Watford shareholders still yet to agree on how they will raise the £5.5m needed (From Watford Observer)
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Watford shareholders still yet to agree on how they will raise the £5.5m needed
5:11pm Monday 14th December 2009 in
Watford FC’s financial future remains uncertain going into its parent company’s AGM tomorrow.
Negotiations between major shareholders Lord Michael Ashcroft, Graham Simpson and Hornets’ chairman Jimmy Russo have been taking place over the past week but an agreement has yet to be reached.
Russo’s Valley Grown Salads company was forced to lend the club another £1m on November 26 but that sum will only last until December 22, by which point the club will no longer be able to meet its liabilities.
VGS has now lent the Hornets’ parent company Watford Leisure Plc £4.88m but another £5.5m still needs to be found before June next year.
In September, Watford hoped to raise the required capital by having a rights issue but negotiations between Lord Ashcroft and the club stalled until Russo put forward a rescue package this month.
Last Thursday Russo confirmed the different parties were in discussions once again and described the developments as a “100 per cent positive step”.
But speaking this afternoon, Russo confirmed: “No agreement has been met but it doesn’t need to be in place by tomorrow night, it needs to be by December 22.
“I want to have an agreement which is balanced and fair for all parties.”
Although the club’s financial situation looks bleak, Russo has been warmly welcomed by most fans since his return to the board in January.
Tough negotiating saw the Hornets receive decent sums for the likes of Tamas Priskin, Mike Williamson and former boss Brendan Rodgers and the club also saved more than £300,000 in compensation to former chief executive Mark Ashton.
But tomorrow Russo and the rest of the board face the possibility of being voted off by Lord Ashcroft and ex-Watford chairman Simpson, who own a 37 and 17 per cent share in Watford Leisure.
However, Russo insisted: “If I get voted off then fine but I think I should be judged by the job I have done.”
Should this happen though there could be dire consequences as the Watford Observer understands that if Russo and his brother Vince are voted off the board, then they may consider recalling the £4.88m loaned to the club with immediate effect.
Unless the money was then raised by the new board, the club could be faced with the threat of administration.
Comments(62)
WFC4ever
says...
5:41pm Mon 14 Dec 09
Grinns wrote:Well sounds worrying if the Russos are voted off..they aren't going to put money in where they aren't wanted.
THIS IS THE END WATFORD F C. R.I.P
a1derek
says...
6:10pm Mon 14 Dec 09
enlightened one
says...
6:15pm Mon 14 Dec 09
Richard - Come On You Golden Boys!
says...
6:15pm Mon 14 Dec 09
WFC4ever
says...
6:25pm Mon 14 Dec 09
V.o.R
says...
6:35pm Mon 14 Dec 09
Grinns wrote:Pack it in!
THIS IS THE END WATFORD F C. R.I.P
This was always going to happen and the ' Rs' knew as much, just playing on the fact they've helped out a little bit.........
They never had enough money to see it through but credit to them for the timing of their loan (interest to boot) just to tug on the heart strings of the blinkered yellow polyester clad happy clapper supporter!
Things just do not add up with these lot, what they say....when they say them....and what ultimately happens are a little different if you care to scratch the surface.
The security of the ground is worrying, you'll get the scenario of non WFC supporting people playing happy business' against the true supporter (that is the Old Silver Fox and all round Ladies Man that's been on t.v and everything) with a proper backer with clout that can make us a force to be reckoned with (again) instead of being happy with staying in this division while flirting every other year with relegation, selling all our assets after saying we don't need to do so financially.... and having their moment of stardom on Soccer am!
Get your heads out of your backsides and embrace the possibility of being financially secure with the main stand done
I personally would prefer the playing staff enhanced instead)
With the good people that are behind the scenes....do you really think they'll let us go into administration? unless ofcourse we continue to lick behinds of the one's that are trying to manipulate their way to what they want!
oxheypaul
says...
6:45pm Mon 14 Dec 09
hornsfuture
says...
6:48pm Mon 14 Dec 09
V.o.R
says...
6:54pm Mon 14 Dec 09
oxheypaul wrote:A.B.C.D.E.......
VoR....could you try posting that again in English and actually spelling out what your claims are and on what evidence you base them? Thankyou
1.2 3 4 5.......Is that better?
