Club Ownership

[number11]

Sorry if this has been gone over in the other threads, but for an idiot such as myself, can someone clarify who 'owns' the club. Is it the case that Martin Dawn plc own a majority of shares in Southend United and Ron Martin owns a majority of shares of Martin Dawn (and therefore effectively contols the club). If so, what role does SEL play in all of this?

Once again sorry for such a dumn post, but I am not really sure who owns what!

On an aside, for the Directors of the club, does being a director of a club placed in administration have much negative consequences for them? I know our Directors are not stupidly rich but most are prominent locally in their own field but they dont really seem to do a great deal or put their own money on the line. No reason why they should of course but just wondered what kind of input they have.

 

[Yorkshire Blue]

Sorry if this has been gone over in the other threads, but for an idiot such as myself, can someone clarify who 'owns' the club. Is it the case that Martin Dawn plc own a majority of shares in Southend United and Ron Martin owns a majority of shares of Martin Dawn (and therefore effectively contols the club). If so, what role does SEL play in all of this?

Once again sorry for such a dumn post, but I am not really sure who owns what!

On an aside, for the Directors of the club, does being a director of a club placed in administration have much negative consequences for them? I know our Directors are not stupidly rich but most are prominent locally in their own field but they dont really seem to do a great deal or put their own money on the line. No reason why they should of course but just wondered what kind of input they have.

IIRC Southend United Ltd are owned by SEL, who are in turn owned by Martin Dawn plc, of whom Ron is the major shareholder.

Unless that is the ownership structure of the ground.

The main consideration for directors of a failing company is to avoid wrongful trading (s214 Insolvency Act 1986), or even worse Fraudulent Trading (s213) which you can be jailed for. Providing they keep within the insolvency (and related) laws the only negative consequence would be the stigma attached and the loss of any money they had invested in it.

214. Wrongful trading.

(1) Subject to subsection (3) below, if in the course of the winding up of a company it appears that subsection (2) of this section applies in relation to a person who is or has been a director of the company, the court, on the application of the liquidator, may declare that that person is to be liable to make such contribution (if any) to the company’s assets as the court thinks proper.
(2) This subsection applies in relation to a person if—

(a) the company has gone into insolvent liquidation,
(b) at some time before the commencement of the winding up of the company, that person knew or ought to have concluded that there was no reasonable prospect that the company would avoid going into insolvent liquidation, and
(c) that person was a director of the company at that time...

(3) The court shall not make a declaration under this section with respect to any person if it is satisfied that after the condition specified in subsection (2)(b) was first satisfied in relation to him that person took every step with a view to minimising the potential loss to the company’s creditors as (assuming him to have known that there was no reasonable prospect that the company would avoid going into solvent liquidation) he ought to have taken.
(4) For the purposes of subsections (2) and (3), the facts which a director of a company ought to know or ascertain, the conclusions which he ought to reach and the steps which he ought to take are those which would be known or ascertained, or reached or taken, by a reasonably diligent person having both—

(a) the general knowledge, skill and experience that may reasonably be expected of a person carrying out the same functions as are carried out by that director in relation to the company, and
(b) the general knowledge, skill and experience that that director has.

(5) The reference in subsection (4) to the functions carried out in relation to a company by a director of the company includes any functions which he does not carry out but which have been entrusted to him.
(6) For the purposes of this section a company goes into insolvent liquidation if it goes into liquidation at a time when its assets are insufficient for the payment of its debts and other liabilities and the expenses of the winding up.
(7) In this section “director” includes a shadow director.
(8) This section is without prejudice to section 213.

 

[Firestorm]

There is some VI offshore company involved in the ownership of SEL (50/50 with MD i believe) but as I do not have the accounts to hand I can't recall the companies name, but I believe it became involved when Delancey / Lansbury's 50% share in was sold

 

[Napster]

Mezcal Investments? Who are they?

 

[Firestorm]

Mezcal is a distilled alcoholic beverage made from the maguey or agave plant that is native to Mexico

http://en.wikipedia.org/wiki/Mezcal

The first reference which comes up is a thread on here dated June 2007

http://www.shrimperzone.com/vb/archive/index.php/t-28345.html

Council minutes from April 2009 (Fossetts Farm – Sale of Council Land in connection
with Southend United’s Relocation Plans)

http://minutes.southend.gov.uk/akssouthend/images/att15202.doc

The Council owns the freehold of the Training Ground at Fossetts Farm which is shown by hatching on the plan at Appendix 1 and comprises just over 10 acres.

However, there are covenants on the Council’s freehold title which restrict its use to playing fields and ancillary uses. The benefit of these freehold covenants is vested in Tribeca Property Southend Company Limited (‘Tribeca’), which is a company owned by Mezcal Investments Limited (‘Mezcal’).

