I think that the point Elstree might be trying to make is that 'parent company' might not be Ron Martin.
Can you remind me how much is owed to Sainsburys? :unsure:
And who are the beneficial owners of the BVI companies? :unsure:
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Breaking News Today's Echo - Who owns the Blues? (2010 thread)
I think that the point Elstree might be trying to make is that 'parent company' might not be Ron Martin.
Can you remind me how much is owed to Sainsburys? :unsure:
And who are the beneficial owners of the BVI companies? :unsure:
Is equally as true.
This isn't a Ron Martin issue. The problem won't go away if he goes away. The question is who in their right mind would invest a massive influx of cash into the club REGARDLESS OF THE OWNER?
I don't see a viable business (unless the stadium plans come off, but even then that's not a given).
Sainsburys aren't exactly viable owners for the club either.
Why does it matter where that money came from? The club needed bankrolling, Ron Martin arranged it. The issue is that he's no longer able to finance our losses.
Agreed. The only new bit of information isn't that a property developer is highly leveraged, it's that the stadium project is further ahead than we thought due to Sainsburys having sorted out a deal with Prospects. Far from doom and gloom, this expose actually highlights the best bit of news emanating from Roots Hall for about 6 months. I'm actually more confident that we'll have a club at the start of the season and I think diggers will be in at Fossetts Farm before the end of the year.
The idea that that snippet is the best bit of news in 6 months is however highly depressing.
ManchesterBlues
Schoolboy
- Joined
- Apr 6, 2008
- Messages
- 70
Having seen this mentioned by many people just read the Roots Hall title deed (inc Covenant) and I cant see it anywhere! If its not there they ddont have any obligation and will lay the blame firmly at the door or RM... Lets face it who would you believe?
The point is surely that Sainsburys aren't going to forward that money without any security. SUFC were unable to offer any so without RM's companies providing security we wouldn't have been able to pay our tax bill.
bazzashrimper
Director
When RM is £22m in debt (whatever that debt is) and his money seems to get shifted from one company to another at the blink of an eye, it shows how insignificant the sell on for Bailey / Hooper is, and also shows how 4000 season tickets get sold and we can't pay the wages the next month.
As for Sainsbury's, if they did end up owning the club, they wouldn't want it and would look to offload immediately. Elstree Blue - are the consortium still waiting in the wings or have they moved on to ventures new?
As for Sainsbury's, if they did end up owning the club, they wouldn't want it and would look to offload immediately. Elstree Blue - are the consortium still waiting in the wings or have they moved on to ventures new?
jamesmut2000
Director
The bit about Sainsburys not being able to develop the site is not covered by the covenant - it's covered by the S106 agreement that was part of the planning permission. A couple of quotes from it for you:
• Replacement stadium to be available for use before redevelopment of old stadium site
and with more detail the S106 says the following:
New Stadium - The retail store is restricted from being constructed beyond:
• sales floor level unless and until the New Stadium bowl excavations and foundations have been completed
• watertight shell unless and until a Safety Certificate has been issued for the new stadium
• and not allow to trade until a safety cerficate has been issued for the new stadium
Somerset Ex-TTB
Members
The only reason that the club has historically lost money over the past few years is due to poor management and the fact that the Club (SUFC) has paid for things relating to the stadium that it should not be paying for as a tennant. (£1.9m Sundry expenses anyone?)
Given the recent high income streams, player sales, high TV revenues and commercial income streams, compared to the the very very small squads over the past few seasons (even if Peter Clarke did cost £1m over 3 years), the revenue generated from the football side of the club should have covered all or at least 90% of the expenditure from the football side.
With gates as high as ours, cup runs and player sales, the club should have been at break even, with maybe a small profit one year and a small loss another.
I would take an educated guess (without the detailed accounts) that without unnecessary expenditure that we should not have been making over the past 5 years the club would of made at worst half a million loss that would have to be made up.
This excuse that everyone keeps trotting out that nobody would be interested in a loss making football club is just complete tosh. If the club was run properly, with average gates of 7000-9000, decent sponsorship and commercial income there is enough money there to sustain a fairly good squad of league one players earning average league one money without losing shedloads every season.
Given the recent high income streams, player sales, high TV revenues and commercial income streams, compared to the the very very small squads over the past few seasons (even if Peter Clarke did cost £1m over 3 years), the revenue generated from the football side of the club should have covered all or at least 90% of the expenditure from the football side.
With gates as high as ours, cup runs and player sales, the club should have been at break even, with maybe a small profit one year and a small loss another.
I would take an educated guess (without the detailed accounts) that without unnecessary expenditure that we should not have been making over the past 5 years the club would of made at worst half a million loss that would have to be made up.
This excuse that everyone keeps trotting out that nobody would be interested in a loss making football club is just complete tosh. If the club was run properly, with average gates of 7000-9000, decent sponsorship and commercial income there is enough money there to sustain a fairly good squad of league one players earning average league one money without losing shedloads every season.
The prospect of ploughing millions of pounds into a club on the basis that if it is well run and has some success it might only lose a small amount each year doesn't particularly appeal to me.
Talking of things tenants shouldn't be paying, I know something tenants should be paying - and that we don't seem to have: rent.
Jay_Shrimper
Mummy's Little Soldier
- Joined
- Jan 7, 2007
- Messages
- 2,643
Typed up - For Exiles part 4
HOW CLUB SOLD 'RANSOM STRIP' TO STORE GIANT
Sainsbury's already owns part of the Roots Hall football ground, which gives it a "ransom strip" during future negotiations.
The supermarket paid Roots Hall Ltd 587,500 for the freehold of a small piece of land, including part of the club shop, at the entrance to the ground, in September 2008.
The strip acts as the firms main negotiating counter, giving it the foothold needed to seal a deal ad complete the overall purchase of the ground.
The purchase coincided with Sainsbury's giving Roots Hall Ltd a deposit loan of 1,200,850, following nine months of negotiations.
Sainsbury's had also given Roots Hall Ltd an earlier loan deposit of more than 600,000.
The latest undisclosed loan from Sainsbury's to Roots Hall was made on April 16th, two days after the retailer cleared the clubs last tax debt of around 400,000.
The deal was brokered using land off Ferry Road, Benfleet, opposite the train station, belonging to Martin Dawn - another of Mr Martin's firms.
Sainsbury's could legally claim the land if the lump sum is not repaid in full.
The site was earmarked for up to 30 homes by Martin Dawn Plc in the mid-1990's, but following protests by the locals, permission was refused and the site designated a conservation area.
REPAY LOAN......OR LOSE CONTROL!
Sainsbury's would become the major shareholder of Southend United if a loan goes unpaid.
This is the price the club, and Mr Martin, could pay for the bailout loan of 2.1m which the retail giant stumped up last November. The payment cleared the whopping tax debt and saved the club from spiraling into administration.
Roots Hall Ltd secured the borrowing by striking a deal which would see Sainsbury's take 76% of the clubs shares unless the sum was repaid.
