Mitchell: Tax man taking tough stance on club (From Bournemouth Echo)
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Mitchell: Tax man taking tough stance on club
7:00am Thursday 18th March 2010 in
CHAIRMAN Eddie Mitchell is confident Cherries will avert the threat of closure – even though he claims the tax man is giving the club no room to manoeuvre.
Cherries were last month served with a winding-up petition by HM Revenue & Customs for arrears of £314,000 with the case due to be heard on March 31.
And with details of the High Court action due to be published in today’s London Gazette, the club’s bank account will automatically be frozen as a result.
Although Mitchell tried to reach a compromise with the taxman earlier this week, his attempts were in vain, leaving the club’s destiny in the hands of the judge.
Speaking to the Daily Echo last night, Mitchell said: “I tried to convince them to put it back and gave them proposals to bring the tax considerably below the figure they are petitioning for, but they weren’t having any of it. Our accountants are trying to negotiate a payment plan and we should know about that tomorrow.
“They are taking a tough line. We produced figures to show how the debt has reduced since we have been here and how sensible it would be to give us time to clear the rest, but the tax man is familiar with the club’s circumstances of old and feels it is not good to give us time.
“I sympathised with them when we first took over because there was a considerable sum owing and it was just ignored. But if they looked at the effort we have made, they would see we have been addressing it. I am annoyed.”
Mitchell said the club had recently sent the tax man more than £100,000 and had a similar sum earmarked to go out of their bank account on Friday. It is unclear, however, whether the funds would reduce the petition figure or service monthly payments.
“If the publication of the petition appears tomorrow, we can’t send them the money because our bank account will be frozen,” said Mitchell. “The revenue is starting to come in, we have got lots of other initiatives in the pipelines and could soon have them out of our hair.
“It’s crazy because if the bank account is frozen then we have to go to a judge to ask him to release the funds to the tax man. That costs the best part of £10,000 and that money would be better going towards the arrears. It is so short sighted. I just can’t see the sense in it and it is cutting off your nose to spite your face.
“The long and short of it though is that we will be okay and I don’t anticipate any problems.
“I’m sure the judge will give us the extra time we need, I just wish the tax man would. We are not asking for years or months, only weeks.”
Comments(56)
canopy_man
says...
7:34am Thu 18 Mar 10
TowerRed
says...
7:37am Thu 18 Mar 10
You then have the laughable figures coming out of Dean Court. EM initially claimed the tax debt left by Sport 6 was "over £600k". He then releases figures days later to say it was actually £509k.
We paid £400k to clear the previous hearing so that leaves £109k. That means in his short tenure EM has run up a new tax bill of over £200k. That according to EMs own figures is how he is addressing it. He then claims to have made a £52k profit during his short tenure!!!!
At the recent fans forum EM said the rent debt was £135k, in his released figures it was £199k
EM I'd get new accountants if I was you.
No wonder the tax man is taking a hardline. At the court hearing I would expect to hear the words trading insolvently used.
On the £10,000 being charged for the bank account being frozen if EM is so confident that "revenue is starting to come in" why doesn't he and his fellow directors loan the club the money and get it back when the"revenue starts to come in." Or is that just more hogwash?? Why cost the club another unnecessary £10,000?? An easy solution and one used in companies up and down the country to solve short term cash flow problems.
As for the money coming in we have one more home game this month and a FL payment due in April. This has been earmarked for the delayed Feb CVA payment or are we bumping that due to the bank account being frozen??
afcblee
says...
7:42am Thu 18 Mar 10
nonnogeppetto
says...
7:56am Thu 18 Mar 10
Square Old Codger
says...
8:05am Thu 18 Mar 10
KENETHOMEROD
says...
8:12am Thu 18 Mar 10
cherrychris75
says...
8:19am Thu 18 Mar 10
Thank god for Eddie, Jason and the boys. Otherwise being a cherries supporter would be pretty miserable.
northstandregular
says...
