Yorkshire seek funds from share issue

Yorkshire suffered record financial losses of almost £1.3m last year which have prompted them to announce plans to become a public company.

In a year of turmoil at Headingley, the county club's income dropped by more than £200,000, largely due to merchandising problems at the club shop. Despite the County Championship First Division success of 2001, the shop recorded a profit of just £460 that year, a figure so surprising that police were asked to investigate. A new management structure was created at the club as a result of the fiasco.

In 2002, the shop lost £174,000, while expenditure increased sharply from £870,000 to £3.6m due mainly to higher administration and marketing costs and ground maintenance.

As a result, the club has announced plans for its biggest break with the past. With debts of £4m, the club is to become a plc and raise up to £8m from a share issue. They will also buy the freehold of Headingley from the businessman Paul Caddick, who also owns Leeds' two rugby clubs.

Brian Bouttell, the club's financial director, said Caddick had agreed in principle. The freehold earns Caddick all the lucrative takings from catering and advertising at the ground – an arrangement at the root of the financial difficulties.

Bouttell said the share issue would be open to individual members and supporters, though the club is anticipating far bigger investors. The share offer will also finance a new stand in the north-east corner of the ground. There has even been talk of a landmark pavilion to rival Lord's.