Hereford United are on the brink of administration after they were served a £36,500 winding up order by HM Revenue and Customs. Hereford’s MP has asked for a degree of forbearance, but football clubs can’t be exempted from meeting their tax obligations.
Hereford United are on the brink of administration after they were served a £36,500 winding up order by HM Revenue and Customs. Hereford’s MP has asked for a degree of forbearance, but football clubs can’t be exempted from meeting their tax obligations.
Hereford have a great history of giant killing in the FA Cup, but their losses of over half a million pounds are the worst in their history. Football income is down by £541,000, reflecting the difference between the Football League and the Conference.
Hereford’s chairman in effect admitted that they had overspent on the playing budget in an effort to get back into the Football League, referring to clubs such as Lincoln City and Macclesfield being in a similar situation. Unfortunately, the same phenomenon happens at every level of football, although it appears to be particularly common in the Championship and the Conference where the promised land seems to be within reach.
The Conference is, of course, a particularly difficult league to get out of with just two promotion places, although four clubs are relegated. Hereford’s particular challenge is the presence of a lot of prosperous retirees in its hinterland who are either not interested in football or support clubs they have had a long association with.