8:27am Thu 18 Mar 10
AFCB1223
says...
9:14am Thu 18 Mar 10
All Seeing Eye
says...
9:57am Thu 18 Mar 10
Did I read that Keddie Developments went bust?
Did I read that Canford Heath Self-build had a lot of problems?
Did I read that a Mr Mitchell was involved?
Perhaps that's why HMRC are so cautious or just maybe I misread the comments .
Remember the Inland Revenue look after OUR money, it may be called a tax but it is OUR money so if someone does not pay their dues we have to pay more.
Frank2010
says...
10:25am Thu 18 Mar 10
Responding to All Seeing Eye, it is true that Keddie Developments went bankrupt. It is true that Mr Mitchell has been personally bankrupt and it is true that Yellow Three Developments went bankrupt which he was involved with.
He has obviously caught HMRC for a lot of money in the past and they don't trust him. Who can blame them?
devon exile
says...
10:37am Thu 18 Mar 10
Brock_and_Roll
says...
10:43am Thu 18 Mar 10
As the season ticket money has been spent and the football league payment hocked up, the money coming in that he refers to basically must relate to player sales - everything else such as raffles, quiz nights etc is commendable but is just pis*ing in the wind.
Unfortunately I have nasty feeling that finances in football are in such as state that we might get a nasty shock with regard to what we are actually offered for players that we offload - a glance at the last transfer window is good evidence of this.
bollybear
says...
11:26am Thu 18 Mar 10
I agree with Brock,that players will have to be sold to help us through the summer.Although Brett is worth more,I would be surprised if we get more than £200k- hope I am wrong.
swanage cowboy
says...
11:58am Thu 18 Mar 10
Yorkie Cherry
says...
12:26pm Thu 18 Mar 10
This potential promotion season could be a lost cause as I can see the club going the same way as Chester City. Chester's debt was less than AFCB's.
nonnogeppetto
says...
1:33pm Thu 18 Mar 10
nonnogeppetto
says...
1:35pm Thu 18 Mar 10
B.F.G
says...
1:39pm Thu 18 Mar 10
Not one of you actually know anything more than a small handful of facts, the rest is sheer conjecture.
I cannot understand why somebody like EM would waste his money, time and effort on a club that, based on the comments here, do not appreciate what an incredibly thankless task it is being a football club chairman.
I really hope EM manages to turn the clubs financial problems around, and if he does it won't be thanks to the small minded, anonymous snipers on here.
dc addict
says...
2:00pm Thu 18 Mar 10
Without INVESTMENT the next step will be to sell off the family silver (players) for two fifths of #### all.
We will then bring in a mixture of undercooked youth players and less able non leaguers, leading to a struggle to stay in the league.
Eddie and Jason will not stand for this too much longer. We need INVESTMENT and if EM and the others cannot or will not invest then they should make way for someone who will, like Ian Matheson for example.
mossy 1
says...
2:50pm Thu 18 Mar 10
High Treason
says...
2:58pm Thu 18 Mar 10
northstandregular
says...
3:23pm Thu 18 Mar 10
B.F.G wrote:Which bit is conjecture?
As usual it's the same bunch of misinformed individuals spouting the same old garbage.
Not one of you actually know anything more than a small handful of facts, the rest is sheer conjecture.
I cannot understand why somebody like EM would waste his money, time and effort on a club that, based on the comments here, do not appreciate what an incredibly thankless task it is being a football club chairman.
I really hope EM manages to turn the clubs financial problems around, and if he does it won't be thanks to the small minded, anonymous snipers on here.
All Seeing Eye
says...
3:29pm Thu 18 Mar 10
High Treason wrote:As I have been 'harping' on for a while. Mitchell is a developer and builder. Mostyn the owner of an Insurance Company which Brokers for the armed forces.
