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Supershrimper

First XI⭐
Joined
Feb 14, 2010
Messages
1,489
This has been copied word for word from todays echo. The two page spread on pages 8-9. A Lot of it is what we knew already, we up a creak without a paddle, and most probably a raft as well.

Taxman Targets Blues…Again
(Taken from the Echo, pages 8-9)

This time the club owes £200,000

Southend United owes the taxman another £200,000, it has emerged. The financial blow to the Blues comes just a day after the Echo revealed the club are also being taken to the High Court by a London loan company for unpaid debts. Fans Group the Shrimpers Trust also says it is owed £60,000 by the club after giving t a loan last year. Southend Council leader Nigel Holdcroft fears the entire existence of the club is at stake.

Will knights ride to the rescue of football club?

A former club chairman is being the Blue Knights consortium which wants to take over Southend United. Speaking for the first time, Mark Rubin said he has assembled a group of ten other wealthy businessmen ready with a multi-million pound rescue package.

He has said unless Ron Martin approaches them for a deal, they could take over the club only if it goes into administration, at which point are prepared to pay off the club’s debts and make sure the new stadium at Fossetts Farm goes ahead. Mr Rubin, 59, was chairman of the Blues in 1982 and 1983 and his family owned the club between the 1960s and the mid 1980s

A lifelong fan who still goes to the games each week, he has lived in Southend all his life and now runs GSC Property Holdings. Mr Rubin said “We felt it legitimate to gather together local business people of significant strength to be in a position, if enabled, to take the club forward. “Its obvious there are inherent problems and only by the skin of its teeth has the club not been put into administration previously. “Twice we were ready with funds lodged with our solicitors Jefferies to enable us to move at short notice. We are all football people, but we are also business people. “We have very specific ideas on how a club should be run. “So far, the club has been run as a property development company with a football team attached. “The most important thing is you pay your bills, pay the players and pay Revenue and Customs. “What’s happened this year with players not being paid would never happen with this group of people who would be involved. “We will safeguard the future of the club, but we won’t pump millions in. “We are looking after something owned by the town.”

He describes running the club along the lines of a charitable trust, with the new stadium secured, the consortium members as initial shareholders while the finances are stabilised. In future, he envisaged possibly having a fan as a representative on the board.

Mr Rubin said “If anything does happen and we are able to come to a deal with the administrator, the public should know the club will be back in safe hands. If the worst comes to the worst, we would take the club out of administration and deal with all the parties accordingly. “We would work with Sainsbury’s as a partner. “They would want people of standing running the club.

Keeping Steve Tilson on as manager would also be a priority and assembling a squad of 18 to 20 players under well paid contracts, Mr Rubin added.

The ten man group is reported to be with more than £150 million. They include, Colin Freedman, 66, who lives in North London, cell phone entrepreneur Paul Althaesen, Danish commodity trader Lars Steffensen, accountant Gavin Simons and office service providers Rob Stillwell and Mark Gordon.

A Question of time says money expert

The blues will need an injection of cash to survive much longer, an insolvency expert says. A Report of the club’s finances shows that it made a loss of £2million after tax from July 2008 to July 2009 and a loss of £2.4million the year before.

The Tenon Tracker report also shows the clubs spent £3.5million from 2008-9 on paying staff, compared to £3.3million the year before. Peter Forsey, of RSM Tenon, in Westcliff, said “If a business is not generating cash, eventually it will run out. “There’s a difference between cash and profit. It’s your cash you need to pay your creditors. “With Southend, the chickens are coming home to roost. “They’re going to need something like an injection of cash to guarantee their long-term survival. “If the club continues to make a cash loss, It’s just a question of time. “There is still something fundamentally not right with the business that needs to be address.”

Blues in £200,000 High Court Battle

Fresh fears over the future of Southend United have emerged after the taxman said it is owed another £200,000 by the club. It has also come to light that the Shrimpers Trust is still waiting for its £60,000 loan to be paid back by the club.

