Chester FC needing £50,000 in short term as extent of financial trouble is revealed

Chester FC need to raise £50,000 in the short term to avoid going out of business.

The very real and grim reality of the financial situation at the fan-owned club was revealed at a packed City Fans United (CFU) meeting at the Swansway Chester Stadium on Thursday night.

Finance director Laurence Kirby revealed that the club could run out of money as early as next month if things don't change soon and a cash injection of £50,000 in the short term isn't forthcoming, with the £100,000 reserve that had been in place earlier in the season now considerably eaten into.

Kirby revealed that it costs £85,000-£90,000 to run the club each month and that the budget could be down to £250,000 from this season's £450,000 by next season - if the club survive that long.

Kirby told members: "If we can’t raise £85k-£90k a month then we could be finished in a couple of months. We need to recover the deficit. It has eaten away at reserves. This is the reality."

It was also revealed that the club would be looking to offload those players on lucrative two-year deals, such as Paul Turnbull, Kingsley James and Ross Hannah, and that their names would be circulated in the coming days.

Kirby also announced that the second instalment of the transfer fee for Sam Hughes' move to Leicester City was still yet to arrive and that efforts to bring the date forward for receiving that money were ongoing.

Kirby added that the club would look at the possibility of selling the selling-on clause in Hughes' contract, but only if it was the only option available to keep the club afloat.

It was also revealed that the tribunal date for James Alabi's summer move to Tranmere Rovers would be heard on February 15.

Kirby also stated that the Stagecoach deal was still in negotiation but that all parties were still keen for it to happen.

There was much anger in the room in front of a packed meeting of members with many venting their feelings to the board for a catalogue of bad decisions.

CFU chairman Jonny Hughes, who insisted he would not resign when quizzed by a member, said: "We are sorry about what we have put you through. But we will put it right."

The club have set up four working groups: strategy, football, membership and commercial to plan for both short and long term, with former CFU chairman Simon Olorenshaw leading strategy and Calvin Hughes football.

Hughes said: “I’m concerned the way things have been going on the football side of things. We don’t want the mistakes being made again. I was shocked and appalled at some of the figures I saw on players’ 52-week contracts. Not right how a large part of budget had been spent on a few players. We need a scouting procedure. Bernard Concannon found Sam Hughes and without that the club would be a mess.”

But the meeting ended with a very clear message - we need you, the fans.

Donations on the evening totalled £1,214 on the evening and the CFU board vowed, when asked by The Chronicle, that they would be open and transparent in the press and give regular updates on what is being achieved.

The CFU memebership stands at 1,060. It costs £12 a year to sign and you can do it HERE .