And so the tax man should take a tough stance. Almost everyone else gets their tax stopped before they get paid. Why should a football club dodge its responsibilities? If we all could avoid paying tax the country would grind to a halt. Pay up and stop whinging.
Mitchell as we have read is quite familiar with bankruptcy. ‘If’ AFCB Ltd was declared insolvent and went into liquidation Seven Developments and Structadene would be in a very good position to purchase Dean Court NOT for football but for development. Before anyone says ‘covenants’ I must advise them they have been rescinded, (Check with the Borough Council)
Now for Mostyn who may have very unwisely got Mitchell and Murry involved with AFCB. Mostyn was very close to Baker (Sport-6) and was officially called an ‘advisor’ to him. Was it Mostyn who told Baker not to accept a bid by an unnamed party, but to sell the club to Mitchell? Did Mostyn do this as he thought he was more likely to get his ‘loans’ back with Mitchell? Well it looks like he has been caught good and proper, but as an Insurance Broker by profession I am sure he has even more contingences.
Can anyone blame HMRC for coming down hard? When you have someone who is connected and been involved in bankruptcies and is CEO of a company owing taxes etc and has cost the revenue dear in the past , would you not fight for what is rightfully yours and in this case ours.
Mitchell is now employing his own family though the books of AFCB and uses the premises at Dean Court to run his business. He is not prepared to put any money in, but for sure he is taking money out. Has he always dealt this way?
B.F.G
says...
3:57pm Thu 18 Mar 10
All Seeing Eye wrote:ASE, you, as usual, spout the biggest amount of half truths and pub gossip.
High Treason wrote:As I have been 'harping' on for a while. Mitchell is a developer and builder. Mostyn the owner of an Insurance Company which Brokers for the armed forces.
And so the tax man should take a tough stance. Almost everyone else gets their tax stopped before they get paid. Why should a football club dodge its responsibilities? If we all could avoid paying tax the country would grind to a halt. Pay up and stop whinging.
Mitchell as we have read is quite familiar with bankruptcy. ‘If’ AFCB Ltd was declared insolvent and went into liquidation Seven Developments and Structadene would be in a very good position to purchase Dean Court NOT for football but for development. Before anyone says ‘covenants’ I must advise them they have been rescinded, (Check with the Borough Council)
Now for Mostyn who may have very unwisely got Mitchell and Murry involved with AFCB. Mostyn was very close to Baker (Sport-6) and was officially called an ‘advisor’ to him. Was it Mostyn who told Baker not to accept a bid by an unnamed party, but to sell the club to Mitchell? Did Mostyn do this as he thought he was more likely to get his ‘loans’ back with Mitchell? Well it looks like he has been caught good and proper, but as an Insurance Broker by profession I am sure he has even more contingences.
Can anyone blame HMRC for coming down hard? When you have someone who is connected and been involved in bankruptcies and is CEO of a company owing taxes etc and has cost the revenue dear in the past , would you not fight for what is rightfully yours and in this case ours.
Mitchell is now employing his own family though the books of AFCB and uses the premises at Dean Court to run his business. He is not prepared to put any money in, but for sure he is taking money out. Has he always dealt this way?
You'd like to think you are privvy to certain information, but you are not, you really are nothing more than a yocal gossip and as usual are so far off the mark that any credibility you think you may have has long since vanished.
Nasty, spiteful and vindictive are just three words that I would use to describe you.
devon exile
says...
4:00pm Thu 18 Mar 10
B.F.G wrote:apart from the obvious 2 or 3 posters no one is sniping, most people are guenuinley concerned about the future of the club, we are only drip fed information and the figures change each time, what ever the truth is it cannot escape the fact that the board is gambling with supporters money and the future of the club, this is not right
As usual it's the same bunch of misinformed individuals spouting the same old garbage. Not one of you actually know anything more than a small handful of facts, the rest is sheer conjecture. I cannot understand why somebody like EM would waste his money, time and effort on a club that, based on the comments here, do not appreciate what an incredibly thankless task it is being a football club chairman. I really hope EM manages to turn the clubs financial problems around, and if he does it won't be thanks to the small minded, anonymous snipers on here.
