THE Shakers' depleted finances were dealt a major blow on Thursday night when talks to take leading scorer Dave Nugent to First Division Preston North End fell through.

Nugent had been expected to sign on Friday for what was believed to be a six-figure sum, but failed to agree terms with the Deepdale side.

Former commercial director Neville Neville, brought in to oversee the club's cash-flow crisis, warned that he has never been as concerned about the state of the club's finances as he is this weekend.

The board had agreed a fee for the 19-year-old Scouse hotshot and he and his agent John Seasman were in talks for most of Thursday.

Nugent's departure would have been a massive blow for Shakers fans but the deal falling through piles further financial pressure on the club who were desperate for the cash to get them to the end of the month.

"It's a major disappointment that Dave hasn't signed but even if he had it guaranteed nothing," declared Neville.

"It would just have seen us to the end of January, I'm as worried as I have ever been about the situation at the club.

"At present we owe a £30,000 tax bill, a £15,000 wage bill, £5,000 for the CVA and are missing about £15,000 we lost from the Boxing Day Shrewsbury game being postponed and if we don't meet those payments it's end of story!

"But a Dave Nugent deal would have allowed us to meet those payments and buy us some time.

"The plain facts are that we cannot maintain the current expenditure that was budgeted for at the beginning of the season, the crowds just won't sustain it.

"Every avenue of the club has been explored with a view to making cutbacks and some very sad decisions will be announced on Friday."

A clearer picture of the club's parlous financial situation has emerged this week in the wake of Neville's return, and it doesn't make attractive reading to anyone with any affection for the club.

Central to the problem are the monthly £10,000 CVA (Creditors Voluntary Arrangement) payments that kicked-in after coming out of administration nearly two years ago, split equally between the Professional Footballers Association and the Inland Revenue.

Midway through the season it became clear that the figure was proving too much for the club to raise, mainly due to a serious drop in gate revenue since the start of the season.

The size of the problem can be measured by the fact that two weeks ago, on Christmas Eve, there was a £40,000 cash flow deficit which, had it continued would have resulted in an end-of-season deficit of £200,000.

Negotiations with the PFA have eased the monthly outgoings and the union have also helped in a big way by agreeing to drop their share of the CVA from £5,000 to £2,000.

Talks also began with the CVA on Thursday in a bid to negotiate another, more flexible, arrangement that would see the club to the end of the season.

Forthcoming staff cuts throughout the club are expected to save £3,000 a week, staff have given up their free health insurance and players now pay for extra complimentary tickets.

A clampdown on such tickets for Monday's Oxford United game is believed to have made a difference of around £3,000 to the club from that match alone.

The expected sale of leading scorer Nugent, while highly unpalatable to the fans, was expected to be a major factor in the Shakers stabilising their finances.

Over the past two years, director Iain Mills has made significant financial contributions to avert a similar crisis on at least two occasions.

However, it has become clear that the club cannot survive unless it gets a regular cash injection.

"We have a group of directors who want to maintain the club's Football League status and are doing their best," added Neville.

"They have got the wage bill as low, in real terms, as it's ever been in the clubs history, they couldn't have taken it any lower.

"But it seems that's still not enough, we are still having to get rid of lads who aren't earning big money."

A number of fundraising activities have been planned in conjunction with the supporters trust Forever Bury and incorporating the club's youth section and the commercial department.

Hopefully these will bring in an expected £40,000 in the next few months