Southend United: National League club agree takeover by Australian-led consortium

Justin Rees was the co-founder of Sydney-based company Eighty20 Solutions

Southend United have agreed a takeover deal with a consortium headed by Australian businessman Justin Rees.

The deal has been announced less than 24 hours before the club are due in the High Court to face an HM Revenue & Customs winding-up petition.

Southend told the BBC, however, that the HMRC debt has now been paid.

The takeover will end the 25-year tenure of Ron Martin, who announced in March he was looking to sell the National League club.

A statement said: "We can confirm that an agreement for the sale of the club has been reached with a consortium led by Justin Rees.

"Everyone is working towards a completion date of 1 November 2023 - that is when the consortium will formally take control of the club.

"The collaborative approach to agreeing this deal would not have been possible without the support of creditors and the assistance from the leader of Southend City Council.

"We recognise that this has been a stressful time for all associated with the club. We would like to thank our staff for their incredible loyalty and also thank all our stakeholders for their patience."

The winding-up petition was adjourned on 23 August to give Martin more time to complete the sale.

"If this was not a football club, with the attachment of its fans, I would be winding it up today," Judge Sebastian Prentis said at the time.

Southend were docked 10 points by the National League for failing to clear their debts, which total £2.5m, and an appeal against that penalty was rejected last week.

A large group of Southend United fans protested outside Ron Martin's home in July

There have been a series of protests by supporters against Martin's continuing ownership, with the club facing the threat of being wound up on several previous occasions prior to the latest petition.

'Cautious' welcome by supporters

News of the takeover was "cautiously" welcomed by fans' group, the Shrimpers Trust.

"Whilst we have had the opportunity to meet with the head of the new consortium, Justin Rees, and have maintained a dialogue with him over a period of time, we are keen for the identities of the other members of the consortium and full details of their proposed ownership structure to be disclosed," the Trust said in a statement.

"The 'Martin Model' of football club ownership has had its day, and we hope this announcement signals a new dawn at Roots Hall, with all staff being able to look forward to receiving their wages on time, creditors being paid promptly and supporters being fully engaged with club operations.

"Over the course of the past 12 months Southend United supporters have found a voice, whether that is through raising money for our hardworking and dedicated staff, the lobbying of local and national politicians and councillors, marching through the streets of the city, or participating in consultations. Everyone deserves to enjoy a period where our club is not under existential threat."

Southend West MP Anna Firth said she believed the deal was a "pivotal moment" for the future of the club.

In a statement, she continued: "For the first time in well over a year, there is light at the end of the tunnel and realistic prospects of a future where Southend United not just survives but thrives.

"Despite the current situation, to see so many fans turn out to support Southend on a weekly basis has been truly humbling and a constant reminder of what the club means to so many people within the community."

Bids rejected last month

Southend United's Roots Hall played host to Football League action for more than a century before their relegation to the National League in 2021

Martin began negotiations with three interested parties following his announcement in March that the club was being put up for sale, including the Kimura Group - but they told BBC Essex in July that they were not "the right people to lead this".

He rejected two bids by Rees' group last month - their offer involved "retaining and upgrading Roots Hall" instead of his preferred option of moving the club to a new site at Fossetts Farm - but those problems now appear to have been overcome.

Southend were formed in 1906 and have been based at their Roots Hall ground since 1955.

They have been as high as the second tier of English football and former managers include England's 1966 World Cup-winning captain, the late Bobby Moore, who was in charge for over two years during the 1980s.

The club were relegated out of the English Football League in 2021 and last season missed out on the National League play-offs by finishing eighth.

They have been subject to a transfer embargo for more than a year and were second from bottom of the table, despite winning five and drawing three of their 13 matches this season under former Southend player Kevin Maher, who took charge of the team for the 100th time on Saturday.

The takeover deal was announced prior to Tuesday's home fixture against Oxford City, with Maher's side won 2-0 to move up to 21st place.

Analysis - 'It's what the fans deserve'

Victoria Polley, BBC Essex Sport editor

This is the news that Southend United fans have been waiting for.

The hope is that the consortium will signal a fresh start for the club in which off-the-field proceedings are managed correctly and the days of winding-up petitions, late payments to staff and transfer embargoes are behind them.

The players and staff have exceeded all expectations in times of uncertainty and this could be the opportunity they've been waiting for to fulfil the potential they've shown.

It's what the fans and everyone connected with Southend United deserves.