The
difficult decision was taken by the Board of Directors after considering the
financial impact of the suspension of all football activities due to the
unprecedented impact of Covid 19, the unwillingness of the ground’s owner to
consider either a long lease or sale on market terms and the ongoing fixed
costs with no income prospects.
With
no viable approach received to invest in the Cymru North club, the Board of
Directors in the recent weeks have held open discussions with the Rhyl Fans
Association to explain in detail the current situation.
During
those meetings it was agreed to explore the scope for a new football club in
Rhyl, as happened in 1992, to seek to ensure football remains in the town of
Rhyl preserving the rich history of football in the town.
The
dominant issue over recent years, has been the relationship between the
Landlord of Belle Vue and the Football Club, an issue which has impacted on
expressions of interest in the Club in recent weeks. The club currently pay
nearly £24,000 per annum for a lease of the ground, which was due to expire in
4 years.
Over
the past decade various offers have been made to the landlord by the club chairman
to purchase the ground, with the offers being in excess of market value.
On
each occasion the landlord has showed no willingness to progress a sale of the
ground.
The
maintenance of the ground is the responsibility of the tenant and whilst its
status and capacity has seen prestigious events held in recent years there is a
clear requirement for investment in its facilities.
The
absence of ownership by the club or a long-term lease resulted in the club
being ineligible for many grants to enable much needed improvements to be made.
In recent weeks the chairman advised the landlord, of the importance of either
a long lease on market rate terms or a one-year option to purchase the ground
in securing investor’s to save the club. The landlord did not respond to either
proposal.
The
current situation regarding COVID 19 has also impacted on the short and medium
term stability of the club. Whilst there are hopes from the FA of Wales that
the season will be completed in the summer months it is anticipated that it
will be longer before spectators can attend games.
Over
the last 12 months the club has increased its sponsorship and fundraising
activities which has delivered additional income to the club. With the support
of the chairman the club was heading for a break-even season, as with last
season. However, the suspension of football and the lockdown arrangements now
means that fundraising activities have ceased.
The
close season and summer period traditionally brings a large amount of income to
the club with tournaments and fundraising events. With the suspension of
activities these income streams have dried up as rightly the focus has to be on
the health of all supporters in these times of national crisis.
The
club has also explored options for external funding. Whilst there are grants
available for small businesses as part of the Government’s response to COVID 19
the reality is that the funding available would not by itself bridge the gap in
required finance.
The
club has also been in discussions with the Welsh FA regarding any assistance
available. Whilst sympathetic to the plight of Rhyl FC the Welsh FA expressed
that they were not in a position to support the club outright, with many other
clubs across Wales expected to face similar financial difficulties in the
coming months. The Welsh FA did indicate that a ‘small loan’ may be possible
but only if secured. The club could not offer security nor would a small loan
be sufficient.
Since
the club made the request for investment/sponsorship, five approaches of
varying statures have been received. Due diligence eliminated three of the
enquiries and a further offer was withdrawn following the confirmation of the
status of ownership of the ground. An additional tentative enquiry was made and
subsequently withdrawn. In NO instance was any specific financial proposal made
by any of these parties.
The
need to explore all these options and the delicate nature of discussions
required an extension of time to be offered. Following the exhaustion of these
options the Directors were left with the current position.
One
of the comforts in recent weeks has been the active role played by the Rhyl
Fans Association. They have been able to raise funds in recent weeks through
fundraising campaigns and the Board of Directors have met online with officials
from the Association to ensure they were fully informed of the current position
of the club.
All
of these factors have left Directors with a difficult decision to make on the
future of the club. Reluctantly the Directors have had to conclude that, with
no substantial source of external investment, the unpalatable decision had to
be made to wind-up the affairs of the company Rhyl Football Club Bellevue
Limited.
This
decision effectively ends the clubs 2019/20 campaign and will also see the club
lose its academy status. This will also see the Football Club lose its existing
Lease of Belle Vue.
Chairman
Paul Higginson told https://www.rhylfc.co.uk: ‘‘This is a very emotional day
for everyone connected with the club - the volunteers, supporters, players, coaching
staff and all the officers of the club. We are all Fans and feel it deeply.
That said the Town has a very proud footballing history and a very determined
character and, as in 1992, I have no doubt that a very strong new club will
rise from this low”.
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