The 76% equates to 1,216,000 shares, at the moment, worth about 300,000, owned by Southend Eastern Leisure UK Ltd, another of Mr Martin's firms.
The club board of directors has changed it constitution, allowing shareholders to sell shares without the board's consent. This means Sainsbury's could effectively sell the club if it gained a majority of shares.
Michelle Dix, spokeswoman for Sainsbury's, said: "We don't comment on commercially sensitive deals."
ANOTHER TAXMAN BATTLE
Chairman RM is facing up to a renewed battle with the taxman who wants to shut down of his main businesses.
HMRC will try to wind up Martin Dawn plc, a land development company, over undisclosed tax debts at the High Court in November.
The Echo can also reveal how Mr Martin took interest free loans, totaling more than 4.7m, from the company between 2006 to 2009. The largest loan was between June 2007 and July 2008, when he borrowed 2.6m interest free from the company.
Its latest published accounts - up to 31 July 2009 - showed tax and social security debts of 151,284 and interest to pay on overdue tax of 8,152.
In 2008, it owed 39,245 just in interest on overdue tax - meaning tax arrears of at least 500,000 must have been accumulated.
Martin Dawn plc is pivotal to Southend United as it owns 50% of South Eastern Leisure UK, which is the football club's major shareholder, owning 76% of its shares.
It is also the parent company to eight of Mr Martin's other firms.
We discovered the wind-up bid against Martin Dawn plc is the seventh time a creditor of the parent property development company has tried to wind it up over unpaid debts in the past 11 years.
The accounts show the firm has total debts of 7.6m, made loses of 1.7m for the year, and has an overall deficit of 1.4m.
RON TAKES A 60K MANAGEMENT FEE
Ron Martin charges Southend United a 60,000 a year "management fee" through his company Martin Dawn plc.
Mr Martin has always maintained he does not take a paid salary from Southend United for his work as chairman, and it is not clear from accounts of either of the companies what specific work the management fee covers.
His company, Martin Dawn plc, also charges expenses to Southend United, including a bill of 95,585 in 2007.
However, according to the 2009 accounts for Southend United, Martin Dawn charged no expenses that year and only 4,625 in 2008.
There are no further details in the accounts for what the expenses cover.
There are 2 more articles to come. I will try and post them sometime tonight.
HOW CLUB SOLD 'RANSOM STRIP' TO STORE GIANT
Sainsbury's already owns part of the Roots Hall football ground, which gives it a "ransom strip" during future negotiations.
The supermarket paid Roots Hall Ltd 587,500 for the freehold of a small piece of land, including part of the club shop, at the entrance to the ground, in September 2008.
The strip acts as the firms main negotiating counter, giving it the foothold needed to seal a deal ad complete the overall purchase of the ground.
The purchase coincided with Sainsbury's giving Roots Hall Ltd a deposit loan of 1,200,850, following nine months of negotiations.
Sainsbury's had also given Roots Hall Ltd an earlier loan deposit of more than 600,000.
The latest undisclosed loan from Sainsbury's to Roots Hall was made on April 16th, two days after the retailer cleared the clubs last tax debt of around 400,000.
The deal was brokered using land off Ferry Road, Benfleet, opposite the train station, belonging to Martin Dawn - another of Mr Martin's firms.
Sainsbury's could legally claim the land if the lump sum is not repaid in full.
The site was earmarked for up to 30 homes by Martin Dawn Plc in the mid-1990's, but following protests by the locals, permission was refused and the site designated a conservation area.
REPAY LOAN......OR LOSE CONTROL!
Sainsbury's would become the major shareholder of Southend United if a loan goes unpaid.
This is the price the club, and Mr Martin, could pay for the bailout loan of 2.1m which the retail giant stumped up last November. The payment cleared the whopping tax debt and saved the club from spiraling into administration.
Roots Hall Ltd secured the borrowing by striking a deal which would see Sainsbury's take 76% of the clubs shares unless the sum was repaid.
The 76% equates to 1,216,000 shares, at the moment, worth about 300,000, owned by Southend Eastern Leisure UK Ltd, another of Mr Martin's firms.
The club board of directors has changed it constitution, allowing shareholders to sell shares without the board's consent. This means Sainsbury's could effectively sell the club if it gained a majority of shares.
Michelle Dix, spokeswoman for Sainsbury's, said: "We don't comment on commercially sensitive deals."
ANOTHER TAXMAN BATTLE
Chairman RM is facing up to a renewed battle with the taxman who wants to shut down of his main businesses.
HMRC will try to wind up Martin Dawn plc, a land development company, over undisclosed tax debts at the High Court in November.
The Echo can also reveal how Mr Martin took interest free loans, totaling more than 4.7m, from the company between 2006 to 2009. The largest loan was between June 2007 and July 2008, when he borrowed 2.6m interest free from the company.
Its latest published accounts - up to 31 July 2009 - showed tax and social security debts of 151,284 and interest to pay on overdue tax of 8,152.
In 2008, it owed 39,245 just in interest on overdue tax - meaning tax arrears of at least 500,000 must have been accumulated.
Martin Dawn plc is pivotal to Southend United as it owns 50% of South Eastern Leisure UK, which is the football club's major shareholder, owning 76% of its shares.
It is also the parent company to eight of Mr Martin's other firms.
We discovered the wind-up bid against Martin Dawn plc is the seventh time a creditor of the parent property development company has tried to wind it up over unpaid debts in the past 11 years.
The accounts show the firm has total debts of 7.6m, made loses of 1.7m for the year, and has an overall deficit of 1.4m.
RON TAKES A 60K MANAGEMENT FEE
Ron Martin charges Southend United a 60,000 a year "management fee" through his company Martin Dawn plc.
Mr Martin has always maintained he does not take a paid salary from Southend United for his work as chairman, and it is not clear from accounts of either of the companies what specific work the management fee covers.
His company, Martin Dawn plc, also charges expenses to Southend United, including a bill of 95,585 in 2007.
However, according to the 2009 accounts for Southend United, Martin Dawn charged no expenses that year and only 4,625 in 2008.
There are no further details in the accounts for what the expenses cover.
There are 2 more articles to come. I will try and post them sometime tonight.
Jay_Shrimper
Mummy's Little Soldier
- Joined
- Jan 7, 2007
- Messages
- 2,643
Typed up - For Exiles part 5
HARSH REALITY OF CLUBS FINANCIAL 'BLIP' HITS HOME
The day after Southend United dodged a second winding-up bid by the taxman, chairman Ron Martin described the bleak financial period as a 'blip'.
Speaking in mid-April, he promised a bright future for the club, refuted claims he could have handled problems better and said he had, in fact, avoided making people redundant.
Now, ten weeks on, and with the club having been relegated to League Two, the harsh reality of the club's financial situation is beginning to take hold.
Key players have left the club, including Southend-born captain Adam Barrett, leaving manager Steve Tilson with just nine contracted first team players, some of whom are still not being paid on time.
The blues remain under a transfer embargo because of the 120,000 owed to the Professional Footballers Association.
This sum was borrowed to pay outstanding player's wages last season.
