Author Topic: Torquay enter Administration  (Read 2280 times)

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Blue_and_Gold

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Torquay enter Administration
« on: February 22, 2024, 08:26:09 PM »
When the money runs out.

Torquay United are to go into administration after owner Clarke Osborne said he can no longer fund the National League South club.

The Gulls, who are 11th in National League South, have been owned by Osborne since 2016 after he bought the club from a fan-led consortium.

In his time Torquay have twice been relegated to the sixth tier.

They missed out on promotion to League Two in 2021 after losing to Hartlepool United in the play-off final.


Osborne has also stood down as club chairman and the club is set to be deducted 10 points, dropping them from 11th to 18th in the National League South table, four points above relegation to the Southern League.

"It is with sincere regret that I advise that circumstances beyond my control during the last five weeks have brought me to the position that I an unable to continue financial support for the club and I have today filed on behalf of the directors an intention to appoint an administrator for the club and company," Osborne said in a statement on the club website.

Osborne had kept Torquay afloat - the last set of accounts show loans of almost £4.3m to the club.

It is expected that that figure is likely to be well past £5m with new accounts for the year to June 2023 due soon.

"The financing of football in this country is precarious and can only thrive in the lower divisions where there is either a close collaborative relationship with the local authority, it is a trophy asset or is backed by substantial local individuals and businesses," Osborne added.

"I believe that it needs a fundamental overhaul of its financing structure, rights distribution in the lower leagues and recognition that many clubs represent a fundamental part of the local community and its visitor attractions.

"Ambitious clubs should, in my opinion, be given special status in their push to bring in investment, develop facilities, bring spend and employment to the local economy."

The decision leaves Torquay searching for a fourth owner in less than a decade.

The Gulls got to the League Two play-off final in 2011 under a consortium backed by the money of late lottery-winning supporter Paul Bristow, whose widow Thea eventually assumed full control.

She sold the club for £1 in May 2015 to a consortium of local business people, but they did not have the finances to sustain the club and it was sold in December 2016 to Osborne through his firm Gaming International, which set up Riviera Stadium Limited as its parent company.

But Osborne's tenure at Plainmoor has been controversial.

He outlined plans for a new stadium but they never got any further than meetings and artists' impressions.

Gaming International also owns Swindon's speedway team and his plans for a new stadium for the club have also never borne fruit, while he was also part of a group trying unsuccessfully to build a ground for Bristol Rovers when the club sold Eastville to the furniture firm Ikea.

"He's an absent owner, he doesn't come and watch matches," Torquay United Supporters Trust chairman Nick Brodrick told BBC Sport, ahead of a planned protest against Osborne's ownership scheduled for Saturday's home game with Aveley.

"We are very vigilant as the Trust. We have a strategy group that's been meeting regularly for the last two or three years and we have plans for any particular scenarios that might develop, like administration, liquidation, or whether it might even result in having to for a phoenix club.

"We have plans for all eventualities depending on what happens with Mr Osborne's decisions about the football club."

But, in his departing statement, Osborne was still adamant that a new stadium was key to the club's future.

"The prospect of creating a new stadium and commercial facility was the driver for the investment, the excitement to deliver something truly transformative for the club and Torbay," he said.

"I would reiterate what I have said many times, that Torquay United is blessed with fantastic, passionate support and I am sorry that we have not been able to reach our goal for the club and fans, despite significant effort and investment."

He added: "Now is the time for the club, supporters, Torbay community and the Local Authority to come together and continue on the path to the future.

"I will assist a change of ownership where and when invited. The detailed plans, proposals and related data for the proposed developments will be gifted to the club as will any time requested to assist in the future planning and development."

The club says all money that it earns from now on will be used solely to run the football club adding "legal and administration fees will not be paid from the operational cashflow".


First they fascinate the fools, then they attempt to gag the intelligent.

Linnet465

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Re: Torquay enter Administration
« Reply #1 on: February 22, 2024, 08:38:29 PM »
The reality of it all is that it is an expensive merry go round and looking at the average attendances I won’t be surprised if a few more clubs go down the same route. At least SC managed to keep us going but for how long?

Mallard

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Re: Torquay enter Administration
« Reply #2 on: February 23, 2024, 07:27:28 AM »
Surely if it hadn’t of been for ‘Joe’ and his money we wouldn’t be here now.  I wonder time wise how close SC was to having to put us into Administration?
What if the Hokey Cokey really is what it’s all about ?

rod

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Re: Torquay enter Administration
« Reply #3 on: February 23, 2024, 08:54:02 AM »
A worrying trend that is gaining momentum. As an aside, i wonder whether we will ever get to know more about the mysterious Joe and just what he found so attractive about KLTFC as an investment vehicle? A little transparency would be most welcome.

Blue_and_Gold

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Re: Torquay enter Administration
« Reply #4 on: February 23, 2024, 12:10:41 PM »
When the money runs out (part 2).

