Southend United face a big points deduction being handed to them after the judge makes a damning claim at the latest court appearance.
The Blues were at court knowing they must pay a tax bill of £275,000 to avoid facing a 10 point deduction, which would see them go from 9th to the bottom of the National League table.
Chris Phillips reported from court just before the case was heard: “It’s understood Blues have paid some of the bill but not all and will be seeking a 42 day adjournment.
“He’s definitely seeking an adjournment of 42 days. Says he’s confident the club will be sold by the end of September.
“On the debts, Ron Martin says: They will be discharged by the process of the purchase.
“Barristers for the companies are now disputing what Ron Martin has said.
“Ron Martin says £80,000 was paid to HMRC yesterday. HMRC say there’s no evidence for this.
“Ron Martin says players and staff are up to date with their wages.
“Judge Prentis: If this was not a football club with the attachment of its fans I would be winding you up today.
“Adjournment is granted. Blues will be back in court on October 4th”
“But the judge warns: “You will be wound up on the next date if it’s not sorted.”
LISTEN 🔊
“I’m not sure what’s going to happen, but we need to bring players in.”#Southend United head coach Kevin Maher on the team’s transfer embargo.
The Blues are in court today & must pay a tax bill of £275,000 to avoid facing a 10 point deduction.
— BBC Sport Essex (@BBCEssexSport) August 23, 2023
The club’s boss Kevin Maher hoped in the lead up the Shrimpers’ High Court appearance on Wednesday would lead to their transfer embargo being lifted.
Their winding-up petition had been adjourned in July until the 23rd of August to give owner Ron Martin more time to complete a sale of the club.
Maher said after defeat to Hartlepool: “I’m not sure what’s going to happen (in court) but we need players,” he told BBC Essex Sport.
“We need to bring players in and we haven’t done it for almost a year now.
“It’s pretty obvious to anyone watching what’s needed – the players have been incredible, the staff have been incredible, but we need help. That’s where we’re at.”
Southend could only name four subs for that game as they suffered their second successive National League defeat.
“You can’t cut corners on pre-season, you can’t cut corners every which way, which we have done as a club,” Maher continued.
“When you cut corners, you get found out and that’s what’s happening at the minute.”
Whe questioned if he has potential signings in the pipeline, if the embargo is removed, Maher replied: “It’s hard, (other) clubs are signing players all the time.
“Are people going to commit to Southend when we’re in the situation we’re in? I think there’s plenty will want to come here, when you see the crowds, you see the fan base and the football we want to play.
“But that pot (of players) gets smaller with every week that goes by. We knew what we wanted six months ago.”
Meanwhile, Southend midfielder Jack Bridge said that the ongoing off-field situation is playing on the minds of the players “a little bit” as they try to keep their focus on football.
“That’s all we can actually do. We’ve got to focus on Friday (against Eastleigh) and what happens (in court), happens,” the 27-year-old said.
“We know we’re good enough to do something this season and that hasn’t changed because we’ve lost a couple of games.”
The latest winding-up petition – the latest in a series faced by the club – concerns an unpaid £275,000 tax bill.
Southend currently have debts of £2.5million with around £300,000 still owed to football creditors.
There had been talks of a takeover since May, and Ron Martin wants to sell his stake for £1, however any prospective buyer must also be willing to pay £4.5m for Roots Hall stadium.
SOUTHEND STATEMENT (23RD AUGUST 2023)
Today the Court granted the Club a further 42 days to settle its debt to HMRC and those supporting the winding up petition, those payments will be facilitated by the sale of the Club.
Negotiations are at an advanced stage with a consortium led by an Australian national, and comprising of a group of local businessmen. Completion is targeted before 1 October.
Until the sale of the Club completes, everyone involved with the Club, supporters, staff and stakeholders will of course be anxious about its future. We also know that people are concerned about the prospect of a points deduction for apparent non compliance with the conditional licence we have been granted to play in the National league’s competition. We believe that the correct sanction for non payment of HMRC is an embargo, not a points deduction. We are talking to the National League on this point. If agreement cannot be reached we will immediately pursue an appeal.
