Southend United facing annual funding gap of 'about £2m', says CEO
- Published
Southend United were relegated to the National League at the end of the 2020-21 season
Southend United say ongoing financial issues have left the club with a funding gap of about £2m a year.
Chief executive Tom Lawrence has apologised to staff for late payment of wages in November and December.
"We have had to navigate tricky waters in recent times," he told the club website., external
The Shrimpers, who were sixth in the National League before Sunday's game at Bromley, face a High Court winding-up hearing on 18 January.
Lawrence said returning to the English Football League was the goal for the second half of the season.
"Promotion to League Two alone would swing the turnover in our favour by at least £1.4m, reducing the current loss to a manageable number," he continued.
Bridging finance is to be used to pay money owed to HM Revenue & Customs, which should result in the winding-up petition being dismissed.
"We continue to implement a recovery plan (following the pandemic and back-to-back relegations) and we are almost out the other side," added Lawrence.
"However, the fact is that there is currently a funding gap of around £2m per year that needs to be plugged. The medium-term solution to plug this gap is [a new ground at] Fossetts Farm, the short-term answer is bridging finance."
He described Roots Hall, the club's home for the past 68 years, as a "money pit with inadequate facilities to service our fans and to generate income".
Southend want to press on with plans for a new stadium at Fossetts Farm and hope building work can begin "before the second quarter" of 2023.
Lawrence said staff had been "patient, loyal and understanding" and would be "rewarded" as the club's plans move forward.
He added: "November salaries have been paid in full and the vast majority of December salaries have been paid. We will be working hard to clear the balance in the coming days, we are sorry for the delay."
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