Breaking News Today's Echo - Who owns the Blues? (2010 thread)

[yogi bear up the cagire]

Still somewhat difficult to see how RM is going to come out of this. perhaps I'm very wrong but it seems that he is a small property developer who saw the chance to make a big killing and at the same time bring success to a football club to which he had become strangely attached.
Sadly the World economic recession came and has crippled him and his aspirations. The last year appears to have been a desperate attempt to patch up the problem but one that looks like ending in failure. There seems more likelyhood of Jamie Oliver leading the celebrations for the opening of of the new stadium, than RM and his golden locks. Perhaps the REAL judgement on RM is yet to be made and will depend largely how he extricates himself from SUFC and in what state he leaves the club.

 

[mattytheshrimper]

Sadly the World economic recession came and has crippled him and his aspirations.

i'm sorry but this is an easy escape route out of this suitation. the recession is being used as an excuse for everything.

 

[shrimperton]

Basically we are screwed, Ron has had ideas way above his station and killed the club, sainsburys will soon own SUFC and all that goes with it including land to sell where FF would have been, then what interest has a supermarket got in running a football with staggering losses. NONE

SUFC will cease to exist before the season is over, what we as fans do know is start looking at someway to rise the pheonix from the flames, ie Aldershot, afc wimbledon, fc united etc!!!

We need to do something sooner rather than later

 

[palexander]

i'm sorry but this is an easy escape route out of this suitation. the recession is being used as an excuse for everything.

Not sure about that - least it has some factual substance (i.e. the banks DID/HAVE stop lending money and the commercial retail sector collapsed) - not much he can blamed for there.

Where I see Rons biggest failing is the constant lies, spin and in doing so, has dragged the club both through the mud and through a period I dont think we'll recover from without a miracle. Whether greed, pride or a stubborn self-belief he could deliver the project - either way, its run away from him and he did nothing to step aside and get help and because of that he has alienated the fans, players, management, local business, the HMRC, the media, the PFA and it seems most of the football world in general - quite a feat.

I cannot see a way back. That is the legacy Ron Martin will leave at SUFC. He tried, he failed, he killed a football club.

 

[TJC]

Maybe I'm wrong here, and expect I'll be told so, but they way I see it at the moment is that we are dead in the water with Ron at the helm. Sainsburys have/are stepping in and have to keep the club going to keep the planning application alive - I recall that SUFC need to be relocated and playing in the new stadium before the store can be opened. Praise the lord for forward thinking councillors - never thought I would say that!
Once in a new stadium, hopefully we are a prospect that someone would consider taking on again.
My concerns are, what does keeping the club alive? Alive as a football league club or just a professional/semi professional club i.e Conference is ok?
Would this so called consortium be prepared to step in and keep the club a league side in cooperation with Sainsburys?

 

[canveyshrimper]

Basically we are screwed, Ron has had ideas way above his station and killed the club, sainsburys will soon own SUFC and all that goes with it including land to sell where FF would have been, then what interest has a supermarket got in running a football with staggering losses. NONE

SUFC will cease to exist before the season is over, what we as fans do know is start looking at someway to rise the pheonix from the flames, ie Aldershot, afc wimbledon, fc united etc!!!

We need to do something sooner rather than later

I agree that Sainsbury's will not want to own a football club, however they cannot develop the Roots Hall site until SUFC have been relocated to a new stadium. I am not sure that as a commercial exercise Sainsbury's would want the club to fold, and the subsequent bad publicity that Sainsbury's would get if they allowed the club to do so.

 

[colusponge22]

and to think u lot laughed at us for having no ambition in only building a 10000 stadium. Whilst i accept you guys are a bigger club and have bigger crowds i cant help but think that if you had aimed for an initial 15000 stadium instead of your oversized 22000 stadium then the funding and progress would have been so much easier and quicker. I really do hope that your team survives as its nice to have a rivalry that both sets of fans get into however your club is really a warning to us as well as many other teams out there about the problems of having the club rely to much on one man. At col u at the moment we are relying on robbie Cowling to finance the running costs through sponsorship from his other businesses and personal cash injections, His business model is to work for average crowds of 6-7000 to become self sufficent with a further 2-3k average in the championship needed. The new stadium has led to many other financial revenue streams that have helped ease the burden on the his support and this will happen with u guys as well, as long as you get your stadium.

 

[devonexile]

Still somewhat difficult to see how RM is going to come out of this. perhaps I'm very wrong but it seems that he is a small property developer who saw the chance to make a big killing and at the same time bring success to a football club to which he had become strangely attached.
Sadly the World economic recession came and has crippled him and his aspirations. The last year appears to have been a desperate attempt to patch up the problem but one that looks like ending in failure. There seems more likelyhood of Jamie Oliver leading the celebrations for the opening of of the new stadium, than RM and his golden locks. Perhaps the REAL judgement on RM is yet to be made and will depend largely how he extricates himself from SUFC and in what state he leaves the club.

How do we know the recession caught him out? We only had Martins word for it that the nessesary finance was ever in place for the development at FF.

 

[Jay_Shrimper]

Typed up - For Exiles

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 eentually 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.


There are loads more to come, but I'll post them up as I write them... so they'll be here soon.

