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Sale of Southend United to Justin Rees and his consortium

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El Jacko said:
I'm not even a fan of your club but I guess having designed your shirts counts as a connection.
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Closet fan huh? We will get you, it might not be soon, but you will not be able to resist long term :Winking2:(if we are around, that is)
 
Cricko said:
A STATEMENT from Justin Rees on behalf of a consortium bidding to buy Southend United.

Discussions with Mr. Martin have been in progress for more than 10 weeks.

Any deal is particularly complicated due to the state of the Club's finances, the condition of Roots Hall, the non-viability of a new stadium at Fossetts Farm, as well as the ownership of the training ground and Roots Hall properties remaining outside of the Club.
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Cricko said:
Despite this, the consortium has submitted two bids over the past week, neither of which has been accepted.
We remain open to continued negotiations with Mr. Martin however it now seems unlikely that any deal can be agreed prior to the 4th of October court appearance date.

It is our understanding that Mr. Martin will ensure the Club avoids liquidation on the 4th of October, however, the threat of administration remains.
Administration impacts the Club significantly, on and off the pitch, as well as its numerous creditors who have supported the Club financially for many years.
As such, it has been our strong preference to avoid Administration, however this is of course not within our control.
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These highlighted bits of the statement are the most depressing for me.
 
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Holy Joe said:
I haven't time at the minute to double check. But someone posted the league rules around administration - wasn't it a compulsory relegation the penalty? It spoke of events happening between agm's. It also seems you do not lose all of your debt in administration - I'm not convinced it's the cure all we're thinking of.
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No.

If we enter administration, then we need to exit it before the AGM next June. If we haven't exited administration by then, then yes demotion is a possibility. That is my interpretation anyway. Minus 10 points is nailed on however.
 
yogi bear up the cagire said:
I would prefer to say 'freedom to strengthen the present squad.' I don't think 'bring in a competent squad,' does much justice to the competence, skill, devotion, commitment and loyalty of our present players.
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Exactly this. You can't fault anything the existing squad have done & as you say yogi they need extra help because as a base going forward they are more than capable of improving significantly in the right environment.
 
yogi bear up the cagire said:
I would prefer to say 'freedom to strengthen the present squad.' I don't think 'bring in a competent squad,' does much justice to the competence, skill, devotion, commitment and loyalty of our present players.
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If we had a squad of 20-22 players that Kev and co had hand-picked, we'd be top of the league. 100% stand on that opinion. We have a management team and core group of players that could go toe-to-toe with anyone is this division. I'd love to see them have a fair crack at proving it.
 
kentblues said:
It seems to me that JR and this consortium are exactly new owners RM should be selling to if he cared at all about the club. Hopefully its c**k waving and a deal gets done.

RHL limited owns the ground and will continue to do so independently of what happens with SUFC. And as an asset the condition of the stadium is of little relevance as its a site with planning for 502 properties and has been valued as a development site for some time- planning will have increased that value further, and current charges will likely reflect that. Just as it is, I suspect, even if deeply regrettable. If the cost of a complete refurb of the stadium were to come out of the £4.5m sale price then basically the asset would be sold for next to nothing. And Ron would need to settle those charges before a sale could happen. And he has no money and is getting £1 for the club. As you suggest that might be a red line especially as he keeps the asset whatever.

What are the council doing? I know, as politicians, they are sharing nice words (especially if they involve not actually doing anything). But is there finance or not that they can put into the stadium as an asset that helps with this for the new owners or not? If it was all hot air then let's say so. They could suggest to Ron that they will likely support extra housing to replace the stadium at FF- in the long term that may very well work. In the short term how does it provide any funds? Probably not. Any third party closing the gap at this point would be very helpful. Can funds be obtained from the levelling up fund be used for remedial work and close the gap (again MPs actions not words I'm afraid). Let's hope the various parties are offering JR & co concrete help rather than words of encouragement.

My best guess is for the reasons above he will be forced to go down the administration route as he simply does not have the money to do otherwise. JR doesn't want it, the creditors surely to God don't want it (for example if you were Emersons even £200k is better than 100% of nothing) and surely Ron doesn't want it as it brings much focus onto how he has run the business, but all the parties have an immovable deadline and then the blame game will start.

Let's hope it is the squeaky bum, c**k waving stage that this time leads to all invoved finding a solution.
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Pretty much sums up my thinking although I am far from sure that entering Administration is the given that so many think it is or indeed that any Administrator would feel that all the ducks are in a row for any newco to trade successfully going forward

If however Administration does proceed what would the club be worth if sold? My guess is that the offers in front of RM are no more than Peppercorn sums for the shares , certainly it unlikely to be enough to pay a 33pin the £ dividend after IP costs which will run in the tens to hundreds of thousands of £s.
Sadly the likelihood is that unsecured creditors wouldn’t get anything and that is something that the would be a major factor that any IP would have to consider.
So round in circles we go
 
Personally I thinkthat if there's another points deduction all of us non season ticket holders should boycott. I am no longer a season card holder.
 
Paddypel said:
Could someone shed some light on what RM would gain by putting the club into admin please ? written off debt but then surely an administrator would be appointed ?
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He currently has a loss-making business on his hands. He’s not willing or able to put more money in to cover those losses. He’s put it up for sale for £1 but it’s historic debts make it an unattractive proposition. If he can’t sell his next best option is to go for administration and make it the administrators’ problem. Failing that it’s going bust and he could be prosecuted for wrongful trading.
 
Paddypel said:
Could someone shed some light on what RM would gain by putting the club into admin please ? written off debt but then surely an administrator would be appointed ?
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I think as @TrevorFitzpatrickHattrick mentions, he is using it as his last bastion. We know he enjoys brinkmanship and he’s using as his ejection button and IMO is his only real negotiation tactic, in his pursuit of a sweeter deal from Justin or whoever else he is sweet talking. He doesn’t care about the club. Yes it makes his life easier to have it alive but that’s no reason to help it in his eyes.
 
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