Remember they've instigated all this, they took us off the market when Sir G.S was actively searching for buyers.
They've made a bit of money for themselves, they've had their moment of stardom, they've run out of dosh, maybe it's time they buried the hatched and expect they need help.
Salad that is drizzled in goose fat is not the healthy option, shouldn't some be a tad slimmer?
Derek Payne
says...
7:00pm Mon 14 Dec 09
Billie
says...
7:30pm Mon 14 Dec 09
Rick Holden Forever
says...
7:43pm Mon 14 Dec 09
I say we find out where he lives and trash his house ;-).
enlightened one
says...
8:04pm Mon 14 Dec 09
V.o.R wrote:Even for you Retard this is utter bilge,I can't begin to imagine the sort of warped individual who could come up with this stuff,but seeing as its you I think I probably can.
Grinns wrote: THIS IS THE END WATFORD F C. R.I.PPack it in! This was always going to happen and the ' Rs' knew as much, just playing on the fact they've helped out a little bit......... They never had enough money to see it through but credit to them for the timing of their loan (interest to boot) just to tug on the heart strings of the blinkered yellow polyester clad happy clapper supporter! Things just do not add up with these lot, what they say....when they say them....and what ultimately happens are a little different if you care to scratch the surface. The security of the ground is worrying, you'll get the scenario of non WFC supporting people playing happy business' against the true supporter (that is the Old Silver Fox and all round Ladies Man that's been on t.v and everything) with a proper backer with clout that can make us a force to be reckoned with (again) instead of being happy with staying in this division while flirting every other year with relegation, selling all our assets after saying we don't need to do so financially.... and having their moment of stardom on Soccer am! Get your heads out of your backsides and embrace the possibility of being financially secure with the main stand done I personally would prefer the playing staff enhanced instead) With the good people that are behind the scenes....do you really think they'll let us go into administration? unless ofcourse we continue to lick behinds of the one's that are trying to manipulate their way to what they want!
Good to have you back p.Rick and miracle of miracles I agree with every word.Lets hope JR can stick the wooden stake thru the Silver Pox's heart and finish him off once and for all.COYH
Richard - Come On You Golden Boys!
says...
8:14pm Mon 14 Dec 09
Chris the Vic
says...
8:42pm Mon 14 Dec 09
The so called silver fox allowed the club to get into the mess the Russos found it in.
NO investor would have come in with such poor management and such a blackhole. Whether I like the sale of players is neither here nor there the Russos have given us time to sort things out. Simpson rolled over from a minority shareholder challenge..Why because his deputies were arrogant idiots who he gave a free rein to and he totally misled shareholders and the Aims market...the Nomad who advised them I am sure will have had nightmares since. Now we are managed better and maybe Ashcroft will back the Russos. If Simpson tries to rock the boat after his ruinous reign I will personally ensure the DTI and AIMs crawl all over him. He wasnt just economic with the truth, the managemnt style at Watford was based on lies, stupidity and a total opaqueness. He went, he had to go and he must never return in any executive role. The financial acumen he and his managers displayed verged on the criminally negligent and they certainly knew how to milk the company even to the extent of when Aidy and Blunder left, not to mention the stupid level of wages they were paid along with players wages with no relegation clauses in them.
Their credibility is totally blown, the fans know it and only you beat the drum in their support...why is that?
**EltonJohnsTaylormadeArmy**
says...
8:54pm Mon 14 Dec 09
There was only one Scully
says...
9:10pm Mon 14 Dec 09
had been buried.
You see, Homer will not dare vote them off and as for the M'Lud you may find he cant also do similar. Not one to speculate but how do you think these so called rich entrepreneur types get their money. Theres also been lots of questions and attempts by many government bodies to find out how this learned M'Lud has been making his pile for years.
Watch that space tomorrow we may be in for a few surprises!
**EltonJohnsTaylormadeArmy**
says...
9:50pm Mon 14 Dec 09
hornsfuture
says...
10:15pm Mon 14 Dec 09
security word...fail-rich!
**EltonJohnsTaylormadeArmy**
says...
10:30pm Mon 14 Dec 09
Even more worrying is your insinuation that they are trying to earn a salary out of their exec roles. Is that not what they lambasted Simpson for? At least he waited until we'd hit the Premiership jackpot. If you are right, they would be lending money to us in one hand at 4.5% interest and in the other paying themselves with it!!!!
