Sport RSS Feed


Judge blocks Cherries' attempted payment to tax man

CHAIRMAN: Eddie Mitchell CHAIRMAN: Eddie Mitchell

Cherries have mysteriously been thwarted in their attempts to make a payment to HM Revenue & Customs – the organisation which is threatening to have the club wound up.

The Dorset outfit was last week hoping to settle an outstanding bill to the tax man, only for the High Court in London to block the payment.

Cherries’ bank account has been frozen ever since HMRC was obligated to re-publish details of a winding-up petition in the London Gazette at the end of last month.

And as a consequence, club solicitors have been forced to approach the court with a validation application – a request to release funds – every time they wish to pay a bill.

However, even though HMRC is the club’s most pressing creditor, Cherries’ bid to satisfy its current VAT and PAYE liabilities was vetoed by the court.

It is understood the sum involved was around £150,000 and is due to be paid by the end of this week. Cherries chairman Eddie Mitchell insists the funds are available.

Mitchell told the Daily Echo last night: “We have spent £11,000 trying to unfreeze the bank account so we can pay certain parties, as and when their debts fall due.

“We have put certain companies in front of the judge which we want to pay, but, ironically, we were not given the go-ahead to pay HMRC, which seems strange.”

Asked whether the club had been given a reason, Mitchell replied: “No, not really. But we are going back to the court to try to arrange payment. Although they won’t let us pay, we have got the funds.

“This is causing us extra expense which could go towards clearing our debts. They are dictating who we can and can’t pay and, at this moment in time, we can’t pay the very organisation which is petitioning to have the club wound up.”

When contacted by the Daily Echo yesterday, a spokesperson for the Judicial Communications Office, said: “We can’t go into detail but a number of applications to pay debts were made. The judge went through the list and authorised those payments he felt were strictly necessary in the next few weeks.”

Mitchell and the current Cherries board has been trying to eat into the club’s inherited debt mountain ever since the Murry Group completed its takeover in June.

“We’re working tirelessly to get the club back on an even keel and to where we can pay people, as and when we have got the money,” added Mitchell. “We will get there and although this is causing us extra work and extra cash, we will get over these hurdles.”

Mitchell, who said the total indebtedness had reduced from just under £400,000 to £150,000 in the past five months, also confirmed all Football creditors had been satisfied after the club recently received a basic award payment from the Football League.

A basic award payment is made to every club in the Football League and is paid in several stages. Last season, the payment was £323,000.

Comments(38)

dc addict says...
7:25am Thu 22 Oct 09

I don't understand anymore. Having said that, my cat would display more logic and lucidity than a ###### judge.
Obviously, this gives mawhinney and his cronies another excuse to continue the embargo.
Eddie H. and Steve Lovell must be really ###### off. They probably thought that he would be signing up straight away.
What a country. Prisoners let out early then being paid expenses for the balance of their sentence and Steve is still being denied the right to work (and pay tax by the way).
Perhaps mawhinney is mates with this judge. No - can't be.

flyingleaper says...
7:33am Thu 22 Oct 09

he wears many hats!

nonnogeppetto says...
7:39am Thu 22 Oct 09

As Victor Meldrew would say 'Idon't belieeeeeeeeeve it'. I am gob smacked!!

3231brian says...
7:42am Thu 22 Oct 09

Pantomime season has started early!

Yorkie Cherry says...
8:04am Thu 22 Oct 09

It's not rocket science.

When EM was asked if he had been given a reason he said 'No, not really!'. In other words yes he has but he does not agree with it.

I applaud all his efforts so far but the Court has decided that the club must pay another outstanding debt before paying the HMRC. Is it the 'loan' from a past director?

