At least nine Conference clubs have tax bills threatening their existence. A higher number of clubs than expected from the Blue Square Premier, North and South have fallen foul of the stringent quarterly checks after the summer launch of the Financial Reporting initiative. This was set up by the Conference and the FA to monitor the returns of clubs to HM Revenue and Customs. Conference chairman Brian Lee said, ‘Part of the problem is that football is an incomparable industry.
At least nine Conference clubs have tax bills threatening their existence. A higher number of clubs than expected from the Blue Square Premier, North and South have fallen foul of the stringent quarterly checks after the summer launch of the Financial Reporting initiative. This was set up by the Conference and the FA to monitor the returns of clubs to HM Revenue and Customs. Conference chairman Brian Lee said, ‘Part of the problem is that football is an incomparable industry. For example, in a normal business enduring financial difficulties, the first thing considered is a staff reduction. In football, the authorities have increased playing requirements after introducing two extra substitutes in the FA Cup.’ Both Weymouth and Lewes are known to be close to closure with massive debts and last week Blue Square South Worcester City became the latest club forced to ask their players to take a pay cut.
Of course, if clubs do not pay their tax bills it is at the expense of other taxpayers. Some Conference clubs are living beyond their means. Brian Lee commented, ‘What we are trying to impress on our clubs is that they simply have to live within their means. Clubs need to remember they play in the Conference and to spend only what they can afford. Don’t try and ape clubs higher up.’