Bournemouth person
says...
4:05pm Thu 18 Mar 10
hoppy
says...
4:12pm Thu 18 Mar 10
As I have said before he is only interested in his own ends & will always put his interests before yours.
He is like that other famous Poole face Mr.Carr,seems to get away with anything & will always come up smelling of roses no matter how many people lose out because of their actions,this is nowhere near over yet.
Do not forget he is foremost a property developer & knew exactly what he was getting in to & if he was really serious he would put the money up & get it back when things get better.
I have no axe to grind personally with him but do know a lot about his past business failures & quite a few people who lost out because of his actions many of whom never recovered.
Best of luck to the team who really deserve better treatment than this & to the diehard fans.
B.F.G
says...
5:29pm Thu 18 Mar 10
alasdair1967
says...
6:02pm Thu 18 Mar 10
Mr mitchells company "7 developments" his seventh company what happened to his previous 6?????
getting tired of his spin if you have any love for this club mr mitchell time to put your hand in your pockets im sure a couple of sales of your super mansions would help
John Peek
says...
6:04pm Thu 18 Mar 10
I bought 2 season tickets on the assurance from EM that if sufficient numbers did the same there was a good chance the embargo would be lifted. In view of the parlous state of the club as now revealed I feel I was deceived, and many others must feel the same.
When is honesty going to return??
alasdair1967
says...
6:16pm Thu 18 Mar 10
how many more out of you have worthless cherry share certificates gathering dust like mine another hairbrained money making scheme that failed
its about time the men at the top put there hands in there pockets they are the ones who have taken this club on 849K not much for one with such a huge property portfolio
Frank2010
says...
6:29pm Thu 18 Mar 10
property/propertyadv
ice/propertymarket/3
337487/Shes-gotta-ha
ve-it.html
Now Hazel Kite is Mr Mitchells ex-wife and Jo Timberlake is Mr Mitchells step daughter married to Neill Blake.
Now I have checked with land registry and neither of them own the homes and never did. Mr Mitchells Company owned them.
There is no mention of his bankrupt companies and all the creditors and how he went bust.
If Mr Mitchell can lie blatantly in the Daily Telegraph imagine what lies he is spinning to the Echo and supporters.
Julian1967
says...
6:39pm Thu 18 Mar 10
B.F.G wrote:Dont tell me,you know him lol,,lol.The blind leads the blind and more cr*b coming out.
As usual it's the same bunch of misinformed individuals spouting the same old garbage.
Not one of you actually know anything more than a small handful of facts, the rest is sheer conjecture.
I cannot understand why somebody like EM would waste his money, time and effort on a club that, based on the comments here, do not appreciate what an incredibly thankless task it is being a football club chairman.
I really hope EM manages to turn the clubs financial problems around, and if he does it won't be thanks to the small minded, anonymous snipers on here.
Buttler
says...
7:08pm Thu 18 Mar 10
OH AND REGARDS HIS SON AND SON-IN-LAW, DONT BOTHER COMMENTING ON THE ABOVE EH, GOOD LADS..!!!...
molbol
says...
7:13pm Thu 18 Mar 10
Julian1967 wrote:You've got a year younger?
B.F.G wrote:Dont tell me,you know him lol,,lol.The blind leads the blind and more cr*b coming out.
As usual it's the same bunch of misinformed individuals spouting the same old garbage.
Not one of you actually know anything more than a small handful of facts, the rest is sheer conjecture.
I cannot understand why somebody like EM would waste his money, time and effort on a club that, based on the comments here, do not appreciate what an incredibly thankless task it is being a football club chairman.
I really hope EM manages to turn the clubs financial problems around, and if he does it won't be thanks to the small minded, anonymous snipers on here.
coxes pippin
says...