Thanks Mr Mitchell for keeping the club going.

cherrychris31 says...
8:24am Thu 22 Oct 09

Yorkie Cherry wrote:
It's not rocket science. When EM was asked if he had been given a reason he said 'No, not really!'. In other words yes he has but he does not agree with it. I applaud all his efforts so far but the Court has decided that the club must pay another outstanding debt before paying the HMRC. Is it the 'loan' from a past director? Thanks Mr Mitchell for keeping the club going.
Although there are a few people who would jump up and put their normal negative comments on here, and i predict within the next half hour i will be proved correct. Thanks EM for keeping us informed. Thats all supporters ask for

Cantona4Cherries says...
8:32am Thu 22 Oct 09

Surely the HMRC debt is the debt that got the courts involved in the first place, so therefore it has to be the judge's top priority. No other debt has a winding up order hanging over it so how can another debt be more important and need paying first?? However, by not letting us pay the HMRC debt, this keeps the courts involved, and therefore the courts continue to make money from us every time we want to pay something off because the account is frozen !! Blood suckers the lot of them !!!

Square Old Codger says...
8:50am Thu 22 Oct 09

There has to be more in this than we are being told, Judges aren't irrational, Mr Mitchell will have been given the reason, which he may regard as confidential, the block on the Bank account will remain, until the petitioning creditors and costs are paid.

cherrychris31 says...
8:55am Thu 22 Oct 09

I too think there is more to it. I always thought you looked after the tax man first and the rest then follow.
However EM has come out and let us know the over view. If we have 150k to pay them I think thats a great effort. However if we have to eat into that to pay other people first then so be it. At least all can see an effort is being made.

Yorkie Cherry says...
9:00am Thu 22 Oct 09

Cantona4Cherries wrote:
Surely the HMRC debt is the debt that got the courts involved in the first place, so therefore it has to be the judge's top priority. No other debt has a winding up order hanging over it so how can another debt be more important and need paying first?? However, by not letting us pay the HMRC debt, this keeps the courts involved, and therefore the courts continue to make money from us every time we want to pay something off because the account is frozen !! Blood suckers the lot of them !!!
I thought the previous directors loan was tagged onto the HMRC winding-up petition as reported by OHEC.

Interestingly, Torquay are expecting around £400k from the FL as their share of the pool.

cherrychris31 says...
9:03am Thu 22 Oct 09

Yorkie Cherry wrote:
Cantona4Cherries wrote: Surely the HMRC debt is the debt that got the courts involved in the first place, so therefore it has to be the judge's top priority. No other debt has a winding up order hanging over it so how can another debt be more important and need paying first?? However, by not letting us pay the HMRC debt, this keeps the courts involved, and therefore the courts continue to make money from us every time we want to pay something off because the account is frozen !! Blood suckers the lot of them !!!
I thought the previous directors loan was tagged onto the HMRC winding-up petition as reported by OHEC. Interestingly, Torquay are expecting around £400k from the FL as their share of the pool.
The FL is like Fawlty Towers so they probably pay them extra to make it feel like home!!

Trebor_1970 says...
9:14am Thu 22 Oct 09

Sorry but it took me a while to get over the top of this pile of B******T in front of me.

Heres a solution to get us a level start next season. , coz we sure as hell arent going to get anything this season if the powers that be have anything to do with it.

1000 AFCB fans put a bet on Notts County to win the league this season. Dont know what odds they are but I would guess they should be 10/1ish. 1000 x £50 @10/1 = £500,000 and give this as a gift to the club just after NC lift the title.

I do have a question though. What happens if the courts uphold the winding up order in a few weeks (believe we had 6 weeks last time), where would we stand if EM states we had the money to clear the debt to the HMRC but were ORDERED not to pay it?????

northerncherry says...
9:16am Thu 22 Oct 09

I am a bit confused but as always we never hear every aspect of any story - no criticism implied but that is just the way it is.
Possibly the judge feels that we are trying to pay HMRC early - just to release the embargo - which I guess all of us want.
My understanding is that we have an arrangement with the HMRC to pay instalments over time - the winding up petition keeps tabs on that and so that payments are made. Asking to pay it early may leave other creditors without payment for longer. The judge may also, rightly or wrongly, not be certain of income projections provided to support the case. Some of that money may not be certain as yet eg home gate receipts. Either way he may feel that an early repayment is not in the best interests of the Club as a business - no good paying off HMRC early just to have someone else take us to Court - or jump on the existing petition whilst it is still in place.
EM may not understand why the Judge has not allowed payment. My brief professional encounters with them have often left me confused as well!
Things are going much better than a year ago - UTCIAD
Security word Poor-Hope - sums it up really.

whatliesbeneath says...
9:19am Thu 22 Oct 09

For those saying the £150k is a great effort it's nothing to do with the directors putting their hands in their pocket, the payment is from the football league, So far this takeover has been funded by season ticket sales, gate receipts and the begging bowl.

