IN an Interview with the Sentinel on 3rd March 2012 Perry Deakin says the financial mess he inherited last year is the main reason Port Vale are on the brink of administration.
The club’s chief executive admits he has made mistakes during his 12-month reign, not least when fans were given the impression he was personally investing in the club.
However, he says the main cause of Vale’s troubles was a cash-flow crisis which developed under former chairman Bill Bratt.
Deakin said: “Port Vale would typically start a new financial year, July 1, with about £750,000 in the bank from season tickets.
“That would see them through cash flow requirements throughout the season.
“But there were losses from previous years and, around the time of the EGM, the board had taken decisions such as paying back a brewery loan.
“With the losses, increased security and policing costs, and a fall in attendances, we actually started the financial year with zero in the bank.
“For a club like Port Vale, which needs to start with around £750,000 in the bank, that is a major problem.”
Mr Deakin is implying that the club was £750,000 light at the start of the financial year and he lists the repayment of the brewery loan and previous year’s losses as the reason. Mr Deakin sat next to Mike Lloyd at Baddeley Green in August when Lloyd claimed that but for the protests and the EGM the club would have made a profit for the financial year ending June 2010. He also claimed that the costs of those two items was in the region of £100,000. The deficit resulting from those items must have been less than £100,000. Mr Deakin did not make any attempt to contradict that figure. The brewery loan was itemised in the 2010 accounts as £77,000 having reduced from £91,000 in the previous year. Assuming that repayments had continued at the required rate, it suggests that the outstanding loan can only have been in the region of £60,000. So we have accounted for approximately £160,000. This does seem rather less than the £750,000 Mr Deakin mentions. Continue reading