Southend United: Court allows club to pay £300k to stay in league

Southend United's 117-year history is currently under threat

Troubled football club Southend United have been given the go-ahead to pay football-related debts so they can remain in the National League.

A specialist court heard the non-league club had debts of £2.5m, about £300,000 of which is owed to football creditors.

A judge approved the payments that will allow the club to keep its licence.

Other creditors include HM Revenue and Customs which has issued a winding-up petition against the club over a £275,000 tax debt.

The club has been given until 23 August to pay the tax bill, or find a buyer.

Southend United - which dropped out of the dropped out of the Football League at the end of the 2020/21 season - has been before the courts a number of times in recent months, with an order being made in May to ensure the club's survival by allowing the payment of players and accountants.

Last week, fans staged a protest outside club chairman Ron Martin's home over fears the 117-year-old club could be shut down.

A large group of Southend United fans protested outside the city home of Ron Martin on Saturday

Mr Martin gave an undertaking to Judge Mark Mullen that he would notify the remaining creditors - which also includes the energy supplier Npower - of the payment in order to secure the court's approval.

He told the court the club was ready to pay £250,000 to its football creditors and that a further £52,000 had been obtained from the Premier League for academy players.

The payment had to be approved by the court due to the club being insolvent, and the judge said any further prospective payments would also have to be notified to outstanding creditors and approved in the same way.

Mr Martin said the club had also been able to agree a payment plan with Npower, and that the first instalment is due to be paid next week.

The court previously heard the club is hopeful of negotiating a sale to end its financial struggles.

Addressing the judge, Mr Martin, who has been in charge of the club for 25 years, said: "I'm sorry I keep coming before you, but it is coming to an end."

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