THE National League have today told Southend United they must post a bond of £1million to prove they can fulfil their fixtures next season.
The Shrimpers are facing uncertain future as the consortium headed up by Justin Rees have yet to officially take control of the club.
And a statement from the League has this evening confirmed that if Blues fail to pay further meetings will be held to consider further sanctions against the club.
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The statement said: "The National League continues to be concerned about Southend United Football Club’s ability to fulfil its financial obligations for the forthcoming National League season.
"The club has for several months been the subject of a winding up petition (a further hearing of which is scheduled for this week) and, on 20 June 2024, filed its accounts for the year to 31 July 2023 which underscore and amplify the concerns expressed previously by the League.
"Accordingly, the National League has today advised Southend United Football Club that as a result of the club’s failure to provide the League with detailed, objective and independent evidence that the club has sufficient funds to meet its financial obligations for the forthcoming National League Season, and in light of previously expressed concerns (underscored by the most recently-filed accounts), the club will be required to post a bond of £1million, which will be held in escrow to the order of the League."
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But the statement added the bond will be removed if the club changes hands.
The statement added: "The bond shall remain in place until the sooner of (i) an ownership agreement with the consortium currently in talks with the club being successfully concluded, to the satisfaction of the National League and the FA; or (ii) the Club demonstrating, to the satisfaction of the National League, that is has sufficient financial resources within its own means to meet its financial obligations for the forthcoming season."
The league does not what punishments could be forthcoming but it has the power to deduct points, like last season, or kick Blues out of the league.
The statement added: "In the event that the club fails to post the bond in accordance with the requirements that have been communicated to the club, the National League board will meet again to consider further sanctions against the club.
"The decision is subject to the right of appeal to the Football Association."
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