A ‘disappointed’ consortium planned to invest millions into National League club Hartlepool United but had their offer rejected.
Chairman Raj Singh, who says the club are still up for sale should the right parties come forward, said discussions “have been concluded” as a “viable agreement could not be reached”.
The consortium, who are reported to be “a group of partners who are all supporters of Pools”, as per Hartlepool Mail, had proof of £14million ready to invest in the club, who sit 14th in the National League, but seven points above the drop zone.
At the end of December 2023, ‘big, positive steps’ were being made with the consortium set for talks, with the Hartlepool United Supporters Trust (HUST) saying that the consortium had at the time provided initial proof of funds so that it can talk to the club.
But hopes have been dashed after this latest news that a deal couldn’t happen.
Not the news many #hufc fans want to hear as #Hartlepool United owner Raj Singh rejects a mystery consortium’s “final” takeover offer: https://t.co/yinmTPzkGS
— Gavin Ledwith (@GLedwi) January 25, 2024
Chairman Raj Singh commented on the matter:
“Following recent events it is important that I update supporters on the proposed Hartlepool United Supporters Trust led takeover.
“Sensitivities around these discussions prevented me from doing so to date. I have also been incredibly mindful of the impact that continually raising the topic publicly has on the operations of the Club – the ownership and perceived funding uncertainties of late have presented endless difficulties in securing and retaining staff, signing players and agreeing commercial partners.
“Despite placing Hartlepool United up for sale at the end of last season as requested by some supporters, there’s categorically been no credible buyers nor has any party even come forward with the correct initial proof of funds.
“That backdrop led me to approach the Trust in trying to do the right thing. The Trust was set up as a legal entity that could act and I asked the Trust to liaise and involve other supporter groups as well.
“Upon consideration of the finances involved the Trust understandably identified that they could not take over the Club alone and that they would look to raise consortium investment.
“The stark reality is that it costs a lot of money to operate a Club in the National League, especially if promotion is the aim and not just sustainability.
“I have been upfront with the Trust since day one, and consequently the consortium, as to what kind of takeover structure I was able to support with, so as to not waste anybody’s time.
“I must be absolutely clear that I have never changed that basis nor is it an excessively onerous one in terms of other benchmark deals that have happened at this level of football.
“Whilst I can’t go into specifics I feel I must highlight that the principles of my suggestion, based on the Trust’s involvement, required no up-front fee and any repayments of monies that I’ve invested in HUFC would be over the long term and only triggered if the Club either returned to profitability or achieved windfall incomes or league status milestones.
“Initial proof of funds were supplied however I haven’t yet received information as to how the consortium would formally work or how it would run and fund the Club going forward, which I did request in December.
“Some concerns have been raised by supporters regarding the final make-up of the consortium with withdrawals of key individuals and potential funds, a minority shareholding for the Trust and breaches in professional confidentiality across social media during the process.
“Personally though I want to thank the Trust and consortium for their efforts and I will keep dialogue open. Having listened to feedback and regardless of anything else that happens next, I will be approaching the Trust and other supporter groups as to how they can represent more formally within the Club, which could include a form of shareholding or stake.
“Since April I have taken a step back from the Club. That will remain until the longer-term future is clear. Additionally, and as I’ve said since day one, I’m open to serious offers and will actively welcome further approaches if they can safeguard this Club’s future and also realistically help fund and accelerate taking the team back to where we all want it to be.
“Immediately now in the short term, and given the position the team finds itself in, I need to reiterate and provide assurances with significant financial backing for the manager and Club staff. We must get the team clear from any potential relegation fight as an absolute priority and ideally start looking upwards.
“The recent ongoing process has paralysed the squad rebuild that Joe Monks and the football staff have been trying to implement following relegation. We must change the backdrop for now and I have given my assurances to Kevin Phillips as our new Head Coach on that matter.”
Please see below our latest update on behalf of the consortium, in response to the club statement earlier today. pic.twitter.com/UgZAIy3fLs
— HU Supporters Trust (@HUST_1908) January 25, 2024
Statement from the Consortium
“We were very disappointed to read Mr Singh’s statement today and, although there is a lot we could comment on, at this stage we would like to focus what we see as the most important points.
“We have already made Mr Singh two serious offers and have the funds, and just as importantly ideas, needed to build a far better future for Hartlepool United.
