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Gate Money documentary - out now

Posted: Thu Dec 01, 2022 11:47 am
by cavjj

We're not directly referenced in this, and most of the information is already out in public already, but it's an interesting summary of the grant/loan funding debacle during covid. We do appear in some of the documents if you're quick with the pause button.

Re: Gate Money documentary - out now

Posted: Thu Dec 01, 2022 5:47 pm
by puskas
Thanks for putting that up James. . . A very interesting hour or so that I suggest many of the thinking supporters spend, it isn't urgent that it is done right now but make the time.

You can see exactly where and exactly why Ian Kyle and Co were so upset with the league board, especially as I understand that Southport were one of the clubs that were fined quite heavily. We certainly suffered financially because of the decision.

Didn't we get a suspended sentence on one of the issues and is it, or is it not this still hanging over us?

There are still questions to ask and answers to be given, whether we ever get them is another story.

It might make one or two who complain about the club having to be careful with money have a think why.

Re: Gate Money documentary - out now

Posted: Fri Dec 02, 2022 12:59 pm
by DanHayes
The documentary touches on multiple issues and we need to be careful not to conflate them here puskas.

The later arguments we had over a second tranche of funding, and the potential imposition of loans are quite separate from the main subject of this documentary. What we were fined for is our refusal to play fixtures without there being a grant funding model in place when the original funding ran out. Clubs were given guarantees that there would be a second round of funding and they agreed to start the season on that basis. That however turned out to be loans, not grants which is what caused the anger of many clubs including our own.

Loans could have imposed a financial burden on the club that we may have struggled to free ourselves from post-covid, so as we are not a heavily profit making club, running a surplus that could be used to pay off a large debt, we were right to argue against them and to instead argue that the season should be declared null and void.

The main issue at the heart of this documentary however, and the reason for its title "Gate Money", is in the method chosen to distribute the original £10m funding given by the National Lottery, and the credibility of the board of the NL that made the decision to use the model they did.

My understanding is that we found ourselves financially better off than some other clubs based on the initial funding model, in that we wouldn't have received as much funding had they used a model based upon gate receipts as they had originally promised.
I.e. those with larger average gates lost out vs those with smaller average gates.
That doesn't mean we were profitable during that time as there is a difference between loss of earnings and loss of gate receipts.