Since the management of Peterborough United severed all links with The Posh Supporters' Trust in early February (and then omitted to explain why it had done so in its own matchday programme), the Trust has been inundated with support from all quarters. Much of the support has stemmed from the open meetings we have held at Ebeneezer's and elsewhere. The Trust's Chief Executive, Leigh Porter, said: "We have been overwhelmed by a host of new members, renewals of subscriptions, many generous donations and new entrants to the Gold Bond Super Draw. In addition many people are supporting the buy.at/theposhtrust on-line shopping facility on the Trust's website. We are gratified that there is an enormous groundswell of support for the policies that are being followed by the Trust, while the Trust board acknowledges that the club will only be saved by the whole community acting together".
It has been widely reported in both the local and national media that Barry Fry has stated that he would sell Peterborough United for £600,000. Peterborough United FC Ltd (PUFC) is 99% owned by Peterborough United Holdings Ltd (PUHL). Barry Fry owns all the "B" shares in PUHL, but we are unaware as to whether this gives him the right to sell PUFC Ltd without reference to the other PUHL shareholders.
As with any other business, if the club were up for sale we would expect to see an official announcement or advertisement or both from the owner, PUHL, giving details of the sale process, which would usually be handled by a firm of accountants or solicitors. There has been no such announcement.
This reported comment, or one very similar, has been made by Barry Fry on numerous occasions in the past, dating back to his first months in control, yet no sales process of any sort has ever been put in place, to the best of our knowledge.
It is not clear to what the £600,000 refers. The club is highly indebted and these debts would have to be taken on by any new owners, unless the club were to be sold free of such debt, and would therefore be effectively part of the price to be paid by any new owner.
Fry is a major creditor of PUFC Ltd along with Alf Hand, according to the last financial statements. As a creditor he is likely to be looking for some repayment of these loans. It can be assumed that any other creditors would also be looking for some repayment, and would presumably expect to be treated on an equal basis. Obviously, this has to be taken into account when any assessment is made of the value of the club. The long term debt plus the short term net liabilities of PUFC Ltd amounted to £1,169,418 as at 31 May 2004 according to the last financial statements.
Any purchaser, including The Posh Supporters' Trust, would be obliged to take account of the financial situation at the club. As we have said since our inception, we have had the long term care and protection of our club as a core aim and are a potential buyer, on behalf of all the supporters, and the community as a whole.
We have every confidence that, with the backing of all the supporters and that of the broader community, we will be able to put in place a recovery and fund raising plan to rescue the club.
Board of The Posh Supporters' Trust.
During the open meeting at Ebeneezer's on 6 March we were asked to provide some information about the famous covenant on the London Road ground. Under the new Freedom of Information legislation The Posh Supporters' Trust recently obtained a copy.
The relevant document is a Conveyance of property (viz the football ground plus access to and from London Road and Glebe Road, as delineated on a plan attached to the Conveyance) from The Mayor, Aldermen and Citizens of the City of Peterborough to Peterborough United Football Club Limited on 1 April 1955. Since the relevant part of the document starts:
"If during the lives of the issue now living of H M The Queen Elizabeth II and the last survivor of them and twenty-one years after the death of the last survivor...."
you will understand why it is necessary to summarise the contents in everyday language.
The covenant is contained in a clause in the Conveyance. There are two principal provisions of interest to supporters. The first states that, if the purchasers (PUFC)
the vendors (the city council) would have the option of repurchasing the property.
The clause allows for the club to make an offer to sell, or the city council to make an offer to purchase, such offer to remain open for six months. The price and conditions would be subject to negotiation or fixed by the District Valuer.
PUFC would not be able to sell the property until the six months had expired, unless the city council had unconditionally declined the offer in writing.
The second states that PUFC may not, without the consent of the city council, use the property for any purpose other than that of a football, athletic or sports ground or such other purposes as may be authorised by PUFC's Memorandum of Association.
It should be understood that the Conveyance (or the covenant contained therein) did not include the Moy's End car park (which was owned by PUFC and is now owned by PUHL) or the car park in front (i e to the north) of the ground, which is still owned by the city council.
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