I would imagine that his other companies don't have our crippling cashflow issues. Simply put we do not, as a business, generate enough cash to cover our operational costs. It doesn't matter if we occasionally sell a Freddy Eastwood. It doesn't matter if we once got a full house against Manchester United. These are one-off boosts which may prop up our profit & loss account but in terms of the week to week running of the business they don't mean anything.
People talk about our gates and how good they are for our level. And that is absolutely right. Getting 7,000-8,000 at the bottom of League One is fantastic support. But how many of those are season ticket holders? Aside from a few standing orders, the Club hasn't seen a penny from any one of our season ticket holders in a year. Even the bars and burger stands in the ground are outsourced meaning that we're not seeing income coming in regularly. Which means that we struggle to pay big tax bills and we struggle to pay a large wage bill twelve times per year.
In the past it's not been an issue because Ron Martin, the other Directors and other group companies have loaned SUFC Ltd the money to meet it's week-to-week and month-to-month cashflow obligations. Those loans are in the accounts for everyone to see. But with the Worldwide economy in ruins and the stadium development in serious danger of collapsing (up until the good news of the last couple of weeks) the likes of Martin Dawn haven't been able or willing to throw any more good money after bad. These are companies facing their own problems and with their own staff who have their own families to feed and who aren't being paid £100,000 per year to kick a football around. Why should he gamble with their futures to prop up a company that can't fend for itself?
As I said the other day, this is the first season in as long as I can recall that Southend United have had to fend for itself financially. And that's all that has happened. There's been no asset-stripping, there's nothing to suggest that a penny that the Club has generated has been used for anything that it shouldn't have been. We've just not had anyone there to subsidise us. And it's been a disaster. And whilst it's shown what a painful journey the next few years are going to be it's proven that that journey is more important now than ever.
In respect to the attendence, in my opinion, if we are averaging 7-8k each game for a season. Then we are still getting a better income than most of our rivals in terms of gate revenue. The argument that this an untrue reflection because a majority are season ticket holders doesn't stand up for me. Over the course of a season we are still get the same amount of gate receipts, now whether that is in a pre-season lump sum or staggered over the season is irrelevant, what is relevant is how that money is managed when it comes in, and that's where, in my opinion we lose our advantage to our rivals.
The same can be with our main debters, HMRC, now as far as I'm aware the majority if not all was VAT, that mean this was money we had in hand, so again, in my opinion, this is down to the management of finances.
"These are companies facing their own problems and with their own staff who have their own families to feed and who aren't being paid £100,000 per year to kick a football around. Why should he gamble with their futures to prop up a company that can't fend for itself?"
I agree completely with the above, and was not suggesting that he should sacrifice either sets of workforces to support the other. My point was that the company (us) that is will not be owning the stadium, seems to be the one suffering the brunt of the costs of building FF, and to me and many this seems odd!
You mention the accounts, and I did see these, but sometime ago. But wasn't there one entry that stuck out like a sore thumb since the plans for FF were set in motion. That of 'Other Expenses' Which went up in excess of 200% one year and regularly each year, to the tune of millions per year if I remember rightly. Again does this not seem strange?
With respect to the burgers bars, yes they are outsourced. This I believe is done as a gurantee of income. We charge them for using our premises to sell their wares (minus the onions), this way we have a guaraneed set income a opposed to a variable income based on how many burgers we sell, offset against the staff that are employed - so I don't think that is a valid argument.
I can understand that Ron during these times would not want to fund us, but I believe the income that we have had in, albeit through various sources has been managed very badly.
I disagree in part with the last passage, there has been massive asset stripping, our playing squad has haemorraghed first team players, and Ron now owns the stadium as opposed to SUFC. However, I agree that the funds received have not been used dishonestly, just very poorly.