National League tell Southend United to post £1m bond
It's as concerns about the Club's finances continue
Southend United have been order to provide a £1m bond by the National League.
In a statement released by the League last night, financial uncertainty was the reason for the bond request, following concerns about the Club's ability to "fulfil its financial obligations for the forthcoming National League Season".
The National League go on to say "Accordingly, the National League has today advised Southend United Football Club that as a result of the Club’s failure to provide the League with detailed, objective and independent evidence that the Club has sufficient funds to meet its financial obligations for the forthcoming National League season, and in light of previously-expressed concerns (underscored by the most recently-filed accounts), the Club will be required to post a bond of £1million, which will be held in escrow to the order of the League."
As talks with COSU continue for Southend United, the National League states completion of an ownership agreement, or the Club providing that it has sufficient resources for the forthcoming season could see the bond removed.
In response to the statement from the National League, Southend United FC said:
"The Club was made aware of the National League’s bond request a little earlier today.
We will consider appropriate steps over the forthcoming days to protect the Club’s position pending the sale to the COSU."
COSU Statement
Following the National League's statement, the COSU say they are "extremely disappointed" in their actions "especially the timing and the short lead time to comply."
They've also spoken out to fans directly, asking them to "stay united and positive."
The full statement from the Consortium, led by Justin Rees, said:
"COSU is extremely disappointed in the National League's latest actions, especially the timing and the short lead time to comply. At a time when the wider football world is voicing concerns surrounding the future of Southend United Football Club, it's remarkable that our League is only making the situation more difficult to resolve.
"To our fans, the situation is not as hopeless as may appear from the outside. We are working around the clock with Ron Martin and Southend-On-Sea City Council to find a solution.
"It is clear that a revised Fossetts Farm Housing contract cannot be completed for several more weeks. Therefore, in our mind, the only option available to save the Club is to complete the takeover now, and allow the housing negotiations and due diligence at Fossetts to continue subsequently.
"This adds significant risk to COSU as our plans to remain at Roots Hall and regenerate the site are fully dependent on the Council and Citizen Housing amending their current housing contract.
"To proceed on this basis, amongst other requirements, we need Citizen Housing and the Council to agree a revised heads of terms and commit towards their implementation, including working through any amendments that may be required to address future due diligence issues.
"Ron and the Council know what is required and have given us assurances that they are aligned and are working towards delivering that outcome.
"We appreciate that this is a very stressful time for our fans, and no guarantees can yet be given, but we urge Shrimpers to stay united and positive."
Leader of Southend-on-Sea City Council, Cllr Daniel Cowan has also shared his upset at the decision from the National League, saying it is "more than disappointing".
Cllr Cowan posted on his X page to say the focus needs to be negotiations, and has put pressure on COSU.
The Leader goes on to say it doesn't change the need for agreement with Citizen Housing ASAP, as the Fossetts Farm deal negotiations continue.