Ron Martin speaks to Chris Phillips

[fbm]

Erm yes that might be true if you didnt own every company involved.*scratches head*

All roads lead to Ron...

 

[Billy Bests boot laces]

All roads lead to Ron...

And a 'cul de sac'??

 

[Cricko]

All roads lead to Ron...

Exactly my point.

 

[fbm]

Exactly my point.

But if the club goes into administration, that guarantees that any debts go back to him, yes? No-one else is involved.

And that means that his companies have provided all the money, meaning his companies and their assets have basically funded the club for 20-odd years.

So he will effectively be getting his own money back.

I don't have a problem with that and I'm really struggling to understand what it is that I'm either missing or others aren't getting. I'm not at all trying to be obstructive about this but I don't see what's wrong with securing your own money (or your own companies money).

 

[Billy Bests boot laces]

But if the club goes into administration, that guarantees that any debts go back to him, yes? No-one else is involved.
And that means that his companies have provided all the money, meaning his companies and their assets have basically funded the club for 20-odd years.
So he will effectively be getting his own money back.
I don't have a problem with that and I'm really struggling to understand what it is that I'm either missing or others aren't getting. I'm not at all trying to be obstructive about this but I don't see what's wrong with securing your own money (or your own companies money).

It's getting late, i've had a few beers & am also confused.
If that scenario occurred, who would pay him the debts incurred?.

 

[kentblues]

The club has no real assets. If it went under nobody including Ron’s other companies would get anything probably, and the write off would affect negatively (probably disastrously) their balance sheets/P&Ls- I doubt full bad debt provision is made for these inter co loans. To the extent there was anything HMRC come first (even ahead of local businesses who can far less afford to miss out- but that’s fine because we all have a soft spot for the poor old HMRC, they should always come first). The flip side is having very little in the way of third party debt (I.e. outside of Ron’s companies) there is very little benefit in allowing it to happen. You maybe avoid some or all of an HMRC debt for a whole World of pain in terms of points deductions, embargoes, and credit/reputational issues that may jeopardise future transactions. So it very likely won’t happen. In the end actually Ron has always paid his debts and that counts for something..

 

[Blue Streak]

Almost all these problems are caused directly by Ron abysmal financial mismanagement. Ok, maybe we were several £m in debt before but nothing close to what we are now. He is totally responsible for debt creation and change of asset ownership for his own personal benefit. Not the club's. If he cared why not put roots hall and the training ground back into Southend United name!

Westy, Ron is a property developer by trade, not an accountant or financial guru. He has accountants and advisors that help him make whatever decisions, good or bad, he takes. Much of this advice would no doubt be based on minimal impact financially to both his own money and the club. If he was to carry out your suggestion of transferring/gifting Roots Hall and the Training ground back to Southend United he would be liable for a massive crippling Capital Gains Tax bill. If however he,and Southend United, jointly made claims for what is called Hold-over relief then the CGT would not have to be paid at the point of transfer. However the Hold Over relief only exists until Southend United dispose of Roots Hall. Upon which Southend United would suffer a massive, probably bigger CGT bill. Knock the CGT off the Roots Hall sale proceeds and it wouldnt buy Southend United a very big slice of FF. It's a lose lose. So maybe not a good idea ?

 

[rigsby]

Ron has publicly stated that he will write off the debt when FF goes through. That was in May 2018 and at the time he said it was £17m. Two years later it must be about £20m.

Seeing as we are paying to much in wages for our squad, How is it possible for Ron to gain from that?....Unless all the players are transferring say 15% of their wages into some Cayman Island account then how does he gain from it?

 

[Barry.C]

Fair point, but I’d love to know what our wage bill is NOW, following the necessary cull. I suppose the likes of Egbri , Rush, Mitchell Nelson, Seadon, Clifford, Acquah, Taylor,, Hutchinson and even Goodship, Barrett and Bwomono May not be living the high life, so good news for the budget at last.?

,

 

[HypoTypo]

He also said we are not going down this season, we have players coming in during the January window and HMRC was settled in January

Ron has publicly stated that he will write off the debt when FF goes through. That was in May 2018 and at the time he said it was £17m. Two years later it must be about £20m.

Seeing as we are paying to much in wages for our squad, How is it possible for Ron to gain from that?....Unless all the players are transferring say 15% of their wages into some Cayman Island account then how does he gain from it?

 

[rigsby]

He also said we are not going down this season, we have players coming in during the January window and HMRC was settled in January

Not sure how people would have reacted back in October if he said "I have decided our squad are dog s*** and we have no chance of staying up. So I will leave Waddock in charge until May."