7:34pm Thu 18 Mar 10
our finances like other clubs dont add up,but most have a board or chairman with money that also care and help the club out financialy,i understand what mr. mitchell is trying to do in running the club on a profitable basis,but you cant clear the debt. as well. come on members of the board,you took on the club,pay off the debt and give the club a chance to survive!!!!
alasdair1967
says...
7:44pm Thu 18 Mar 10
coxes pippin wrote:here here
i hate to read all this infighting between supporters,i to have bought my season ticket,got my share certificate,put cash in the bucket at the winter-gardens(and also at the first supporters forums-wonder where that went?)and i did it because like you all,i care. our finances like other clubs dont add up,but most have a board or chairman with money that also care and help the club out financialy,i understand what mr. mitchell is trying to do in running the club on a profitable basis,but you cant clear the debt. as well. come on members of the board,you took on the club,pay off the debt and give the club a chance to survive!!!!
jamyjames
says...
7:55pm Thu 18 Mar 10
The Team and Club deserve better.
Somethings not right
says...
9:11pm Thu 18 Mar 10
THis is very disturbing
High Treason
says...
9:25pm Thu 18 Mar 10
B.F.G wrote:B.F.G wrote:
As usual it's the same bunch of misinformed individuals spouting the same old garbage. Not one of you actually know anything more than a small handful of facts, the rest is sheer conjecture. I cannot understand why somebody like EM would waste his money, time and effort on a club that, based on the comments here, do not appreciate what an incredibly thankless task it is being a football club chairman. I really hope EM manages to turn the clubs financial problems around, and if he does it won't be thanks to the small minded, anonymous snipers on here.
I cannot understand why somebody like EM would waste his money, time and effort on a club.
end quote.
I know why, its because he will make a mint when the time is right and the club goes under. Meantime get the supporters to pay for the clubs upkeep.
flyingleaper
says...
9:42pm Thu 18 Mar 10
ferndownred
says...
9:44pm Thu 18 Mar 10
snake hips
says...
9:50pm Thu 18 Mar 10
All Seeing Eye
says...
9:55pm Thu 18 Mar 10
B.F.G wrote:Which piece of information didn't I get right??
All Seeing Eye wrote:ASE, you, as usual, spout the biggest amount of half truths and pub gossip. You'd like to think you are privvy to certain information, but you are not, you really are nothing more than a yocal gossip and as usual are so far off the mark that any credibility you think you may have has long since vanished. Nasty, spiteful and vindictive are just three words that I would use to describe you.High Treason wrote: And so the tax man should take a tough stance. Almost everyone else gets their tax stopped before they get paid. Why should a football club dodge its responsibilities? If we all could avoid paying tax the country would grind to a halt. Pay up and stop whinging.As I have been 'harping' on for a while. Mitchell is a developer and builder. Mostyn the owner of an Insurance Company which Brokers for the armed forces. Mitchell as we have read is quite familiar with bankruptcy. ‘If’ AFCB Ltd was declared insolvent and went into liquidation Seven Developments and Structadene would be in a very good position to purchase Dean Court NOT for football but for development. Before anyone says ‘covenants’ I must advise them they have been rescinded, (Check with the Borough Council) Now for Mostyn who may have very unwisely got Mitchell and Murry involved with AFCB. Mostyn was very close to Baker (Sport-6) and was officially called an ‘advisor’ to him. Was it Mostyn who told Baker not to accept a bid by an unnamed party, but to sell the club to Mitchell? Did Mostyn do this as he thought he was more likely to get his ‘loans’ back with Mitchell? Well it looks like he has been caught good and proper, but as an Insurance Broker by profession I am sure he has even more contingences. Can anyone blame HMRC for coming down hard? When you have someone who is connected and been involved in bankruptcies and is CEO of a company owing taxes etc and has cost the revenue dear in the past , would you not fight for what is rightfully yours and in this case ours. Mitchell is now employing his own family though the books of AFCB and uses the premises at Dean Court to run his business. He is not prepared to put any money in, but for sure he is taking money out. Has he always dealt this way?
