The AGM Cup: How to avoid relegation the non-league way

Boardroom Tombola

The players of Rushden & Diamonds were reportedly ready to strike before their match against Mansfield on Saturday. For the second month running, their wages had not been paid on time. While the Professional Footballers’ Association stepped in to prevent the action, the incident highlights a familiar problem as the season reaches its climax: the real drama is often not on the pitch, but in the accounts department.

Instead of focusing on relegation dogfights and promotion pushes, attention turns to what has become derisively known as the ‘AGM Cup’. This is the post-season process where clubs are handed a reprieve from the drop because another team has failed financially or not met ground grading requirements. It is becoming a regular fixture in the non-league calendar, threatening to return the game to an era when clubs were simply voted in or out of leagues.

Last year, no club was relegated from the Blue Square North, nor was any team relegated into it from the Blue Square Premier. The demotions of Salisbury and Northwich down the pyramid for financial reasons saved Harrogate Town from the drop. Forest Green Rovers and Weston-super-Mare were also spared. This cascade effect reshuffles the entire structure, with Worcester City being moved back into the northern section just to make the numbers work. With Bromsgrove, Ilkeston, and Windsor & Eton among the clubs to have disappeared this season, and others facing points deductions, this summer’s meeting looks set to be busier than ever.

The Usual Suspects

A few familiar names and new contenders are already lining up for a potential reprieve. Forest Green Rovers, perennial finalists in this competition, could be saved again. Spared last year by Salisbury’s woes, the club nearly went into financial meltdown over the summer before being rescued by eco-millionaire Dale Vince. Manager Dave Hockaday has spoken of his struggle to build a Blue Square Premier team on a Blue Square South budget, and on-field results have kept them near the bottom of the table. Off-field policies have included banning the sale of meat burgers on match days.

At Rushden & Diamonds, the unpaid wages are just one sign of trouble. The local BBC radio station has suggested the club is close to administration, and a boardroom reshuffle has seen chairman Gary Calder voted off and replaced by Liam Beasant. Meanwhile, Hayes & Yeading United face a crisis over their stadium. Their current home at Church Road has been sold for housing and will not be available next season. The new ground at Beaconsfield Road will not be ready until midway through the 2011-12 campaign. Talks are ongoing with Woking and Farnborough over a potential groundshare, but the club could still fall foul of the league’s complex rules before a deal is done.

A Test of Fitness

The Conference has made efforts to impose order. New financial reporting rules, requiring quarterly updates to prove clubs are paying their taxes and controlling debt, have already seen points deducted from Histon, Kidderminster Harriers and Redditch. A cut-off point for ground grading is supposed to ensure clubs have the required facilities in place before the season ends.

Yet clubs continue to fail to pay players, staff, and HMRC. The problem is particularly acute in the Blue Square Premier, where the financial gap with the Football League proves a fatal temptation for many. Since clubs must prove their ground is fit for purpose, it seems logical to demand they also prove their finances are in order.

An enhanced ‘fit and proper finances’ test could be the answer. Building on the existing quarterly reports, clubs could be required to submit realistic budgets, including projected gate receipts and player costs. If the sums do not add up, they would be denied a place. It would be a harsh measure, and one open to creative accounting, but tough love may be the only way to bring some stability back to the pyramid. Most people who own and run football clubs are businesspeople; perhaps they should start running their clubs like businesses. The alternative is another summer of chaos, where league places are decided not by points, but by insolvency practitioners.