Let's all laugh at Oxford

Statement from the Board
Posted on: Thu 25 Sep 2008

Fans, Sponsors and the Press are aware of the action taken by the Stadium Company, Firoka (Oxford United Stadium) Ltd, on Tuesday at the Oxford United home game against Cambridge as they failed to service the Club's food and beverages requirement for the fixture. This affected supporters, sponsors and officials alike and was hugely embarrassing all round for everyone involved with Oxford particularly with the live cameras there showing Oxford United finally break its live TV duck.

We would like to apologise to all of our supporters who dealt with the situation with a tremendous show of loyalty and a large dose of common sense, perhaps buoyed by a great win. It is not the first time that supporters have had to deal with disappointment from this source.
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We have been asked to comment publicly on the reported statements made by John Angus and Firoz Kassam in the past 24 hours on this matter. We would preface these responses by pointing out that we have to continue dealing with these people if the main Oxford United objective is ever to be reached of acquiring the Stadium and Conference Centre in order for Oxford United to be self-sufficient with its own incomes and without the current high rent.

Mr Angus is quoted as saying:

"Each quarter a payment is required for the rent which has not been met. We have spoken to the club since lunchtime today (September 23rd) and asked them for payment. The payment was not forthcoming and we could not provide a food service without that."

Mr Kassam is reported as saying:

"The rent is due. Every quarter we have had to get the bailiffs to get the rent. In the current financial climate we are looking to run our business more efficiently."

The true facts are that the rent was not due at the time of Tuesday's game. It is only due on the 29th September, next Monday which is quarter day.

The Stadium Company insisted that it was due on September 25th (this coming Thursday) and - in breach of the Stadium Licence - that Oxford United provides them with a September 25th postdated cheque for the full £117,103 by that afternoon of September 23rd or they would withdraw services from the game.

In response to the assertion that bailiffs have been used every quarter to enforce the rent, the true facts are that bailiffs have never been used to get the Stadium rent throughout the 10 quarters since we took over the Club. It is always a great struggle to pay the quarterly Stadium Rent of £117,103 yet on average, over two and a half years and 10 quarters since we acquired the Club, the Rent has been paid an average of only 8 days late and the latest ever was 30 days.

The Shop Rent of £7,931 was overlooked one quarter and the bailiffs arrived unannounced after only 6 days. That is the only occasion in our tenure when bailiffs have been used against Oxford United as was disclosed at the recent AGM.

Most Landlords are reasonable with Rental payments, particularly in difficult times. This seems not to be the case with Firoka.

For completeness, when considering amounts owed by Oxford United to Firoka, there are always routine small amounts outstanding between the parties for catering, hotels etc. As at Tuesday's invoices, Oxford United owed Firoka £3,645 and Firoka owed the club £1,902.

Finally, our view on postdated cheques is that these are unnecessary and dangerous in principle when one is continually struggling for revenues.

This recent event is a clear example of the kind of unreasonableness which has made dealing with the Stadium Company so difficult over the last 2 years. The terms of our Licence Agreement state very clearly that they must provide services for games and they have breached those terms, perhaps unknowingly, but to the embarrassment of many thousands of Oxford supporters.

We make no secret of the financial difficulties of running a Football Club with falling attendances and high Stadium rent and other costs. Every month is a struggle and our Investors and myself have already put in far more money than we wished.

However, whilst a serious possibility, it would be so frustrating and annoying for the Board and for all Oxford supporters for us to fail when we are closer than ever to a realistic Partnership which, within 12 months, could return the Stadium to Oxford United, allow Mr Kassam a reasonable financial exit and allow the Club thereafter to fund itself within its own means from stadium revenues.

We would ask Mr Kassam to help as much as possible in these mutually difficult times and would welcome other initiatives from fans, investors or business partners to help Oxford United get through these short-term difficult times with the positive prospect of our main objective being realistically achieved.

OXFORD UNITED FOOTBALL CLUB

Nick Merry, Chairman