Quote: Alexs Dad "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.'"
Exactley, we dont know if they would have gone bust, all we know is that they would have been losing money, but i could have told you that without any figures, its the same for any team relegated to the nl's that still have there sl infrastructure in place and a top playing squad.
