PANNU UPDATES FANS BY RATERS

Following direct supporter feedback to the football club recently, acting chairman Peter Pannu has looked to address any concerns with the below update.

Audit Issues

I understand many fans have raised queries on the accounts and I wish I was in a position to discuss these fully but unfortunately for legal reasons I am not able to go into minute details. However I will address this matter in a broad brush fashion.

I have recently returned from Hong Kong where I looked into the repeated delay in the publications of the BCFC accounts when I knew they had been prepared by the club for the group quite some time back (in September 2011). I can confirm that since becoming a director at BCFC on July 2011 I had raised queries with our auditors and the group board on various matters which were unsatisfactorily answered.

The queries related to the Xtep deal, the accounting treatment and details of an unannounced "counter sponsorship" arrangement between BIHL and the sponsor as personally handled by Mr Vico Hui and Miss Pauline Wong. Further points were raised regarding the selling of merchandise in China at the sponsor's stores with modified BCFC logos.

Unfortunately I can't go into further details at this moment in time due to legal reasons, however, I hope that full details will become clear in the future.

A BCFC board meeting was also called by me on 22 June 2012 which Mr Hui failed to attend to answer all queries raised.

Finances

The year end accounts to June 2011 showed a loss of £12million. We are currently preparing the accounts for the year end June 2012 and we shall be revealing substantial profits for that period. All money generated at the club remains with us to set off earlier losses. Debts owed to Carson Yeung and BIHL still stand at the original figure.
Credit will go to all my staff for working hard to achieve this result under very trying circumstances.

I have met with some of the BIHL board members and given them an update of the financial situation we face. I have also had to deal with certain internal matters within the group. I have spent considerable time seeking directions and impressing upon the BIHL board the need to raise further finances once the parent company's shares are re-listed.

My remit now is to maintain the club on a self sustainable basis which we have been doing since relegation in May 2011.

There was talk in the media about administration for the whole of last season but we will be reporting profits. In the mean time, suitable buyers will be sought and we shall address the issues that need to be resolved in Hong Kong when more funds are made available to us.

Nevertheless, and honestly speaking, media doom and gloom is scaring away all potential investors initially identified in the process.

I am informed that BDO HK (BIHL's auditors) are working hard to conclude the parent company's accounts following the publication of the BCFC accounts. As I am not on the BIHL board I can't provide any further details.

It is now understood that there will be some restructuring of the board in Hong Kong as a result of internal reviews and due to the matters I have raised.

Board Changes

It is understood that Vico Hui has resigned from the BIHL board and his resignation has been accepted. This will take effect from the July 1 2012. It is unclear if he will also resign from the BCFC and BC PLC boards but further changes may occur and in which case will no doubt be communicated as appropriate.

Potential buyers

Prospective buyers are continuing to maintain a close rapport with the club but there is so far no meaningful deal in place for the board's consideration. One thing I can say is that any new buyer will be following closely the support fans give to the club and the current owners. I am sure they will understand the passion of our supporters but I hope that there is no adverse impact on the endeavours to seek a suitable buyer.

Player sales

The board shall endeavour to ensure that the club survives and proceeds as a going concern. While attempts will be made to generate further revenue to ensure the club's financial survival, the competitiveness of the squad will be maintained where possible.

Jordon Mutch's deep desire to move to Cardiff and be reunited with Malky Mackay was granted and at the same time the deal was deemed a very good one for the club with a substantial up-front payment and a heavy sell-on clause.

I'd like to make it clear that Jack Butland and Nathan Redmond are not for sale unless we are subject to an eye-popping offer. While the decision to sell Mutch was not taken lightly, it was felt replacements could be sought for the midfielder but our intention is to keep hold of other talented gems we have.

Our supporters should be reassured that the club will not accept any derisory financial offers for any of our key players, as has been suggested, but equally we are required to make sound and balanced financial decisions which we accept are not always going to be popular. After all, this is a business.

I am sure no one wants the club to go into administration, particularly when my remit is for the club to be self sufficient.

New Manager

It is hoped that a new manager will be installed very shortly and he will be given all the available support to build the squad by bringing in necessary replacements to continue to play entertaining and competitive football.

Please get behind him and show him your full support. During the recruitment process, I studied supporter opinion to the potential candidates and the chosen one will be received well by the majority.

Transfer embargo

We have presented all the facts and projected financial results for the 2011/12 season to the Football League and are awaiting news on the lifting of the transfer embargo. In any event, the embargo does not cripple the club's activities but just requires the club to seek approvals in our transfer activities.

Season tickets

This is one area where I cannot force any of you to come and part with your money. I suppose all of you are making similar careful financial considerations. Despite all the predicaments I have mentioned above and the lack of financial support from the Far East and any financial institutions, we have been operating as a self sufficient club for some time and despite these challenging times have enjoyed an exciting season of football.

While the club has naturally had to take measures to reduce its costs, no attempt has been made to pass on the financial pressure to any of our supporters which I hope has been shown by the price freeze on season tickets. I am alive to the concerns of our supporters and hope this has displayed that we do not take the magnificent support you have shown for granted.

I can only hope that you will work with us through this period and continue to support the club, your new manager and your team.

I will try my best to maintain a competitive team and to instil a very enthusiastic manager. I am confident that things will improve and we will continue to soldier on together.

RoyalBlueGardner wrote:Just been reading this load of shite, trying to cover over the crisis were in with fancy talk....people need to boycott season tickets in order for them to collapse. Self sufficient club my hairy arsehole. :ass

bluenoseghag wrote:If true, this can only be good news. The only problem is many of Pannu's past statements haven't exactly been true word for word. What happened to "there will be no fire sale" last summer?

hootie63 wrote:People will moan if nothing is said then moan when something is, but i welcome this at least it seems to me that we are going to be sold/looking for a buyer so its not all bad news and as for the club being self sufficient that is something i have been saying for a while now it has been obvious since CY's arrest that the main point was to get the club running on its own so keeping Administration at bay which it seems the club have been able to achieve, Ok we wont see money/very little being spent on the playing side and will have to wheel n deal but even that is better than what it could of been personally i think the staff at the club deserve a BIG :thumb