Three staff jobs have gone too. A media officer, secretary and ticket office worker have been made redundant.
Extensive Echo research can also reveal four unsatisfied county court judgments - served on the club in the past 12 months - totaling more than 123,000.
If the debts remain unpaid, they could lead to more winding up attempts by creditors.
The largest debt - of about 72,000 - is owed to the company which has helped prepare its business plan for the new stadium by getting retailers and other businesses involved to fund it.
Deloitte LLP accountants has a sports business group providing specialist advice to football clubs on business development plans, taxation and player transactions.
It has previously flagged up its work the project when trying to attract the business of other clubs in need of a new ground.
In April 2008, Deloitte wrote to bosses at Premier League side Everton FC about a new stadium plan, citing its work with Southend on the Fossetts Farm project as an example.
But last June it had to apply for a county court judgment over the unpaid bill.
The second largest is in respect of 31,285 owed to Bibby Factors Bristol - a financial service loan company. A third occurred in December when Southend Theaters, which runs the Cliffs Pavilion, got a judgment for 4,851 while HQ Hospitality, which runs the catering for the fir, got a judgment for 14,673.
The two debts are believed to relate to a club player end of the year celebration night held at Cliffs Pavilion last May.
None of the four firms awarded judgments would comment due to client confidentiality.
The club is also struggling to pay a string of other debts. The latest published accounts for the 12 months up to July 2009 show:
The latest accounts show the club's total debts were 7,793,690. It recorded a loss of 2,039,437 for the year.
More than 1.8m of the debt was tax and social security related, 1.6 was owed to chairman Ron Martin's other companies. Mr Martin personally guaranteed 400,000 of the club's debts in 2008/2009, the accounts say.
CHAIRMANS FIRMS OWE 22 MILLION
Ron Martin's UK registered companies owe almost 22M between them.
The 12 companies, owned by Mr Martin, have an on-paper combined net deficit of 8.1m according to latest published accounts.
Mr Martin told fans he controls 29 different companies at a question and answer session in March.
The meeting, at the Palace Park Inn Hotel, by Southend Pier, was held to allay fears over finances in the run-up to its second court battle with the tax man and followed angry protests from fans outside Roots Hall.
Echo research found 12 UK Companies, including Southend United, plus five others registered in off-shore tax havens, including Cyprus, Jersey and the British Virgin Islands, with one worth more than 6m.
There is also evidence of a large level of inter-borrowing between Mr Martin's firms.
Southend United owes nearly 1m to South Eastern Leisure (UK), its main shareholder, which in turn owes Martin Dawn PLC more than 3m.
The offshore firms include Mezcal Investments, which Mr Martin has described as his over-arching company, and a company it owns called Tribeca Property Southend, both in the British Virgin Islands.
UK Accounts information show Mezcal Investments is owed 1m by Southend United, 3.58m by South Eastern Leisure UK Ltd and more than 930,000 by Roots Hall Ltd.
Records from the British Virgin Islands registry of Corporate Affairs show Tribeca Property Southend has an authorized capital of more than 31,000, while Mezcal Investments is authorized to issue a maximum of 50,000 shares.
The other offshore companies are South Eastern Leisure Company in the British Virgin Islands, Jetbury Investments in Cyprus and MD (Southend) in Jersey.
According to Mr Martin's UK Companies accounts, South Eastern Leisure Company had capital and reserves of 6.1m in 2008.
HARSH REALITY OF CLUBS FINANCIAL 'BLIP' HITS HOME
The day after Southend United dodged a second winding-up bid by the taxman, chairman Ron Martin described the bleak financial period as a 'blip'.
Speaking in mid-April, he promised a bright future for the club, refuted claims he could have handled problems better and said he had, in fact, avoided making people redundant.
Now, ten weeks on, and with the club having been relegated to League Two, the harsh reality of the club's financial situation is beginning to take hold.
Key players have left the club, including Southend-born captain Adam Barrett, leaving manager Steve Tilson with just nine contracted first team players, some of whom are still not being paid on time.
The blues remain under a transfer embargo because of the 120,000 owed to the Professional Footballers Association.
This sum was borrowed to pay outstanding player's wages last season.
Three staff jobs have gone too. A media officer, secretary and ticket office worker have been made redundant.
Extensive Echo research can also reveal four unsatisfied county court judgments - served on the club in the past 12 months - totaling more than 123,000.
If the debts remain unpaid, they could lead to more winding up attempts by creditors.
The largest debt - of about 72,000 - is owed to the company which has helped prepare its business plan for the new stadium by getting retailers and other businesses involved to fund it.
Deloitte LLP accountants has a sports business group providing specialist advice to football clubs on business development plans, taxation and player transactions.
It has previously flagged up its work the project when trying to attract the business of other clubs in need of a new ground.
In April 2008, Deloitte wrote to bosses at Premier League side Everton FC about a new stadium plan, citing its work with Southend on the Fossetts Farm project as an example.
But last June it had to apply for a county court judgment over the unpaid bill.
The second largest is in respect of 31,285 owed to Bibby Factors Bristol - a financial service loan company. A third occurred in December when Southend Theaters, which runs the Cliffs Pavilion, got a judgment for 4,851 while HQ Hospitality, which runs the catering for the fir, got a judgment for 14,673.
The two debts are believed to relate to a club player end of the year celebration night held at Cliffs Pavilion last May.
None of the four firms awarded judgments would comment due to client confidentiality.
The club is also struggling to pay a string of other debts. The latest published accounts for the 12 months up to July 2009 show:
- Director Gary Lockett, who resigned last September, is owed 80,000, which he loaned the club in September 2008.
- Current directors Micheal Markscheffel, Frank Van Wezel are owed 95,000 and 100,000 respectively.
- 1,795 is owed to players pension contributions.
- Cash owed to other football clubs for loan players.
- The Shrimpers Trust is owed 60,000 it loaned to the club last December.
The latest accounts show the club's total debts were 7,793,690. It recorded a loss of 2,039,437 for the year.
More than 1.8m of the debt was tax and social security related, 1.6 was owed to chairman Ron Martin's other companies. Mr Martin personally guaranteed 400,000 of the club's debts in 2008/2009, the accounts say.
CHAIRMANS FIRMS OWE 22 MILLION
Ron Martin's UK registered companies owe almost 22M between them.
The 12 companies, owned by Mr Martin, have an on-paper combined net deficit of 8.1m according to latest published accounts.
Mr Martin told fans he controls 29 different companies at a question and answer session in March.
The meeting, at the Palace Park Inn Hotel, by Southend Pier, was held to allay fears over finances in the run-up to its second court battle with the tax man and followed angry protests from fans outside Roots Hall.
Echo research found 12 UK Companies, including Southend United, plus five others registered in off-shore tax havens, including Cyprus, Jersey and the British Virgin Islands, with one worth more than 6m.
There is also evidence of a large level of inter-borrowing between Mr Martin's firms.
Southend United owes nearly 1m to South Eastern Leisure (UK), its main shareholder, which in turn owes Martin Dawn PLC more than 3m.
