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[Darren]

http://www.sportsecho.co.uk/football/boston_united/news/displayarticle.php?ID=2875

Boston chairman warns of testing times ahead
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07:00 - 19 February 2008
 2 readers have commented on this story. Click here to read their views.
David Newton says he feels stuck "between a rock and a hard place."CHAIRMAN David Newton has warned there could be more difficult times ahead off the pitch for Boston United.

The Pilgrims' Company Voluntary Arrangement (CVA) - which was entered into prior to the takeover of the club by Newton's company, Chestnut Homes - remains in doubt.

After their relegation from the Football League on the pitch, United were punished for entering into a CVA that did not provide for the payment of football creditors in full, by being demoted to Blue Square North. Following the club's financial problems and relegation, the Football League has withheld the club's basic award from the previous season, and this season's parachute payment, believed to be worth in excess of £200,000.

The Football League have stated that they are going to use the withheld funds to pay the football creditors.

However, that arrangement would be at odds with the Inland Revenue - the biggest single creditor in the CVA. The Inland Revenue insist that all creditors are treated equally, and if preference is given to football creditors, the club should be wound up.

"We don't want to be alarmist, but at the same time, it is important that people realise that everything is not straight forward" explained Newton.

"We feel like we're stuck between a rock and a hard place. We've tried everything and had countless meetings, but we don't seem to be making sufficient progress

"The Inland Revenue insisted on a modification to the CVA at the outset, which in effect prevents payments being made to football creditors by 'a third party'. This would include payments by the Football League."

Newton and club vice-chairman Neil Kempster are set for vital talks with the Inland Revenue in the next week.

On top of that, the Conference is threatening to punish the Pilgrims further for failing to pay football creditors in full.

 
Reader comments
Ouch, looks like the "Daggers" are out. Once again, it will be the supporters who will suffer from the ineptitude of the Club's guardians and their past demeanours. The majority of Boston followers are a credit to the County, and I for one hope the Club can resolve it's issues. We Trinity followers wish you luck, and look forward to six easy points next term.
Phil Anderson, Gainsborough
[ report ]
Oh how the past comes back to haunt you!!! You cheat the tax man to get into the football league and now he bites back!! No doubt Boston will be asking for sympathy on the issue.
Shaun, London