A statement on the trusts website said the loan, made in December, was still outstanding, despite a commitment by the club to repay it by the end of June. The Trust accused Ron Martin of ignoring the trust’s concerns. The statement said “The trust is naturally disappointed that, like other known debts, the loan has not been repaid. “We are particularly frustrated that, having been informed by the club the repayment was not likely to be met, the chairman Rob Martin has chosen not to discuss the matter personally with representatives of the organisation.

“As such, the Shrimpers Trust is not prepared to further extend the loan without additional conditions being attached. “These conditions are currently being discussed and trust members will be informed as soon as they are agreed.”

The statement comes as it emerged the club faces another winding up petition by HM Revenue and Customs to be heard at the High Court on July 8 over unpaid £200,000 PAYE contributions. On Wednesday, the Echo revealed a further winding up order for an undisclosed sum had been sought by loan company Charterhouse Commercial Finance Limited which will be heard on July 14.

On his Southend United web blog, Mr Martin blamed the HMRC for being too hasty to proceed to court after the club missed a June 22 deadline to settle the debt. He Said “HMRC were quick off the mark as they are with football clubs and, of course, are entitled to be. Nethertheless I will ensure the entire sum is settled before the hearing and will continue to ensure the necessary finances are in place in order to steer this ship into calmer waters”.

There’s nothing we can do, says leader

The leader of Southend Council fears for the future of Southend United following fresh revelations about the state of the club’s finances. Tory Nigel Holdcroft warned if Fossetts Farm doesn’t go ahead soon the club could find itself homeless. And he said the council was powerless to intervene during the club’s economic woes.

He said “I don’t think there is anything we can do to assist. Certainly with the financial problems it would be inappropriate to use public funds to shore up a private company. “We will have to see what happens and if they survive the latest challenge. If they don’t it’s a question of whether the club continues to exist. Until we know what’s happening it’s difficult to help.”

The council appears to have done all it can to oil the wheels of the planning process, which finally came to fruition in 2008 with the approval of the secretary of state. The Echo revealed last month the council had bypassed the usual financial checks on Ron Martin’s companies before councillors agreed to sell land to one of them and help obtain land for the development of Fossetts Farm development.

All along, the council has said the new stadium, along with its 127 homes, 114 bed hotel and 20,000sq metres of retail space would be a huge boost to the economy of Southend, but that support appears to be waning. Mr Holdcroft added: “Supporters are now losing faith and confidence that anything can be done. “We have worked very closely with the club in respect of redevelopment of Roots Hall and the proposed new stadium. We have responded quickly and positively to approaches made to us, but we can’t respond to something we are not directly in control of. “IF Fossetts Farm doesn’t go ahead it would be disastrous. I would be concerned what security the football club has so far as Roots Hall is concerned. It’s always been my major concern that if they don’t get the new stadium they would be unable to continue to occupy their current site.”
 

Blue_Wes

Simple Minded
Joined
Mar 8, 2010
Messages
1,844
Location
At the ballet.
I really don't know what to say any more. It seems we really are at the mercy of an ever increasingly delusional property developer. Everyone is now coming out and publicy damning the club, it's finances and the way they are managed; and yet Ron continues to send out sound bites of 'The future is rosy' 'HMRC are being overly hasty' 'We'll be steered to clearer waters'. They should of operated on his head not his knees as the guy seems to be stark raving mad!

It's is nice to see the consortium become a bit more public in their proposals though, it gives them more substance, and makes them a little bit more real to those doubters. It's pleasing to heat that they remain interested, and will be ready to step in and force the issue if administration should occur. Obviously we would rather avoid that, but that safety net does give small comfort.

Also I wonder how Ron's planning on paying HMRC...he must be running out of land to use as loan guarentees. Surely Sainsbury's won't be bailing us out again??
 