The offshore firms include Mezcal Investments, which Mr Martin has described as his over-arching company, and a company it owns called Tribeca Property Southend, both in the British Virgin Islands.
UK Accounts information show Mezcal Investments is owed 1m by Southend United, 3.58m by South Eastern Leisure UK Ltd and more than 930,000 by Roots Hall Ltd.
Records from the British Virgin Islands registry of Corporate Affairs show Tribeca Property Southend has an authorized capital of more than 31,000, while Mezcal Investments is authorized to issue a maximum of 50,000 shares.
The other offshore companies are South Eastern Leisure Company in the British Virgin Islands, Jetbury Investments in Cyprus and MD (Southend) in Jersey.
According to Mr Martin's UK Companies accounts, South Eastern Leisure Company had capital and reserves of 6.1m in 2008.
Pubey
Guest
I have to say, this is truly superb investigative journalism by The Echo.
Pulitzer Prize?
Pulitzer Prize?
Jay_Shrimper
Mummy's Little Soldier
- Joined
- Jan 7, 2007
- Messages
- 2,643
THIS IS THE WHOLE LOT OF THE ECHO ARTICLES TYPED UP - IN ONE POST.
Typed up - For Exiles part 1
WHO OWNS THE BLUES?
The extent of Southend United's reliance on supermarket giant Sainsbury's can be revealed today.
An echo investigation provides a remarkable insight into the finances of the Blues and chairman Ron Martin.
Sainsbury's is taking a leading role in sensitive negotiation to secure the redevelopment of Roots Hall and the club's move to a new stadium. And the company could take a controlling interest in the club if a debt is not repaid.
RON'S CARIBBEAN FIRMS OWN LAND
Land set aside for the new Fossetts Farm stadium is owned by one of Ron Martin's companies, registered to an offshore tax haven in the Caribbean.
The 32-acre site where the stadium, casino, hotel and conference centre is set to be developed, is owned by the Tribeca Property Southend company, whose registered agent is in Tortola, British Virgin Islands.
It paid 1.76m for the land in November 2007 - ten months after Southend and Rochford councils gave planning permission to the new development.
Tribeca Property Southend Company is owned by another of Mr Martin's British Virgin Islands registered companies - Mezcal Investments.
We were unable to get a full financial information on the two offshore companies because of limited information available from the British Virgin Islands Registry of Corporate Affairs.
LONG STANDING FEARS
Fans have long worried about their club's debts.
On the ShrimperZone online forum, dedicated to Blues' supporters, fans demanded answers about a 1.3m-plus tax bill showing in the club's account for 2006.
This was the debt which ballooned to 2.1m and was eventually paid up by Sainsbury's, last November.
A year ago Geoffrey King, club chief executive, spoke of overcoming the tax problem in an online blog.
He spoke of the Football League agreeing an arrangement with the customs to pay off arrears over an extended period.
He said "Southend United will take advantage of the arrangement as it too has been carrying a fluctuating HMRC debt in its accounts since before my time. Last July (2008), the clubs parents company injected some 650,000 to overcome the HMRC position."
Yet just a month after Mr King's comments, the HMRC launched the first of it's two unsuccessful wind-up bids.
Typed up - For Exiles part 2
CLUB'S CASH IS BEING SOAKED UP BY DEBTS
Southend United hoped to bag 20M from the sale of Roots Hall to Sainsbury's - yet at least 7M has already been eaten away by debts.
The cash is being rapidly soaked up as the club tried to stay on top of its finances while its dealings progress with Sainsbury's.
About 2.5m from Sainsbury's was handed to the Blue to clear two hefty tax debts. Neither debt has so far been repaid.
A further 1.8m has also been passed over by Sainsbury's in various loans, since November 2007. The interest on these is still building.
Furthermore, the supermarket giant is guaranteeing 3m of the 7.7m Mr Martin's companies must pay to Southend Council for regeneration elsewhere in the town as part of the final deal.
It is not clear how this favour will be squared.
On top of this, Roots Hall Ltd still has to shell out an undisclosed sum to the council for the key ten-acre training ground site where the casino, shopping center and flats would be built.
The Boots and Laces training ground, off Eastern Avenue, is currently only leased by the council to South East Leisure UK, belonging to Mr Martin.
Last April, a council special cabinet meeting agreed a request from Mr Martin to sell the ground to his company Roots Hall Ltd.
Another main element of the new development has yet to be finalized.
At the same cabinet meeting, the council agreed to allow Mr Martin to buy 2.3 acres of council land, which includes council homes at 291 to 301 Victoria Avenue for an undisclosed sum.
The transaction has not yet been completed.
Council spokeswoman Katy Best said: "Roots Hall Ltd is still negotiating the details of the developments at Roots Hall and Fossetts Farm with various parties.
Accordingly, the council cannot say when contracts will be exchanged and completion effected in respect of its land."
Typed up - For Exiles part 3
SUPERMARKET TAKES CONTROL TO SECURE FOSSETTS PLAN
Sainsbury's is stealthily taking control of the 100m FF stadium development for Southend United.
The supermarket giant has secured a crucial agreement with Prospects College, clearing the way for a superstore to be built on the football club's current Roots Hall site.
Prospects had refused to deal with Southend United and it's chairman RM, citing concern about the financial well being of Mr Martin's companies.
A detailed investigation by the Echo has uncovered the true extent of financial problems facing the club and Mr Martin's 12 UK companies, which we can reveal have combined debts of almost 22m.
These include parent UK company Martin Dawn Plc, which the taxman is trying to wind up over undisclosed debts.
Despite the economic storm, insiders at the club remain confident the Fossetts Farm project will go ahead. But the frustration of some fans at the lack of information coming out of Roots Hall is summed up by Charles Turner, of Metz Avenue, Canvey.
He said "Southend United have become a laughing stock, with the taxman continually on their case and Sainsbury's having to bail them out. Mr Martin refuses to come clean and I can see no light at the end of the tunnel. The fans deserve a lot better."
The echo can now reveal how financially reliant Mr Martin is on Sainsbury's, and how the retailer will take control of the club if the debts are not repaid.
The super-stadium dream has been kept alive only because Sainsbury's last week brokered a deal with Prospects College to buy up its site in Fairfax drive.
The college agreed to the deal provided Roots Hall Ltd - one of Mr Martin's firms - was not involved in any purchase.
Roots Hall and Sainsbury's previously planned to buy the site together. Prospects is key to the the Roots Hall development, as its land would form the access to the car park for the proposed Sainsbury's store.
Over the past two years, there have been three previous joint bids by Sainsbury's and Roots Hall to buy the site, which have all collapsed.
Prospects decided it would sell only to Sainsbury's after carrying out financial checks into Mr Martin's companies. A further bid by Sainsbury's, earlier this year was also shelved.
However, at a board meeting last Thursday, the college agreed to an undisclosed offer from Sainsbury's, subject to contract.
Neil Bates, chief executive of Prospects College, said "After the last purchase collapsed, we sought to market the site and got interest from a third party.