The Council has leased the Training Ground for the use of Southend United FC. This lease still has some 63 years to run. The actual lease is held by South East Leisure UK Limited (SEL), and SEL own 100% of Roots Hall Limited and 76% of Southend United FC. SEL is a company owned 50% by Mezcal and 50% by Martin Dawn plc.

 

[Hooly]

The Council owns the freehold of the Training Ground at Fossetts Farm which is shown by hatching on the plan at Appendix 1 and comprises just over 10 acres.

Blimey. I didn't know that as I always assumed that we owned that plot. The "assets" get less all the time!

 

[Firestorm]

Blimey. I didn't know that as I always assumed that we owned that plot. The "assets" get less all the time!

it was news to me

The report was regarding the Council selling that land to Roots hall Limited

 

[OldBlueLady]

I must admit I thought the club or SEL owned B&L, I'm sure when it was the Access Sports and Social Club it wasn't leased from the council, they owned it outright and then sold it on to Southend Utd.

 

[number11]

I must admit I thought the club or SEL owned B&L, I'm sure when it was the Access Sports and Social Club it wasn't leased from the council, they owned it outright and then sold it on to Southend Utd.

It may have been that Access owned the Leasehold, which is still a valuable commodity and can be bought at sold at value?


So we have Southend United Football Club Ltd - the legal entity of the club, owned by SEL, who are owned (50/50) by Martin Dawn and an overseas entity (Mezcal...). Ron Martin is, i presume, the majority shareholder in Martin Dawn.

Roots Hall is owned by Roots Hall Limited who are owned by SEL?

The training ground is owned by the Council, but SEL have a long term lease.

So the attraction of someone buying the legal entity of the football club is not that attractive as others would still own the tangible assets (Roots Hall and the lease of the training ground). It does seem to point to a Ron Martin linked company taking over the club with debts cleared and effectively starting again but with less debt?!

Are Martin Dawn struggling as well in their own industry putting aside the football club?

 

[Matt the Shrimp]

Are Martin Dawn struggling as well in their own industry putting aside the football club?

In all likelihood, yes. Almost all residential property developers have been hit very hard by the current downturn, lack of available financing, decline in property prices and, in particular, severe tightening of the mortgage markets allowing Joe Public to buy their houses.

I am beginning to feel very uneasy about what's going to happen this week.

Matt

 

[The Late One]

Roots Hall is owned by Roots Hall Limited who are owned by SEL?

The training ground is owned by the Council, but SEL have a long term lease.

Has anybody looked who South Eastern Leisure used to be called on www.companieshouse.gov.uk ??

 

[BLUEBLOOD]

Has anybody looked who South Eastern Leisure used to be called on www.companieshouse.gov.uk ??

No, have you ??

If so please share ...

 

[The Late One]

Try http://wck2.companieshouse.gov.uk/97f86b4928139f41b834a93a63824ea3/compdetails

 

[BLUEBLOOD]

Try http://wck2.companieshouse.gov.uk/97f86b4928139f41b834a93a63824ea3/compdetails

Interesting .. though why you couldn't come out and say Delancey rather than playing cryptics i cannot fathom

 

[McNasty]

Try http://wck2.companieshouse.gov.uk/97f86b4928139f41b834a93a63824ea3/compdetails

Chris, I am ignorant. Please explain as I am not sure.

 

[The Late One]

South Eastern Leisure used to be called... Delancy South Eastern (only for a short period !!). I've heard that name somewhere before !!

 

[weststander]

I think that Delancy South Eastern was what the Company name was for the owners of the club at the time especially as there is still a Delancy Ltd, that deals with finance listed at companies house

http://wck2.companieshouse.gov.uk/97f86b4928139f41b834a93a63824ea3/compdetails

Once Ron bought Dleancy out he renamed the company, possibly at Delancy's request, so that the two couldnt be mistaken.

 

[BLUEBLOOD]

I think that Delancy South Eastern was what the Company name was for the owners of the club at the time especially as there is still a Delancy Ltd, that deals with finance listed at companies house

http://wck2.companieshouse.gov.uk/97f86b4928139f41b834a93a63824ea3/compdetails

Once Ron bought Dleancy out he renamed the company, possibly at Delancy's request, so that the two couldnt be mistaken.

Hang on .. where's the conspiracy in that ??

 

[weststander]

Hang on .. where's the conspiracy in that ??

Sorry Blueblood, no conspiracy, just a bit of investigation so that i could give an informed view instead of jumping to conclusions, i think that there has been far too much jumping to conclusions in the last few days.

 

[BLUEBLOOD]

Sorry Blueblood, no conspiracy, just a bit of investigation so that i could give an informed view instead of jumping to conclusions, i think that there has been far too much jumping to conclusions in the last few days.

Indeed .. and far too much in one day for my poor aching brain to take

Seriously tempted to give SZ a wide berth for a day or two actually .. hmm, as if, see you all tomorrow for more of the same folks :'(