Ask Mitchell how much he's put in of his own money, but I see he's got his son training with us.

For those saying we wouldn't have a club without them, thats absolute tosh, if it wasn't for Mostyns loan/share issue hampering all forms of negotiation.

I would suggest any of you talk to Derek Timoney or Dave Musker, who will tell you all about who was interested in the club and how until the 24th hour they were the preffered bidder ahead of the Mostyn consortium, before Baker did a u-turn and sold to the Mostyn consortium. It was a deal that was far better for the future of AFCB and would not have seen the same old tired faces in charge of the club.

Noone should forget Mostyns loan that was supposed to be shares, because this has had a stanglehold on the club.

inthenet says...
9:46am Thu 22 Oct 09

Things are going better than i expexted at this point in the season we seem to be getting over the injurys joe and sammy expected back soon jeff getting back to match fitness and money to pay debts, still top of the league
6000 + on saturday please

briankrj says...
10:03am Thu 22 Oct 09

'Mitchell and the current Cherries board has been trying to eat into the club’s inherited debt mountain ever since the Murry Group completed its takeover in June.'

Fair enough to keep wheeling this old chestnut out, but who was there on the board before? Murry and Mostyn wasn't it? and they are still there!

I want this sorted out too and want these guys to succeed, but stop making comments that take the fans for idiots.

tricky1007 says...
10:03am Thu 22 Oct 09

whatliesbeneath wrote:
For those saying the £150k is a great effort it's nothing to do with the directors putting their hands in their pocket, the payment is from the football league, So far this takeover has been funded by season ticket sales, gate receipts and the begging bowl. Ask Mitchell how much he's put in of his own money, but I see he's got his son training with us. For those saying we wouldn't have a club without them, thats absolute tosh, if it wasn't for Mostyns loan/share issue hampering all forms of negotiation. I would suggest any of you talk to Derek Timoney or Dave Musker, who will tell you all about who was interested in the club and how until the 24th hour they were the preffered bidder ahead of the Mostyn consortium, before Baker did a u-turn and sold to the Mostyn consortium. It was a deal that was far better for the future of AFCB and would not have seen the same old tired faces in charge of the club. Noone should forget Mostyns loan that was supposed to be shares, because this has had a stanglehold on the club.
had to happen!!! well done to the posts on here that think the board are doing well. why have a board that puts their own money in. i prefer one that gets the club running properly and on its own 2 feet. or as we have seen happen so many times, people come into the club, put a bit in, dont sort out the financial side propeerly, leave, and then the club heads back to where it was!!
we are paying off our debts. top of the league, and seem to be stable off the field. whats wrong with that?
keep up the good work on and off the field guys. true supporters are behind the whole of the club 100%

UP THE MIGHTY CHERRIES!!!

Square Old Codger says...
10:06am Thu 22 Oct 09

Cantona4Cherries wrote:
Surely the HMRC debt is the debt that got the courts involved in the first place, so therefore it has to be the judge's top priority. No other debt has a winding up order hanging over it so how can another debt be more important and need paying first?? However, by not letting us pay the HMRC debt, this keeps the courts involved, and therefore the courts continue to make money from us every time we want to pay something off because the account is frozen !! Blood suckers the lot of them !!!
There are two Creditors involved and of course whilst it remains before the Court any other Creditor can join in. The one thing that worries me is that the Judge may feel that this has dragged on too long and not be inclined to grant another extension if the debts aren't paid with in the next four weeks or so.But, Mr Mitchell will have been given the reason .

