We’ve spent a million on City (From York Press)

We’ve spent a million on City

11:00am Saturday 1st March 2008 in News By Steve Carroll, Sports reporter

YORK City have racked up total losses of nearly £1,000,000 in the last four years - but club owners JM Packaging have put in the cash to fund the deficit.

The Minstermen recorded losses in the last financial year of more than £270,000, taking their balance carried forward from July 2007 to a deficit of £969,039.

But while that figure may have caused fans to be fearful, The Press can report that almost the entire sum has already been invested by Malton-based JM Packaging, which is owned by City managing director Jason McGill.

He agreed to put £1 million into the club's coffers when his company became the new owners of York City after a special meeting of the Supporters' Trust in June 2006.

Mr McGill told The Press that, since then, the company had put £945,000 into the Minstermen and said the investment had proved he had completed his "end of the bargain".

While City's losses in the financial year up to July 2007 were £277,730, more than £130,000 of that was made up of interest repayments - the majority of which went to the Football Foundation in exchange for the £2 million loan which allowed the Supporters Trust to buy the ground from Bootham Crescent Holdings in 2003.

Mr McGill said: "These losses have been accrued since 2003 when York City Football Club Limited was formed. So far, JM Packaging has invested £945,000.

"I have actually put my money where my mouth is. This was supposed to be a deal of five years and this money has been delivered in three. It shows I have completed my end of the bargain.

"What it (the figures) shows is that every little bit of income is vitally important - like from the FA Trophy or doing well in the league."

Mr McGill also stressed the importance of the Football Foundation interest repayments in City's current financial situation. He said: "If we didn't have to pay this we would halve our total losses for the year.

"This is the price we have had to pay to run the football club."

Overall, City's financial picture is improving. The losses for the year were less than those recorded in 2006 of £359,372 and the club has also been able to reduce its wages and salaries bill by £84,000.

However, with the Minstermen stumbling during the early part of the season under former boss Billy McEwan, it is likely next year's figures will reflect the poor crowds which greeted KitKat Crescent during the first couple of months of the Blue Square Premier campaign.

Terry Doyle, City finance director, said: "It is correct that the losses for the last financial year were £277,730 and these total losses have also been incurred so the question is, how are you being funded?

"They are being funded by JM Packaging following the agreement which was signed when the company acquired the shares. If that money wasn't there to cover the books, then clearly the football club wouldn't be able to continue, but JM Packaging has put the money in place."

Looking to the future, Mr McGill said: "Going forward, the football club will have to look at all of its costs and see if savings can be made to try and produce a balanced budget."

Main points from the accounts

Gross profit for 2007: £945,141
Administrative expenses: £1,090,095
Operating loss: £144,954
Interest repayable: £134,213
Losses for the financial year 2007: £277,730
Balance carried forward into the next financial year: minus £969,039
Losses for the financial year 2006: £359,372
Wages and salary costs for 2007: £700,042
Wages and salary costs for 2006: £784,615
Contingencies: A fixed cumulative preferential dividend of £33,000 per annum not payable until the disposal of property held by the company's subsidiary, Bootham Crescent Holdings

'Difficult' situation

Ray Wynn, the chairman of the York City supporters' club, said: "On March 27, the supporters' club, along with the trust, the York Minstermen and other branches, will be having a meeting - hopefully the McGills will be present - where we will be talking about what we can do to increase the amount of money we can give to the club.

"This is going to be an ongoing situation. We have a small fan base and it is always going to be difficult."

'Firm can't pump in money forever'

Frank Ormston, a long-time City fan, said: "This money has been delivered in three years, which makes me worry about the next two.

"JM Packing is a limited company, it has responsibility to its shareholders and it can't forever pump money into York City.

"I think the future of the ground is really the key. Once we can move, that will end the repayments to the Football Foundation and hopefully the loans to JM Packaging can be repaid."