Harriers seek new investors as finance director leaves

Challenges ahead: Harriers chairman Ken Rae.

Challenges ahead: Harriers chairman Ken Rae.

First published in Sport

KIDDERMINSTER Harriers have issued a warning that the squad could be broken up unless new investors are found to help alleviate their cash flow problems.

The Aggborough outfit issued a statement last Friday asking for potential new backers to join the board of directors.

The club cited their current worries on the departure of Mark Serrell and wife Ruth, and Ernie and Kath Lane.

Harriers are in the process of taking legal action against the Lanes, who quit the board in June, over a financial issue.

The Reds have also been further rocked by the departure of finance director Joe Hancox on Tuesday night.

They have been hit in the pocket by last season’s increased playing budget of £700,000 as well as pay outs to former managers Steve Burr and Andy Thorn.

However, they also enjoyed one of their most lucrative seasons, with a run to the FA Cup Fourth Round generating £125,000 in prize money alone as well as a sizeable windfall from their clash against Sunderland at the Stadium of Light.

The sale of Joe Lolley for £250,000, a figure paid in instalments, to Huddersfield also boosted Harriers’ coffers.

Chairman Ken Rae said: “We’ve a number of directors in the space of six months and we’re looking to fill those gaps which gives us some financial support.

“There’s no set figure but we’re looking for any interested parties to get in touch and we’ll open a dialogue and go from there.

“We’d been looking for £10,000 as a minimum and you never know there might be somebody out there interested in taking over Harriers lock stock and barrel.

“We’ve had a good start to the season and the best time to press support into the business is when you’re doing well.

“He added: “I’d like to thank Joe for his services to the club.”

Harriers’ statement says they have no substantial debts and that PAYE and VAT are paid up.

The summer transfer window closed without any sale of players, but supporters are concerned that they may lose the likes of Chey Dunkley in January unless more cash is found.

Rae added: “The club will always consider a bid for a player if it is in the best interest of Kidderminster Harriers.

“We wouldn’t let anyone go unless it met the manager’s valuation of a player and he would be allowed to replace that player.”

He continued: “The FA Cup and Joe Lolley money have supported the playing budget over the last two years.

“We had a playing budget which was in excess of what the club generates from its commercial activities.”

Rae also said the board of directors would consider offers to purchase the club.

However, any decision to sell would need the agreement of the club’s shareholders.

Eight individuals own 92 per cent of the club with Neil Savery, Barry Norgrove and Jane Murrant collectively having a combined 52 per cent of shares, while Wayne Allen is the major share holder on Harriers’ board.

Kidderminster Harriers Independent Supporters Trust (KHIST) issued a statement on Saturday, expressing their disappointment at the club’s situation.

Former chairman Norgrove was also critical of the board’s financial management.

Current directors put in £10,000 each season.

“When we were on the board, we would have to put our hand in our pocket and put in £20,000 or £50,000 if needed,” commented Norgrove.

“But the club has been spending more than it has been bringing in, which is unsustainable. If that’s the case, you have to cut your cloth accordingly, it’s no point having a good team if you can’t pay the bills.”

Comments (4)

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10:21am Thu 4 Sep 14

comberton hill questions says...

Maybe people should pay what they owe - supporters of the club need to get behind the club we don't want a Hereford. Barry go back on the board then and pay 20 -50 I am sure it will help.
Maybe people should pay what they owe - supporters of the club need to get behind the club we don't want a Hereford. Barry go back on the board then and pay 20 -50 I am sure it will help. comberton hill questions
  • Score: 3

11:57am Thu 4 Sep 14

harrierfan says...

Let us hope the legal action against the Lanes works and he shells out the £ and others become directors - don't think Ernie is going to be popular anymore at the harriers
Let us hope the legal action against the Lanes works and he shells out the £ and others become directors - don't think Ernie is going to be popular anymore at the harriers harrierfan
  • Score: -3

4:00pm Thu 4 Sep 14

sonofbaldwin says...

Ernie and his wife are Harriers fans through and through who have dug Harriers out of a financial hole more than once in the past - if theres been any falling out I know who I'd be more likely to blame!!
Ernie and his wife are Harriers fans through and through who have dug Harriers out of a financial hole more than once in the past - if theres been any falling out I know who I'd be more likely to blame!! sonofbaldwin
  • Score: 5

4:24pm Thu 4 Sep 14

harrierfan says...

sonofbaldwin I think any financial mess is down to them as well after all weren't they directors when the decisions were made lol - all directors and shareholders have put money in at some point or other I think the point is looking at this article that they have failed to pay money which has dropped the club in the proverbial - maybe they were good and are now not like a lot of people - be good to see them say something to say this is not right otherwise we all know what the probable truth is
sonofbaldwin I think any financial mess is down to them as well after all weren't they directors when the decisions were made lol - all directors and shareholders have put money in at some point or other I think the point is looking at this article that they have failed to pay money which has dropped the club in the proverbial - maybe they were good and are now not like a lot of people - be good to see them say something to say this is not right otherwise we all know what the probable truth is harrierfan
  • Score: 0

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