A major update has emerged from the consortium and a council leader as Southend United are dealt with huge blow by the National League.
The National League has demanded a £1 million bond from the club, urging them to address concerns about its financial stability and whether they they can fulfil the 2024/25 season, failure of which could lead to further sanctions.
The Shrimpers’ financial woes are compounded by a prolonged takeover process and ongoing legal issues.
Everyone associated with Southend express deep concern and frustration, fearing the club’s potential collapse and the loss of a significant community institution.
National League Statement: Southend United#TheVanarama
— The National League (@TheVanaramaNL) June 24, 2024
So £1million bond, £500k winding up petition and the consortium have already paid more than £3.5 million
— Chris Phillips (@CJPhillips1982) June 24, 2024
NATIONAL LEAGUE STATEMENT:
The National League has this evening released the following statement regarding Southend United Football Club.
The National League continues to be concerned about Southend United Football Club’s ability to fulfil its financial obligations for the forthcoming National League Season.
The Club has for several months been the subject of a winding up petition (a further hearing of which is scheduled for this week) and, on 20 June 2024, filed its accounts for the year to 31 July 2023 which underscore and amplify the concerns expressed previously by the League.
Accordingly, the National League has today advised Southend United Football Club that as a result of the Club’s failure to provide the League with detailed, objective and independent evidence that the Club has sufficient funds to meet its financial obligations for the forthcoming National League season, and in light of previously-expressed concerns (underscored by the most recently-filed accounts), the Club will be required to post a bond of £1million, which will be held in escrow to the order of the League.
The bond shall remain in place until the sooner of (i) an ownership agreement with the consortium currently in talks with the Club being successfully concluded, to the satisfaction of the National League and the FA; or (ii) the Club demonstrating, to the satisfaction of the National League, that is has sufficient financial resources within its own means to meet its financial obligations for the forthcoming Season.
In the event that the Club fails to post the Bond in accordance with the requirements that have been communicated to the Club, the National League Board will meet again to consider further sanctions against the Club.
The decision is subject to the right of appeal to The Football Association.
“In our mind, the only option available to save the club is to complete the takeover now”
Consortium issue a major update on their bid to buy Southend United
Read here: https://t.co/JVu4f6ljXrhttps://t.co/JVu4f6ljXr
— Chris Phillips (@CJPhillips1982) June 25, 2024
Southend United respond: “The Club was made aware of the National League’s bond request a little earlier today.
“We will consider appropriate steps over the forthcoming days to protect the Club’s position pending the sale to the COSU.”
STATEMENT FROM CONSORTIUM (via Southend Echo):
“COSU (custodians of Southend United) is extremely disappointed in the National League’s latest actions, especially the timing and the short lead time to comply.
“At a time when the wider football world is voicing concerns surrounding the future of Southend United Football Club, it’s remarkable that our League is only making the situation more difficult to resolve.
“To our fans, the situation is not as hopeless as may appear from the outside.
“We are working around the clock with Ron Martin and Southend-On-Sea City Council to find a solution.
“It is clear that a revised Fossetts Farm Housing contract cannot be completed for several more weeks.
“Therefore, in our mind, the only option available to save the club is to complete the takeover now, and allow the housing negotiations and due diligence at Fossetts to continue subsequently.
“This adds significant risk to COSU as our plans to remain at Roots Hall and regenerate the site are fully dependent on the Council and Citizen Housing amending their current housing contract.
“To proceed on this basis, amongst other requirements, we need Citizen Housing and the Council to agree a revised heads of terms and commit towards their implementation, including working through any amendments that may be required to address future due diligence issues.
“We appreciate that this is a very stressful time for our fans, and no guarantees can yet be given, but we urge Shrimpers to stay united and positive.”
COUNCIL LEADER DANIEL COWAN
This is more than disappointing. The National League has acted unreasonably to create another unnecessary hurdle in the takeover of SUFC.
At a time we need to be focused on negotiations, a grenade has been thrown on the table. https://t.co/ofYbr0Mhqu
— Cllr Daniel Cowan (@CllrCowan) June 24, 2024
Lesson to take a moment to think before tweeting. This news broke whilst we were in Cabinet and my initial reaction was this is an unnecessary distraction.
It puts a lot of pressure on COSU but it doesn’t change what we need to agree asap with Citizen Housing https://t.co/oeb28nknAq
— Cllr Daniel Cowan (@CllrCowan) June 24, 2024
There’s been no lack of urgency from the council in the 5 weeks I’ve been Leader. I can’t speak to the last administration but what I’ve seen from our officers tells me that they’ve lived and breathed this for a long time trying to make it work.
— Cllr Daniel Cowan (@CllrCowan) June 25, 2024
It’s about the Heads of Terms, eg the financials etc. We know what doesn’t work because of the last DD. We now need to find an agreement we can put through DD again.
