Quote ="pyeman"Like many rl clubs we made a loss, we did it when we were in sl too according to those figures (which we will trust for arguments sake, even though i doubt they tell the entire story), doesnt mean we would have gone bust, with the squad they have it looks like widnes probabley make a loss this year too, doesnt mean they are going to go bust again at then end of the year. There is no hard evidence that castleford would have gone bust had we lost that game, it justs sounds like fans of a certain club comforting themselves by saying 'it could just as easily have been them'.
There is factual evidence that widnes spent themselves into administration in 2007, there is no factual evidence that castleford would have gone the same way in the same circumstances.'"
You're right, I have not told the entire story.
Working Capital
2005 -976,122
2006 -1,156,639 -18.5 %
2007-1,344,142 -16.2 %
I don't think a deficit £1.3 million from normal trading activities going into potentially 4 years of National League rugby would have won many friends at the bank or investors. It suggests they were losing money hand over fist. It doesn't mean they would have gone bust, but at best it puts them in the 'the accountant is very worried' catagory.
Going into the 2007 National League season, Cas had a net worth of minus £410k, almost £160k more than the year before. They also had over £2.5 million of liabilites and trade creditors (folk they owe money to), yet only £1.07 million in assets. Ouch.
Thankfully for Cas, and I quite like clubs like Cas don't get me wrong, they won promotion. Then, with pretty much 4 years gauranteed SL income in the bag, plus their revaluation reserve increasing to £1.6 million, their net worth increased to £1m giving them the medium term finacial stability many other clubs can only dream of.
You can probably tell that the cricket has got off to a slow start and I've little else to do this morning but it shows Durham Giant was spot on when he said Cas were gambling that season, whilst TB has already said what he would have thought of his Board had it failed.
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