We also got a renewed interest from Sainsbury's and made it clear we would only sell if it was solely to Sainsbury's. We have agreed terms, but not yet exchanged contracts.
This is the fifth time we have reached this stage, so it is not yet certain, but I am optimistic it will go through within ten days."
When the Fossetts Farm dream began, Mr Martin's firms were supposed to acquire land needed for the developments.
Yet Roots Hall Ltd still has to buy other crucial sites, including Boots and Laces training ground, from Southend Council.
Meanwhile, Sainsbury's involvement in the project has steadily grown.
In April, it became joint applicant with Mr Martin for the Fossetts Farm development, agreeing to guarantee 3m of 7.7m Ron Martin's companies must pay Southend Council for regeneration elsewhere in the town as part of the overall Fossetts Farm deal.
Southend Council's development control committee was told work on the stadium project would start in July when it agreed to revise the timetable for the huge community investment.
It came as the retailer bailed out the football club for the second time over unpaid tax wind-up petitions from HMRC.
The echo sent Mr Martin questions about the findings of our investigation in mid-May, but he has declined to respond.
However, a source at the club has indicated a positive announcement will be made about the project within the next few weeks.
Typed up - For Exiles part 4
HOW CLUB SOLD 'RANSOM STRIP' TO STORE GIANT
Sainsbury's already owns part of the Roots Hall football ground, which gives it a "ransom strip" during future negotiations.
The supermarket paid Roots Hall Ltd 587,500 for the freehold of a small piece of land, including part of the club shop, at the entrance to the ground, in September 2008.
The strip acts as the firms main negotiating counter, giving it the foothold needed to seal a deal ad complete the overall purchase of the ground.
The purchase coincided with Sainsbury's giving Roots Hall Ltd a deposit loan of 1,200,850, following nine months of negotiations.
Sainsbury's had also given Roots Hall Ltd an earlier loan deposit of more than 600,000.
The latest undisclosed loan from Sainsbury's to Roots Hall was made on April 16th, two days after the retailer cleared the clubs last tax debt of around 400,000.
The deal was brokered using land off Ferry Road, Benfleet, opposite the train station, belonging to Martin Dawn - another of Mr Martin's firms.
Sainsbury's could legally claim the land if the lump sum is not repaid in full.
The site was earmarked for up to 30 homes by Martin Dawn Plc in the mid-1990's, but following protests by the locals, permission was refused and the site designated a conservation area.
REPAY LOAN......OR LOSE CONTROL!
Sainsbury's would become the major shareholder of Southend United if a loan goes unpaid.
This is the price the club, and Mr Martin, could pay for the bailout loan of 2.1m which the retail giant stumped up last November. The payment cleared the whopping tax debt and saved the club from spiraling into administration.
Roots Hall Ltd secured the borrowing by striking a deal which would see Sainsbury's take 76% of the clubs shares unless the sum was repaid.
The 76% equates to 1,216,000 shares, at the moment, worth about 300,000, owned by Southend Eastern Leisure UK Ltd, another of Mr Martin's firms.
The club board of directors has changed it constitution, allowing shareholders to sell shares without the board's consent. This means Sainsbury's could effectively sell the club if it gained a majority of shares.
Michelle Dix, spokeswoman for Sainsbury's, said: "We don't comment on commercially sensitive deals."
ANOTHER TAXMAN BATTLE
Chairman RM is facing up to a renewed battle with the taxman who wants to shut down of his main businesses.
HMRC will try to wind up Martin Dawn plc, a land development company, over undisclosed tax debts at the High Court in November.
The Echo can also reveal how Mr Martin took interest free loans, totaling more than 4.7m, from the company between 2006 to 2009. The largest loan was between June 2007 and July 2008, when he borrowed 2.6m interest free from the company.
Its latest published accounts - up to 31 July 2009 - showed tax and social security debts of 151,284 and interest to pay on overdue tax of 8,152.
In 2008, it owed 39,245 just in interest on overdue tax - meaning tax arrears of at least 500,000 must have been accumulated.
Martin Dawn plc is pivotal to Southend United as it owns 50% of South Eastern Leisure UK, which is the football club's major shareholder, owning 76% of its shares.
It is also the parent company to eight of Mr Martin's other firms.
We discovered the wind-up bid against Martin Dawn plc is the seventh time a creditor of the parent property development company has tried to wind it up over unpaid debts in the past 11 years.
The accounts show the firm has total debts of 7.6m, made loses of 1.7m for the year, and has an overall deficit of 1.4m.
RON TAKES A 60K MANAGEMENT FEE
Ron Martin charges Southend United a 60,000 a year "management fee" through his company Martin Dawn plc.
Mr Martin has always maintained he does not take a paid salary from Southend United for his work as chairman, and it is not clear from accounts of either of the companies what specific work the management fee covers.
His company, Martin Dawn plc, also charges expenses to Southend United, including a bill of 95,585 in 2007.
However, according to the 2009 accounts for Southend United, Martin Dawn charged no expenses that year and only 4,625 in 2008.
There are no further details in the accounts for what the expenses cover.
Typed up - For Exiles part 5
HARSH REALITY OF CLUBS FINANCIAL 'BLIP' HITS HOME
The day after Southend United dodged a second winding-up bid by the taxman, chairman Ron Martin described the bleak financial period as a 'blip'.
Speaking in mid-April, he promised a bright future for the club, refuted claims he could have handled problems better and said he had, in fact, avoided making people redundant.
Now, ten weeks on, and with the club having been relegated to League Two, the harsh reality of the club's financial situation is beginning to take hold.
Key players have left the club, including Southend-born captain Adam Barrett, leaving manager Steve Tilson with just nine contracted first team players, some of whom are still not being paid on time.
The blues remain under a transfer embargo because of the 120,000 owed to the Professional Footballers Association.
This sum was borrowed to pay outstanding player's wages last season.
Three staff jobs have gone too. A media officer, secretary and ticket office worker have been made redundant.
Extensive Echo research can also reveal four unsatisfied county court judgments - served on the club in the past 12 months - totaling more than 123,000.
If the debts remain unpaid, they could lead to more winding up attempts by creditors.
The largest debt - of about 72,000 - is owed to the company which has helped prepare its business plan for the new stadium by getting retailers and other businesses involved to fund it.
Deloitte LLP accountants has a sports business group providing specialist advice to football clubs on business development plans, taxation and player transactions.
It has previously flagged up its work the project when trying to attract the business of other clubs in need of a new ground.
In April 2008, Deloitte wrote to bosses at Premier League side Everton FC about a new stadium plan, citing its work with Southend on the Fossetts Farm project as an example.
But last June it had to apply for a county court judgment over the unpaid bill.
The second largest is in respect of 31,285 owed to Bibby Factors Bristol - a financial service loan company. A third occurred in December when Southend Theaters, which runs the Cliffs Pavilion, got a judgment for 4,851 while HQ Hospitality, which runs the catering for the fir, got a judgment for 14,673.
