UPDATE: Southend United avoid administration

Southend United have avoided administration by reaching “a deal” with the Inland Revenue.

The Blues appeared in the High Court earlier today (Mon 2 Aug) following a series of legal clashes over unpaid tax bills.

The club has convinced the taxman that existing debts have been settled – and future payments will be on time.

Chairman Ron Martin confirmed finances have been underwritten by Sainsburys for the next twelve months, meaning any further debts will be paid, regardless of the club’s financial situation.

Mr Martin expects the transfer embargo to be lifted in the next 24 hours, which means new manager Paul Sturrock can finally sign the players brought in on pre-contract deals.

Speaking on the SUFC official website, Mr Martin said:

“We anticipated that we would reach a satisfactory outcome and now can move on.

“We have partnered with Sainsbury’s, but they are not a charity.

“There is an agreement to deliver a new stadium for the Football Club and a new store at Roots Hall.

“The Club is now up-to-date with all outstanding tax debts and we have demonstrated in our cash flow over the next 12 months that we can meet future liabilities as they fall due.

“It has been a complex transaction and the next phase of that is to now start construction of the new stadium.

“We have worked out the finer details with the Football League to remove the transfer embargo currently in place on the Club and now matters with HMRC are settled we anticipate the embargo being lifted today or tomorrow.“