Leicestershire announce big loss
Leicestershire continue to feel the effects of a tumultuous 2010 and have announced a loss of £404,862 for the year to September 30. The county was beset with problems last summer, with the resignations of chief executive David Smith, senior coach Tim Boon and chairman Neil Davidson.
"The results are bad but we have known for some time that costs have not been controlled and income from membership and Twenty20 was way down on budget," said recently appointed chief executive Mike Siddall. "In almost every area costs are either over budget or income targets have not been achieved. The club needs rebuilding from the bottom and although we have a tough job on our hands it is far from an impossible task.
"So far we have replaced our kit supplier, caterer, legal adviser and physiotherapy services provider and desperately need to upgrade our IT and financial systems."
The losses have had a detrimental effect on the club's cash flow and Siddall added: "The position is serious and in order to guarantee the bank overdraft, the club needs to increase its commercial income significantly. We are continuing our discussions with Leicester City Council to see what can be done in order to relax the covenant the council has over the Grace Road ground. I am optimistic that a solution can be found to enable us to offer sufficient security to cover the facilities we require."
"The board has been completely revamped and we have appointed a new company secretary," added chairman Paul Haywood, who took over when Neil Davidson resigned in October. "Expertise has been brought in to help increase sponsorship and membership income. Costs are now under control and we have set a budget which should return the club to profit.
"I am very optimistic for the future. Sponsors, including main club sponsor The Oval Group, are backing the club and sales of attractively priced membership packages have been good. We finished last season on a very positive note and skipper Matthew Hoggard and the team are really looking forward to the new season."
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