Boston United F.C. - Financial Situation

Financial Situation

On 4 December 2006 Boston's plan to relocate to a new stadium on The Broadsides was unanimously rejected by Boston Borough Council. This plunged the club's future into serious doubt. Chairman James Rodwell said the club's future was "Hanging in the balance" as York Street did not have the facilities to allow the club to operate at a profit, and a ground move was required to wipe out the club's debts. Rodwell confirmed that he would be meeting with shareholders over the next couple of days to determine the best course of action, but did admit that the club’s future was ultimately now in the hands of HM Revenue and Customs, who were owed a sizable six-figure sum by the club.

In a statement he released to the club's official website on 5 December he said: "The club’s financial situation at the present moment is dire. I would urge all supporters and anybody interested in the future of the football club, be that investors or potential purchasers, to come forward immediately".

In November 2006, Boston manager Steve Evans and his former chairman Pat Malkinson pleaded guilty to "conspiring to cheat the public revenue between 1997 and 2002". Both were given suspended jail sentences.

In May 2007, Boston entered into a Company Voluntary Arrangement towards the end of their last game of the season when they knew they would be relegated to the Conference. This allowed them to avoid a points deduction in the next season, but has proved a controversial move.

On 10 June 2007 the Football Conference's annual general meeting voted in favour of demoting Boston United to the Conference North, stating that the terms of the Company Voluntary Agreement which Boston entered was behind the decision. Altrincham were subsequently spared relegation for the second season running. Chief Executive John Moules released this statement:

"Because Boston United are in breach of certain rules, it was felt Blue Square North was the best place for them. The Inland Revenue put a caveat on that CVA that Boston could not pay football creditors. That breaks Football Association, Football League and Football Conference rules and regulations. We're giving Boston the opportunity to re-establish themselves as a leading club outside the Football League. They believe the decision we have made is fair and just, and they are not going to appeal. We had meetings all day on Friday with Boston United and then informed Altrincham that they were staying up."

On 4 July 2007, Chestnut Homes, a local housing development company, announced that they had acquired Boston United FC.

In a statement at a press conference the new Chairman David Newton said: "...we are happy to sit here today and make certain pledges to the loyal supporters of the club. While we are involved in the club, the club will be whiter than white. While we are here, everyone will be paid. We will be prudent in the management of the club's finances. We will strive for excellence on and off the pitch. As finances permit, we will develop the youth side of the club, and if managed well that should pay dividends in the medium to long term for the club. Above all, we will try to rebuild the reputation of this football club."

During the summer of 2007 Boston lost their entire squad but for Stewart Talbot and Paul Ellender, and new manager Tommy Taylor had to start from scratch. They eventually finished mid-table, but taking everything into consideration it was not a bad season. However, at the end of the season it was announced Boston would be expelled from the Conference league structure after they failed to exit administration by the 10 May deadline. The Conference is the only league in the world to have this appendix, which is not as such a rule, but only a guideline to be used at the League's discretion. The Pilgrims came out of administration before the end of the summer.