Southend United: Club 'frustrated' by embargo amid 'deteriorating income situation'

Southend dropped out of the EFL for the first time in 101 years when they were relegated in May

Southend United are in a "deteriorating income situation", chief executive Tom Lawrence has said, after they were placed under a National League embargo.

The club's financial problems have increased because of two successive relegations and the pandemic.

They are working to finalise an agreement with HM Revenue and Customs in order to have time to pay debts.

"We are all frustrated the National League has placed us under an embargo," Lawrence said in a statement.

"It feels like we have taken two steps forward and two steps back.

"We are in a unique situation, no other club has had back-to-back relegations, coupled with 18 months or so of reduced income. Although we are maximising opportunities to improve the trading position, the reality is we are in a deteriorating income position.

"The main cause of that is the loss of £480k of Premier League Solidarity payments (having dropped out of the EFL) and the fact that ticket prices have had to be reduced to reflect our league status."

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Southend lost their place in the English Football League last season and are 19th in the table before Saturday's game at Notts County.

Lawrence said the club had been given no advance warning of the embargo, but they remain hopeful it will not prevent head coach Kevin Maher from bringing in new players.

He added: "Kevin and his staff have been working hard to identify players who can strengthen the squad, they have been up and down the country looking at players and a list of targets is being produced.

"That process is running in parallel with negotiations with HMRC. We are hoping that negotiations with HMRC will be concluded in a matter of days rather than several weeks, enabling Kevin to bring in new players swiftly."

Speaking to BBC Essex, Maher said: "You can't ignore it, but I've been told it's being dealt with and hopefully that will be in days rather than too much longer.

"It's an important part of the job, the recruitment side of things. I've identified what we need to help the players we've got.

"We'll have things in place for what we do, and be ready for when it does change."

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