MORTON’S finance boss says the club still has a funding gap of around £320,000 and may have to start using money from it’s Fighting Fund appeal from December.
Finance director Kenneth Weldin issued a lengthy update saying the position remained ‘serious’ and that administration could not be ruled out. Non-payment by Morton’s primary sponsor created an initial funding gap of approximately £335,000.
Mr Weldin said: “The estimated funding gap has reduced but remains significant. This comes at a time when gate and hospitality revenues have also remained below original expectations. The current assessment is that approximately £320,000 of additional funding remains required to provide an orderly path through the remainder of the season.
“Supporters, sponsors, businesses and fundraising initiatives have provided valuable additional support and bought the club time. Based on current forecasts, the club expects to fund operations from existing resources through early to mid-December. At that point, all other things being equal, the club will consider drawing on the Fighting Fund. Even if utilised, however, additional funding would still be required.”
He continued: “The club board continues to assess a range of commercial, sponsorship, funding and investment opportunities together with cost savings and options around the club’s Dunlop Street flat. The club remains actively engaged with its creditors and suppliers, many of whom have shown considerable patience, understanding and support during a difficult period.
“The position nevertheless remains serious. Additional funding remains necessary, difficult decisions may still be required and considerable work remains to be done. The Fighting Fund provides additional runway and preserves options, but it is intended as a temporary liquidity facility rather than a permanent funding solution.
“Without additional funding by the end of the calendar year, some form of financial realignment will ultimately be required. I cannot give supporters a commitment that administration will not occur. Equally, it is not an inevitable or predetermined outcome.”
Mr Weldin added that, although a football decision, the change in first-team management was expected to reduce the club’s operating costs over the remainder of the season compared with the budget previously in place.
