1911 - 2008
It's almost certain that everyone reading this newsletter will be aware that Halifax Town AFC stands on the brink of liquidation. Just ten years after promotion from the GM Vauxhall Conference in 1998, and three short years from its centenary season, the current chapter in the club's often forlorn history is about to draw to a close.

A brief history
After one season playing in the Yorkshire Combination, and several more in the Midland Counties League, Halifax Town became founder members of the Third Division (Northern Section) in 1921, and made The Shay its home after it was transformed into a football ground by club officials and supporters alike. The first game played at the ground saw Halifax Town defeat Darlington 5-1 on 3 September 1921, but their reelection bid at the end of the first season was just the first of twelve the club would make over the ensuing years.

The club enjoyed a fine run in the FA Cup in 1923-24, taking First Division Manchester City to three games before losing, and briefly challenged for the title in 1926-27.

During the early Thirties, the club survived its first real financial crisis but turned things around to finish runners-up to Doncaster Rovers in 1934-35.

Re-election bids were necessary in the first two seasons following the Second World War, but again, the club began to find its way. In 1952-53 they embarked upon their greatest FA Cup run, defeating First Division sides Cardiff City and Stoke City in 1952-53 before going out to Spurs in the fifth round in front of an incredible 36,885 at The Shay.

A real golden period followed, and when regional football was replaced by Divisions Three and Four in 1958, Halifax Town were comfortably placed in seventh to qualify for the former and initially they competed well. But the Sixties dawned, and despite the erection of floodlights in 1961, ensuring the novelty of night tie football, the club slipped into Division Four in 1963, and by October 1966 were in dire straits yet again. A Save Halifax Town Fund was set up, and with the support of the Halifax people the club lived to fight another day.

Promotion was gained in 1968-69 and two years later Halifax Town finished third in Division Three, and then enjoyed a thrilling victory over Manchester United in the Watney Cup. In 1980 Town beat First Division Manchester City in the FA Cup, but by then they were in the League's basement, having been relegated in 1975-76. Re-election bids were necessary five times in nine seasons, but the club always had the sympathy of its fellow members. Town survived financial crises in 1982 and 1987 but the continued to struggle.

Automatic relegation, which replaced the re-election system in 1987, probably gave Town a reprieve, but they succumbed to the inevitable and were relegated to the Conference in 1992-93. Town spent five years in the non-league fold, almost going out of business again in 1995. But in 1997-98 they stormed to the Conference title and reclaimed their place in the Football League, and for a short time briefly led the Third Division.

A series of questionable decisions at boardroom level meant the club spiralled into trouble yet again, and the club became the first to lose its League status for a second time when it was relegated in 2001-02. They went into administration and the ensuing CVA crippled the club, but on the whole they did well, reaching the Conference play-off final in 2005-06 only to lose narrowly to Hereford United.

Two years later, the club went into administration for a second time, and despite avoiding the automatic relegation places following a ten-point deduction, lost the battle off the field with the club facing liquidation during the summer.

What next?
It may be the end of the chapter, but it's unlikely to be the end of the story. Essentially there are two options. The first would be to allow the business consortium that has put a lot of money into the club over the last 18 months or so to decide whether or not to continue their association with the club.

The second would be to launch a supporters-owned club. It's important that everyone has their say. Please read the enclosed information and submit your vote as quickly as possible.

What has happened to Halifax Town AFC?
Over the last 18 months a consortium of businessmen have been trying to take control of Halifax Town by securing a 75% shareholding in the company. You may remember us asking members to help facilitate this by allowing us to 'loan' the HTST shareholding in the club to this consortium. Despite never achieving the 75% figure they deemed necessary, the consortium maintained effective control of the club and spent a significant amount of their own money in keeping the club afloat.

Once it became apparent that the level of historical debt attached to the club would make it impossible to fulfil their original plans, the consortium arranged for the company to be placed into administration. As we understand it the aim was to settle all debts via a Creditors Voluntary Agreement, which would have allowed them to take ownership of the club via a new company, with a clean slate and no historical issues.

