Big Swindon Financial Troubles - Again

[QPR Report]

Guardian/Nick Fletcher

Swindon football club facing crisis over unpaid loan• Property group St Mowden is demanding £2.45m
• Swindon Town was taken into administration twice before


Swindon Town, the League One football club, faces a winding-up order from the quoted property company St Modwen tomorrow over the non-repayment of a £2.45m loan dating back to 2005.

Swindon is controlled by a consortium whose shareholders include the City grandee Sir Martyn Arbib and the serial entrepreneur Andrew Fitton, the chairman of the club who has businesses in engineering and technology. Fitton's consortium – which also includes Jeremy Wray, brother of one of the founders of online gaming group Betfair – took over Swindon Town in 2007. The sellers included the Wills family, who made their fortune from the tobacco industry.

St Modwen originally become involved when the club was considering moving from its County ground to a purpose-built stadium.

The plan would have seen the original site redeveloped for housing and leisure use. In 2005, as part of this partnership, St Modwen lent the club £1.45m, which went towards paying off a VAT bill. Swindon Town had already gone into administration twice before, and was facing the prospect of going under again unless it settled the debt to the tax authorities.

When Fitton's consortium took over, St Modwen asked for its loan to be repaid, since the proposed move from the County ground – which is owned by the local council and leased to the club – had fallen through and the property developer had no further interest in the matter.

The two sides agreed a two-year grace period for the outstanding amount to be repaid, but that deadline ran out in August with no settlement forthcoming.

Three weeks ago St Modwen issued a statutory demand for repayment. Since then it has heard nothing to indicate the debt will be repaid, and believes it has no alternative now but to go to court. It is claiming the original £1.45m loan plus £1m in interest.If Swindon's directors do not pay up, and St Modwen is successful in its winding up order, the club will go out of business and its assets will be sold for the benefit of creditors.

It will join a growing number of football clubs which have found themselves in severe financial difficulties with the likes of Stockport County already in administration, and even Premier League club Portsmouth struggling to pay players' wages earlier this season

www.guardian.co.uk/business/2009/nov/15/stmodwenproperties-swindon?

[QPR Report]

Swindon Advertiser

Swindon Town preparing statement over winding-up claims
9:23am Monday 16th November 2009
By Anthony Marshall »

TOWN are set to release a statement this afternoon responding to national reports that the club faces a winding-up order.

According to the Guardian newspaper, the County Ground club face a winding-up order from property company St Modwen over the non-repayment of a £2.45m loan dating back to 2005.

The article states that Swindon were lent £1.45m from St Modwen in 2005 to pay a VAT bill, and that a grace period agreed with chairman Andrew Fitton's consortium for the repayment of the loan when they took over the club in January 2008, ran out in the summer.

The report further claims that three weeks ago St Modwen issued a statutory demand for repayment, but has received no reply, and is claiming the original loan of £1.45m plus £1m in interest.

The Advertiser understands a statment is expected from County Groud chiefs this afternoon, which they hope will settle the issue.

www.swindonadvertiser.co.uk/sport/4740922.Swindon_Town_face_winding_up_order_/

[QPR Report]

Swindon Official Site

Club respond to press report
Posted on: Mon 16 Nov 2009

The Club is aware of the press article in today's Guardian Newspaper. Swindon Town Football Company Limited's Financial Statements for the period to 31st May 2009 clearly show this matter as subject to a dispute between the parties.

This matter referred to dates back to 2003 when the Club's former holding company established a joint venture company, Shaw Park Developments Ltd, with St Modwen.

Discussions between the parties have been ongoing for some time now and though no resolution has been reached the Club will continue to use all endeavours to bring the matter to satisfactory conclusion.

www.swindontownfc.co.uk/page/NewsDetail/0,,10341~1876615,00.html

[QPR Report]

Swindon Advertiser

A political tool or a real threat?
Tuesday 17th November 2009
By Anthony Marshall »

TO say there have been some dark days at the County Ground over the past decade (and beyond) is something of an understatement.

From Terry Brady to BEST Holdings, and Bill Power to Bob Holt, Swindon Town have never been too far away from off-the-pitch controversy, so just when it looked like everything was relatively rosy in Wiltshire, those past demons had to rear their ugly heads again.

National reports yesterday claim the club face a winding-up order from property company St Modwen over the non-repayment of a £2.45m loan dating back to 2005 - the borrowing itself being £1.45million, with £1million interest.

The Guardian newspaper claims that St Modwen - who originally became involved in the club when Swindon were looking to move to a purpose-built stadium - issued a demand for repayment three weeks ago following the end of a grace period.

But with no response from current Town chairman Andrew Fitton and the club’s board of directors, the report alleges that there is “no alternative now but to go to court.”

To the cynical eye, the article appears to be merely a political tool aimed to force Fitton & Co to cough up their readies, with little chance of a winding-up order ever coming to fruition.

However, it will have done nothing to help the nerves of Swindon’s long-suffering supporters, who have been thrown from one nightmare to the next under a succession of County Ground regimes.

This time does appear different though, with the fans placing their trust in Fitton’s consortium. Their honesty, willingness to communicate with supporters and general transparency since their arrival in January 2008 has been a real bright spot over the last couple of years.

And Alan Hayward, of supporters group Red Army Loud and Proud, is one of those more than happy with the current regime in place, and confident the situation will be sorted before any winding-up threats become reality.

He told the Advertiser: “This hasn’t come as a huge surprise or a shock because it has been floating around since the AGM (in October) and been sitting in the background, much like the Bill Power case.

“It just seems like two years down the road they (St Modwen) really would like their money back now.

“Most people have got a lot of faith in Andrew Fitton and the new board, and they will deal with it.

“Everybody trusts their financial acumen and business experience. Even if it got to a court case and they had to cough up a couple of million then I think they would.

“I certainly couldn’t see them pulling out and walking away - they are too far down the road for that. But my feeling is that it is all in hand and we will be fine.”

Since their arrival almost two years ago, Fitton and his fellow directors have only had the club’s best interests at heart - shelling out around £7.5million to date, improving the look and feel of the County Ground to express a much more professional approach, and investing heavily in the playing staff.

And while this latest revelation may make unsavoury reading to some, Swindon’s faithful band of supporters should have every belief that there remains a very bright future for their club.
www.swindonadvertiser.co.uk/sport/4742771.A_political_tool_or_a_real_threat_/

[eastpaddoknutta]

where is Bill Power now then?

[QPR Report]

Asking about my nominee for QPR Life President