Southend Council Leader updates fans after critical day for Southend United
Cllr Daniel Cowan says a new deal has been agrred with proerty developers over the Fosset's estate. It comes after a Winding Up Petition was dismissed
Southend United Football Club has reached a critical milestone in securing its future.
The club has agreed to new terms with Citizen Housing, a major step forward following the dismissal of a legal action that threatened the club's survival.
Despite this, the club now needs to address a £1 million bond required by the National League to ensure its continued participation.
Councillor Daniel Cowan, Leader of Southend-on-Sea City Council, provided an update on the situation. He announced the new agreement, which is aimed at resolving the club's long-standing financial issues by separating (or “decoupling”) the football club's sale from a related property deal involving the land on which the club operates.
"These new Heads of Terms are a significant improvement on the Heads of Terms I inherited when I became Leader of the Council 5 weeks ago," said Cowan.
The goal is to finalize a fair property deal that doesn't put the club's future at risk.
Cowan says after discussion with the club's owner, Ron Martin; they agreed to move forward with the new plan after the previous proposal failed to meet necessary financial checks. "Last night, I spoke with Ron Martin and during a frank and unfettered but fair and respectful exchange, I made it clear that my patience had run out," said Cowan.
The new agreement focuses on a plan for low-rise housing, which is seen as a more viable option than earlier proposals.
This new agreement is expected to provide a more stable foundation for Southend United, improving the chances of success in the next phase of financial and legal scrutiny.
Cowan expressed confidence in the new terms and praised the council officers for their work in reaching this point, stating, "I want to take this opportunity to publicly thank our incredible council officers for their Herculean efforts in getting us to this point."
The focus will now be on completing the separation of the property deal from the club's sale and meeting the National League's bond requirement. Cowan promised further updates as the situation develops.