Southend United: Justin Rees consortium poised to complete takeover

Southend United were relegated out of the English Football League in 2021

A consortium headed by Australian Justin Rees is poised to take over Southend United "in early 2024".

The deal had been due to be completed at the beginning of November but was delayed by "legal formalities".

Long-time owner Ron Martin put the club up for sale in March, having been at the helm for 25 years.

"The club is pleased to announce that Ron and the consortium have today exchanged contracts for the sale of Southend United," a statement said.

"The sale is conditional upon Southend Council's approval of certain property transactions that are required to facilitate the club staying at Roots Hall.

"Those terms have been agreed and we expect the club ownership will formally transfer in early 2024."

Shrimpers set to exit transfer embargo

The consortium, which also includes three lifelong supporters, had previously confirmed that the National League side will remain at their current ground, where they have been based since 1955.

"The decision to stay at Roots Hall will, I think, ultimately prove a good one," Rees told BBC Essex.

"This is going to be our home for quite a long time to come and we need to make sure that the money we invest in it gives us a place that we're all proud of and happy with, a great place to experience matches but creates revenue and helps support our football business outside of Saturdays."

Martin had favoured a move to a new 21,000-seater stadium at Fossetts Farm - but no work took place at the site, which has now been earmarked for housing.

The club statement said Rees and Martin will work together on "operational aspects for this interim period" prior to the takeover being formally completed.

"During the sale process the club has conducted parallel discussions with the National League and HMRC, and anticipate the transfer embargo being lifted next week.

"We would like to put on record our sincere thanks to the National League for the cooperation they've shown throughout this period," the statement added.

Rees sees 'potential' at Southend

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

Southend have been subject to several winding-up petitions in recent seasons, the most recent of which was dismissed in October after an HM Revenue & Customs (HMRC) debt of an estimated £275,000 was paid.

And there were also a series of demonstrations against Martin's ownership, with a group of fans carrying banners protesting outside his home in July.

Rees, who co-founded an IT consultancy in Australia, plans to be at the club regularly in the initial period, though the day-to-day running of the club will remain the job of chief executive Tom Lawrence.

"I was looking for a football project, something that maybe was struggling a little bit, but somewhere I could see the potential to achieve big things," Rees told BBC Essex.

"I was originally looking to do something in a couple of years' time, but I was following Southend on the BBC and watching where it was at, it's such a big club, with such big potential, but in a position where the help was needed now, not in two years.

"I just felt that I could get in, the opportunity was that we could grow and the city was ready to support that.

"You look at some clubs and think they're at their level, but with Southend, we have plenty of potential to go a lot higher, with hard work and the right decisions."

Other members of the Rees consortium include Hong Kong-based hedge fund manager and lifelong supporter Jason Brown, businessman John Watson, who has been a season ticket holder for over 40 years, sport engagement company founders David Kreyling and Tom Arnold, and Southend United Community & Educational Trust chairman Gary Lockett.

The consortium had two bids turned down by Martin in September, but maintained their interest and initial terms were finally agreed on 3 October.

Player shortage

Southend - who were formed in 1906 - are 14th in the National League following Saturday's away win at Kidderminster Harriers, having had 10 points deducted for failing to clear their debts, said to total £2.5m.

Their transfer embargo and a number of injuries meant manager Kevin Maher only had enough available players to name a single substitute for the game against Bromley on 16 December.

It prompted Southend West MP Anna Firth to write to the league saying: "Whilst I appreciate that there are criteria you need to see met by Southend United to ensure they are compliant with National League rules, the club is now being punished disproportionately and the continued method of punishment is deeply flawed."

Following the game at Kidderminster, Maher said the past few months had been "draining like you wouldn't believe".

He told BBC Essex: "Too often we haven't focused on football and this team - let's put them first now.

"Hopefully things can be put behind us now and we can work properly for a positive future. It's hard to put into words right now."

Former Southend midfielder Glenn Pennyfather said everyone connected with the team had "worked wonders" this season.

"It could have disappeared further down the leagues, but they must take so much credit for their hard work and their love of the club to keep it going in such difficult circumstances," he added.

"Hopefully we can stop talking about all the off-field issues and look ahead to getting this club back to where it belongs. It has so much potential and that is what must be tapped into."

Southend have been as high as the second tier of English football in their history and former managers include England's 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.

Analysis - 'Brighter future ahead'

BBC Essex Sport's Glenn Speller

It's not done yet, but to all intents and purposes Southend United have new owners and what fans hope will be a brighter future.

For so long the club succeeded, with promotions and EFL Trophy finals despite the ownership, not because of it, and there was always a feeling the house of cards would eventually tumble.

The club has seen some dark days; enough winding-up petitions to paper my front room, players and staff going unpaid, utilities being cut off and relegation out of the EFL which could so easily have led to a drop into regional football.

Kevin Maher and his staff and players have been working wonders just to get a team out under a transfer embargo, always with the hope this takeover would go through.

The club and its supporters have their wish (almost), now they must make the most of this chance - but it won't be an overnight change like Wrexham.

Roots Hall needs money pouring into it to bring it up to 21st century standards and the squad urgently needs help. All this will take time, but they have that now with the promise of a brighter future.