Yorkshire could run out of money to pay player and staff salaries before the end of the season
- Mail Sport has learned that several lenders have questioned Yorkshire’s claims
- The club claimed to investors that they can get through naming rights and more
- They are seeking a loan to pay the £15 million owed by ex-chairman Colin Graves
Yorkshire could run out of money to pay player and staff salaries before the end of the season, as banks are reluctant to provide a £20m loan over concerns over the club’s financial projections.
Mail Sport has learned that several potential lenders have questioned Yorkshire’s claims in their pitch to investors about the money they could bring in through naming deals, pop concerts and compensation from the ECB.
Yorkshire are looking for a loan to pay off the £15 million he owes former chairman Colin Graves and a further £5 million needed to get through the season since last December.
City insiders have told Mail Sport the club is in danger of following the path of another fallen sports giant in Wasps, who went into administration earlier this season and was kicked out of the Premiership after failing to refinance a £36m bond .
Mail Sport has seen the sales card distributed to banks on behalf of Yorkshire by corporate refinancing specialists FRP Advisory and contains some striking claims. Several of the predictions made to show that Yorkshire can afford the interest payments on a £20 million loan have been rejected by potential lenders, including:
Yorkshire is in danger of running out of money to pay player and staff salaries after potential backers questioned the club’s financial stability
The club are now facing difficulties after struggling in their search for a loan to pay off £15 million
A) Yorkshire’s claim that they will receive £1m in compensation from the ECB for failing to host test matches in 2024, 2027 and 2028 when the governing body has indicated the correct figure is £550,000.
B) Yorkshire’s claim that naming rights for Headingley will grow from their current value of £1.5 million a year to £2.8 million by 2028.
C) Projections that hosting pop concerts in Headingley will generate between £800,000 and £2 million a year based on three in 2024, five in 2025, seven in 2026 and eight in 2027, despite no such events being planned. In addition, sources at the club have questioned whether Headingley can attract big acts given its capacity of 18,000 and the lack of on-site parking, while Leeds City Council have expressed doubts over whether they would sign on to such an expansion scheme as it area is in decline. a residential area, pointing out that the city already has a thriving live music scene with established venues such as Roundhay Park, Elland Road, the Leeds Arena and O2 Academy.
Insiders at the club have warned they will face serious liquidity problems by the end of the summer
Yorkshire have been able to pay staff salaries so far this season despite wage bills rising to £3.2m a year, but club insiders have warned they will face serious cash flow problems by the end of the summer. The club’s accounts show they spent £10.3m on creditors before the end of the year, as well as £15.9m in long-term debt, the majority of which is owed to the Graves Family Trust.
Yorkshire’s options if they fail to secure a loan appear to be limited to entering the board and reforming as a so-called phoenix club, or asking the ECB for a bailout, potentially meeting resistance from other counties . The ECB provided a £3.8m bailout package to Durham in 2016, but also stripped the club of test match status, which would spell disaster for Yorkshire, whose debts are also far greater.
Yorkshire could also ask Graves to waive interest payments to his family in exchange for resuming his previous role as chairman, but his application for that position is currently being opposed by several members of the board. The 75-year-old waived a £500,000 interest payment due last month, which has now been postponed to October.
Yorkshire declined to comment.