Halifax Town has debts of £1.14m. The previous CVA has been deemed to have failed due to not being paid in full (despite a significant proportion being paid). When taking this into account the total debt increases to more than £2m. At the creditors meeting on 7 May the consortium offered to clear all debts at 2.5% of the amount owed. This was rejected. On 10 May it became apparent that the amount owed to HM Revenue & Customs had been miscalculated and so was increased from £500k to £814k – a high enough proportion of the total debt that effectively gave them a veto over any agreement, and it was made clear that they would accept nothing less than 100% of the amount owed.

The level of debt was described by the Administrators as "insurmountable" and all hope of a CVA vanished. As it stands today the club – Halifax Town AFC – still exists. The players under contract are all still registered with the club and the consortium continues to cover the ongoing trading losses. This will not continue indefinitely. The administration period will continue only as long as the ongoing costs are paid, and only then for a maximum of 12 months. It is almost inevitable that the company will fold.

The consortium have made it clear that they are still considering their options, but at this stage have been either unable or unwilling to make any firm commitment regards their future plans for the club. The last message we had from them suggested that their continued involvement was dependent on which leaguethe club – whether current or re-formed – would be accepted into next season.

We have spoken to the Football Association and the Unibond Premier League and both have suggested to us that any re-formed club will be accepted into the Unibond Premier League Division One North – providing the club remains at the Shay. However, quite understandably, they are reluctant to offer any guarantee to that effect.

What isn't clear – and it is this that causes concern – is whether the consortium would maintain their interest following a drop of 3 steps in the football pyramid.

The FA will accept only one application for a team representing the town of Halifax. Currently both the HTST and the consortium have each lodged a 'statement of intent', though one party will have to withdraw their statement in order for the other to proceed. Only then will the FA make their recommendation to the relevant league that they should accept Halifax into their structure. This recommendation then has to be confirmed at that league's AGM.

Consequently we have a decision to make.

Option One
Withdraw the HTST 'statement of intent' and allow time for the consortium to evaluate their position alone.

Should the consortium decide to 'walk away' we would be ready to proceed with plans for a supporters-owned club. However, the level at which such a club would be accepted would depend entirely on when the consortium announce their decision. Should we miss the Unibond Premier League AGM, it will be almost certain that we begin the 2008-09 season at step 6 of the national game in the Northern Counties East League – the same level as Scarborough Athletic and Brighouse Town. In this case we may not be able to continue playing at the Shay Stadium – although the SST have indicated they would be prepared to discuss the level of rent payable.

Option Two
Ask the consortium to withdraw their 'statement of intent' allowing us to forge ahead with plans for a supporters-owned club.

The consortium have indicated they will accept such a request. As stated above the suggestion is that we would be invited to join the Unibond Premier League Division One North – step 4 of the national game. In this case we will continue to play at the Shay.

We believe that our members should make this decision. Please be assured that the Society Board will be bound by the result of this ballot. If Option A is preferred, we will continue with plans for a supportersrun club but only as a back-up should the consortium call an end to their involvement.

Frequently Asked Questions

Have the HTST spoken to the consortium?
We sent a letter to David Bosomworth last week requesting a meeting to discuss their future intentions for the club. Their reply offered little except a suggestion that we refer to their previous two public statements. These statements are available online at the club's official website (www.halifaxafc.co.uk).

Is there an Option 3 – for the consortium and HTST to work together?
We have not had the opportunity to discuss this since the creditors rejected the CVA proposal. In our letter of last week we did request a face-to-face meeting.

What have the consortium offered?
Previously the consortium had indicated that they will hold an open meeting with supporters once they own the club. They have also stated their intention to hold regular meetings with all supporters groups during their tenure. Most importantly, they have offered assurances that they will leave the club debt-free and solvent once their association with the club ends.

Can the supporters finance a club?
We believe so. This model has worked at several clubs at various levels of the football pyramid. The most comparable club at our level would be Telford United, where supporters took ownership in 2004.

