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Watford in financial trouble

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  • [cite]Posted By: Super_horns[/cite]We're in administration.

    :(

    Really sorry to hear that - I hope that you guys pull through. Sorry to say it but you won't be the last this season.
  • Elton could help of course but he's bailed them out on a number of occassions in the past.....so I'm thinking maybe he's had enough of them relying on him to do it yet again....couldn't blame him were that to be the case.
    You can only go to the well so often!
  • Fair point...we've just be done by a battle of egos here.

    Now we don't evn own the ground.
  • edited December 2009
    What would happen if all the clubs in the championship went into admin?
    Would our league be the next tier down from the premiership?
    How strange!
  • Never really warmed to Watford, probabkly still hold it against you for selling us Barry Endean, but would not wish the problems you are having on anyone. At least you have points in the bag, good luck.
  • [cite]Posted By: Morts-Genius[/cite]What would happen if all the clubs in the championship went into admin?
    Would our league be the next tier down from the premiership?
    How strange!

    That would only happen if they went out of business.

    Clubs in admin lose ten points, so the net result of the entire division going into administration is that they'd stand still.
  • Thats not fair for the lower league teams that went down by losing players, trying to budget, etc....
    But its all hyperthetical anyway!
  • Watford have moved to avoid entering administration by asking former chairman Jimmy Russo to suspend his demand for repayment of a £4.88million loan.

    Russo decided to ask for the loan he gave the club to be repaid after he, his brother Vince and business associate Robin Williams all resigned from the board earlier this week.

    Russo had set a deadline of Thursday afternoon that his company Valley Grown Salads would be repaid the loan which would have seen the club fall into administration and a 10-point penalty from the Football League if they had failed to repay the money.

    However, major shareholder Lord Michael Ashcroft has underwritten a £7.5million share issue, which the club say guarantees Russo his money in the future and would ensure the club stay afloat.

    A club statement read: "The board of Watford Leisure have met this morning and considered indicative proposals to save the company from immediate administration.

    "The board have resolved to support a proposal from Fordwat Limited of a £7.5million rights issue of a debt instrument, with either warrants or conversion rights, offered to all shareholders and underwritten in full by Fordwat Limited.

    "This would, at the option of VGS, enable the VGS loan of £4.88 million to be repaid in full with the remaining balance available to contribute to the cash shortfall to June 2010 of £5.5 million.

    "However for the board to proceed with this plan Valley Grown Salads would need to suspend its demand for the immediate repayment of the VGS Debt. The board is therefore in communication with representatives of Valley Grown Salads and a further announcement will be made in due course.

    "In the event that no agreement can be reached with Valley Grown Salads then the company will have to be placed in administration. The company's shares remain suspended from trading on the Alternative Investment Market."

    Plea
    Hornets boss Malky Mackay has urged Russo not to be responsible for putting the club into administration.

    "Jimmy Russo has asked for his loan back today and the fact Lord Ashcroft has come forward means that money can be paid back to stave off administration - which could otherwise happen in the next day or two," Mackay said.

    "The offer has been made but the ball's in Jimmy's court as to whether he accepts the plan. He can either take the club into administration or accept his money back.

    "It's a great club, the people that work here, the staff and the players, work tirelessly.

    "It has a great fanbase and great community spirit. It would be dreadful if this club went into administration if it didn't need to - and it doesn't need to."



    no admin yet good luck watford
  • sounds to me the board are playing silly buggers with russo,they want his money but dont want him to have any input in the desicion making.Got to be very hard for him as me doesn't want to be taken for a mug but doesn't want to be responsible for them going into admin
  • russo wants his money now and is willing o put them into admin according to talk sport this morning
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  • On the BBC as well now.

    I think Russo will have to move to Luton if he wants to keep use of his legs.
  • [cite]Posted By: nth london addick[/cite]russo wants his money now and is willing o put them into admin according to talk sport this morning
    This is the worst administration that I've seen. Most clubs in massive debt have been fairly business-stupid to get into a mess. Watford had a directorial loan, which they had no reason to believe wasn't secure. Bad form, I suppose to have any kind of a loan that can be called back at no notice. He's a vindictive prick though, he'll get a fraction of his money back, so I assume he's rich enough to drop a few mill for the fun of destroying a football club. Also, a whole bunch of other creditors are going to suffer because of this scumbag. He deserves all the shit that's coming to him.
  • [cite]Posted By: Watford[/cite]"In the event that no agreement can be reached with Valley Grown Salads then the company will have to be placed in administration. The company's shares remain suspended from trading on the Alternative Investment Market."
    Is Salad anything to do with this oddly name investor?
  • Graham Taylor was on SSN an hour ago.

    He said that 'Elton was very disappointed with this situation', in a manner like Elton was gonna get Tony Soprano round to 'Jimmy'

    ooooooooooooOooooooooooo
  • did anyone hear the russo call on ssn last night,if you did and what he said was true what is your view,a lot of people making a opinion on here
    i dont know if it was true but if so i have sympathy's with him.surely you cant expect him to have that amount of money in the club with no say so on how the club is run.Listen to the interview first then let me know what you think, a lot of people slagging him off. Would like to know the watford fans opinions on the rest of the board who from what i hear are not blameless.
  • [cite]Posted By: northstandsteve[/cite]did anyone hear the russo call on ssn last night,if you did and what he said was true what is your view,a lot of people making a opinion on here
    i dont know if it was true but if so i have sympathy's with him.surely you cant expect him to have that amount of money in the club with no say so on how the club is run.Listen to the interview first then let me know what you think, a lot of people slagging him off. Would like to know the watford fans opinions on the rest of the board who from what i hear are not blameless.
    Whether it's true or not, is irrelevant. When he made the loan he should have established what rights he had. Whatever, if he wants out, he could do it in two ways:-

    1) demand the money all back within two days knowing they've no way of managing this, send the club into administration ruining the lives of a bunch of fans, employees of the club and other creditors, while hardly getting back any of his cash.
    OR
    2) behaving like a reasonable adult and coming up with a plan with Watford to get his cash back over 5 years. The club probably wouldn't be delighted, but he'd get his cash back and the club would continue to tick over.

    As he's decided that 1) is the way to go, he's a prick, and deserves all the misery in the world at this special time of year. I'm astonished that you've got some sympaty with this shitbag. I really doubt that - if somebody like this had gained more influence over the running of the club - that any good would have come of it.
  • what he said was he was being asked to invest i think another £2.5 million to maintain his shareholding,but will not be offered a place on the board even if he does put the cash in.Harsh imo
  • Looks like Mr Ashcroft and Jimmy Russo have finally agreed an offer to pay off the loan thus us avoiding administration which is great news.

    At least our league position will now be determined by how the team and Malky perfom on the pitch rather than because of some petty bitter dispute.

    Ofcourse we may well still lose certain players in the January window but at least that will be down to us (maybe we'll cash in on Loach and DeMerit who leaves for free in the summer)

    It was hard for the Russos as they have saved us from administration a few times and ofcourse as businessmen wanted their money back after being kicked off the board (which most of our fans accepeted) .

    Also they has asked Lord Ashcroft to help beforehand without any reply.

    This all started because Aidy Boothroyd and Mark Ashton (both left) and former chairman Graham Simpson decided to gamble on promotion straight away after relegation by spending large monies on flops such as Ellington and Sadler.
  • Familiar story! Ashcroft has now paid Russo his money, so goodish news for the supporters.
  • why do these people drag it out.Sorry but all you lot slagging Russo off should read super horns comment.Russo saved them numerous times yet people still wanted to take the piss out of him.
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