 

[palexander]

and to think u lot laughed at us for having no ambition in only building a 10000 stadium. Whilst i accept you guys are a bigger club and have bigger crowds i cant help but think that if you had aimed for an initial 15000 stadium instead of your oversized 22000 stadium then the funding and progress would have been so much easier and quicker. I really do hope that your team survives as its nice to have a rivalry that both sets of fans get into however your club is really a warning to us as well as many other teams out there about the problems of having the club rely to much on one man. At col u at the moment we are relying on robbie Cowling to finance the running costs through sponsorship from his other businesses and personal cash injections, His business model is to work for average crowds of 6-7000 to become self sufficent with a further 2-3k average in the championship needed. The new stadium has led to many other financial revenue streams that have helped ease the burden on the his support and this will happen with u guys as well, as long as you get your stadium.

its been the main crux of most fans arguments with all this. A 22,000 seater stadium is absolutely ridiculous. I'd rather have a 14-15,000 with the future proofing to make it 20-22,000 if needs be as and when.

So, so stupid.

 

[devonexile]

and to think u lot laughed at us for having no ambition in only building a 10000 stadium. Whilst i accept you guys are a bigger club and have bigger crowds i cant help but think that if you had aimed for an initial 15000 stadium instead of your oversized 22000 stadium then the funding and progress would have been so much easier and quicker. I really do hope that your team survives as its nice to have a rivalry that both sets of fans get into however your club is really a warning to us as well as many other teams out there about the problems of having the club rely to much on one man. At col u at the moment we are relying on robbie Cowling to finance the running costs through sponsorship from his other businesses and personal cash injections, His business model is to work for average crowds of 6-7000 to become self sufficent with a further 2-3k average in the championship needed. The new stadium has led to many other financial revenue streams that have helped ease the burden on the his support and this will happen with u guys as well, as long as you get your stadium.

It has absolutely nothing to do with the size of the stadium. It is simply the problem of the club being “owned” by a Del Boy type chancer, with big ideas, no cash and a string of debts all over the place.

 

[shrimperton]

I agree that Sainsbury's will not want to own a football club, however they cannot develop the Roots Hall site until SUFC have been relocated to a new stadium. I am not sure that as a commercial exercise Sainsbury's would want the club to fold, and the subsequent bad publicity that Sainsbury's would get if they allowed the club to do so.

But would the relocation clause stuill come into play if they own everything, surely if they own lock stock and barrel, they can do what they want within reason.

I dont know how that would stand? if they owned sufc they could shut it down cos its such a big loss of money, maybe i just guessing??

 

[Jay_Shrimper]

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."

 

[Thor]

and to think u lot laughed at us for having no ambition in only building a 10000 stadium. Whilst i accept you guys are a bigger club and have bigger crowds i cant help but think that if you had aimed for an initial 15000 stadium instead of your oversized 22000 stadium then the funding and progress would have been so much easier and quicker. I really do hope that your team survives as its nice to have a rivalry that both sets of fans get into however your club is really a warning to us as well as many other teams out there about the problems of having the club rely to much on one man. At col u at the moment we are relying on robbie Cowling to finance the running costs through sponsorship from his other businesses and personal cash injections, His business model is to work for average crowds of 6-7000 to become self sufficent with a further 2-3k average in the championship needed. The new stadium has led to many other financial revenue streams that have helped ease the burden on the his support and this will happen with u guys as well, as long as you get your stadium.

I don’t recall any one laughing at you for having no ambition, maybe a bit over ambitious in building a stadium twice the size for your needs.

In all honesty I don’t think you will find a Southend fan on here who ever wanted a 22,000 seater stadium, we all knew that was pie in the sky.

 

[devonexile]

I agree that Sainsbury's will not want to own a football club, however they cannot develop the Roots Hall site until SUFC have been relocated to a new stadium. I am not sure that as a commercial exercise Sainsbury's would want the club to fold, and the subsequent bad publicity that Sainsbury's would get if they allowed the club to do so.

I think you may be right about Sainsbury's commercial perspective on the matter, in the meantime we have to generate sufficient cash to commence the season and avoid expulsion from the league and subsequent liquidation.

 

[dannyg]

put me right as I am new to all this...

surely if all the big wage players are out of the squad and a squad of league two players at league two wages get bought in, then with crowds of 3500 to 4000 are going to cover wages arent they?

how else are the club losing money bar the costly wages?

 

[Napster]

how else are the club losing money bar the costly wages?

the pulse cheerleaders cost £5k a game

 

[devonexile]

Typed up - For Exiles part 2

CLUB'S CASH IS BEING SOCKED 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."

According to Martin the club is free of bank debt. He omitted to mention the huge wedges of cash with interest owed to Sainsburys. Martin is either a crook or a crank or both.

 

[Bob Cratchitt]

One thing that worried me is that the Club's constitution has changed, allowing shareholders to sell shares without the board's consent. This could be worrying if Sainsburys do end up with the majority share they could sell the club to anyone regardless of whether they are viable for the club.

 

[Beefy]

put me right as I am new to all this...

surely if all the big wage players are out of the squad and a squad of league two players at league two wages get bought in, then with crowds of 3500 to 4000 are going to cover wages arent they?

how else are the club losing money bar the costly wages?

The trouble is that the bulk of our ticket revenue (season ticket sales) has already been spent due to last season's lack of cash. I've just done some rough sums and at 2,500 paying customers at an average of £13 a ticket for 26 games, once VAT is taken off would leave us more than £500k short of the wage bill even if we were to achieve the £1.4m wagebill target that Ron Martin said he wanted.