Can a supporters-owned club be successful?
Ensuring that the club 'lives within its means' is about Halifax Town surviving for the long-term, not just the next 2-3 years. Keeping control of the finances doesn't prevent success on the field, but neither is it guaranteed. The following clubs are all owned by the supporters:

AFC Telford lost in the Blue Square North play-offs; AFC Wimbledon were promoted to the Blue Square South; Cambridge City finished mid-table; Brentford finished mid-table in League Two; Exeter City won the Blue Square play-offs and thus promotion back to the Football League; FC United of Manchester won the Unibond Premier League Division One North play-offs; Notts County avoided relegation from the Football League; Runcorn Linnets finished mid-table in the North West Counties League One; Stockport County finished as League Two play-off finalists (result not known at time of publication); and Scarborough Athletic narrowly missed out on the play-offs in their first season!
The above shows success is very much still possible.

How can the HTST guarantee Unibond Premier League Division One football?
We can't be certain about which league a re-formed Halifax Town will be accepted into. Neither can anyone else. It comes down to a recommendation made by the FA which then has to be ratified at the relevant league's AGM. Until then no-one can be certain. However, we know that there are vacancies within the Unibond Premier League Division One following some restructuring this summer.
The consortium have stated it is their intention to ensure the club plays at the highest level possible. The
Football Conference have already expelled the existing club (which, subject to appeal and settlement of the existing debts, rules out steps 1 and 2). The Unibond Premier League looks after steps 3 and 4. They have already been quoted within the press as saying the club's most likely destination is Division One North (step 4) and not the Premier Division (step 3) as was hoped. They have also confirmed this to us privately.

Why has the Trust met with the Council?
We met with them to explain the concept of a supporter-owned club and the role it could play in the community. We also felt it important to reassure them that there is a group working to ensure the continuation of a football club paying its way at The Shay. A meeting has also been arranged with Halifax Member of Parliament Linda Riordan.

What sort of support is there for a supporterowned club?
When news (incorrectly) broke that the consortium had withdrawn their interest in Halifax Town, it appeared that the only way forward was a supportersowned club. Almost immediately the HTST began receiving offers of help from a number of different clubs, local companies and individuals with relevant skills and experiences.

Does the Trust feel a supporter-owned club is the way forward? We will be ready to fully support whichever option is chosen by our membership. We feel the longer the uncertainty over the consortium's future plans lasts, the more risk there is of ending up lower down the pyramid. If a supporters-owned club is favoured or otherwise becomes necessary, we will be certain to have a business plan prepared ready to put into action.

In other news…
Resignations and appointments Four members of the HTST Society Board have resigned since the last newsletter, among them chair Pam Burton and vice-chair Roger Bottomley.In a joint statement they released via the club's official website they are quoted as saying, "It is our considered and long held view that any future possibility of professional football in Calderdale has to be under the auspices of the business consortium headed by David Bosomworth."
Both had already made it clear that they could offer no support for any other option, and would be unable to provide any energy for making a supporters-owned club a reality should members choose that option.

Former treasurer Anne Stajic also confirmed her resignation shortly after for the same reasons. Their resignations left the Trust in a difficult position. In order to continue operating the Society Board had to
either appoint people to the board in their place, or otherwise call an Emergency General Meeting. Legally we have to provide a notice period of two weeks when calling an EGM, and given the current potentially critical situation this just wasn't realistic – we would have been unable to legally act had it been necessary.

By a vote of 7 to 1 it was decided that filling the vacancies was the better option. As a result we invited
club vice-president Jack Haymer and club historian Johnny Meynell onto the board. The appointment of Alan Alderson and Roger Taylor was also confirmed.

Alan's election to the board was to be confirmed at the AGM in any case (elected unopposed) while Roger had already accepted an invitation to join the board as a coopted member. Board member Mark Yates did not accept that this was a reasonable compromise, and chose to resign his position in protest.

It is with regret that at such a crucial time for Halifax Town the Trust is faced with having to make such difficult decisions. Despite this, all four of those leaving the board do so with our best wishes for the future, and we would like to thank them for all their hard work during their term of office.

Nominations
Following the above changes and of course the wider situation surrounding the club, we feel it is appropriate to once again invite nominations for the Trust board.

Any interested parties should contact Trust secretary Paul Holroyd on 07737 940627 or by email at hoddie@gmail.com no later than Wednesday 11 June 2008. The appropriate declaration form will then be sent for completion and return.

Elections will be held should more nominations be received than there are positions available, and voting slips will be issued with the notice of AGM.