Post by QPR Report on Apr 28, 2010 6:23:10 GMT
Guardian/David Conn
Sir Roy Gardner's return has painted Plymouth Argyle into a tricky corner
The former Man Utd chairman has been at Argyle for a year and has already split the club from their main asset, the stadium
Plymouth Argyle sailed into this season buoyed by the arrival as an investor of Sir Roy Gardner, the former Manchester United chairman, an increased 38% stake bought by a Japanese investor, Yasuaki Kagami, and a vision of boundless ambition. The Gardner regime branded the future a "New World" for Argyle, to transform the West Country club into "a global and local partnership with football at its heart", and into the Premier League within five years.
In December it hailed as vindication the FA's decision to select Plymouth as a venue if the 2018 World Cup comes here – it was a status bestowed shortly before a winding-up petition arrived at Argyle from Her Majesty's Revenue and Customs. That, a transfer embargo and, last week, relegation from the Championship via a 2‑0 home defeat to Newcastle United, never quite figured in the brochure.
The fans are gloom-laden. Many do not buy Gardner's grand plan, which will see Home Park shortly transferred to a holding company owned by Gardner, his partner Keith Todd and Kagami. They then intend to expand the stadium to 45,000 (Argyle's gates in the Championship average 10,396 this season) and develop commercially the land around it.
Some argue the regime is too absentee, fixated on property profits, not the basics of running a stalwart Football League club. Gardner, who describes himself as very involved although he rarely travels to matches because he lives a long way from Plymouth, rejects that. "I'm very disappointed with relegation," he said, "but the framework of our five-year plan is still there: we aspire to be a Premier League club. That looks a little further away; we do need to bounce back next season."
Kagami, according to his representative, George Synan, is president of a family company in Tokyo, Maruka Trading, whose business is making toys for Disney. In April 2008, Kagami paid £500,000 for a 5% stake from each of four local Plymouth directors, £2m in total.
The plan was for Kagami to invest in the club and develop football links between Plymouth and Japan, but truly significant money has not yet arrived. Phillip Gill, a former director who last summer sold his remaining 18% stake to Kagami for £650,000, had become disillusioned, accusing the board of not looking sufficiently far for an investor beyond Kagami, who was introduced by a local businessman, Tony Campbell, an old colleague of Synan's.
Campbell, now the club's chief operating officer, represents the Kagami interest at Home Park.
Gill argues that in 2008‑09 players were signed by Paul Sturrock, in his second managerial stint, on long, expensive contracts because of the expected investment from Kagami, which did not arrive that season. The striker Emile Mpenza, signed as a free agent from Manchester City on a salary understood to be £500,000 a year, left a year later having played only three full league games. "I'm more angry than upset at relegation," Gill fumed. "It was predictable two years ago."
Synan and Gardner explained the paucity of investment by pointing to the economic downturn. Synan was affected personally, too, having to rely on a loan from Maruka to make ends meet, according to a document his lawyers filed in August 2009 in a personal dispute being heard by the Osaka district court.
"I am a director of a Maruka property company," he said, speaking openly to the Guardian from his Tokyo office. "I am paid on commission, 2009 was probably the worst year on record for Tokyo property, so I didn't make money. The companies also had issues in 2009. It was a difficult year."
Argyle's accounts, recently published for the year ended 31 May 2009, revealed that the club spent 87% of their £8.6m turnover on a £7.5m wage bill. The three Plymouth-based directors and Kagami had loaned a total of £1.4m, with Kagami's £256,000 significantly lower than the £775,000 stumped up by a local businessman, Tony Wrathall.
Despite that overspending, Argyle finished 21st last season. Then Gardner and Todd arrived, with Kagami upping his stake, giving their partnership 51%. Gardner says he was missing football, having been Manchester United's chairman for three "outstanding" years until the 2005 takeover by the Glazer family, which he opposed. Yet after declaring their ambitions, Argyle notched two points from their first nine games and set sail for League One.
The winding-up petition issued against the club in January was, Gardner said: "An unfortunate issue, a short-term funding issue which can affect all clubs." Argyle paid the debt owed to HMRC and Wrathall is said to have loaned further money, although Gardner declined to confirm that. He and Todd lent money too, in December; he declined to say how much that was for.
Last month, with Argyle on the cusp of relegation, the club announced that Home Park will be transferred to the holding company owned by Gardner, Todd and Kagami. Many fans are uneasy and such separations of clubs from their grounds are also viewed with discomfort within the Football League, whose executives have seen too many asset-stripping attempts down the years.
