SOUTHEND United have been cleared to compete in the National League this season but remain at risk of possible punishments.

The Shrimpers had been sweating on their participation in the fifth tier of English football due to their perilous financial position.

A statement from the League has now confirmed the club have been awarded a licence to kick off the campaign but Blues will be hit by a 10 point penalty if they fall out of line again.

The statement said: “Following extensive and positive dialogue, including sight of suitable evidence provided by the club, appropriate steps are being made by the club to satisfy the League and secure its participation in the 2023/24 Vanarama National League season.

“The club has now cleared the debts owed to football creditors and as such the League has issued a licence for the club to participate in the 2023/24 season.”

Blues’ staff are now up to date with their wages having had to wait three months to be paid. 

However, the club are still required to meet certain criteria by the league.

And should the Shrimpers not pay off their tax debt by their next High Court appearance then a points penalty will be forthcoming.

The statement added: “The club, who can now move forward to commence the season, are also required to fulfil the following conditions.

“The club’s HMRC debt is to be discharged in full by their next court date, 23 August 2023.

“It should be noted that this remains a requirement from the League even if the court hearing is further adjourned past the 23 August 2023.

“In addition, having discharged all outstanding Football Creditors, and all HMRC debt by 23 August 2023, it will be a condition of the license to ensure all new or any Football Creditors debts or HMRC debt are cleared on time to the satisfaction of the League at any point during the 2023-2024 season.

“Should the above not be satisfied, the club will be subject to an immediate and automatic 10 points deduction.

“This is in addition to any other action deemed appropriate by the League when considering any new debt. “

The National League also added it has also made it clear to the Shrimpers that they must ‘operate sustainably’ moving forward.

Blues remain under a transfer embargo and can only register 16 players until the restrictions are lifted.

Kevin Maher's side are due to host Oldham Athletic on the opening day of the season at Roots Hall, a week on Saturday.