Southend safe for now, but given 10 point national league deduction
Chairman Ron Martin's promised the club will be sold before October
Southend United Football Club, has been hit with a 10-point deduction by the national league after failing to fully settle it's outstanding debt to HM Revenue and Customs (HMRC).
The National League revealed that Southend United had been given a clear directive to discharge their debt in full to HMRC before the court hearing today (August 23, 2023).
Unfortunately, despite a court hearing adjournment being granted, the club's debt remains unresolved. Consequently, the league made the decision to impose a 10-point deduction on Southend United with immediate effect.
This announcement comes on the heels of the club's earlier warning on July 26, 2023, when they were informed by the National League that the debt must be cleared by the aforementioned court date.
The fate of the club now hangs in the balance as negotiations for a change in ownership are apparently underway. Ron martin, the clubs chairman's claimed a consortium, spearheaded by an Australian national and composed of local businessmen, is in advanced talks to take control of the club. The completion of this takeover is targeted to occur prior to October 1. This change in ownership is expected to facilitate the repayment of the debt to HMRC and the resolution of the winding-up petition.
The club's statement follows todays High Court decision, where a judge granted Southend United an additional 42 days to settle their debt with HMRC and the parties supporting the winding-up petition.
This extended period is crucial for the club to secure a new owner who can inject the necessary capital to clear the financial obligations. The court's deadline for the takeover to be finalized is October 4.
Southend United have indicated that discussions on the matter of a points deduction were ongoing with the National League before the decision of deducting points had been made and stated: "should an agreement fail to be reached, the club is prepared to initiate an appeal".