The Watford Observer has been keen to discuss a number of concerns with the Hornets' new major shareholder Laurence Bassini for several weeks but the man behind Watford FC Limited has been reluctant to answer our questions until the takeover offer was 'wholly unconditional'. That happened last Friday but unfortunately Mr Bassini has now declined to meet before the new board is formulated, so, here is an open letter...
Dear Laurence,
We are writing to you today as after months of speculation and rumour surrounding your takeover of Watford, we feel now is the time for answers.
We appreciate you have not been in charge of the club long and were reluctant to discuss certain issues before because of Plc rules, but for several weeks now there have been important questions surrounding yourself and the takeover by your company Watford FC Limited (WFCL) which has caused great concern among the supporters.
Your decision not to speak out further until the offer became ‘wholly unconditional’ was understandable but after the formal acceptance from most of the major shareholders last Friday, which effectively gave you control of the club, we expected some of the fans’ concerns to be addressed this week.
Much was promised from the long-awaited Offer Document, which was released last week, but in fact it left most of the questions unanswered and actually raised a few more.
However, information which has subsequently come to light and the lack of detail in the Offer Document has worried a large majority of supporters.
One of the main concerns is the lack of information to prove your business pedigree.
Several well-known businessmen have filed for bankruptcy and gone on to be hugely successful so that in itself is not a major issue. But while you have been linked with several companies which have been dissolved, there has been no information provided to illustrate where you have been successful.
This in itself also raises one of the most pressing concerns for the supporters we have spoken to in recent months – where has the money for the takeover come from and how much is there?
Until evidence or an explanation is put into the public domain, the query of ‘how does someone who was bankrupt less than four years ago now have enough money to buy a Championship football club?’ will continue to be discussed in homes and pubs across Hertfordshire.
If some sort of brief business history is not provided the rumours will continue.
The idea of there being unknown financial backers has been mentioned in several discussions as a way of explaining it. Is that the case?
The issue of finance is not restricted to your past either.
As part of the takeover, your company, WFCL, will be providing the £3.5m needed to tie the club over until the summer and without it, the Hornets could be in serious trouble.
But this money is seemingly just a loan, as are the rest of the funds being provided.
So apart from the initial £440,000 being used to buy the current shares, will the rest of the money WFCL is using to pay the bills and bonds be loans, and therefore be debt which is passed on to the club? Or will you personally, via the newly-created company, be investing your own money into Watford?
And why is it that you are loaning your own company the money, and not just investing it, if you are the only financial backer? Equally, why is Panos Thomas the only shareholder of WFCL when you are putting the money in and why did you not want a place on the Watford Leisure Plc board?
These are all issues which need to be addressed if the club is to move forward and away from all the speculation and rumour.
But while your past and the structure of the deal has raised serious questions, it is what the future holds which will be of utmost importance to the Watford faithful.
When the bond issue was completed last summer, it was hoped a new investor or owner would pay off the bonds, activate all the warrants and use the money raised to pay off the club’s debt so it could move forward debt free.
However, that is no longer the case as the bond repayments have been rescheduled, so how do you plan to pay off the debt over the next five years as the company continues to make a loss each year despite several cuts?
Player sales are a must for a club of Watford’s size and means, that is no secret, but that money is needed for running costs as well, so unless an Ashley Young-like situation arises, it is difficult to see how Malky Mackay can continue the excellent work he is doing and develop a competitive Championship side if he needs to sell two or three of his most valuable players each year.
It would be unreasonable for our paper or the fans to expect you to come out and divulge all of your ideas for the business but an indication of how you plan to develop the club may help allay some supporters’ fears.
You have expressed a desire to develop the Vicarage Road Stadium, which is what everyone connected with the Hornets wants, but in the Offer Document it states the timing and the method of financing the work is unknown. It even goes on to state that the work may not take place at all.
Why is the funding unclear if you have a clear intention to develop the three areas?
One would expect these crucial aspects to be considered as part of the takeover discussions.
As for the East Stand, surely the method of funding would need to be known before you could make any plans as it will dictate the very nature of the structure and the capacity.
Wanting to re-lay the pitch, finish the South-West corner and build a new East Stand is great, we all want that, but without some kind of detail then many will see the claims as empty pledges which will only happen if Watford are promoted to the Premier League.
Actions speak louder than words and with time you could win the hearts of the Watford faiuthful, especially if Vicarage Road Stadium is developed considerably and the Hornets have a squad which is challenging at the top of the Championship. But until that point and until fans receive the reassurances they need, then there will continue to be serious questions surrounding your ownership of the club among the supporters.
Running a football club is unlike any other business, there are thousands of Watford fans who have an almost unconditional bond with the club – many have a relationship stretching back decades.
And for the Hornets in particular, the relationship with the supporters and the community as a whole is what makes Watford such a special club. It defines Watford Football Club.
We understand there is a meeting with the current and future board members today [Friday] so hopefully a lot of these issues will be discussed then.
But the fans also deserve to know who is in charge of their beloved club and whether Watford can look forward to a bright future, or another few years of severe cuts and player sales.
Peter Wilson-Leary,
Group Editor
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