“The existence of Rochdale AFC is at stake” – chairman warns club has just six weeks to find investment


Rochdale AFC has until the end of March to find an investor or be forced into liquidation, its chairman has warned.

The bleak announcement revealed that the club is looking for an investor to gain 90% of the club at a cost of £2 million so it can continue.

Chairman Simon Gauge – who became involved in the club in June 2021 – has put in £566,000 over the last few months to keep the club going, but says he has now reached his credit limit.

Without investment, the club will be forced into liquidation after years of “perilous” finances.

The 117-year-old club is currently playing in the National League after being relegated last year. The move brought an end to 102 years in the Football League.

In a statement, Gauge said Dale’s “major asset” was the stadium, but had “little else of financial value.”

Describing the club as “asset-rich and cash-poor,” he revealed he and his family have subsidised the club with £566,000 to “buy time to find investment to take the club forward.”

He said that, had he and his fellow directors “been fully aware of what they were taking on” after the club was relegated from League One and the post-Covid period, “we would not have got involved.”

He added: “We would certainly have gone nowhere near the club had we been aware of the hostile takeover attempt that followed.



 


 

Gauge explained there have been several barriers to investment, including “club management, level of debt, the financial situation and uneconomical leases.”

An EGM has been called for shareholders on Thursday 7 March at the Ratcliffe Bar to try and agree to the proposals, including the creation of nine million new shares.

Gauge said: “We are in talks with interested parties, but they will not move forward until the conditions for investment are in place.

“In an ideal world, we would have an investor in place before calling the EGM, but we do not have that luxury of time. This EGM is essential to achieving the required conditions that an investor wants.

“If we move to a period of exclusivity with any party before the EGM, we will disclose this to shareholders.

“This resolution needs to be passed at the EGM for us to have any chance of securing the required investment that will ensure the long-term future of our club.

“If it isn’t passed, the threat of liquidation at the end of March is very real. The passing of this resolution does not guarantee saving the club, but it will certainly give it a fighting chance.

“To be clear, the existence of Rochdale AFC is at stake. The opportunity to give a long-term future is now in the shareholders’ hands.”
First they fascinate the fools, then they attempt to gag the intelligent.

Mallard

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Re: Torquay enter Administration
« Reply #5 on: February 23, 2024, 07:59:51 PM »
Is it really that unusual at this stage of the season to hear of Clubs in trouble.  Always seems to strike post Christmas.  Didn’t our own SC say we were gone by the end Jan if no new money was found ?

While you have people who always seem to feel they know how to make a Non League Football, successful, they always seem to reach the end of the road having had their fingers burnt.  It’s amazing really as it tends to be businessmen who have made decent money in their field yet all business logic seems to go out of the window once they walk into a Football Club.   Strange, as these business people didn’t get where they are by allowing their company’s to haemorrhage money.

Way beyond me.
What if the Hokey Cokey really is what it’s all about ?

Blue_and_Gold

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Re: Torquay enter Administration
« Reply #6 on: February 24, 2024, 02:41:02 PM »
Is it really that unusual at this stage of the season to hear of Clubs in trouble.  Always seems to strike post Christmas.  Didn’t our own SC say we were gone by the end Jan if no new money was found ?

While you have people who always seem to feel they know how to make a Non League Football, successful, they always seem to reach the end of the road having had their fingers burnt.  It’s amazing really as it tends to be businessmen who have made decent money in their field yet all business logic seems to go out of the window once they walk into a Football Club.   Strange, as these business people didn’t get where they are by allowing their company’s to haemorrhage money.

Way beyond me.

Mallard.

Are you a Ghost writer for Cleeve these days, have contacts at Rouen Road, or know someone in the know at the Club?

Having just read Cleeve's article in the Norwich paper, it seems the post you made yesterday touched on the same matter as Cleeve does today!

If its none of the above, can you give me your thoughts on tonight's lottery numbers please?

 :laughcry:
First they fascinate the fools, then they attempt to gag the intelligent.

MARCUS ROSE

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Re: Torquay enter Administration
« Reply #7 on: February 26, 2024, 05:18:20 PM »
Salford's Class of 92 owners seek new investment - https://www.bbc.co.uk/sport/football/68401320

All hope is gone if this lot need "outside investment"

Blue_and_Gold

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Re: Torquay enter Administration
« Reply #8 on: February 26, 2024, 06:40:10 PM »
I wonder if Lim knows Joe?   :dontknow:
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rod

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Re: Torquay enter Administration
« Reply #9 on: February 26, 2024, 09:06:05 PM »
I wonder if Lim knows Joe?   :dontknow:

Or even Sid, for those who can recall the British Gas sell off. Fact or fantasy?

MARCUS ROSE

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Re: Torquay enter Administration
« Reply #10 on: February 29, 2024, 07:48:14 AM »
https://www.manchestereveningnews.co.uk/news/greater-manchester-news/council-moves-complete-stockport-county-28721626?utm_source=app

40 years till Stockport get a peppercorn rent. Just shows how supportive our Council have been regarding the Walks Stadium.

 

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