Cantona4Cherries says...
10:47am Thu 22 Oct 09

Square Old Codger wrote:
Cantona4Cherries wrote: Surely the HMRC debt is the debt that got the courts involved in the first place, so therefore it has to be the judge's top priority. No other debt has a winding up order hanging over it so how can another debt be more important and need paying first?? However, by not letting us pay the HMRC debt, this keeps the courts involved, and therefore the courts continue to make money from us every time we want to pay something off because the account is frozen !! Blood suckers the lot of them !!!
There are two Creditors involved and of course whilst it remains before the Court any other Creditor can join in. The one thing that worries me is that the Judge may feel that this has dragged on too long and not be inclined to grant another extension if the debts aren't paid with in the next four weeks or so.But, Mr Mitchell will have been given the reason .
The 2nd creditor on the petition is Mr Piper and he was only owed £13k as stated in the ST holders meeting recently, so I'm sure he's being paid off as part of this proposal. Also as stated in the article EM confirms that all football creditors have now been paid off !!

kenneth ormerod says...
10:48am Thu 22 Oct 09

This article is very misleading ;
Firstly did Mitchell contact the Echo to tell us all or did someone spill the beans ?
Secondly is the sum of £150k that they wanted to pay HMRC for the CURRENT debt to them. ie: Sept/Oct PAYE / VAT and not the old debt due under the winding up petition next month and not due until then.Also the journalist is guessing the amount.

The Judge is only doing his job and protecting our club from people living beyond their means . Remember Baker and Savi. It is dead easy to blame others but they are acting in the real world.
Stop trying to pass the buck Mitchell and put some of your money into our club or move on. Eddie Howe is doing a great job but you and the other losers are out of your depth. You knew about all our debts so cough up.

dorsetranger says...
11:29am Thu 22 Oct 09

kenneth ormerod wrote:
This article is very misleading ; Firstly did Mitchell contact the Echo to tell us all or did someone spill the beans ? Secondly is the sum of £150k that they wanted to pay HMRC for the CURRENT debt to them. ie: Sept/Oct PAYE / VAT and not the old debt due under the winding up petition next month and not due until then.Also the journalist is guessing the amount. The Judge is only doing his job and protecting our club from people living beyond their means . Remember Baker and Savi. It is dead easy to blame others but they are acting in the real world. Stop trying to pass the buck Mitchell and put some of your money into our club or move on. Eddie Howe is doing a great job but you and the other losers are out of your depth. You knew about all our debts so cough up.
Correct the article is misleading as we dont know what part is being paid to HMRC. Yes the report does guess the amount as he states.
Again we need to know all the facts before we post negative or postive comments againist the board people including you ken are to quick to jump on either side of the bank wagon

djd says...
12:51pm Thu 22 Oct 09

Without knowing all the facts we cannot criticise (although there will be some on here who will)
The Board seem to be doing what they promised and the team and back room staff are certainly doing all they can.
Support the team and let the Board sort out the debts.

kenneth ormerod says...
2:00pm Thu 22 Oct 09

Sorry dorsetranger but comments puzzle me ? I am asking for the full facts which Mitchell or the Echo does not give. No fault of the Echo as they can only guess but surely Mitchell knows the full facts ? I certainly support the football team but not the team running the club who it appears have no money and want us the fans to rescue them whilst they have their prawn sandwiches. The board are certainly doing what they promised djd , no money , so how can we let them sort out the debts. From where i am sitting the Judge seems to be doing that. Lets not fall for the Mostyn / Savi spin again , Mitchell is only telling us part of the sad story.

ferndownmark says...
2:12pm Thu 22 Oct 09

could be a good film this we could call it the HIGH COURT JUDGE AND THE LORD!!!!!!!!!

bowler28bowler28 says...
2:40pm Thu 22 Oct 09

kenneth ormerod wrote:
Sorry dorsetranger but comments puzzle me ? I am asking for the full facts which Mitchell or the Echo does not give. No fault of the Echo as they can only guess but surely Mitchell knows the full facts ? I certainly support the football team but not the team running the club who it appears have no money and want us the fans to rescue them whilst they have their prawn sandwiches. The board are certainly doing what they promised djd , no money , so how can we let them sort out the debts. From where i am sitting the Judge seems to be doing that. Lets not fall for the Mostyn / Savi spin again , Mitchell is only telling us part of the sad story.
Ken as is the norm you have your facts wrong the only money that the board is putting into the club is in fact their purchase of match tickets and food (prawn sandwiches if you like) at the ground. So as usual you are wrong, wrong, wrong. I havent bothered to respond to your twaddle for a month as you get so boring. Why dont you just spend your time chatting with your muppet mates Derick and Dave planning lots and doing nothing and that goes for whatliesbenieth as well. Get a life

devon exile says...
3:15pm Thu 22 Oct 09

having read this story the first thing I did was to check the date, having made sure it was not April 1st,it must now be taken seriously, after 60 years or more accepting the many highs and lows supporting AFCB there cannot be too many surprises left to come our way, what a soap opera this club would have made for television, lets hope that someone would come too their senses in order that as a club we can move forward without having to take 2 paces backward each time we make an effort

