Southend have secured an urgent court order allowing the payment of players and accountants before deadlines that threaten the club’s survival.
A lawyer for the National League side told a specialist judge they would “simply cease to exist” if payments to playing staff and for the filing of overdue accounts were not made on Wednesday.
Judge Sebastian Prentis heard at an online hearing that players could “walk away” if they did not receive their salaries due at the end of this month, while the National League had said it would withdraw the club’s membership if accounts were not filed “by close of business”.
The insolvency and companies court hearing comes after HM Revenue & Customs (HMRC) issued a winding-up petition against the non-league club over a £275,000 tax debt.
Earlier this month, Southend – who dropped out of the English Football League at the end of the 2020/21 season – were given more time to clear the debt as the owners look into the sale of the club.
Barrister Hilary Stonefrost, representing the loss-making side, told Wednesday’s hearing it needed a “validation order” to unfreeze a bank account and make payments.
She said this was “to ensure the business of the company can survive under its present ownership long enough for a sale of the company’s shares to new owners”.
“The salaries of the footballers and the footballing staff need to be paid today… and if they are not paid they can walk away,” she said.
“The National League has said that if they did not file accounts before close of business today then they will withdraw their membership of the league.”
Ms Stonefrost apologised for the lateness of the club’s court application, saying management was “very occupied with putting the sale together”, including it being “marketed in America”.
In March, it was reported that the club’s parent company had appointed General Sports Worldwide, an American agency, to explore the market for potential buyers or fresh investment.
Ms Stonefrost told the hearing that agents were instructed to produce an “investment prospectus”, saying negotiations were being conducted with prospective buyers who had passed “the financial requirement test”.
She said club chairman Ron Martin, who observed the online hearing, had given an “undertaking” that sale proceeds would be used to pay HMRC and creditors.
Southend’s parent companies, South Eastern Leisure UK Limited and Martin Dawn Plc – both Mr Martin’s family companies – have “always funded this club”, Ms Stonefrost said.
She said it was “not necessarily in a timely manner” but money has been raised to pay debts.
The club came close to going out of business earlier this year before settling an outstanding bill of £1.4million with HMRC, which has issued a number of winding-up petitions against Southend in recent years.
Ms Stonefrost told the court there was a “short-term liquidity” problem with the parent companies in relation to a “huge development in Southend”.
Judge Prentis said £25,000 of the club’s current HMRC debt had been paid – with the petition due to be reconsidered on July 12.
He said the “manifestly insolvent” club had to provide to the National League accounts for 2020 and 2021, having not filed any to Companies House since July 31 2019.
The judge said that unless players were paid they had the right to leave within 14 days “without providing any value to the company through transfer fees”.
He granted part of the requested order to cover payments to accountants, footballing staff and lawyers, but said he was “concerned” over “weak” evidence that the club could meet a second National League deadline of June 2 to pay HMRC in full as well as all football creditors.
The case will return to court on Monday, when Ms Stonefrost said the judge will receive a National League letter saying it has changed the June deadline.
She also committed to providing confidential information on the sale process and detail on how money from a sale would be handled.
Conte hopes for Ranieri's success at Roma after Napoli clash
Antonio Conte hopes that everything will go well for Claudio Ranieri after he came out of retirement to take charge of Roma, but only after their Serie A clash this weekend.
Ranieri was tempted back into management by a return to where he began as a player. His third spell at Roma comes after the club sacked two coaches already this season and with the team 12th in the standings.
A trip to leaders Napoli is Ranieri's first task, and Conte is looking forward to meeting up with the 73-year-old.
"I am pleased to see Claudio, I have great esteem for him and there is also friendship," Conte told reporters ahead of Sunday's game.
"I am happy with the chance he has been given. It will be a tough game, for us and for them. Last year, Roma finished ahead of Napoli, they are in the Europa League and had a good transfer window.
"They are not performing according to expectations and I hope for Claudio that everything starts to work after Sunday's game."
The arrival of Ranieri in place of Ivan Juric brings with it not just the danger of the 'new manager bounce' but also upsets Conte's plans for the game.
"When a team changes coach there is an important input on a nervous level," Conte said.
