Preston North End owner releases lengthy statement over the club's budget, new ownership, the Premier League, parachute payments and more

The update covered a range of important topics relating to PNE, including the budget, the Premier League and Parachute Payments, the academy, Deepdale and Euxton Training Ground and future ownership.

Fans have become increasingly frustrated in recent weeks as North End’s results have not been great and supporters have felt, particularly, that Ryan Lowe has been left short in the transfer market after record season ticket sales.

Chairman Craig Hemmings’ statement is available in full on the PNE website. The statement also covers PNE’s Euxton Training Ground and points made will go into more depth than below.

Budgets

"The budget for each football season is set between the Hemmings family and the management of PNE. The budget is agreed well in advance of a new season beginning to allow the executives in charge of day to day operations the ability to plan well in advance.

“For this season, a budget was set and the club moved early in the transfer market bringing in the players that the football management team had identified. We also took the opportunity to move some players on to other clubs that were still under contract, but the manager felt would have no part to play, and some contracts were terminated early. Both of these cost us money to finalise.

“At no time since this season’s budget was finalised has the budget been changed.

“It is no secret that we would have ideally liked one or two more players and indeed we turned down a substantial offer from one of our rivals for one of our players which, had we taken, would have freed up more funds. The reason that we rejected this offer was that the manager did not feel that there were players that we could get that would have made us stronger had we taken the money on offer.

“Once the budget has been set it is the football management, working with the PNE Executive team, who decide how to spend the money.

“Would the football management team and the executive want to have a bigger budget? I’m sure that they would but to continually increase the financial deficit that the Hemmings family face is not an option.

"Whilst this is a conscious decision I would however like to dispel the myth that Mr Hemmings left instructions to reduce, fade out or stop funding the club. I first attended games at Deepdale with my father in the early 1970s. My brothers and sister and I are regulars at every home game and I attend the majority of away games. We hope to do so for many years to come whether as owners or just fans.”

The Premier League and parachute payments

"Having commented on our own budget process it is worth a comment about the bigger picture.

“The way that central media monies are paid creates massive challenges for those of us in the Championship trying to compete. It costs about £24 million pounds each year to keep us going.

"Towards this we receive approximately £2.3m from season tickets and a further £7.3m in total from the EFL and Premier League. After other income streams, that leaves my family with an annual shortfall of around £12m which we have to put into the club each season.

"There are currently intense discussions taking place between the Government, FA, Premier League and EFL in an attempt to get a ‘fairer’ distribution of monies throughout the English football pyramid system (PL plus the three EFL Leagues) so that the disparity between those with and without parachute payments can be smoothed and give us all a greater share of the monies in the game.”

The academy

"There are four categories of Academy and ours is grade three. Grade one is reserved for those either in the Premier League or who have been there and requires millions of pounds to be put into those academies each season.

"We aspire to move up to grade two but for this to happen, as a minimum, we would need to have an acceptable standard of an all weather indoor facility. There isn’t one anywhere in Preston but we are in discussions to see whether along with other sporting bodies in the city this may be something that we could build.”

Future ownership

"At times in football there is always a vocal minority who however stable the ownership, seek the next wealthy owner with a bigger chequebook.

“Whilst I was born and brought up in Preston and I am proud of the state of the club under my family’s custodianship, we will never stand in the way if anyone approaches us and can demonstrate the financial resources to take us to the next step.

"Ownership change can be a force for good and sometimes not so but only time will tell. Earlier this year we held discussions with a party that claimed that they had the ability to buy and invest to take the club forward.

“Luckily we were able to determine soon enough that in this case it would not have worked. When and if the next interested party come along, we will work with them and if it can be demonstrated that they indeed are able to move the club forward we will be the first to stand aside and wish them the best for the future.”

Hemmings ended his statement with a conclusion thanking the fans and reaffirming his family’s commitment to the club.

It read: “This note was meant to explain, reassure and demonstrate that we hear what is being said. I would like to thank each and every one of our supporters for investing in what has been a record number of season tickets sold and the attendances so far this season. Other areas that are being raised by our supporters representatives including kit supply, retail store, fan zone and catering are being addressed and there will be a series of further announcements shortly.

“Whilst not everyone will agree or necessarily be happy with what I’ve set out, I can confirm that so long as my family own PNE we will continue to invest and support to the tune of millions of pounds each season. We do have a clear strategy and vision for the club and once again I reiterate that when the next big cheque book comes along we will be the first to wish them well.”