We would like to thank our staff and supporters for sticking with us as we move towards a new era. We would also like to thank Kev, the coaching team and the players for their incredible efforts so far this season.
National League Statement: Southend United Football Club#TheVanarama
— The National League (@TheVanaramaNL) August 23, 2023
NATIONAL LEAGUE STATEMENT (23RD AUGUST 2023)
Following the statement issued on 26 July 2023 concerning Southend United, the National League can now provide a further update.
The League made the club aware on 26 July 2023 that all outstanding debt to HMRC should be discharged in full by their court hearing on 23 August 2023.
The League are now aware of the court hearing adjournment and that outstanding debt to HMRC has not been discharged in full.
As a result, Southend United Football Club have been deducted 10 points with immediate effect.
The League will make no further comment at this time.
NATIONAL LEAGUE STATEMENT (JULY 26TH 2023)
The National League appreciate the current unsettling time for the supporters of Southend United FC and would like to set out the current position.
Following extensive and positive dialogue, including sight of suitable evidence provided by the Club, appropriate steps are being made by the Club to satisfy the League and secure its participation in the 2023/24 Vanarama National League season.
The Club has now cleared the debts owed to football creditors and as such the League has issued a licence for the Club to participate in the 2023/24 Season.
The Club, who can now move forward to commence the season, are also required to fulfil the following conditions:
a. The Club HMRC debt is to be discharged in full by their next court date, 23 August 2023. It should be noted that this remains a requirement from the League even if the court hearing is further adjourned past the 23 August 2023.
b. In addition, having discharged all outstanding Football Creditors, and all HMRC debt by 23 August 2023, it will be a condition of the license to ensure all new or any Football Creditors debts or HMRC debt are cleared on time to the satisfaction of the League at any point during the 2023-2024 season.
Should the above, set out in a or b not be satisfied, the Club will be subject to an immediate and automatic 10 points deduction. This is in addition to any other action deemed appropriate by the League when considering any new debt.
The League has made it clear to the Club the importance that not only the current debt is settled but the Club operates in a manner that ensures they operate sustainably moving forward.
– STATEMENT ENDS –
This is how Twitter users reacted as Southend face a big points deduction and the judge makes damning claim at the latest court appearance…
@Iornnnnn: Southend United fans quite literally have saved their football club for just over another month
@007RyanWilliams: Southend on the brink again apparently 😕 Their owners are a joke to be dragging the club through the mud like this. Said it before, but really hope they’re saved and they survive. 🤞
@shrimperjon: Never been so depressed as a Southend fan. Demoralising to say the least. Embargo in place. Only 15 players and points deduction incoming. Oh and 7 games in September 🙏🦐⚽️
@HuishHugh: Southend United case adjourned yet again – to October 4th. If NL Board sticks to its word that’s 10 point deduction incoming. On the record that if football debts weren’t sorted this time around that’s what they’d do, even if judge further adjourned the case.
@dave_olsen16: Southend being taken right to the brink by Ron Martin. Parasitic owners are a scourge on our football clubs, and while it’s good that the judge recognises the importance of preserving these community assets, more needs to be done to stop situations like this in the first place.
@hfitch121: Build judge Prentis a statue
@Sufcjp1: Ron Martin an actual nasty vile person
@KingKing632: It’s an absolute disgrace anyway other person or company has no choice but to pay their taxes how can this man and company get so many chances
@MattyMarr17: IT’S OUR FAULT WE’VE NOT BEEN SOLD THO IS IT RON! WE’VE JUST SAVED YOUR ARSE!
@NicaraguaVisit: This is an absolute disaster. Means yet again we are faced with the transfer embargo at least until October and possibly a 10 point deduction. This is absolutely disgraceful from RM. I am beyond angry.
@RobbGray: -10 points incoming…
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