"They are at the third change on the bench. It's inevitable that, if Juric had remained, we knew what kind of team we were going to face.
"Now it's an enigma, we don't have much information nor do we know how they will deal with us. So let's think about ourselves, there is a desire and enthusiasm to continue this path."
After a streak of 21 consecutive home wins in Serie A, Conte lost his last home league match (0-3 against Atalanta). Only once in his career has he recorded two consecutive home defeats in the competition: in November 2009, when he was in charge of Atalanta (against Juventus and Roma).
Napoli are top of the table, but Conte knows it is still early, and with just two points separating the top six clubs, which includes the likes of Atalanta, Fiorentina and Lazio, for now, it is a different title race than usual.
"Only 12 games have passed and there are many teams within very few points," he said.
"We are doing well, but so are the others. There isn't one team which has distanced the others. Perhaps there is a little amazement in seeing some teams in those positions in the standings."
Martino resigns as Inter Miami coach after early playoff exit
Gerardo Martino has resigned as Inter Miami's head coach due to personal reasons, the MLS side have confirmed.
The Argentine ends his 17-month stint in charge of the Herons following their MLS Cup exit just under a fortnight ago.
Martino, who oversaw Miami's Leagues Cup triumph soon after his arrival last season, guided the franchise to this year's Supporters' Shield with a regular-season record tally of 74 points.
However, they were eliminated by his former side Atlanta United in round one of the MLS Cup playoffs.
Miami opened their best-of-three series against Atlanta with a 2-1 win, only to lose by the same scoreline in Game 2 before falling to a dramatic 3-2 defeat in the decider.
“It has been an honour to work at such a special club, and to lead such a special team," Martino said.
"I’ve enjoyed my stay at Inter Miami and will treasure the memories made and relationships forged here for the rest of my life.
"I depart with nothing but gratitude for my time here and would like to offer sincere thanks to everyone that made it possible."
Fonseca: Milan have 'respect' but 'are not afraid' of Juventus
Paulo Fonseca said Milan have plenty of "respect" for Juventus, but his side "are not afraid" of their rivals ahead of their Serie A clash on Saturday.
After a slow start to the season, Milan are six points adrift of Juventus in the table, but only a place behind them, as they aim to make up the ground on the top six.
The Rossoneri have played a game less than Thiago Motta's side, and could catapult themselves back into the Scudetto picture with a win this weekend.
Milan return to the San Siro for the first time since a 2-0 defeat to Napoli at the end of October, and could register two consecutive home defeats in Serie A for the first time since between October and November in 2023.
"It is not decisive, but it is important, like all of them," Fonseca told reporters ahead of Saturday's game.
"I can't say that the game against Juve is more important than the next one against Empoli because we need consecutive victories.
"It's a different game, but I always think positively. We are Milan, we have a lot of respect for the 'Bianconeri', but we are not afraid. We are here ready to win."
A boost for Milan is that Juventus will be without top scorer Dusan Vlahovic for Saturday's clash after returning from international duty with a muscle problem.
Despite the Serbian's absence, Fonseca was aware of the danger his probable replacement, Timothy Weah, would pose, having managed him during his time at Lille.
"Juve knows how to adapt very well. I don't know if Weah will play," Fonseca said.
"Weah is very fast and attacks deep, not like Vlahovic. It will not be the same thing of course.
"We will have to pay attention to movements in depth and less to support work, because he is a player who does less of this job."
While Fonseca has endured a stuttering start to his tenure at the San Siro, Milan have shown they have the ability to match the very best.
They beat rivals Inter in October before stunning Real Madrid at the Bernabeu in their last Champions League encounter, keeping their play-off hopes alive.
"I believe it's a matter of motivation and not pressure," Fonseca said.
"Against Inter, Juve and Real it is easy to be motivated, it's more difficult to go to Cagliari and have the same motivation.
"Pressure is always with us, every day. If we don't want to have pressure, then we shouldn't be here."
SportsMax is the Caribbean sports channel of choice, committed to providing sporting content of the highest quality to the Caribbean, delivered by a team of highly innovative, passionate and qualified professionals.
(876) 619-7629
digitalmedia@sportsmax.tv
