Bank account frozen, staff go without pay

Last updated : 31 May 2002 By Al Woodcock
The HSBC bank are believed to have frozen United's bank account and the club's employees have been told their wages will not be paid on time this month.

The crisis-hit Cumbrians, who are facing a winding-up petition in the High Court on June 26, served by the Inland Revenue to whom they owe £416,000 in unpaid PAYE income tax, have already released all sixteen of their out-of-contract playing staff and sacked commercial manager Stephen Barker.

The club and its holding company have debts of at least £2 million and owe £960,000 to the Bristol & West Investments finance house, a loan secured on land and buildings at Brunton Park. In addition, the club are operating under a transfer embargo because of an unpaid £40,000 loan with the PFA. Last month a cheque paid to Shelbourne FC as an instalment for the transfer of Richie Foran bounced, leaving the Irish club fuming and among a growing list of creditors. The released players have still to agree a drastically reduced pay package and could also be involved in any liquidation proceedings.

Secretary Sarah McKnight wrote to all staff saying the bank account was being frozen due to the imminent winding-up petition: "As a matter of formal procedure the bank will now automatically freeze the club's bank account. Indeed, the position was confirmed on Friday May 24. Sufficient funds were lodged in the bank last week to pay staff salaries and wages. However, with the account now frozen, staff should make provisions for their wage payments to be delayed by up to a week."

The bank refused to confirm that the account had been frozen. Neither the DTI, who are investigating the club's finances, nor the Inland Revenue claimed they could force the club's account to be frozen. It is undersood that the bank took the decision themselves. The club had an overdraft of £11,368 at the end of the 2000-01 financial year but it was thought the facility had been withdrawn shortly afterwards, forcing United to sell star striker Scott Dobie.

Knighton to address fans as local media are banned again

Michael Knighton
Knighton: Meeting fans tonight
Hated owner Michael Knighton plans to talk to angry supporters tonight in a meeting arranged for 7pm at Foxys Restaurant.

It will be the first time in many years that United's under-fire owner has had a direct dialogue with fans, who the 51-year-old majority shareholder has blamed for the club's current crisis. He described the 940 members of supporters' trust CCUIST as a "malignant force" last week in a letter to season ticket holders.

The club's press officer Phil Holmes sent out an email to just seven supporters this week inviting them to the meeting, which is described as a gathering for "all those supporters who have the long-term interests of Carlisle United at heart."

"The purpose of this meeting is to appoint a steering group committee, whose single aim and objective will be to move the club forward and protect its wider interests," the email continues.

However the local press have not been invited to record the goings-on at tonight's get-together. Reporters and photographers from Cumbrian Newspapers Ltd, which publishes both the Cumberland News and the News & Star, have been told they are "not welcome" at Brunton Park.

Last week the Cumberland News broke the news of the club's unpaid £416,000 tax bill and subsequent winding-up petition.

Since then ownership contenders John Courtenay and Brooks Mileson have agreed to work together to buy the club should it fall into the hands of liquidators as a result of next month's hearing.

Picture from News & Star

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