He also stated he will gift land to the church for continued parking and a number of the flats at FF to SUFC, so that they have another revenue stream......We shall see.

 

[Chris Powell's mate]

Here's the thing.
I won't defend all of Ron's decisions; I doubt he will.
But he has funded the club wrongly or rightly over 22 years, and whether his original motives were totally pure is a moot point.
I doubt 22 years ago he saw it leading to this - but here he still is, like most of us!
I met him the evening of the Sunderland game, and he was chuffed like we all were, and in two minds over appointing Bond.
I should have told him what I knew about Harry's gofer, but didn't want to spoil the moment. I was hoping Ron would sleep on it and look elsewhere.
He also should have looked at the fitness regime over the last two seasons - that was a major mistake.
Injuries are part and parcel of football - but not to the extent we've suffered. It's ridiculous by anybody's standards, and he acknowledges this in Chris's interview.
If the two midfielders he criticised have a pair - they will use it to show how good they are in the future.
Football is a hard-knock workplace, and someone's opinion is just that. But like loads here, I share it. They were useless.
One can call Ron anything they want, but, and I'll say it again, given all the details laid out here intelligently and rationally by many posters, is there any fan actively searching for a viable and acceptable replacement?
No? Thought not.

 

[Thundersley Blue]

Totally agree with those thoughts. Supporters need to be careful what they wish for. Bolton, Bury, Oldham, Oxford for example. I would rather stick with what we have, at least for the moment.

 

[blues exile]

Totally agree with those thoughts. Supporters need to be careful what they wish for. Bolton, Bury, Oldham, Oxford for example. I would rather stick with what we have, at least for the moment.

Not sure why Oxford are on your list, but as for the rest of them, we seem to be heading in the same direction. All the years of poor decision making, financial irresponsibility and robbing Peter to pay Paul plus the delusional promised land of FF are finally catching up with Martin. The EFL have got him in their sights now. Few outside the area would shed any tears nor would there be any outcry about the demise of an unremarkable lower division club with no memorable tradition or history to mourn and it would serve as a warning to others. As a supporter for nearly sixty years, tbis really does feel like we are approaching the endgame and it is distressing beyond words to contemplate Southend United being no more. Being fed a constant diet of patronising platitudes, half truths and evasions masquerading as meaningful statements only makes things worse.

 

[Tangled up in Blue]

That's not right. The reason only 3 clubs are getting relegated this season is so that 4 clubs can still get promoted from League 2. If only 2 clubs got promoted from there then there would only be 22 sides in League One next year!

Yes.I mis-spoke myself.

 

[Tangled up in Blue]

The club has no real assets. If it went under nobody including Ron’s other companies would get anything probably, and the write off would affect negatively (probably disastrously) their balance sheets/P&Ls- I doubt full bad debt provision is made for these inter co loans. To the extent there was anything HMRC come first (even ahead of local businesses who can far less afford to miss out- but that’s fine because we all have a soft spot for the poor old HMRC, they should always come first). The flip side is having very little in the way of third party debt (I.e. outside of Ron’s companies) there is very little benefit in allowing it to happen. You maybe avoid some or all of an HMRC debt for a whole World of pain in terms of points deductions, embargoes, and credit/reputational issues that may jeopardise future transactions. So it very likely won’t happen. In the end actually Ron has always paid his debts and that counts for something..

It's all very well to say the club now has no assests but who bought up those assets ie Roots Hall and Boots and Laces at less than their market value back in the day? The Chairman that's who.

 

[HypoTypo]

I just don't believe a word he says anymore, despite his efforts to do the Q&A with CP.
Come to think of it, how are the trust getting on with their meeting with him. He hasn't pushed them aside in favour of the Echo has he ?

Not sure how people would have reacted back in October if he said "I have decided our squad are dog s*** and we have no chance of staying up. So I will leave Waddock in charge until May."

He also stated he will gift land to the church for continued parking and a number of the flats at FF to SUFC, so that they have another revenue stream......We shall see.

 

[Cricko]

I just don't believe a word he says anymore, despite his efforts to do the Q&A with CP.
Come to think of it, how are the trust getting on with their meeting with him. He hasn't pushed them aside in favour of the Echo has he ?

I would say it now makes the Trust meeting near on null and void,he has circumnavigated that.

 

[rigsby]

It's all very well to say the club now has no assests but who bought up those assets ie Roots Hall and Boots and Laces at less than their market value back in the day? The Chairman that's who.

What if he had allowed Sainsburys to buy them instead........Have you considered that.

Lots of football clubs were being sold for £1 back then, even Chelsea.....How comes you never bought one?

 

[mfurok]

25% of the clubs in it manage to get out each year.

Not this year!