The financial health of Bermuda Football Association is once again under the microscope with the new soccer season set to begin in little more than a month.

According to documents obtained by The Royal Gazette the BFA will launch the 1995-96 season with a deficit of almost $70,000 -- at a time when there is substantial evidence that corporate support is dwindling as a result of a drug scandal which plagued the sport earlier this year.

And just when BFA president Richard Thompson has vowed to combat the drug problem, he must now confront a burgeoning financial crisis.

The deficit was reportedly one of the topics on the agenda when the BFA's annual general meeting was expected to conclude on Monday night. But for the second straight time the meeting was postponed because of the failure to raise a quorum when representatives from only nine of 21 affiliates showed up.

The BFA's expenses almost doubled in the latest fiscal year, ballooning to $450,471 in 1995 from $297,240 in 1994. Although revenues as of March 31 rose slightly from the previous year, the BFA's recent balance sheet showed a deficit of $68,335.

This compares to a surplus of $32,090 following the 1994 fiscal year.

Still, Thompson rebuffed any concerns about the latest economic situation and said the BFA had been in the red before but managed to restore itself to financial health.

"The BFA has operated with a deficit before and has come out of it and I'm sure we'll come out of this one,'' Thompson said yesterday. "We will certainly look at ways (to turn things around).'' Echoed Somerset president Reginald Pearman, who was one of the few club representatives to attend Monday's meeting: "We have been in worse debt, we just have to work hard to pull it out. The clubs must come out to deal with these things.'' BFA affiliates were made aware of the gravity of the cash crunch during the first session of the AGM on July 31. At the time Thompson said he would provide The Royal Gazette with a complete financial picture, but he later declined to divulge any figures.

The financial statement clearly shows how the Under-23 arrests and tour costs drained the BFA coffers prior to March 31.

According to the statement of revenues and expenses contained in the independent auditors' report -- completed by chartered accountants Anfossi and Butterfield -- the major increases in spending stem from: Tours to Germany, Jamaica, United States and Argentina which cost the BFA $72,613 in 1995 compared to tour costs of $36,864 in 1994. Other travel fees jumped a whopping 325 percent -- from $2,954 in 1994 to $12,579 in 1995, partially due to expenses incurred while BFA officials travelled to Miami after seven players were arrested on drug charges; Legal fees also jumped over 350 percent with $33,129 spent in 1995 compared to $7,232 in 1994. More than $25,000 of that total was directly related to the Miami incident with $22,915 going toward legal fees on behalf of the seven players and $2,156 for travel costs; Former Technical Director Burkhard Ziese this year was allocated $83,363, the vast majority of the $102,295 he was paid during his short time in Bermuda.

Other increases in spending included: Courses and salaries for coaches -- $23,697 in 1995 compared to $16,299 in 1994; Telephone, postage and cable fees -- $11,750 in 1995 compared to $7,368 in 1994; Youth Division costs -- $8,029 compared to $5,428.

But, the biggest jump of all, surprisingly, came from soccer gear and supplies -- $9,944 in 1995 compared to $1,795 in 1994, a significant increase of 450 percent.

At first glance the figures reveal a budget out of control and not even the $71,856 the BFA obtained for qualifying for the Pan-Am Games helped.

The report also claimed that it was impossible to audit funds obtained at gates, something that is still not adequately controlled by the BFA.

On the plus side, during the latest fiscal year the BFA obtained $124,153 in government grants and received $100,000 in sponsorship fees. They also obtained $82,920 in registration and affiliation fees.

Those three amounts represented an increase from 1994, but not even that could wipe out a deficit.

Revenues from Cup competitions decreased marginally from $65,918 in 1994 to $55,541 in 1995, but Thompson seems determined to cut down those competitions even though they appear to be a money-maker.

"I'm looking at ways at increasing the competitiveness or enhancing the competitive level...the whole standard of the game by reducing the competitions,'' Thompson said.

He added: "There's a committee out there that will look at all of these things and will make recommendations. I just feel something has to be done. We just play too much soccer in a short space of time.'' It remains to be seen if gate receipts will plummet even further as a result of a possible ban on alcohol. Without revealing numbers, Thompson said the BFA actually realised a profit during the recent Olympic qualifier against Costa Rica -- even though alcohol was not sold.

That match merely served to underscore how the BFA finds itself in a financial straightjacket considering the game was not confirmed until the last minute chiefly due to a lack of support from the corporate sector.

One of the key recommendations in the Sharpe report -- tabled in the House of Assembly 100 days ago on Monday -- was that the sale of alcoholic beverages should be banned on an experimental basis.

Regarding the July 29 match against Costa Rica, Thompson said: "We're still trying to determine whether we lost people coming through the gates as a result of (the ban on alcohol). I think we made some money. Taking everything into consideration it was a good evening in terms of the support and the atmosphere and environment.'' With the new season scheduled to kick off on October 8, Thompson said the BFA is "pressing ahead'' with recommendations made in the Sharpe Report.

"There are a number of things... some of which we can effect ourselves.

Of course there are other things which we'll have to discuss with the affiliates.'' Club officials, however, wonder how serious the BFA is about fighting drugs since a meeting they had planned on the issue scheduled for June 26 did not materialise after Thompson promised that it would.

"The Sharpe report issue is still outstanding, and out of common courtesy the BFA should have met with the clubs about the matter,'' said Pearman. "It's very possible that this issue may come up whenever the next meeting is held.'' The BFA's financial picture could brighten during the next 12 months since fewer tours are being planned, but lurking ominously on the horizon is the Supreme Court trial on January 22 involving Ziese, who is seeking damages for wrongful dismissal. The financial statement stated that "the Association is defending the action and, based on the opinion of legal counsel believes it has a good defence and will be successful in the case.'' Meantime, Thompson was clearly disappointed that the BFA AGM was unable to conclude on Monday night. "We'll just have to re-schedule it. There is some business that we need to get on with because the new season is upon us.

When asked why representatives weren't showing up he said: "I have no idea.

Obviously I know that August is traditionally a month of vacation time.

"I can only ask them to please come out and let us please conclude this meeting.'' Added Pearman: "It's the clubs who have to form a quorum, they simply have to be more responsive and it's as simple as that. The BFA were there and the clubs weren't.'' RICHARD THOMPSON -- "The BFA has operated with a deficit before and has come out of it and I'm sure we'll come out of this one.''