“Any suggestion that we lack these funds is simply wrong. One of our members is a major international investment company with impressive, socially conscious projects under development in the North East.
“They approached the consortium as they wanted to be part of a partnership that can help to drive the club and town forward and showed us proof of £14 million which was available for investment.
“After discussions, the investment company said that they were confident of the ability of the existing consortium members to drive our club forward and joined.
“At this stage the other members of the consortium had already deposited close to £600,000 in a solicitor’s account. This money has remained there throughout negotiations.
“We did not give Mr Singh a detailed business plan because we did not receive detailed enough accounts from him to be able to prepare one.
“We believed, and still believe, that a basic deal and detailed accounts are needed before proper planning can take place and made Mr Singh fully aware of this.
“The only serious obstacle to this deal has been Mr Singh’s inflated idea of the value of a club which is incurring serious losses and carrying substantial debt. We’re extremely disappointed with this outcome.
“We were hoping to unite the supporters, the club and the town in a rise we could all share, enjoy and benefit from.
“Never say die!
“The members of the HUST Consortium.”
This is how fans reacted as the ‘disappointed’ consortium say they planned to invest millions into the National League club but had the offer rejected…
@paul_parkinson: Keep fighting @HUST_1908. We are all behind you. Thanks to each and everyone of you for the hard work you are all putting in. 👍🏼
@mickyc1993: Please do not stop until the deal is done, we as fans will hopefully do everything we can to get him out starting this Saturday 🤝🏻
@MarshLukeW: This is simply unacceptable. What a disgusting feeling I have in my stomach
@JayNich47098520: That shuts people up who say this consortium has no funds. Is that £14 million just for investment for the club because if so that is another hugely missed opportunity
@danielhufc: HOW MANY MILLIONS READY FOR INVESTMENT
@JCoops190879: Get rid, proper horrible bloke
@benlespley: Surely that can’t be right? 14 million great British pounds ready for investment but can’t buy the club out right? 🙂🙂
@SamArnell05: Hard to believe people actually thought the bloke wasn’t going to sell. He’s the biggest con artist going.
@anthonystevenh7: Raj Singh you rat, get the fuck out he deserves everything that’s coming his way Saturday he’s getting it
@Jack__Wood: Raj Singh a cunt basically waiting for next month last parachute payment then he will sell once that money is in he’s account, nothing but a dirty fucking rat. Wouldn’t piss on him if he was on fire
@WinwoodBailey: Absolutely cooked with this response, play with feathers get your arse tickled #rajout
@Shakyshakes1980: Some people look really daft with their absurd claims now. Sure they won’t admit it though.
@PaulMcSweenie: Raj, get the fuck outta my club, lies after lies after lies from you, stating the consortium not got funds to run the club…. This statements begs to different….. Spike and Challinor knew all along knew and knows what you are…..
@adam_stead9: Anyone still supporting Raj after this give your head a wobble
@aghdidim: Trying to understand Raj. Is he afraid and jealous that others WILL do a better job than him show him how to run a football club professionally with all the fans behind this consortium. Raj you are just a custodian of our club temporarily we are fans forever so get out times up
@JackgHUFC: 14 mil not enough for him like??? greedy greedy man
@DarrenRickerby: Absolute sledgehammer. Well played.
@PGloverOfficial: He was never going to sell it…
@NickMcNaughton: Hollywood Stars now International Investment Firms. Raj Singh with the sole aim of killing the club
@BlythsGreenArmy: Raj Singh seems determined to drive Pools into the ground. How the FA or the @TheVanaramaNL let him get involved with a club after what happened at Darlo is beyond me.
@JobetsyPorter: Thank you for the clarity. Good to know the truth. Although I think many of us now are becoming adept at reading between the lines of Mr Singhs ‘I am great, everyone else is not’ statements.
@jayney1908: I certainly know whose account of this sorry saga I believe & it is not RS!! Perhaps why no explanation from him because he’s just spinning it his way🤬 #NSD 💙⚽️
@w_procter18: Fucking hate raj Singh
https://t.co/4Qj1IFEcIQ pic.twitter.com/tlVR04ZkG3
— Adam Davison (@adamdav_1998) January 25, 2024
You must be logged in to post a comment Login