Today's Echo headline says:
"Blues Stadium Delayed"
Not true!
Not unusually the Echo reported remnants of a recorded interview I conducted on BBC Essex last Monday and has taken my comments entirely out of context. Consequently this is very inaccurate.
It would have been courteous of the Echo to speak to me direct before going to print. They did telephone my mobile (not office) yesterday afternoon whilst I was in a Board Meeting which I suppose, as the article was intended to be negative, was handy!
What I said on the radio was that "the overall plans would move back something like ten to twelve months from what we first hoped".
What I was implying is that because of the distressed UK banking system new development finance is not available and which will probably come as no surprise to anybody. Let's face it, the Government have injected tens of billions to keep the banks afloat and yet within weeks uncertainty again surrounds the likes of RBS and if RBS shortly become fully nationalised (which is akin to going bust) that would also be of no surprise - they are 70% owned by the Government at present.
Therefore if major banks have not been able to meet their own internal financial obligations it can be of no surprise that they are not going to be lending money elsewhere.
Let's take a step back.
• The plans were approved by Southend Borough Council in January 2007 and, as has to be the case, were then referred to the Government Office.
• The Club's planning application then got Called In by the Government Office to be determined via a Public Inquiry which was held in September/October 2007.
• The Inspector reported very positively to the Government Office on 6th March 2008.
• The Government Office then had two or three issues (minor in my view) they wanted us to address which were more technical than material and which took a further four months to resolve and document.
• We eventually got the green light on 1st July 2008.
With a normal banking system we would have then cracked on with the construction but by this time the banking system in the UK was effectively "closing down" and with the collapse of Lehman Brothers in September and the turmoil that followed (and continues) we had to think outside the box (something our players should do!) to bring this major project to fruition.
One of the key financial drivers is the sale of Roots Hall to Sainsbury's. I therefore engaged in detailed discussions with Southend Borough Council and Sainsbury's to see whether we could change the priority in the programme so as to allow some of the retail to come forward in tandem with the stadium. This included the retail park where we need to pre-let a large percentage of the units.
Over recent months, and at present, we are documenting this strategy including the Club's agreement(s) with Southend borough Council. Once these are sorted the way ahead is clear.
In this way I could perhaps circumvent the non-existent banking system. I can tell you that we are planning to fund this project from three revenue streams.
The first will be equity coupled with gearing against income streams associated with the retail park and secondly the transaction I have been negotiating with Stadium Capital Financing Group who are a wholly owned subsidiary of Morgan Stanley. We are dealing with their New Jersey Office and I can advise that the contract for that element was signed in the last few days.
In short, the ten to twelve month "delay" was a reference to receiving the green light from the Government Office. The plans have not been delayed further as the Echo implies.
In fact, quite the contrary, whilst the financial markets have made this whole exercise hugely challenging my focus has been on overcoming those obstacles. I absolutely know that this is the way forward for Southend United Football Club, and I am committed to delivering.
People talk about investment in players being a priority to the new stadium but they should not confuse the two. Money flows from my property group into the football club, not out.
The new stadium will give the Club revenue streams it could not have dreamed of and the ability to invest in all aspects of the Club to maintain the upward spiral we have created, including players' wages! Yet our wage bill whilst at Roots Hall is far from meagre. Indeed the Club's wage bill is very significant in League 1 - more than double the amount as when we were last in this division and achieved promoted.
I have maintained that investment in players' wages following relegation from the Championship with a view to getting back to the Championship as quick as possible. That has not yet happened but the investment and desire to do so is as strong as ever.
For all these reason it is tiresome having to correct the Echo headlines which some people might think
"I read it in the Echo, so it must be true."
I can tell you that much of what is printed is either dramatised or conservative with the boring facts.
For many reasons this is why I am initiating a weekly blog so the inevitable spin of the newspapers does not misguide our valuable supporters.
The first commentary will be out on Tuesday and I hope will answer many of the questions raised by our fans for one thing you can be assured about Southend United Football Club is that its management and staff will be straightforward and honest.
Up the Blues!
Ron Martin
Chairman