I just don't like the smell of this if you are right. Are you going to the AGM - if so ask the board if that's true as we have a right to know. I'm not a shareholder so can't go - is it on 3 counties????
WFC4ever
says...
10:48pm Mon 14 Dec 09
**EltonJohnsTaylormaDon't think so..probably not allowed to cover it like a Fans forum.
deArmy** wrote:
Hornsfuture - you certainly seem to be in the know. If the Russo's are galivanting round the world 'scouting' players that would be worrying enough as clearly that is not and should not be their role. If you are saying the club had to spend funds they certainly haven't got that would be ridiculous. Maybe they paid for it themselves - surely they wouldn't be so crude to charge the club for a jolly. Even more worrying is your insinuation that they are trying to earn a salary out of their exec roles. Is that not what they lambasted Simpson for? At least he waited until we'd hit the Premiership jackpot. If you are right, they would be lending money to us in one hand at 4.5% interest and in the other paying themselves with it!!!! I just don't like the smell of this if you are right. Are you going to the AGM - if so ask the board if that's true as we have a right to know. I'm not a shareholder so can't go - is it on 3 counties????
derry pigweed
says...
10:50pm Mon 14 Dec 09
on and overreaction!
I don't think that much will change but hopefully some investment will come forward
sec-word Sara-cens
hornsfuture
says...
10:54pm Mon 14 Dec 09
The salary situation is another interesting scenario.
We are all very grateful to the salad boys for their help, but they, as we also know, are not really Watford fans, and they are pretty astute business men.
apatters
says...
11:16pm Mon 14 Dec 09
Security word lots-cash (not really)
Chris the Vic
says...
8:23am Tue 15 Dec 09
Ashcroft allowed the Russos to kick Homer into touch. One of two reasons either the total mismanagement under his reign or something more sinister. Nothing has changed.
If the Russos are bully boys and that is only an allegation they must have learnt it from Ashton and I genuinely dont believe it based on the fact that GT would not tolerate it and quit as would Elton.
That leaves us with three scenarios, Ashcroft takes the whole shooting match over, or he sits on his hands and does nothing but watch the club fail and his shareholding goes down the pan or he works with the Russos. Up until now he has sat back and allowed the Russos to tidy up the mess and they have done quite well.
Ashcroft is a shrewd businessman who knows not to throw good money after bad and he wont want to be hands on either so all three options are possible but not all are probable. In view of the Russos performance my guess is he will either back them with Wilson plus one joining the board and certain non execs leaving or he will take the batonfrom the Russos and back Julian Winter with Wilson et al taking over the chairmanship, all of this by Christmas. Either way Malky must remain and be supported and plans for the ground put in place.
Argentina is totally irrelevant as is the Silver fox
kennychiwa
says...
8:46am Tue 15 Dec 09
bomber18
says...
8:59am Tue 15 Dec 09
bomber18
says...
8:59am Tue 15 Dec 09
Jezza_A
says...
11:32am Tue 15 Dec 09
Our situation, Palace's, Plymouth's, Southampton's before us, Luton etc... these are warning signs that the league is ignoring. The financial loading of the top end of football - Chelsea et al - has created a wage structure that is not sustainable for the majority of clubs. Either the FA steps in and sorts it out, or, I think, we are seeing the beginning of the end of the professional game.
getafix
says...
1:59pm Tue 15 Dec 09
Chris the Vic wrote:completely agree, no way will Ashcroft walk or waiver while his cash is tied in with WL's future and thus WFCs, he may not have publicly backed the salad boys but they couldn't have done what they've done so far without tacit support... it's what happens next, not what political subtext might or might not happen that's key... we need financial stability as we finally have a decent guy in charge of what happens on the pitch and we haven't been able to say that since Ray L left IMO
Scully the point you made is fundamental to where we are and where we are going.
Ashcroft allowed the Russos to kick Homer into touch. One of two reasons either the total mismanagement under his reign or something more sinister. Nothing has changed.
If the Russos are bully boys and that is only an allegation they must have learnt it from Ashton and I genuinely dont believe it based on the fact that GT would not tolerate it and quit as would Elton.