Smiffy

SZ Drinking Champion
Joined
Oct 27, 2003
Messages
16,472
Location
Vanarama National League (Loan)
I really don't know what to say any more. It seems we really are at the mercy of an ever increasingly delusional property developer. Everyone is now coming out and publicy damning the club, it's finances and the way they are managed; and yet Ron continues to send out sound bites of 'The future is rosy' 'HMRC are being overly hasty' 'We'll be steered to clearer waters'. They should of operated on his head not his knees as the guy seems to be stark raving mad!

It's is nice to see the consortium become a bit more public in their proposals though, it gives them more substance, and makes them a little bit more real to those doubters. It's pleasing to heat that they remain interested, and will be ready to step in and force the issue if administration should occur. Obviously we would rather avoid that, but that safety net does give small comfort.

Also I wonder how Ron's planning on paying HMRC...he must be running out of land to use as loan guarentees. Surely Sainsbury's won't be bailing us out again??

Maybe it's not a bad thing if they don't.

Perhaps it is the only way forward for our football club...
 

BrettieAngell

THE ROCK GOD
Joined
Oct 26, 2003
Messages
19,642
Location
Southend
christ I can't believe only a year and a half ago we drew at stamford bridge and only 2 years ago we were in the league one play-offs!!
 

pablo

Newbie
Joined
Jun 22, 2009
Messages
3
Ron Martin is a bankruptcy waiting to happen - unless he agrees to allow Siansbury's or the consortium to take his involvement in the club then I fear SUFC are history. Ron Martin is a Walter Mitty character who still believes he can turn things around but in reality he is being swallowed up by ever increasing debt - Rom Martin blames the situation on the Banks who he claims are 'closed for business' - of course he is correct as far as he is concerned as no bank in its right mind woukld lend money to somebody on the very brink of bankruptcy. Eddie Stobart Group had no difficulty in borrowing a vast sum to redevelop Southend Airport - but Eddie Stobart Group are an.
. established successful business whereas Ron Martin's credit rating must now be zero. I hope Sainsbury's ditch Ron Martin and develop Fossets on their own and then maybe sell the whole development to the consortium as a going concern - otherwise I fear the worst
 

watchtheballboys

Youth Team
Joined
May 20, 2008
Messages
156
Consortium ~ Mr.Rubin

The position we are in is really is quite frightening especially as it seems there is little chance of sorting out the debts we owe to so many and the fact we have so few 'experienced' players who want to stay at the club.

If Mr.Rubin is as good as his word surely Ron can see the benefit of the deal.....however the likelyhood that he needs the Fossets Farm project to go ahead in order to save both his business and personal empire may mean he will stay to the end or insist upon an unreasonable package to go.

It would be interesting to know if Sainsbury's question Ron's integrity and if they have already considered a contingency plan involving the consortium.

I would have thought as succesful business people they have already spoken to the consortium.

The problem will be if we start the season poorly, as I think most of us expect due to the lack of players, and administration is forced upon us we will be even deeper in the mire.

Ron, if you have the best interests of SUFC at heart as you have said repeatedly, speak to the consortium, do a deal and put the club nearer to the 'calm waters' you mention....

Tonights exciting Ronathon is eagerly awaited......
 

Angell Delight

Life President
Joined
Oct 27, 2003
Messages
7,414
Location
Brentwood
The thing is we may not even get the chance to go into administration now would we??? Ron could put us into administration at any time and SAVE THE CLUB but if he does this then my understanding is that the administrators would then sell the club as quickly as possible to the highest bidder (almost certainly the consortium as Ron doesn't have a pot to p*** in). At this moment in time I think administration would be an absolute GODSEND to all of us, seriously things seem so bad that I'm desperate for us to fall into administration any time soon but I just can't see Ron doing it. I think we all know what is likely to happen, we'll be in the High Court again and the bill won't have been paid - what do you really think the judge is gonna do this time after all that's gone on in the past few months and the warnings given to Ron about the consequences of this happening again. Bottom line is we won't be given the chance to go into administration - we'll be wound up.