Gardner, however, argues that the transfer is "essential" because the stand-alone property company will be better able to raise money for the developments, which will benefit the club. The price paid to the club is stated as £7.5m but Gardner said no cash will go to the club – who bought the freehold for £2.7m three years ago and will now pay rent to play there. The £7.5m will go to paying off the club's debts including the money owed to directors, who will convert their loans into shares. "The club is not getting a lump sum of cash. It will reduce the indebtedness between the football club and investors," he said.
Describing World Cup bid status as "a very great story", Gardner explained the plan to develop Home Park into a 45,000-seat stadium with an arena next it. "It is an excellent site," he said. "It could be the O2 Arena of the south-west."
Not all are captivated. Peter Jones, the former vice-chairman who spoke at the March funeral of Michael Foot, former Argyle fan and director, and leader of the Labour party, said this week: "There is a huge gap between the global-brand idea and the reality of building a successful club. I fear Argyle becoming owned by absentee owners, more interested in the property development than football."
Gardner, though, and Synan, both reject that. "We could make a profit if the development is successful," Gardner acknowledged. "But profit will need to be ploughed into the football club, because a successful stadium needs the football club to do well."
He and Todd are, he said, about to buy out Wrathall and the two other Plymouth-based directors, and Kagami is also committed to injecting further funds. "Other people can come in and invest," Gardner said. "They will be taking a risk. And if they make a profit, that is their reward for the risk."
On the World Stage
Sir Roy Gardner has built his vision for Plymouth Argyle around England's bid for the city to host matches at the 2018 World Cup finals.
"We came to the club in July 2009 because we had a vision to bring Premier League football to Plymouth," Gardner, below, said, "and we had an idea to create a sports and leisure destination around Home Park. That idea was crystallised when the board decided to bid to become a World Cup city."
Of all the venues announced by the FA's 2018 bid team last December, including the surprise choice of Milton Keynes, Plymouth has the most to do to get the stadium up to the standards necessary for staging World Cup matches. Home Park must be converted from a 19,500‑seat to a 45,000-seat stadium, according to the plans Gardner is drawing up.
It would be financed by the development around the ground, including a hotel, shops, student accommodation and an arena for concerts and other indoor events.
How it will be sustainable beyond a few World Cup group games in eight years' time – should England be awarded the finals – as a home for Argyle, with average gates of 10,396 in the Championship, Gardner has not yet revealed.
www.guardian.co.uk/sport/david-conn-inside-sport-blog/2010/apr/28/roy-gardner-plymouth-manchester-united
Sir Roy Gardner's return has painted Plymouth Argyle into a tricky corner
The former Man Utd chairman has been at Argyle for a year and has already split the club from their main asset, the stadium
Plymouth Argyle sailed into this season buoyed by the arrival as an investor of Sir Roy Gardner, the former Manchester United chairman, an increased 38% stake bought by a Japanese investor, Yasuaki Kagami, and a vision of boundless ambition. The Gardner regime branded the future a "New World" for Argyle, to transform the West Country club into "a global and local partnership with football at its heart", and into the Premier League within five years.
In December it hailed as vindication the FA's decision to select Plymouth as a venue if the 2018 World Cup comes here – it was a status bestowed shortly before a winding-up petition arrived at Argyle from Her Majesty's Revenue and Customs. That, a transfer embargo and, last week, relegation from the Championship via a 2‑0 home defeat to Newcastle United, never quite figured in the brochure.
The fans are gloom-laden. Many do not buy Gardner's grand plan, which will see Home Park shortly transferred to a holding company owned by Gardner, his partner Keith Todd and Kagami. They then intend to expand the stadium to 45,000 (Argyle's gates in the Championship average 10,396 this season) and develop commercially the land around it.
Some argue the regime is too absentee, fixated on property profits, not the basics of running a stalwart Football League club. Gardner, who describes himself as very involved although he rarely travels to matches because he lives a long way from Plymouth, rejects that. "I'm very disappointed with relegation," he said, "but the framework of our five-year plan is still there: we aspire to be a Premier League club. That looks a little further away; we do need to bounce back next season."
Kagami, according to his representative, George Synan, is president of a family company in Tokyo, Maruka Trading, whose business is making toys for Disney. In April 2008, Kagami paid £500,000 for a 5% stake from each of four local Plymouth directors, £2m in total.
The plan was for Kagami to invest in the club and develop football links between Plymouth and Japan, but truly significant money has not yet arrived. Phillip Gill, a former director who last summer sold his remaining 18% stake to Kagami for £650,000, had become disillusioned, accusing the board of not looking sufficiently far for an investor beyond Kagami, who was introduced by a local businessman, Tony Campbell, an old colleague of Synan's.
Campbell, now the club's chief operating officer, represents the Kagami interest at Home Park.