That leaves us with three scenarios, Ashcroft takes the whole shooting match over, or he sits on his hands and does nothing but watch the club fail and his shareholding goes down the pan or he works with the Russos. Up until now he has sat back and allowed the Russos to tidy up the mess and they have done quite well.
Ashcroft is a shrewd businessman who knows not to throw good money after bad and he wont want to be hands on either so all three options are possible but not all are probable. In view of the Russos performance my guess is he will either back them with Wilson plus one joining the board and certain non execs leaving or he will take the batonfrom the Russos and back Julian Winter with Wilson et al taking over the chairmanship, all of this by Christmas. Either way Malky must remain and be supported and plans for the ground put in place.
Argentina is totally irrelevant as is the Silver fox
darrenbdarren
says...
2:51pm Tue 15 Dec 09
They saved the club from administration, and for that I am massively very grateful.
Johnjones59
says...
2:57pm Tue 15 Dec 09
**EltonJohnsTaylormadeArmy**
says...
3:21pm Tue 15 Dec 09
The stories circulating today are becoming very strong that there will be significant change made at the top tonight. Whilst no fan of the past regime at times we should remember that Simpson was at least a fan even if it ended in tears. He was incredibly bullish about defending his position in the build up to the egm last year so i would suggest it was more Wilson that lost his nerve rather than there being something devasting on Simpson.
What is clear is that our club needs total new leadership. Until we have fresh blood the club will never be at rest so lets hope they all agree to disagree, find a short term solution and look to make the club a saleable asset as opposed to a strife torn business.
WFC4ever
says...
4:04pm Tue 15 Dec 09
Do they care more about the future of Watford FC or their own personal pride/bank balance?
WFC4ever
says...
4:22pm Tue 15 Dec 09
Simpson would be mad to come back because of the reaction he'd get but at least youd feel the guy might have some sort of connection to the club with being a fan (he was..sadly once Ashton came the business side of him went to pot)
dawlishhornet
says...
4:56pm Tue 15 Dec 09
darrenbdarren wrote:Well said. Couldn't agree more.
The Russos lent the club £5m at a tiny rate of interest. In the middle of the credit crunch, when no one else would touch us.
They saved the club from administration, and for that I am massively very grateful.
a1derek
says...
6:07pm Tue 15 Dec 09
I have said before he is purely profit motivated and despite his huge wealth has a habit of making poor business decisions - I've seen this first hand. It is my opinion we would be worse off than under Petchey if Ashcroft got full control.
I can't believe people are questioning the Russos because I don't think we would have got this far without them, although I could be wrong.
But, at the moment, I would hope the Russos get the support they need to carry on, and hopefully some new investment to help, although no idea where that might come from.
And yes GT has been awfully quiet recently, he has always championed keeping us as supporters fully informed, so not sure about his silence.
a1derek
says...
6:42pm Tue 15 Dec 09
WFC4ever
says...
6:45pm Tue 15 Dec 09
a1derek wrote:Not at all unless there is new investment coming in..
Understand from within the meeting Roussos have resigned! This is not good.
pstannard1
says...
7:29pm Tue 15 Dec 09
WFC4ever wrote:Apparently now they have resigned, the Russo's (According to the WO twitter) want there 5 mil back with immediate effect
a1derek wrote:Not at all unless there is new investment coming in..
Understand from within the meeting Roussos have resigned! This is not good.
I now see us with a very uncertain future, worse than the time we dropped out of the premier league back in 2000
V.o.R
says...
7:29pm Tue 15 Dec 09
AWESOME
Apsley Ralph
says...
7:29pm Tue 15 Dec 09
WFC4ever wrote:Sky Sports News just confirmed Russo brothers have both quit - nothing else said.
a1derek wrote: Understand from within the meeting Roussos have resigned! This is not good.Not at all unless there is new investment coming in..
pstannard1
says...
7:47pm Tue 15 Dec 09
V.o.R wrote:V.o.R
# Graham Taylor criticised Jimmy Russo following his resignation. Jimmy Russo believed to be doing Sky TV interview 8 minutes ago from Twittelator
AWESOME
Bugger off and go annoy Luton Fans and the club.
Rick Holden Forever
says...
7:55pm Tue 15 Dec 09
Its clear to me their agenda involves selling the ground to real estate investors, a move that will also please Watford council.
I said long ago in a previous incarnation the club will be facing the prospect of ground sharing. We are now facing the very real prospect of this.
