National League orders Southend United to provide £1m bond or face 'further sanctions'

Maidenhead United in action against Southend United at Roots Hall last season

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The National League has ordered Southend United to provide a £1m bond to cover the current campaign because of ongoing concerns around their financial situation.

A takeover of the club by a consortium led by Australian businessman Justin Rees has been held up by ongoing problems over a housing development at Fossetts Farm related to the deal.

Contracts were exchanged last December, but the takeover has yet to be completed, and the club faces a winding-up hearing in court on Wednesday.

A statement from the league yesterday (Monday) said they were concerned about the club's ability to fulfil its financial obligations for the 2024-25 campaign.

The league added that should Southend fail to pay the bond; they would consider 'further sanctions' against the club.

Southend United are one of Maidenhead United’s National League rivals.

The statement said: “The National League continues to be concerned about Southend United Football Club’s ability to fulfil its financial obligations for the forthcoming National League Season.

“The club has for several months been the subject of a winding up petition (a further hearing of which is scheduled for this week) and, on 20 June 2024, filed its accounts for the year to 31 July 2023 which underscore and amplify the concerns expressed previously by the League.

“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.

“The bond shall remain in place until the sooner of (i) an ownership agreement with the consortium currently in talks with the Club being successfully concluded, to the satisfaction of the National League and the FA; or (ii) the Club demonstrating, to the satisfaction of the National League, that is has sufficient financial resources within its own means to meet its financial obligations for the forthcoming Season.

“In the event that the Club fails to post the Bond in accordance with the requirements that have been communicated to the Club, the National League Board will meet again to consider further sanctions against the Club.

“The decision is subject to the right of appeal to The Football Association.”

Southend responded by saying it was made aware of the National League's bond request and would consider 'appropriate steps' over the coming days to protect the club's position pending the sale of the club to COSU (Custodians of Southend United).

COSU responded by saying it was extremely disappointed by the National League's bond request.

In an interview with Chris Phillips for the Southend Echo, they said: “COSU (custodians of Southend United) 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.

“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.”