Gill argues that in 2008‑09 players were signed by Paul Sturrock, in his second managerial stint, on long, expensive contracts because of the expected investment from Kagami, which did not arrive that season. The striker Emile Mpenza, signed as a free agent from Manchester City on a salary understood to be £500,000 a year, left a year later having played only three full league games. "I'm more angry than upset at relegation," Gill fumed. "It was predictable two years ago."
Synan and Gardner explained the paucity of investment by pointing to the economic downturn. Synan was affected personally, too, having to rely on a loan from Maruka to make ends meet, according to a document his lawyers filed in August 2009 in a personal dispute being heard by the Osaka district court.
"I am a director of a Maruka property company," he said, speaking openly to the Guardian from his Tokyo office. "I am paid on commission, 2009 was probably the worst year on record for Tokyo property, so I didn't make money. The companies also had issues in 2009. It was a difficult year."
Argyle's accounts, recently published for the year ended 31 May 2009, revealed that the club spent 87% of their £8.6m turnover on a £7.5m wage bill. The three Plymouth-based directors and Kagami had loaned a total of £1.4m, with Kagami's £256,000 significantly lower than the £775,000 stumped up by a local businessman, Tony Wrathall.
Despite that overspending, Argyle finished 21st last season. Then Gardner and Todd arrived, with Kagami upping his stake, giving their partnership 51%. Gardner says he was missing football, having been Manchester United's chairman for three "outstanding" years until the 2005 takeover by the Glazer family, which he opposed. Yet after declaring their ambitions, Argyle notched two points from their first nine games and set sail for League One.
The winding-up petition issued against the club in January was, Gardner said: "An unfortunate issue, a short-term funding issue which can affect all clubs." Argyle paid the debt owed to HMRC and Wrathall is said to have loaned further money, although Gardner declined to confirm that. He and Todd lent money too, in December; he declined to say how much that was for.
Last month, with Argyle on the cusp of relegation, the club announced that Home Park will be transferred to the holding company owned by Gardner, Todd and Kagami. Many fans are uneasy and such separations of clubs from their grounds are also viewed with discomfort within the Football League, whose executives have seen too many asset-stripping attempts down the years.
Gardner, however, argues that the transfer is "essential" because the stand-alone property company will be better able to raise money for the developments, which will benefit the club. The price paid to the club is stated as £7.5m but Gardner said no cash will go to the club – who bought the freehold for £2.7m three years ago and will now pay rent to play there. The £7.5m will go to paying off the club's debts including the money owed to directors, who will convert their loans into shares. "The club is not getting a lump sum of cash. It will reduce the indebtedness between the football club and investors," he said.
Describing World Cup bid status as "a very great story", Gardner explained the plan to develop Home Park into a 45,000-seat stadium with an arena next it. "It is an excellent site," he said. "It could be the O2 Arena of the south-west."
Not all are captivated. Peter Jones, the former vice-chairman who spoke at the March funeral of Michael Foot, former Argyle fan and director, and leader of the Labour party, said this week: "There is a huge gap between the global-brand idea and the reality of building a successful club. I fear Argyle becoming owned by absentee owners, more interested in the property development than football."
Gardner, though, and Synan, both reject that. "We could make a profit if the development is successful," Gardner acknowledged. "But profit will need to be ploughed into the football club, because a successful stadium needs the football club to do well."
He and Todd are, he said, about to buy out Wrathall and the two other Plymouth-based directors, and Kagami is also committed to injecting further funds. "Other people can come in and invest," Gardner said. "They will be taking a risk. And if they make a profit, that is their reward for the risk."
On the World Stage
Sir Roy Gardner has built his vision for Plymouth Argyle around England's bid for the city to host matches at the 2018 World Cup finals.
"We came to the club in July 2009 because we had a vision to bring Premier League football to Plymouth," Gardner, below, said, "and we had an idea to create a sports and leisure destination around Home Park. That idea was crystallised when the board decided to bid to become a World Cup city."
Of all the venues announced by the FA's 2018 bid team last December, including the surprise choice of Milton Keynes, Plymouth has the most to do to get the stadium up to the standards necessary for staging World Cup matches. Home Park must be converted from a 19,500‑seat to a 45,000-seat stadium, according to the plans Gardner is drawing up.
It would be financed by the development around the ground, including a hotel, shops, student accommodation and an arena for concerts and other indoor events.
How it will be sustainable beyond a few World Cup group games in eight years' time – should England be awarded the finals – as a home for Argyle, with average gates of 10,396 in the Championship, Gardner has not yet revealed.
www.guardian.co.uk/sport/david-conn-inside-sport-blog/2010/apr/28/roy-gardner-plymouth-manchester-united