Square Old Codger says...
3:27pm Thu 22 Oct 09

kenneth ormerod wrote:
This article is very misleading ; Firstly did Mitchell contact the Echo to tell us all or did someone spill the beans ? Secondly is the sum of £150k that they wanted to pay HMRC for the CURRENT debt to them. ie: Sept/Oct PAYE / VAT and not the old debt due under the winding up petition next month and not due until then.Also the journalist is guessing the amount. The Judge is only doing his job and protecting our club from people living beyond their means . Remember Baker and Savi. It is dead easy to blame others but they are acting in the real world. Stop trying to pass the buck Mitchell and put some of your money into our club or move on. Eddie Howe is doing a great job but you and the other losers are out of your depth. You knew about all our debts so cough up.
The article says CURRENT PAYE and Tax - not the arrears,

Square Old Codger says...
3:27pm Thu 22 Oct 09

kenneth ormerod wrote:
This article is very misleading ; Firstly did Mitchell contact the Echo to tell us all or did someone spill the beans ? Secondly is the sum of £150k that they wanted to pay HMRC for the CURRENT debt to them. ie: Sept/Oct PAYE / VAT and not the old debt due under the winding up petition next month and not due until then.Also the journalist is guessing the amount. The Judge is only doing his job and protecting our club from people living beyond their means . Remember Baker and Savi. It is dead easy to blame others but they are acting in the real world. Stop trying to pass the buck Mitchell and put some of your money into our club or move on. Eddie Howe is doing a great job but you and the other losers are out of your depth. You knew about all our debts so cough up.
The article says CURRENT PAYE and Tax - not the arrears,

Square Old Codger says...
3:27pm Thu 22 Oct 09

kenneth ormerod wrote:
This article is very misleading ; Firstly did Mitchell contact the Echo to tell us all or did someone spill the beans ? Secondly is the sum of £150k that they wanted to pay HMRC for the CURRENT debt to them. ie: Sept/Oct PAYE / VAT and not the old debt due under the winding up petition next month and not due until then.Also the journalist is guessing the amount. The Judge is only doing his job and protecting our club from people living beyond their means . Remember Baker and Savi. It is dead easy to blame others but they are acting in the real world. Stop trying to pass the buck Mitchell and put some of your money into our club or move on. Eddie Howe is doing a great job but you and the other losers are out of your depth. You knew about all our debts so cough up.
The article says CURRENT PAYE and Tax - not the arrears,

mossy 1 says...
3:51pm Thu 22 Oct 09

To go off subject but something which some may not know about is that Ashley Rd will be closed to traffic until Fri 18 Dec.The bridge over the railway line is being replaced.Also most roads around this area are closed except for access,therefore there will be large snarl-ups and long delays.May I suggest that people allow plenty of extra time to get to the ground.

sea poole says...
6:07pm Thu 22 Oct 09

Mossy 1, Well done -a good traffic report. I hear that you're en route to the ground at this moment! Now that's what I call a true fan!
See you on Saturday...I'm coming from Poole, so no Ashley Rd. Ooops, forgot roadworks on dual carriageway just past Frizzells.
Setting off in an hour!

Dave11 says...
7:24pm Thu 22 Oct 09

One of the funniest things about these messages is the stupid people who keep saying: 'At least he's communicating with the fans.' It's laughable, what exactly has he said? What has he said about the embrago? Everytime people claim he's communicating he's actually saying: 'I don't know,' he seems to know nothing, which obviously he does, so claims of communication are a joke.