— Cllr Daniel Cowan (@CllrCowan) June 24, 2024
This is how fans reacted as a major update from the consortium emerges as Southend are dealt with a huge blow by the National League…
@AllAtSeaFanzine: £1m? Where on earth are we meant to get that from 2 days before a high court hearing? You lot are absolute cowboys.
@dannyholmes84: So not a pot to piss in but expect them to find £1 million pound extra on top of everything else.
@Andrew_Shrimper: You honestly make it up as you go along. “We’re concerned that you don’t have enough money to start the season so please give us £1m.”
@299Peter: But you don’t punish the one man who has caused all this!!!! @shrimperstrust @Anna_Firth @CllrCowan @wageadr
@Jokerclub: Well done @TheVanaramaNL do you know how many peoples MH is at breaking point ?
@heyit5sam: Cowboy owners get away with it but happy to stick a £1m lump sum on SUFC. If only clubs had an independent regulator. If only leagues brought in rules to throw cowboys out of the game just as quickly as they can bring them in. How on earth does the game keep letting this happen
@andy_b1969: The final nail in the coffin…..thanks.
@NicaraguaVisit: Why kick us when we are down? So unfair… this will kill the club once and for all. A sad day for us and for football.
@GarrySmithMT: You absolute bunch of clowns. You have no idea how to run a league. You will push the club out of existence with this unreasonable demand. Absolutely disgraceful- hopefully the club will appeal and The FA will tell you what a ridiculous idea this is.
@greg_herriett: You are just a bunch of vandals.
@BrianRo37622801: To be honest, this is just getting silly now. Time for SUFC to start again.
@JimboCambo: Thanks a million
@hund85: Literally just picking punishments out of the sky!! Can you not see that there is 1 reason we are in this mess and everyone else apart from him is trying all they can to get out of it!! This is a new low for you as an organisation and league co-ordinator
@onefortheroad22: WTAF? JESUS. £1m?
@lydylyd: Great.. not.. looks like if we do survive this we are going to be relegated to the isthmiam league..
@bookkaz: Really?? 🤬 shameful course of action
@hughesy_alty: This isn’t the leagues fault, what else can they do, Southend have had a stay of execution longer the many others. It’s awful for the supporters but if they go pop in 2 weeks time or ten games in Who foots the bill for 23 lots of loss of earnings. Or readjusting the league?
@stuartbyford: Do you make the rules up as you go along?
@euniesufc: Could be wrong but I swear the consortium said they wouldn’t be paying off Ron Martins WUP and Debts to the league?
@Nwrighty18: Really unfortunate for Southend and their fans, but they are lucky they havent already been wound up, clubs before have been wound up owing far less and had less opportunity to complete a takeover.
@lammymps: Unbelievable 😞 kicking em while they’re down is just wrong on all levels. We as a club know what you’re going through #ycfc wish you all the best ❤️💙
@rayleighmartin: This could be the final nail in the coffin! I’ve not believed we were totally screwed until now. Only saviour is the consortium who would have to stump up £1.5m
@C_Stephen15: Ah yes, charge the struggling club £1m. That’ll sort it. Scumbags
@PhilOwen702: The irony of all of this, is that, we have an excellent consortium ready to buy the club, excellent facilities, a great team, all destroyed by the greed of one family, holding the club to ransom to eek a few extra pounds out of the council for a housing project linked to the sale
@hlane0117: Total disgrace you lot. If this isn’t trying to bury SUFC once and for all, I don’t know what is.
@jane36london: And so it continues ☹️ Feel for the loyal Shrimpers fans💙
@richiec87: So wait, if they can’t meet obligations ask them to fork out £1m upfront (instead of using that to meet obligations). Plus a decision predicated upon figures up to June 2023 yet club went on to complete the league season 🤡
@JB_Allen: As always, punishing the club, not the curator of the problems.
@chris_eaton_: Going for a money grab before they go bust? You are a disgrace and the board of the NL need investigating!
@harrisufc: Thanks for the support; thanks for looking out for a football club at the heart of community; thanks for trying to do all you can to support something that unites families & provides a place that inspires youngsters. Thanks for absolutely nothing; maybe thanks for final nail more like!
@vickySUFC77: Unbelievable kick a club n fans why the are going through a hard time
@aldershot4ever: Had enough chances any other team would of been booted out by now
@antsk: Sanctions (and potentially further sanctions) on a club that’s already struggling? Thanks, final nail in the coffin and if it is – hope you’re proud of yourselves!
Gary Lineker and Alan Shearer speak on situation at Southend United and their ongoing battle
Shrimpers Trust prepared for all outcomes regarding Southend United including phoenix club plans
You must be logged in to post a comment Login