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RUSSO SAVES WATFORD FC... again |
 The Russo brothers have rescued Watford FC from the dreaded prospect of administration for a fourth time after investing a further £1million last month. But according to a statement by Watford Lei-sure, the loan will only cover costs of the com-pany until December 22. The statement read: “The board of Watford Leisure estimates that the company requires a further £5.5 million to cover projected cash flow requirements for the period to 30 June 2010. The board has had no success to date in securing agreement between the major shareholders of the company in relation to a possible equity fundraising although the board believes that options which it has proposed are still being actively considered. The board continues to con-sider all fundraising options open to the com-pany.” The Italians have already rescued the club from administration three times this year after investing £3.7million since January - this after they were told the club had an £8.5million short-fall that needed to be filled by June next year. The chairman and vice chairman have also backed the manager Malky Mackay, sanctioning loan deals for Tom Cleverley, Henri Lansbury, Craig Cathcart and Heidar Helguson. Yet major shareholders Lord Ashcroft and Graham Simpson, who own over 51 per cent of the shares, could vote the Russos off the board for the second time in less than three years if they pool their votes at the club's AGM on Tues-day December 15. It is no secret that there is little love lost between the Russos and Simpson while Ashcroft, who no longer has a representa-tive on the club‟s board after Andy Wilson stepped down in February, is yet to meet the Italian brothers after they invited the business tycoon to “come to the table in September Ashcroft's intentions remain unclear. A takeover would be complicated by the fact that the Russos have loaned the club money which is secured. On the other hand, it is not known whether Ashcroft, or Simpson, would be receptive to the idea of selling their shares to the Russos. The deputy leader of the Conservative Party is one of the richest men in Britain, with an estimated fortune of more than £1.1billion, and has been the club's major shareholder since March 2006, holding 37.16 per cent of the shares through Fordwat Limited. Watford need £6.5m to make up a cash shortfall in their current year. The Russos have now loaned the club £4.7m since January to stop the club from going into administration. Russo has previously stated he is “prepared to put my money where my mouth is” and willing to invest his own cash into Watford if Ashcroft follows suit. Ashcroft's apparent reluctance to provide the funds to help make up the shortfall could give the impression he is unconcerned by the prospect of the club going into administration, a position that could potentially see the club forced to sell their stadium. Ashcroft is a prolific international investor and the prospect of buying the ground at a knock-down price and renting it back to Watford and Saracens would no doubt be appealing. Ashcroft is a business associate of Nigel Wray, the owner of Saracens. Their relationship stretches back over a decade when Ashcroft formed Carlisle Holdings, an investment vehicle, through the acquisition of a defunct property company chaired by Wray. The unrest in boardroom threatens to undermine the stabilising job performed by the Russos and manager Malky Mackay. Mackay has performed wonders this season with limited resources and Watford's fine first-half of the season should, at the very least, mean the Hornets are able to sustain a poor second-half to the campaign. The avuncular Scot implored the board to extend the loan of Tom Cleverley, whose goals and sprightly performances have underpinned Watford's position in the top half of the table. The £500,000 it cost in loan fees and agent fees to prolong the England Under-21 international's stay was a sign of the faith the board have in Mackay. The esteem in which the former centre-half is held in the game was evident when Manchester United trained at the club's London Colney training ground earlier this season: both Darren Fletcher and Paul Scholes knocked on Mackay's office door to chew the fat during the champions' visit. Mackay was also one of the main reasons why Sir Alex Ferguson felt comfortable in allowing his promising young players to return to Vicarage Road. Ferguson was previously unimpressed when Ben Foster returned to Old Trafford in the summer of 2007 after two years at Watford and needed an operation on the cruciate ligament in his right knee. With money in short supply, it is doubtful whether Watford will extend the loan spell of Heidar Helguson and continue to pay half of his £17,000 a week wages. This also looks set to be Jay DeMerit's last season at Vicarage Road. The American's contract, sanctioned by the previous regime, is structured in such a way that he earns almost double his £7,000 a week wage by playing twice in a week. Watford will not be able to offer the defender anything close to those terms. Newcastle expressed an interest in DeMerit in August, lining him up as a potential replacement for Fabricio Coloccini. But the Magpies failed to offload the expensive Argentinian. They could renew their interest in the summer, particularly if DeMerit stars at the World Cup.
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