You should get your accusations correct before you make yourself look like a fool!!
You also must be a mouthpiece for the board, do you get free tickets???
Julian1967
says...
10:14pm Thu 18 Mar 10
molbol wrote:o dear someone cant do their sums lol,,,lol...Back to school for you lol...
Julian1967 wrote:You've got a year younger?
B.F.G wrote:Dont tell me,you know him lol,,lol.The blind leads the blind and more cr*b coming out.
As usual it's the same bunch of misinformed individuals spouting the same old garbage.
Not one of you actually know anything more than a small handful of facts, the rest is sheer conjecture.
I cannot understand why somebody like EM would waste his money, time and effort on a club that, based on the comments here, do not appreciate what an incredibly thankless task it is being a football club chairman.
I really hope EM manages to turn the clubs financial problems around, and if he does it won't be thanks to the small minded, anonymous snipers on here.
marmite man
says...
10:34pm Thu 18 Mar 10
A guy purchases a company that he knows is bust, then he gets the suckers to put their hands in their own pockets and bail out the company and makes more millions for himself -DOH!!!!
What happened to Mitchell, Dorchester Town and Weymouth Town football clubs and his involvement??
AFCB1223
says...
10:42pm Thu 18 Mar 10
B.F.G
says...
11:13pm Thu 18 Mar 10
ASE, more like ARSE.
I've never watched the Cherries and have no real interest in lower division football. But I do find fickle fans amusing, and there are plenty posting comments here today.
AFCB1223
says...
11:27pm Thu 18 Mar 10
AFCB1223
says...
11:29pm Thu 18 Mar 10
B.F.G wrote:You're a bit of a pr#t then aren't you.
Yes, I get free tickets and I'm the club mouthpiece. ASE, more like ARSE. I've never watched the Cherries and have no real interest in lower division football. But I do find fickle fans amusing, and there are plenty posting comments here today.
molbol
says...
8:42am Fri 19 Mar 10
Why the change anyway?
caz-caz
says...
4:47pm Fri 19 Mar 10
its money through the turnstiles thats needed and it would appear that not many more than 5000 people really support this club on a regular basis and frankly thats not enough and right now we are headed toward the season of no income at Dean Court - i believe that little has really changed at the club ,ok theres been some housework done and its looking a bit nicer but people are not sufficiently interested to stand in a football ground and watch middle of the road sport in the rain when weve mostly all got 42" TVs a fridge full of lager and our own comfy sofa. and thats where footballs income is going to these days.
sorry EM if you want the return on your investment then you do it with your money if youre confident you are on a winner it shouldnt be an issue ,and you know best
personally ,if YOU are not backing it all the way then neither will I because the message i am getting is that you are not confident ,despite your efforts - and youve done ok - its still not a good prospect and you know it otherwise you would be writing the cheque for the tax man
Julian1967
says...
4:59pm Fri 19 Mar 10
molbol wrote:Give me ur number and i call you M8 if you want me to explain..As for the change i dont have to explain it to someone who is just a kid!!!
If you used to be Julian 1966 and now you're Julian 1967 then does that not make you a year younger? My maths are fine fella whereas yours are obviously lacking!!!
Why the change anyway?
marmite man
says...
5:23pm Fri 19 Mar 10
Julian1967 wrote:It sounds by your comment, spelling, vocabulary, attitude and structure that you are very much the ‘kid’. Grow up!!!
molbol wrote: If you used to be Julian 1966 and now you're Julian 1967 then does that not make you a year younger? My maths are fine fella whereas yours are obviously lacking!!! Why the change anyway?Give me ur number and i call you M8 if you want me to explain..As for the change i dont have to explain it to someone who is just a kid!!!
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northstandregular says...
7:10am Thu 18 Mar 10