The two debts are believed to relate to a club player end of the year celebration night held at Cliffs Pavilion last May.
None of the four firms awarded judgments would comment due to client confidentiality.
The club is also struggling to pay a string of other debts. The latest published accounts for the 12 months up to July 2009 show:
The latest accounts show the club's total debts were 7,793,690. It recorded a loss of 2,039,437 for the year.
More than 1.8m of the debt was tax and social security related, 1.6 was owed to chairman Ron Martin's other companies. Mr Martin personally guaranteed 400,000 of the club's debts in 2008/2009, the accounts say.
CHAIRMANS FIRMS OWE 22 MILLION
Ron Martin's UK registered companies owe almost 22M between them.
The 12 companies, owned by Mr Martin, have an on-paper combined net deficit of 8.1m according to latest published accounts.
Mr Martin told fans he controls 29 different companies at a question and answer session in March.
The meeting, at the Palace Park Inn Hotel, by Southend Pier, was held to allay fears over finances in the run-up to its second court battle with the tax man and followed angry protests from fans outside Roots Hall.
Echo research found 12 UK Companies, including Southend United, plus five others registered in off-shore tax havens, including Cyprus, Jersey and the British Virgin Islands, with one worth more than 6m.
There is also evidence of a large level of inter-borrowing between Mr Martin's firms.
Southend United owes nearly 1m to South Eastern Leisure (UK), its main shareholder, which in turn owes Martin Dawn PLC more than 3m.
The offshore firms include Mezcal Investments, which Mr Martin has described as his over-arching company, and a company it owns called Tribeca Property Southend, both in the British Virgin Islands.
UK Accounts information show Mezcal Investments is owed 1m by Southend United, 3.58m by South Eastern Leisure UK Ltd and more than 930,000 by Roots Hall Ltd.
Records from the British Virgin Islands registry of Corporate Affairs show Tribeca Property Southend has an authorized capital of more than 31,000, while Mezcal Investments is authorized to issue a maximum of 50,000 shares.
The other offshore companies are South Eastern Leisure Company in the British Virgin Islands, Jetbury Investments in Cyprus and MD (Southend) in Jersey.
According to Mr Martin's UK Companies accounts, South Eastern Leisure Company had capital and reserves of 6.1m in 2008.
Typed up - For Exiles part 1
WHO OWNS THE BLUES?
The extent of Southend United's reliance on supermarket giant Sainsbury's can be revealed today.
An echo investigation provides a remarkable insight into the finances of the Blues and chairman Ron Martin.
Sainsbury's is taking a leading role in sensitive negotiation to secure the redevelopment of Roots Hall and the club's move to a new stadium. And the company could take a controlling interest in the club if a debt is not repaid.
RON'S CARIBBEAN FIRMS OWN LAND
Land set aside for the new Fossetts Farm stadium is owned by one of Ron Martin's companies, registered to an offshore tax haven in the Caribbean.
The 32-acre site where the stadium, casino, hotel and conference centre is set to be developed, is owned by the Tribeca Property Southend company, whose registered agent is in Tortola, British Virgin Islands.
It paid 1.76m for the land in November 2007 - ten months after Southend and Rochford councils gave planning permission to the new development.
Tribeca Property Southend Company is owned by another of Mr Martin's British Virgin Islands registered companies - Mezcal Investments.
We were unable to get a full financial information on the two offshore companies because of limited information available from the British Virgin Islands Registry of Corporate Affairs.
LONG STANDING FEARS
Fans have long worried about their club's debts.
On the ShrimperZone online forum, dedicated to Blues' supporters, fans demanded answers about a 1.3m-plus tax bill showing in the club's account for 2006.
This was the debt which ballooned to 2.1m and was eventually paid up by Sainsbury's, last November.
A year ago Geoffrey King, club chief executive, spoke of overcoming the tax problem in an online blog.
He spoke of the Football League agreeing an arrangement with the customs to pay off arrears over an extended period.
He said "Southend United will take advantage of the arrangement as it too has been carrying a fluctuating HMRC debt in its accounts since before my time. Last July (2008), the clubs parents company injected some 650,000 to overcome the HMRC position."
Yet just a month after Mr King's comments, the HMRC launched the first of it's two unsuccessful wind-up bids.
Typed up - For Exiles part 2
CLUB'S CASH IS BEING SOAKED UP BY DEBTS
Southend United hoped to bag 20M from the sale of Roots Hall to Sainsbury's - yet at least 7M has already been eaten away by debts.
The cash is being rapidly soaked up as the club tried to stay on top of its finances while its dealings progress with Sainsbury's.
About 2.5m from Sainsbury's was handed to the Blue to clear two hefty tax debts. Neither debt has so far been repaid.
A further 1.8m has also been passed over by Sainsbury's in various loans, since November 2007. The interest on these is still building.
Furthermore, the supermarket giant is guaranteeing 3m of the 7.7m Mr Martin's companies must pay to Southend Council for regeneration elsewhere in the town as part of the final deal.
It is not clear how this favour will be squared.
On top of this, Roots Hall Ltd still has to shell out an undisclosed sum to the council for the key ten-acre training ground site where the casino, shopping center and flats would be built.
The Boots and Laces training ground, off Eastern Avenue, is currently only leased by the council to South East Leisure UK, belonging to Mr Martin.
Last April, a council special cabinet meeting agreed a request from Mr Martin to sell the ground to his company Roots Hall Ltd.
Another main element of the new development has yet to be finalized.
At the same cabinet meeting, the council agreed to allow Mr Martin to buy 2.3 acres of council land, which includes council homes at 291 to 301 Victoria Avenue for an undisclosed sum.
The transaction has not yet been completed.
Council spokeswoman Katy Best said: "Roots Hall Ltd is still negotiating the details of the developments at Roots Hall and Fossetts Farm with various parties.
Accordingly, the council cannot say when contracts will be exchanged and completion effected in respect of its land."
Typed up - For Exiles part 3
SUPERMARKET TAKES CONTROL TO SECURE FOSSETTS PLAN
Sainsbury's is stealthily taking control of the 100m FF stadium development for Southend United.
The supermarket giant has secured a crucial agreement with Prospects College, clearing the way for a superstore to be built on the football club's current Roots Hall site.
Prospects had refused to deal with Southend United and it's chairman RM, citing concern about the financial well being of Mr Martin's companies.
A detailed investigation by the Echo has uncovered the true extent of financial problems facing the club and Mr Martin's 12 UK companies, which we can reveal have combined debts of almost 22m.
These include parent UK company Martin Dawn Plc, which the taxman is trying to wind up over undisclosed debts.
Despite the economic storm, insiders at the club remain confident the Fossetts Farm project will go ahead. But the frustration of some fans at the lack of information coming out of Roots Hall is summed up by Charles Turner, of Metz Avenue, Canvey.
He said "Southend United have become a laughing stock, with the taxman continually on their case and Sainsbury's having to bail them out. Mr Martin refuses to come clean and I can see no light at the end of the tunnel. The fans deserve a lot better."
