Following the recent Q&A held on 22 March I thought the Echo coverage of an event that lasted two hours was sparse and didn't capture the essence of the evening. Those who did attend I hope found it both useful as well as informative and I therefore thought it might prove helpful to let other supporters know what was said. I am sorry that I could not find the time to attend to this before now.

The evening was suggested by the Shrimper's Trust as they thought an open dialogue with supporters was necessary and I was happy to attend. To 'kick off' I presented a few slides to help inform supporters of the Business Plan going back 4 years and following the purchase of Delancey's 50% interest in the Club's parent company and also how being relegated from the Championship has impacted on our plans. The first slide was the timeline over the 4 year period and supporters can clearly see that, in just 9 months, following the share purchase in March 06, we had prepared, submitted and obtained approval (Jan 07) for the new Stadium plans from Southend Borough Council and Rochford District Council. Both Councils were constructive in their early consideration of the Club's plans but by April 07 the Government Office 'Called In' the plans requiring a Public Inquiry. This did not take place for a further six months (Oct 07) and we then had to wait, a further 9 months, until the end of June 08, before the Secretary of State finally approved the new Stadium.

However, this was not the end of the story for it was not until September 08 - coinciding with the collapse of Banks across the globe (Lehman Brothers in particular) - that we eventually received approval from the Secretary of State for the planned Sainsbury's Food Store at Roots Hall which was, and remains, a key financial driver for the new Stadium plans - some 2 years since first submitting the Club's Planning Application. At that juncture we had improved the asset values to enable the planned continued investment in the Club and hopeful return to the Championship at the first time of asking.

Click here to download the above slide (PDF).

Someone at the Q&A said to me (after the formal meeting) that one had to repeat facts an average of 14 times before the message sometimes gets across. I don't know whether that is correct or not and I shouldn't want to continually repeat myself but it is fundamental for supporters to understand the financial consequences of relegation from the Championship - particularly after just one year and when a Club has geared up to stay there and compete - as part of our Business Plan going into the new Stadium.

I have often said (perhaps not 14 times) that we have been building an upward spiral which, again, of course is all part of the planned move - sorry to repeat myself. We can never compete at a higher level while we are here at Roots Hall.

In an attempt to maintain progress, and especially on the pitch, we kept the wage structure similar following the first year back in League One and that has remained largely unchanged with the same investment in the two years following.

I would never have approved that player investment if we, or anybody, had foreseen the banking collapse on the horizon. Locking oneself into player contracts in an effort to bring continuity (something we have missed hugely this season) is the most singular uncontrollable expenditure in football and so often proves the downfall. This sets the industry apart from all others. In a time of recession 'normal' companies have the ability to reduce costs by invoking redundancies etc but in football, if a player doesn't want to leave, clubs often end up paying players off ie settling their contract which may only marginally reduce the cost of the contract commitment. Some fans have said we have not invested in players. This is so untrue. The Club may not have made many player purchases insofar as a capital sum compared with some other clubs, but we have absolutely invested in player wages which often compensates for an initial capital commitment. Just so supporters can make the comparison, our last opponent at home was Yeovil Town and, whilst I don't for one minute think Yeovil are in the same League as Southend United, in terms of potential and ambition their highest paid player, I am told, is on £1300 a week which is considerably less than half what our top player earns. Also, Yeovil's total Wage Bill is less than half Southend's.

In terms of player wages, we were 8th in League One as reported by the Football League and this year I anticipate we will still be in the top 10 even though we now have Norwich, Charlton and Southampton in the League as well of course as still having Leeds United.

Whilst some clubs have certainly bought players, the market this season has been relatively flat. I think M K Dons have only bought one player over the last 2-3 years but I anticipate they are also in the top 10 in terms of player wages.

I attach a couple of other slides that show the losses over the last 5 years including the necessary investment I have had to inject into the Club in an effort to maintain the position - something made all the more difficult by the banking collapse - as confidence in both football clubs and property has taken a particular hammering.

Click here to download the above slide (PDF).

Click here to download the above slide (PDF).

As I said earlier, the Q&A lasted some 2 hours and therefore I will continue this blog in order to provide a full account of the evening on Monday and Tuesday which will include not only the questions asked but also the answers as detailed minutes were taken...

Ron Martin
Chairman