bulls Banter Forum.

One, a member of the Official Website team, has called the claim 'wild speculation'.

The other, who runs a rival Website, said that he was 'pretty sure GT would be dancing on the top of the "so-called" Fun Bus (or maybe the aisles) if that were the case!'

So how did the figure of £800,000 come about?

At the end of May 2007, according to the Consolidated Balance Sheet, Hereford United had £424,556 in the bank and in hand.

Since that date Hereford United has had a very successful season culminating in promotion to Division One. There was an excellent FA Cup run including two games against Leeds, one of them on TV, and one against Cardiff, and a Carling Cup game at Birmingham.

Two players were sold. Andy Williams moved to Bristol Rovers and Lionel Ainsworth moved to Watford. Neither of the transfer fees have been published. However quotes from manager Graham Turner would suggest the fees were substantial.

Using three conservative figures Bulls News came to the conclusion that Hereford United had banked at least £375,000 last season over and above that banked in the normal course of trading.

£100K from the sale of Andy Williams
£200K from the sale of Lionel Ainsworth
£75K from the televising of the Leeds FA Cup Game

By adding the £375,000 to the £424,556 we get to £799,556 or around £800,000 as quoted in the article. And we haven't taken into account prize money from the FA Cup run which was £80,000 and other broadcasting revenue.

Where did our information come from?

From the Hereford Times dated July 12th 2007:

A six-figure fee has now been agreed for the young striker with a 20% sell-on clause operating in the event of Williams moving on again.

From the Hereford Times dated November 29th 2007:

If Lionel goes well, and if Watford go well, then it will be the biggest incoming transfer fee in the club's history.

From Bulls News dated November 29th 2007:

The biggest incoming fee in Bulls' history is Darren Peacock's transfer to QPR. The Bulls received a total of £445,000 in two lumps - an initial £200,000 in 1990 with £245,000 coming from the sell-on clause when he was sold to Newcastle in 1994.

From Bulls News November 1st 2007:

Graham Turner, the Hereford United manager, has told the Hereford Times about the financial prospects of the FA Cup game against Leeds United.

"We expect to make a six-figure sum. There has been lots of interest and BBC Radio Five Live will be taking commentary on at least part of the game," said Turner.

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