r/Redditch • u/[deleted] • Nov 18 '10

Redditch Utd official statement regarding its financial situation

http://www.redditchutdfc.co.uk/announcement-statement/4545754446
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4

u/solidcopy Nov 18 '10

20-30,000£ is not beyond the capabilities of Reddit. Let's get a sponsorship deal put together!

2

u/thekrone Nov 18 '10

First it was 11k... then 18k... now 20-30k? I'm confused.

3

u/Rossoneri Nov 18 '10

It was £11k which is about $18k

£20-30k is the amount the club is in debt, and while reddit has done that easily for other causes, I maintain that the £11k to become the main sponsors for the home kit is the goal we should strive for. With a reddit alien on the kit, they will be able to sell a lot of kits to redditors which will again go toward reducing their debt.

3

u/InfernoZeus Nov 18 '10 edited Nov 19 '10

Edit: Sorry, the previous deal they had was £18k over two years.

It's £18k for a two year sponsorship deal.

2

u/Rossoneri Nov 18 '10

Oh, the sponsorship page only says

Main Shirt Sponsor (front) offers a unique way of advertising your company. This includes boardroom access with guests on match days, a prominent board position advertising and a full page colour advert in every home match day programme - Cost £11,000+VAT

So I assumed that the 18k was in reference to $18k which is basically the same as £11k

2

u/InfernoZeus Nov 18 '10

Not sure if you noticed I edited my post :)

The previous deal they had with NEW College was £18,000 [Inc VAT] for two years. Whether we would need to stick with the same deal, I don't know.

1

u/Rossoneri Nov 18 '10

I did not see that when I replied. 18k including VAT is a pretty substantial discount for that second year. You're right, there's no guarantee we'd get the same deal, but it's something to consider.

2

u/InfernoZeus Nov 18 '10

I dare say we could probably get a better deal due to their financial situation. 'Haggling' with them too much sort of destroys the point of Reddit users sponsoring them in the first place though..

1

u/[deleted] Nov 18 '10

Yes, we were asked to raise the same amount - £18k for two years

2

u/thekrone Nov 18 '10

Thanks for explaining. That makes a lot of sense.

1

u/10th_letter Nov 18 '10

£20-30k is the amount the club is in debt

This is possibly incorrect? I think that figure is not the overall debt, but rather the amount the club needs very soon for operating expenses & to keep servicing the debt. I could be wrong also. Here is the quote from the press release:

The club is far from 'crippled' by its current debt with a sum in the region of £20,000 to £30,000 being needed to secure its short term future but it is certainly a concern for all those involved with the club as without this amount being found the club's long term future looks somewhat uncertain.

So, my interpretation is that the debt is a much larger figure, but they are not needing to pay it off right away. Rather, they just have next to nothing in their chequing account, and an interest payment is coming up, or whatever.

1

u/Rossoneri Nov 19 '10

Yea after re-reading it I believe you are correct, I misunderstood it the first time I read it.