SALISBURY City face losing their Blue Square Conference status after falling foul of the Football Conference's controversial Appendix E ruling.

Directors of the Wiltshire club, who were deducted ten points for going into administration last season, have this morning released the following statement: “The Directors would like to update the supporters on the current status of the club.

“Many supporters will be aware of the very difficult situation that the club was in when the new directors became involved. There was a very real threat that an important part of the local community could disappear.

“Despite the myriad of issues facing the club the new directors managed to keep the club afloat through a period of administration to complete a Creditors Voluntary Arrangement and provide the team with enough resources to finish a very successful season on the field, something that looked very unlikely only a few months ago.

“During this period all salaries, payments to suppliers and other liabilities have been met in full. We have upgraded the floodlights system as directed by the FA and Football Conference to meet BSP status, paid all football creditors, and also met our requirements under the CVA and all other footballing responsibilities to the Conference and FA.

“In addition the club has been helped in many ways by local businesses with support and donation of funds, together with volunteers and unpaid helpers, the members of the supporters club and everyone who helps make football at this level the fabric of our community.

"We are particularly proud of the work done in the name of Salisbury City by many unsung volunteers and helpers who have brought all the youth teams much closer to the club and helped re-establish our football in the community programme. The club would like to place on record our appreciation of everyone who has played a part in this important work.

“Despite this effort and success at stabilising the club there has been an ongoing issue that the club has been unable to overcome so far. The issue is that of Appendix E in the Football Conference rules, which states that any club which suffers an insolvency event during the course of a season must pay all creditors in full by the second Saturday in May. According to the rules failure to pay all creditors in full would mean that the club would not be eligible for inclusion in the league for the next season and the FA would need to place the club in an alternative league.

“The Directors have worked ceaselessly to find a solution that would keep Salisbury City where we deserve to be on merit, which is in the Conference Premier. Part of this solution was to construct a CVA that met the requirements of the Conference for the amended Appendix E which is likely to be adopted at the forthcoming AGM on 12th June. In effect the club will be fully compliant with the new rules in just over three weeks time and in those circumstances would be eligible for inclusion in the Blue Square Bet competition.

“Over the last month in particular the Directors have worked with the Conference, to find a solution that would bring a satisfactory conclusion to this issue. Unfortunately the club have now concluded that it will not be possible to satisfy their requirements and have accordingly advised the Conference of this.

“As a result the Club has now been informed that despite all our achievements and efforts we will not be eligible to play in the Conference in the coming 2010/11 season. Naturally we feel a great sense of injustice that having complied with every request from the Conference, the fans, all the employees, the management and players will be made to suffer.

“The Club will now continue to consult with its legal advisors, as to the best way forward.

“The new directors will continue to work for the benefit of the club and its supporters and to seek new ways in which Salisbury City can continue to progress commercially and more importantly as a vibrant part of the local community.

“Further updates will be made as information becomes available.”