Post by QPR Report on Dec 18, 2009 21:23:25 GMT
Guardian
Lord Ashcroft offers to repay Russos to keep Watford out of administration• Former chairman answers Graham Taylor criticisms
• Club hopes rights issue will raise £7.5m
Matt Scott guardian.co.uk, Friday 18 December 2009
Lord Ashcroft, Watford's majority shareholder, has offered to repay the Russos' £4.88m loans into the Championship club in an effort to avert administration.
The Vicarage Road board is awaiting legal confirmation after receiving acceptance in principle from the club's former chairman Jimmy Russo.
Once the transaction is complete Watford will proceed with a rights issue that is aimed at providing £7.5m in working capital for the club. That sum, raised from shareholders in an exercise that will be underwritten by Ashcroft, would cover the £5.5m that is required before June 2010 to keep the club afloat, while also providing a useful financial cushion.
Russo confirmed that he would accept Ashcroft's deal. "Definitely, not a problem," he told Radio 5 Live. "The sad thing is this could have all been resolved without all the pain that's gone on over the last week or so.
"We've been asking him [Lord Ashcroft] to come to the table virtually every week. But now that he's prepared to pay my debt, that's great. It's good for the club. I'm absolutely delighted. But ... why leave things to the last second?"
Russo confirmed that his threat to take the club into administration was more than mere posturing, although he would have done so reluctantly.
"When you make an announcement that you are going to put the club into administration, you've got to go through with it," he said. "Was it something I wanted to do? No, never. It's something they should have taken into account when they decided my presence was not wanted on the board, despite all the good things that we'd done for the club."
He added: "I'm relieved that this has been sorted out and disappointed that it's taken so long."
Russo also mounted a robust defence of his position after the interim Watford chairman, Graham Taylor, branded him a "bad man" earlier today for allowing the club to come to the brink.
"I thought that was a disgraceful comment," Russo said. "He should have been more selective with his words. How can somebody who has rescued the club four times, have a contribution of £9m in the club, never been paid a penny ... become a bad man? I think Graham should apologise for that comment. I think that was totally out of order and I don't think I deserved that. He should really look at that again and pick up the phone, if he's big enough."
Watford confirmed the £7.5m rights issue is going ahead. "The feeling inside the club tonight is one of huge relief," a Watford spokesman said. "The right decisions have been made by both parties for the future of the football club."
www.guardian.co.uk/football/2009/dec/18/lord-ashcroft-watford-administration-russo
Watford Observer
Jimmy Russo and Lord Michael Ashcroft reach Hornets agreement
Friday 18th December 2009
By Anthony Matthews »
Watford fans can breathe a huge sigh of relief tonight after their club was saved from administration.
Former chairman Jimmy Russo has accepted an offer from major shareholder Lord Michael Ashcroft to repay the £4.88m lent to the Hornets.
Russo who, along with his brother Vince and close business associate Robin Williams resigned at Tuesday's annual meeting, had threatened to put Watford into administration after rejecting the terms of a £7.5m right issue proposed by Lord Ashcroft's Fordwat company yesterday.
But a deal has now been done and Russo told BBC Radio 5 Live tonight: "I'm relieved to have all this sorted out but it's disappointing it has taken so long.
"It has rescued the club and it is good for the club and I'm delighted. I didn't want to put them into administration.
"I wish the football club all the best and they have got a good future."
Despite this positive development Russo hit back at interim chairman Graham Taylor for labelling him a "bad man" following this week's events.
"I thought that was a disgraceful comment," his predecessor reportedly said. "He should have been more selective with his words.
"How can somebody who has rescued the club four times, have a contribution of £9m in the club, never been paid a penny ... become a bad man?
"I think Graham should apologise for that comment. I think that was totally out of order, and I don't think I deserved that.
"He should really look at that again and pick up the phone - if he's big enough."
www.watfordobserver.co.uk/sport/localsport/4812649.Watford_saved_from_administration/