People do realise why his company is called Seven Developments right?

kenneth ormerod says...
8:19pm Thu 22 Oct 09

Spot on Dave11 . As for the prawn sandwiches i am talking about away games. They, Sly/ Mostyn attend most of those and unlike myself and fellow fans they get the best seats a meal and free drinks. I fear administration because Mitchells spin does not add up.

fieldymex says...
8:24pm Thu 22 Oct 09

I am confused like many of the above. Please can either the Echo explain what they are on about comprehensively or Mitchell needs to explain more. at the end of the day he has told us nothing. What about the break down of the debt. What do we owe to whom? How much have we paid off recently, can these creditors confirm that we have paid off what has been said? Can someone confirm at the club whilst providing evidence that we have the funds available to pay certain creditors. I still fail to understand how we can be solvent all of a sudden, yet as far as i know the club shop is still empty, season tickets wre sold off at half price last january etc. Where is the money coming from to pay off 400 000 of debt that murry mentioned at the seaon ticket holders meeting? How did we do that? Are we not paying current taxes?? When I see evidence of these things rather than talk of '“We’re working tirelessly to get the club back on an even keel" I might believe them. Effectively not a lot has changed this season from last except we are in more debt this season than the beginning of last. If we ended up with huge debt at the end of last season i fail to see how and where the differences lie this season and how it can be so different according to the directors. I´m sure doing the catering in house can´t have made that much difference and is that actually true, as last season sport 6 said exactly the same! The articel makes me ask more questions than it gives us answers

Dave11 says...
8:46pm Thu 22 Oct 09

The directors freely admit they've put no 'new' money in. The season ticket money is long gone, either because Savi spent it LAST year or it kept the club going at the start of this season. Gates are lower than the published break even figure and any extra money such as FL payments are earmarked for EXISTING debts, so talk of big lumps of debt being paid off is either misleading or simply untrue.

People should have been suspicious when Mitchell called on his OWN fans to stop pressuring the League over the embargo despite claiming how unfair it is. Now he wants us to believe he doesn't know why a judge would refuse to accept a legit payment to a creditor. Something doesn't add up.

Julian1964 says...
10:50pm Thu 22 Oct 09

Dave11 wrote:
One of the funniest things about these messages is the stupid people who keep saying: 'At least he's communicating with the fans.' It's laughable, what exactly has he said? What has he said about the embrago? Everytime people claim he's communicating he's actually saying: 'I don't know,' he seems to know nothing, which obviously he does, so claims of communication are a joke.

People do realise why his company is called Seven Developments right?
Long at last someone i fully agree with.Please!Please!P
lease get rid of that idiot Eddie Mitchell.Dont trust the guy one bit.You are being taken for a ride...The debts should have been paid off by now,no excuses and the reason the club is going is because Eddie Howe and his team are doing the work and trying to get the crowds pass the gates...And no i would not have a problem telling him to his face because i am sick of all the crab coming from his mouth..The judge is not blind,good for him,he wanted to pay this off early to get the embargo lifted end of!!!!!!!!!!!

All Seeing Eye says...
1:09am Fri 23 Oct 09


Now is the time to square the circle!!!

Tell the truth you directors at AFCB - do not bamboozle the dedicated fans -

Mostyn and Sly come to the altar of the inner temple and swear to the truth.

AFCB supporters demand a meeting with ALL the Directors, write your questions, do not show them but confront the directors with them. If the Echo has any respect they will then report the answers and discussion in full.
Why has the FL come down so heavy – ask Mostyn, Sly and Mitchell face to face? Murry is insignificant.

The security word is "land-shot" and with Mitchell, Strucadene and Swann in the background that really could be called a coincidence!!

fieldymex says...
2:06am Fri 23 Oct 09

after re reading the article i think it must be the case as some have mentioned above that we are trying to pay this months bill, yet we have an agreement with HMRC to pay the debt first. Thus we cannot afford to pay the current bills, meaning we need more cash and are running up more debt in order to pay off old debt. The whole truth and nothing but the truth would be a nice change Mr Mitchell. Stop feeding the echo scraps for us to interpret and come out and be completely honest with your supporters. We deserve nothing less. I believe you have said similar yourself.

click2find

Most popular


About cookies

We want you to enjoy your visit to our website. That's why we use cookies to enhance your experience. By staying on our website you agree to our use of cookies. Find out more about the cookies we use.

I agree