Sale of Southend United to Justin Rees and his consortium

[Yorkshire Blue]

very rough and ready approximations

season tickets average GBP 250 x 3000 = 750k

the sponsorship/ad figure (which surprised me - but is in line with previous figures from published accounts) ) was given me by a contact at 700k

We know the club has robust revenue - it is in the published accounts on companies house.

1.4 million pounds coming into the club so far in 2023 ..

I have heard running costs estimated at GBP 125k per month - this sounds very light to me but I have no insight to offer ..

You misheard. It was operating losses of GBP 125k not operating costs.

If we had running costs of GBP125k per month and revenue of GBP1.4m per annum we’d be a much more viable business.

 

[West Stand]

You misheard. It was operating losses of GBP 125k not operating costs.

If we had running costs of GBP125k per month and revenue of GBP1.4m per annum we’d be a much more viable business.

I expect there will be a massive gulp when( if) the 21/22 accounts are eventually filed.

Its difficult to get any real handle on if there was any significant reduction in wages, which is almost certainly the biggest single head in expenditure terms but in 20/21 year wages/ NIC and pension costs alone amounted to close to £300k a month. Even if that was cut in half, which I doubt that is way in excess of the £125k per month.
In that 20/21 ST money etc was not significantly impacted by COVID but in the previous year whilst in the league it was around £600k-£650 k so potentially £1.3 million

I would hazard a guess that the three biggest income streams in 21/2 ST, Advertising & match day income added together don’t get close to paying the wages.

I could go on and on but if the 21/22 numbers are bad you can bet your bottom dollar the 22/23 numbers are going to be worse.

 

[Dutch Branch]

It is this or proof they want to continue trading

More of a house keeping exercise to get things up to date, after all if you’re trying to sell something you’d expect to have no loose ends.

 

[Shrimpet steve]

Well if he is?He's taking long enough!!

 

[CanveyCastle]

Not heard anything at all from Mr Rees for ages, has his dingo died ?

 

[LeedsSUFC]

Except the Judge made clear this is it. No more

A judge said similar 2 judges ago…

HMRC would rather money from potential Aussie / council rather than making a company with no assets or value insolvent.

 

[annie1954]

Not heard anything at all from Mr Rees for ages, has his dingo died ?

He was last seen hopping off into the sunset with skippy at his side

 

[Evening Echo]

A LETTER from Councillor Ron Woodley.

Read more on this story


Help with Echo links

 

[Shrimper]

A judge said similar 2 judges ago…

HMRC would rather money from potential Aussie / council rather than making a company with no assets or value insolvent.

You're thinking of Judge Barber. They were fobbed off by Ron saying he needed more time. Judge Prentice was clear it will be wound up if debts not cleared. I don't think we should be testing that

 

[kentblues]

You're thinking of Judge Barber. They were fobbed off by Ron saying he needed more time. Judge Prentice was clear it will be wound up if debts not cleared. I don't think we should be testing that

He actually said we should *expect* to be wound up. He can’t say will as he can’t tie the court at the next hearing that will, as always, make a decision based on the facts before it. Of course, the judge could again be Judge Prentice. There are aren’t many judges on the rota.

 

[kenty in weardale]

As an outsider I suspect the key issue for HMRC is whether current tax payments are being made. If they aren't then it makes perfect sense for them to press for winding up so as to prevent further loss to the public purse.

Another issue may be ( I really don't know what happens on this) is there a penalty rate of interest applied to the HMRC debt, I know there is in cases of tax evasion.

Good luck anyway and I hope you get some kind of resolution shortly, it really must be impacting on the mental health of all of you

 

[Shrimpergonzo]

As an outsider I suspect the key issue for HMRC is whether current tax payments are being made. If they aren't then it makes perfect sense for them to press for winding up so as to prevent further loss to the public purse.

Another issue may be ( I really don't know what happens on this) is there a penalty rate of interest applied to the HMRC debt, I know there is in cases of tax evasion.

Good luck anyway and I hope you get some kind of resolution shortly, it really must be impacting on the mental health of all of you

@West Stand might be best placed to advise on these issues as I believe he has good knowledge on issues relating to HMRC.

 

[Rayleigh boy]

You misheard. It was operating losses of GBP 125k not operating costs.

If we had running costs of GBP125k per month and revenue of GBP1.4m per annum we’d be a much more viable business.

thanks for this - I suppose you are right -

that suggesting a operating loss of 1.5m ..

on what turnover I wonder ..... as our revenue has shrunk as we have gone down..

 

[Bromley Blue]

Th

That could well be the case for the 25/30-55/60 age bracket, I coached a kids football from age 6 till they were 18 and none ( other than my son) of the 40-50 odd players in that time were Southend fans. Arsenal, Spurs, West Ham, Man City, Man Utd and the odd Liverpool fan

So you’re telling me you had a group of extremely impressionable youngsters under your stewardship and you couldn’t convert even one to support their local team.

Think you need to try harder with the next group

 

[Ozzer]

I think it is very different for a council to invest in new build ventures that have a budgeted return through multi-use etc - such as the community stadium, to applying a very expensive sticking plaster over a deep financial wound created by someone who happens to also be relying on the councils assistance with planning elsewhere. All seems very murky!!

Do you mean murky/murkey or Sudbury_Shrimper?

 

[ForeverBlue]

Anything new from your source @ForeverBlue?

@dusterman all I know is they are still very much in the running, however I’m afraid I don’t know anything more than that due to NDA’s being signed

 

[Westcliff DGS]

He actually said we should *expect* to be wound up. He can’t say will as he can’t tie the court at the next hearing that will, as always, make a decision based on the facts before it. Of course, the judge could again be Judge Prentice. There are aren’t many judges on the rota.

How far ahead will we know the judge, in some perverse way I am hoping it is the same judge as then maybe people will act even faster.

I am very suspicious of the recent activity from MP’s and the council, things needed to be acted upon a long time ago. Yes the MP’s got involved a while back but things seem to have slowed down a lot and now the council pipe up when we are at deaths door when we have been in need of help for a very long time. It just to me seems odd that they ride in when it could be too late, sorry if that offends

 

[Westcliff DGS]

So you’re telling me you had a group of extremely impressionable youngsters under your stewardship and you couldn’t convert even one to support their local team.

Think you need to try harder with the next group

I took them all to 3 games a year and whilst they enjoyed the games (met some players) they all stuck with their teams sadly

 

[Bromley Blue]

I took them all to 3 games a year and whilst they enjoyed the games (met some players) they all stuck with their teams sadly

Ha ha ok fair enough. My comment was tongue in cheeky anyway but sounds like you tried your best.

 

[Westcliff DGS]

Ha ha ok fair enough. My comment was tongue in cheeky anyway but sounds like you tried your best.

I know it was but i did try, i blame the parents personally