The echo can now reveal how financially reliant Mr Martin is on Sainsbury's, and how the retailer will take control of the club if the debts are not repaid.
The super-stadium dream has been kept alive only because Sainsbury's last week brokered a deal with Prospects College to buy up its site in Fairfax drive.
The college agreed to the deal provided Roots Hall Ltd - one of Mr Martin's firms - was not involved in any purchase.
Roots Hall and Sainsbury's previously planned to buy the site together. Prospects is key to the the Roots Hall development, as its land would form the access to the car park for the proposed Sainsbury's store.
Over the past two years, there have been three previous joint bids by Sainsbury's and Roots Hall to buy the site, which have all collapsed.
Prospects decided it would sell only to Sainsbury's after carrying out financial checks into Mr Martin's companies. A further bid by Sainsbury's, earlier this year was also shelved.
However, at a board meeting last Thursday, the college agreed to an undisclosed offer from Sainsbury's, subject to contract.
Neil Bates, chief executive of Prospects College, said "After the last purchase collapsed, we sought to market the site and got interest from a third party.
We also got a renewed interest from Sainsbury's and made it clear we would only sell if it was solely to Sainsbury's. We have agreed terms, but not yet exchanged contracts.
This is the fifth time we have reached this stage, so it is not yet certain, but I am optimistic it will go through within ten days."
When the Fossetts Farm dream began, Mr Martin's firms were supposed to acquire land needed for the developments.
Yet Roots Hall Ltd still has to buy other crucial sites, including Boots and Laces training ground, from Southend Council.
Meanwhile, Sainsbury's involvement in the project has steadily grown.
In April, it became joint applicant with Mr Martin for the Fossetts Farm development, agreeing to guarantee 3m of 7.7m Ron Martin's companies must pay Southend Council for regeneration elsewhere in the town as part of the overall Fossetts Farm deal.
Southend Council's development control committee was told work on the stadium project would start in July when it agreed to revise the timetable for the huge community investment.
It came as the retailer bailed out the football club for the second time over unpaid tax wind-up petitions from HMRC.
The echo sent Mr Martin questions about the findings of our investigation in mid-May, but he has declined to respond.
However, a source at the club has indicated a positive announcement will be made about the project within the next few weeks.
Typed up - For Exiles part 4
HOW CLUB SOLD 'RANSOM STRIP' TO STORE GIANT
Sainsbury's already owns part of the Roots Hall football ground, which gives it a "ransom strip" during future negotiations.
The supermarket paid Roots Hall Ltd 587,500 for the freehold of a small piece of land, including part of the club shop, at the entrance to the ground, in September 2008.
The strip acts as the firms main negotiating counter, giving it the foothold needed to seal a deal ad complete the overall purchase of the ground.
The purchase coincided with Sainsbury's giving Roots Hall Ltd a deposit loan of 1,200,850, following nine months of negotiations.
Sainsbury's had also given Roots Hall Ltd an earlier loan deposit of more than 600,000.
The latest undisclosed loan from Sainsbury's to Roots Hall was made on April 16th, two days after the retailer cleared the clubs last tax debt of around 400,000.
The deal was brokered using land off Ferry Road, Benfleet, opposite the train station, belonging to Martin Dawn - another of Mr Martin's firms.
Sainsbury's could legally claim the land if the lump sum is not repaid in full.
The site was earmarked for up to 30 homes by Martin Dawn Plc in the mid-1990's, but following protests by the locals, permission was refused and the site designated a conservation area.
REPAY LOAN......OR LOSE CONTROL!
Sainsbury's would become the major shareholder of Southend United if a loan goes unpaid.
This is the price the club, and Mr Martin, could pay for the bailout loan of 2.1m which the retail giant stumped up last November. The payment cleared the whopping tax debt and saved the club from spiraling into administration.
Roots Hall Ltd secured the borrowing by striking a deal which would see Sainsbury's take 76% of the clubs shares unless the sum was repaid.
The 76% equates to 1,216,000 shares, at the moment, worth about 300,000, owned by Southend Eastern Leisure UK Ltd, another of Mr Martin's firms.
The club board of directors has changed it constitution, allowing shareholders to sell shares without the board's consent. This means Sainsbury's could effectively sell the club if it gained a majority of shares.
Michelle Dix, spokeswoman for Sainsbury's, said: "We don't comment on commercially sensitive deals."
ANOTHER TAXMAN BATTLE
Chairman RM is facing up to a renewed battle with the taxman who wants to shut down of his main businesses.
HMRC will try to wind up Martin Dawn plc, a land development company, over undisclosed tax debts at the High Court in November.
The Echo can also reveal how Mr Martin took interest free loans, totaling more than 4.7m, from the company between 2006 to 2009. The largest loan was between June 2007 and July 2008, when he borrowed 2.6m interest free from the company.
Its latest published accounts - up to 31 July 2009 - showed tax and social security debts of 151,284 and interest to pay on overdue tax of 8,152.
In 2008, it owed 39,245 just in interest on overdue tax - meaning tax arrears of at least 500,000 must have been accumulated.
Martin Dawn plc is pivotal to Southend United as it owns 50% of South Eastern Leisure UK, which is the football club's major shareholder, owning 76% of its shares.
It is also the parent company to eight of Mr Martin's other firms.
We discovered the wind-up bid against Martin Dawn plc is the seventh time a creditor of the parent property development company has tried to wind it up over unpaid debts in the past 11 years.
The accounts show the firm has total debts of 7.6m, made loses of 1.7m for the year, and has an overall deficit of 1.4m.
RON TAKES A 60K MANAGEMENT FEE
Ron Martin charges Southend United a 60,000 a year "management fee" through his company Martin Dawn plc.
Mr Martin has always maintained he does not take a paid salary from Southend United for his work as chairman, and it is not clear from accounts of either of the companies what specific work the management fee covers.
His company, Martin Dawn plc, also charges expenses to Southend United, including a bill of 95,585 in 2007.
However, according to the 2009 accounts for Southend United, Martin Dawn charged no expenses that year and only 4,625 in 2008.
There are no further details in the accounts for what the expenses cover.
Typed up - For Exiles part 5
HARSH REALITY OF CLUBS FINANCIAL 'BLIP' HITS HOME
The day after Southend United dodged a second winding-up bid by the taxman, chairman Ron Martin described the bleak financial period as a 'blip'.
Speaking in mid-April, he promised a bright future for the club, refuted claims he could have handled problems better and said he had, in fact, avoided making people redundant.
Now, ten weeks on, and with the club having been relegated to League Two, the harsh reality of the club's financial situation is beginning to take hold.
Key players have left the club, including Southend-born captain Adam Barrett, leaving manager Steve Tilson with just nine contracted first team players, some of whom are still not being paid on time.
The blues remain under a transfer embargo because of the 120,000 owed to the Professional Footballers Association.
This sum was borrowed to pay outstanding player's wages last season.
Three staff jobs have gone too. A media officer, secretary and ticket office worker have been made redundant.
Extensive Echo research can also reveal four unsatisfied county court judgments - served on the club in the past 12 months - totaling more than 123,000.
