Devonport's $507,000 debt

THE future of the Devonport Football Club hangs in the balance with the revelation the club has liabilities of more than half a million dollars.A financial report tabled at last night's annual general meeting showed total liabilities of $507,525.The liabilities consist of a secured loan from the Devonport City Council of $246,990, unsecured loans of $90,810 and a loss of $66,150 for the year ending September 30.The auditor, Ralph Hortle of WHK Accountants and Business Advisors, said in his report there was uncertainty as to whether the club would be able to continue and whether it had the ability to realise its assets and extinguish its debts.The future of the club could be decided as early as next week.AFL Tasmania has put the club on notice to demonstrate it is solvent by December 23, or its Tasmanian State League licence will be revoked.Last night's meeting was chaired by vice-president Neil Wilkinson, in the absence of president Steve Daley, who was in Melbourne on a family matter.Wilkinson said after the meeting board members would meet with AFL Tasmania in coming days in a working party to determine how best to overcome the club's mounting debts."We will be planning a way to work though our liabilities," he said.Wilkinson said after board members had met with AFL Tasmania, a full board meeting would be held, after which an informed decision would be made.

When asked if the club was solvent or not, Wilkinson did not give a yes or no answer.He said despite the financial loss for 2010, all players had been paid.The Advocate understands a benefactor stepped in to assist the club with making player payments, but Wilkinson would not elaborate."All you need to know is that all player payments for the year were paid six weeks ago and that was wrong in the paper today," he said.Wilkinson said at this stage the club still had the support of its guarantors and members and was planning to continue trading through its current crisis.Last night's meeting was told the club had three options to consider - trading out of its current predicament, selling its assets (clubrooms) to the Devonport City Council, or declaring itself insolvent and winding up.In his section of the annual report president Steve Daley said he was extremely disappointed in the significant loss for the year."This is totally unacceptable and strong action needs to be taken to return the club to a positive financial position," Daley wrote."This action must include the restructuring of the club - but it must have the full support of members, players, supporters, sponsors and the community," he said."The negativity which continues to permeate this club will have dire consequences if we don't unite as one and work together for the future of the club and the wider football community."