RIP Watford football club.
Rick Holden Forever
says...
7:58pm Tue 15 Dec 09
Sandridge Hornet
says...
7:59pm Tue 15 Dec 09
Sandridge Hornet
says...
8:02pm Tue 15 Dec 09
GrahamTaylor
says...
8:03pm Tue 15 Dec 09
-
I would be more concerned about Sarries getting it!
WFC4ever
says...
8:04pm Tue 15 Dec 09
Sandridge Hornet wrote:SO really we're stuffed now with as extra creditor to pay back.
According to Three Counties, Jimmy Russo was tearful when he read out a prepared statement. He said they felt they had no choice but to resign. He also said he wants his money back. It's only the three salad boys that have resigned from the board, not the whole board as was initially reported.
Oh dear...
No more news till 9:30 according to 3CR.
Rick Holden Forever
says...
8:15pm Tue 15 Dec 09
The entire board at Championship side Watford is believed to have resigned at the annual general meeting of the cash-strapped club's parent company.
Watford's future looked uncertain going into the meeting as they need £5.5m by June 2010 to avoid liquidation.
And chairman Jimmy Russo had to loan the club's parent company £1m just to survive the next month.
But that loan will only be enough to cover the holding company's immediate cash needs until 22 December.
Watford have been negotiating with former chairman Graham Simpson and Lord Ashcroft, the club's two major shareholders.
Hornet Cornet
says...
8:21pm Tue 15 Dec 09
WFC4ever
says...
8:23pm Tue 15 Dec 09
Hornet Cornet wrote:Quick summary of what Jimmy Russo said before quitting:
oh sh*t
The club is burning (his word) £1million a month
The £5.5million needed by the 22nd is still needed.
The brothers request the repayment of all their loans.
VGS representative said an offer was on the table to buy the club
GT said any offer to buy the club would be considered (obviously)
Hornet Cornet
says...
8:26pm Tue 15 Dec 09
I've got a bad bad feeling inside of me now... just hope that we get some nice people in who'll wipe out our debt.
Hope springs eternal.
c'wood
says...
8:27pm Tue 15 Dec 09
Security code just-draw!
Rick Holden Forever
says...
8:37pm Tue 15 Dec 09
Rick Holden Forever
says...
8:42pm Tue 15 Dec 09
Latest:
Chairman Jimmy Russo, Vince Russo and Robin Williams have stood down from their positions on the board.
But former England boss Graham Taylor, Stuart Timperley, Julian Winter and David Fransen remain in place.
a1derek
says...
8:58pm Tue 15 Dec 09
bomber18
says...
9:06pm Tue 15 Dec 09
WFC4ever
says...
9:33pm Tue 15 Dec 09
bomber18 wrote:I remember we tried to with Elton in the 80s
Now let someone tell me that BR was wrong to scarper from Watford.Seems to me that he is far shrewder than the lot he left behind.With a team relying on loan signings and a so called stadium that is little more than a disgrace.What on earth visiting teams must think seeing our building site,with Occupation Road like something out of Baghdad.It shows that there is absolutely no pride in our Club.Do what we should have done years ago and re-locate,we could even have a stadium to match that of Reading!!!
TBH We need to worry about having a team to support let alone what our ground looks like (Reading is nice in design but one of so many plastic bowls they almost look boring now)
I don't really care what visiting teams think..they get paid enough money to play in any sort of ground although thr awat fans must be gutted to not have beer in their part of the stadium.
We might not even be able to afford the kids at this rate or more loan signings to "rely" on!
The fans have pride in the club and certain players I am sure.
BTW I am sure Reading and Mr Rodgers would rather have our home record than their own for now although sadly if we lose 10 points and players all the hard work done on the pitch so far will be meaningless.
Billie
says...
11:02pm Tue 15 Dec 09
HectorHornet
says...
11:36pm Tue 15 Dec 09
"Russo considered Lord Ashcroft's offer, which required the Russos to provide still more financing to the club in return, to be onerous and had made his position untenable."
http://www.guardian.
co.uk/football/2009/
dec/15/watford-russo
-directors-resign
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Watford shareholders still yet to agree on how they will raise the £5.5m needed before tomorrow's AGM. Picture: Pippa Douglas
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Grinns says...
5:23pm Mon 14 Dec 09