If the debts remain unpaid, they could lead to more winding up attempts by creditors.
The largest debt - of about 72,000 - is owed to the company which has helped prepare its business plan for the new stadium by getting retailers and other businesses involved to fund it.
Deloitte LLP accountants has a sports business group providing specialist advice to football clubs on business development plans, taxation and player transactions.
It has previously flagged up its work the project when trying to attract the business of other clubs in need of a new ground.
In April 2008, Deloitte wrote to bosses at Premier League side Everton FC about a new stadium plan, citing its work with Southend on the Fossetts Farm project as an example.
But last June it had to apply for a county court judgment over the unpaid bill.
The second largest is in respect of 31,285 owed to Bibby Factors Bristol - a financial service loan company. A third occurred in December when Southend Theaters, which runs the Cliffs Pavilion, got a judgment for 4,851 while HQ Hospitality, which runs the catering for the fir, got a judgment for 14,673.
The two debts are believed to relate to a club player end of the year celebration night held at Cliffs Pavilion last May.
None of the four firms awarded judgments would comment due to client confidentiality.
The club is also struggling to pay a string of other debts. The latest published accounts for the 12 months up to July 2009 show:
- Director Gary Lockett, who resigned last September, is owed 80,000, which he loaned the club in September 2008.
- Current directors Micheal Markscheffel, Frank Van Wezel are owed 95,000 and 100,000 respectively.
- 1,795 is owed to players pension contributions.
- Cash owed to other football clubs for loan players.
- The Shrimpers Trust is owed 60,000 it loaned to the club last December.
The latest accounts show the club's total debts were 7,793,690. It recorded a loss of 2,039,437 for the year.
More than 1.8m of the debt was tax and social security related, 1.6 was owed to chairman Ron Martin's other companies. Mr Martin personally guaranteed 400,000 of the club's debts in 2008/2009, the accounts say.
CHAIRMANS FIRMS OWE 22 MILLION
Ron Martin's UK registered companies owe almost 22M between them.
The 12 companies, owned by Mr Martin, have an on-paper combined net deficit of 8.1m according to latest published accounts.
Mr Martin told fans he controls 29 different companies at a question and answer session in March.
The meeting, at the Palace Park Inn Hotel, by Southend Pier, was held to allay fears over finances in the run-up to its second court battle with the tax man and followed angry protests from fans outside Roots Hall.
Echo research found 12 UK Companies, including Southend United, plus five others registered in off-shore tax havens, including Cyprus, Jersey and the British Virgin Islands, with one worth more than 6m.
There is also evidence of a large level of inter-borrowing between Mr Martin's firms.
Southend United owes nearly 1m to South Eastern Leisure (UK), its main shareholder, which in turn owes Martin Dawn PLC more than 3m.
The offshore firms include Mezcal Investments, which Mr Martin has described as his over-arching company, and a company it owns called Tribeca Property Southend, both in the British Virgin Islands.
UK Accounts information show Mezcal Investments is owed 1m by Southend United, 3.58m by South Eastern Leisure UK Ltd and more than 930,000 by Roots Hall Ltd.
Records from the British Virgin Islands registry of Corporate Affairs show Tribeca Property Southend has an authorized capital of more than 31,000, while Mezcal Investments is authorized to issue a maximum of 50,000 shares.
The other offshore companies are South Eastern Leisure Company in the British Virgin Islands, Jetbury Investments in Cyprus and MD (Southend) in Jersey.
According to Mr Martin's UK Companies accounts, South Eastern Leisure Company had capital and reserves of 6.1m in 2008.
Somerset Ex-TTB
Members
That is the point though. Well run it would break even, therefore not requring millions of ploughing in to it................
Sounds like a cracking investment, I'll have three of them.
Somerset Ex-TTB
Members
Having now read all the article I am staggered that Sainsbury have pumped in so much cash to Roots Hall Ltd., yet the club still owe so much to so many people.
£300k to directors, £120k to PFA, £72k to legal people, £60 to the trust, £31k to financial firm, £14k to caterers to name but a few
£300k to directors, £120k to PFA, £72k to legal people, £60 to the trust, £31k to financial firm, £14k to caterers to name but a few
ElstreeBlue
Coach
The Echo alleges that the £72k was money owed by the club to consultants regarding the new development at Fossetts. Deloittes are not lawyers - they're consultants / accountants.
rossi
Newbie
- Joined
- Apr 17, 2010
- Messages
- 18
DONT YOU THINK YOU ARE READING TO MUCH INTO IT, ITS A HUGE GROUP OF COMPANIES, AND A FOOTBALL CLUB, OFCOURSE THERE ARE DEBTS, WHY CANT YOU STOP SEEING THE NEGATIVES AND THINK THAT SAINSBURY IS OUR SAVING GRACE, AND LOOK AT THE GAME AND SUPPORT US ON THE PITCH AND LET THE PEOPLE WHO ARE INCHAGE OF IT DEAL WITH THE THINGS WE DONT HAVE TO WORRY ABOUT. wE DON'T NEED TO GET CONCERNED WITH IT, IT JUST MAKES US ALL MORE WORRIED!!!!
They aren't sundry expenses, they are administrative expenses (ie the cost of running the business). You know full well that they've been broken down and are comparable with the levels they have been for the past 15 years (because you've had this exact conversation with either Firestorm or myself half a dozen times).
The Deloitte allegation in the Echo is one of a number of issues which clearly needs clarification.
The biggest single piece of news in the article (thanks for the write-up btw, Jay) is the confirmation of just how much debt Ron Martin is in. Now I know that people are unlikely to feel sorry for him but if you just for a moment look at things from his point of view you'll quickly see that he's not going to go anywhere. If he walks away now he's finished. So he'll cling on for as long as he possibly can to the one thing that can turn this all round for him.
By clinging on he'll drag us down with him if he fails (which he looks likely to do), but that isn't going to be enough reason for him not to do so.
So the only way I see out for us would be if someone else would come in (Sainburys/The Consortium) to take over the running of the football club, handle the wagebill and taxbill for the season until we can start again in 2011/12 and at the same time keep Ron Martin and his dream alive. A buy-out of the football club, with Roots Hall still owned by RHL and Fossetts Farm still owned by Martin Dawn/SEL, seem like the best of a bad set of possible outcomes for us. But the question is would that outcome be acceptable to Sainsburys/The Consortium/any other potential saviours?
By clinging on he'll drag us down with him if he fails (which he looks likely to do), but that isn't going to be enough reason for him not to do so.
So the only way I see out for us would be if someone else would come in (Sainburys/The Consortium) to take over the running of the football club, handle the wagebill and taxbill for the season until we can start again in 2011/12 and at the same time keep Ron Martin and his dream alive. A buy-out of the football club, with Roots Hall still owned by RHL and Fossetts Farm still owned by Martin Dawn/SEL, seem like the best of a bad set of possible outcomes for us. But the question is would that outcome be acceptable to Sainsburys/The Consortium/any other potential saviours?
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