Of course I don't profess to be an expert so if someone (anyone!!) knows any different then please post a reply and tell us - I'm desperate for any glimmer of hope to cling onto at the moment......
 
Joined
Jun 24, 2010
Messages
34
Location
Essex
if we don't pay the tax bill next week, we are looking at a winding-up order. Do we get the opportunity to be taken into administration or do we get wound-up. Not really sure where the two things become different entities. And if it is administration what is the likely points deduction, as other teams i.e. chester + luton got more than a ten point deduction. Do our misdeameanours indicate a bigger deduction than 10 points. Having said that, although I think Ron started all this with the best of intentions, I do think it has spiralled out of his control. And taking a step backwards (administration) to take a leap forward (consortium) might not be a bad thing, at least we will all know that the club is not going to keep stumbling from one problem to another.
 

Angell Delight

Life President
Joined
Oct 27, 2003
Messages
7,414
Location
Brentwood
The problem will be if we start the season poorly, as I think most of us expect due to the lack of players, and administration is forced upon us we will be even deeper in the mire.

The question is will we even start the season full stop???!!! And if administration was "forced upon us" it would surely be a good thing, it would first of all give us some security against liquidation and - provided a deal with someone (consortium most likely) could be done in a matter of weeks - we should have plenty of time to stabilise on the pitch and hopefully overcome a points deduction to stay in League Two.
 

Smiffy

SZ Drinking Champion
Joined
Oct 27, 2003
Messages
16,472
Location
Vanarama National League (Loan)
if we don't pay the tax bill next week, we are looking at a winding-up order. Do we get the opportunity to be taken into administration or do we get wound-up. Not really sure where the two things become different entities. And if it is administration what is the likely points deduction, as other teams i.e. chester + luton got more than a ten point deduction. Do our misdeameanours indicate a bigger deduction than 10 points. Having said that, although I think Ron started all this with the best of intentions, I do think it has spiralled out of his control. And taking a step backwards (administration) to take a leap forward (consortium) might not be a bad thing, at least we will all know that the club is not going to keep stumbling from one problem to another.

My thought's entirely.

That or Sainsbury's to do a deal with the Consortium. Hence the letters....

Either are far more appealing than the current shambles.
 

watchtheballboys

Youth Team
Joined
May 20, 2008
Messages
156
I agree....administration sooner rather than later would be the best route for the club and come to think of it the consortium but NOT Ron!
 

watchtheballboys

Youth Team
Joined
May 20, 2008
Messages
156
My point, badly made really, is that if we go into administration now we know what we face from the start....if we start badly in the league then go into adminstration the points deducted will demoralise the players even more......
 

Angell Delight

Life President
Joined
Oct 27, 2003
Messages
7,414
Location
Brentwood
And if it is administration what is the likely points deduction, as other teams i.e. chester + luton got more than a ten point deduction. Do our misdeameanours indicate a bigger deduction than 10 points.

I think this point is key, a 10 point deduction could certainly be overcome I think if administration did happen, particularly if we were taken over and exited administration quickly. Massive deductions like Luton and Chester had would be impossible to overcome and would clearly be disastrous in terms of keeping our league status. Does anyone know why Luton and Chester got such huge penalties and whether their cases were different to ours?
 

BrettieAngell

THE ROCK GOD
Joined
Oct 26, 2003
Messages
19,642
Location
Southend
I think this point is key, a 10 point deduction could certainly be overcome I think if administration did happen, particularly if we were taken over and exited administration quickly. Massive deductions like Luton and Chester had would be impossible to overcome and would clearly be disastrous in terms of keeping our league status. Does anyone know why Luton and Chester got such huge penalties and whether their cases were different to ours?

Coming out of administration without an IVA similar to Leeds, I believe. Could be completely wrong though.
 
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