Haven just one day from administration

By Martin Morgan

Last updated 11:59, Thursday, 01 May 2008

Whitehaven were within a day of going in to administration just weeks ago, it emerged at last night’s AGM.

Pitch battle: Haven face problems over the Recreation Ground lease

Operating losses totalling almost £220,000 over the past two years took Haven to the brink in February – yet the new-look club has since staged a remarkable fight-back and is now in the black, with creditors at bay.

Administration would have spelled disaster, with nine points docked by the RFL meaning almost certain relegation from NL1.

However, a £75,000 loan from the West Cumbria Development Fund kept the club afloat, shareholders heard.

Director Mike Graham revealed that if the loan had been denied, “the day after we would have called in the administrators.”

It also emerged that the old board of chairman Des Byrne, Kenny Shepherd, Ron Batty and Dave Farrell – all still staunch Haven fans, who attended last night’s meeting - were required to step down as a condition of the loan being made.

The Development Fund wanted a fresh start for the club with new directors. Operating losses of £86,055 in 2006 and £132,374 for last year were revealed last night, though the club now has £40,000 in the bank, with outstanding bills of just £23,000, and its VAT and PAYE payments are up to date.

A loss of £50,000 is projected for the season however, due to falling gate receipts this term.

But shareholders heard that a conditional £100,000 in funding was available from the RFL next season.

The club’s cash woes over recent seasons were sparked by falling income and rising costs.

However, the Development Fund loan and cost cutting measures, including allowing big earners John Duffy and Richard Fletcher to join Widnes, have helped spark a transformation in fortunes.

And finance director Barry Richardson last night called for a fresh start for the club.

He said: “Obviously these are difficult circumstances for a lot of people. Many people at the meeting, current directors and previous directors, put a lot of effort in to moving the club forward.

“They always operated in the best interests of the club. The time has come to put behind us what went on previously.

“We need the supporters, the town, businesses and sponsors to pull together.

“ We are not far away from being back on an even footing, and it’s an important year for us.

“Extra funding is available from the Rugby League, and we have time to address things if we can get through the year financially.

“We have said we’ll be honest with fans, and let them realise the situation. If we carry on with our gates at current levels, we will suffer a financial loss of £50,000.

“But the main thing is to pull together to address the situation as a board, try to get additional sponsorships in and improve the club lottery and our gates. That sort of revenue will have a big impact.

“If we can stabilise this year, make sure the club’s on a firm financial footing, there’s a great future for the club again.

“We have a good set of players, and coach Ged Stokes and his support staff have done a fantastic job with them, bringing a professional attitude to the club.

“It showed in our performance against Celtic Crusaders, who then went to Widnes and won.

“We have every opportunity to continue with that kind of performance.”