Initial thoughts on the Club Reorganisation and additional finance

In X-Factor terminology, the long-running Charlton potential takeover saga has been on ‘an amazing journey’ all summer. What at first prompted fervoured supporter interest, careered at one stage into hilarity at the range of nationalities linked, before finally slumping into chronic indifference at the lack of resolution.

But at last it appears that the speculation can finally be brought to a close.

For now, there will be no celebration of Arthur Day in the lounges, no sales of turbans, keffiyeh or sex toys in the superstore, and no return of Chinese internationals on the pitch. And it is also fair to assume Bill Curbishley’s band will not be launching their comeback tour on The Valley pitch.

After months of seductive coaxing to a plethora of consortiums, it appears that not one of them were either prepared to make the jump beyond tentative interest, or that the bar set to repay director loans was unrealistically too high. It is unlikely we will ever know the truth in that respect.

Instead, what we do have is a defining, internal reorganisation, which has provided some additional finance to keep the club above water until next summer.

With the club previously governed by two boards and a small army of directors, there has been an amalgamation to form a new governing body (Charlton Athletic Group), consisting of just 7 of the current directors, and an additional independent non-executive director. The additional fresh investment is reportedly spread across the board, to the tune of £7m.

So what exactly does it mean ?

Initial thoughts are never normally the most accurate at assessing a situation, so note this is entirely based on immediate reaction, despite the fact this outcome has looked increasingly likely over the past 3-4 weeks. But even though there appears to be a conclusion (for now), it is tainted with confusion, and as with most things of this nature, carefully leaves more questions than answers. The attention is always in the detail, and not all the details appear to be forthcoming at present.

But let us not disguise though that one particular answer we do get is undoubtedly the most important to supporters. After months of speculation regarding administration and key asset sales, the short-term viability of the club is very much assured.

The hints had been there, from the lack of panic sales in the transfer window, and by Parkinson highlighting last week the reduced chance of sales in January. This additional investment will undoubtedly give the club short-term financial viability, allowing the playing side to compete, hopefully in a promotional campaign, without the backdrop of negative speculation.

We also know the definition of the governing aspect of the club is now more streamlined and uncomplicated. There is a chair and vice chair of one entity, and that Richard Murray now has more friends (either by number or financial influence) within that group than Derek Chappell. Equally, Sir Maurice Hatter’s continued financial influence appears to be growing additional weight. Everybody now appears to know where they stand.

We also know from its highlighted nature, that after calls to streamline the management level of the club, Steve Waggott has made it through to Bootcamp. The future of others is yet to be known.

Importantly, we also know from the equally highlighted “attracting new investment into the club continues to be our primary objective” that this is not the formation of a new order, or a group with plans or desires to take our club forward in the long-term. This is effectively a holding committee, one in a position to provide additional finance, and that presumably believes there is a greater return (either to the club or themselves) if this process can be re-instigated further down the line.

There is also the confirmation that the asset sales to directors, announced towards the end of last season, and what sat uneasily with a number of supporters, will now not be concluded. This is a real positive that the club retains key assets.

So there is no denying that the announcement carries a lot of positive angles with it. The ideal timeframe for real change has arguably passed for now, and we are entering a part of the season where stability is undoubtedly preferable.
But the announcement does however raise a number of questions. Notably why, if as suggested the additional finance has been across the board, has this process been allowed to drag on for such a long period, and why a board that has largely been uncohesive, now believe they can successfully work together.

Why have senior board members, who publicly made it very clear only a few months ago that the well of the current board was completely dry when resorting to pension funds to support the club, decided to and been able to inject further money into the club ?

Why if the asset sales to key directors announced six months ago really were essential to short-term funding, has it emerged that these deals were not concluded ? If it was essential, surely the requirement of that funding would have been needed by now ?

How is the additional £7m being supplied, and in what form ? Is it fresh money ? Is it in shares, or in the form of loans which further increase the existing debt the club holds ? Is it the cancellation of some existing debts ? If they are loans, at what rate in a low interest rate environment are they to be repaid at ? Are the previously deferred interest payments on existing loans remaining deferred ?

How much has a positive start to the season influenced people who have previously said the was no more money to input, to suddenly find more money ?

I am sure there are many more questions that the announcement will prompt. Whether they or the ones listed above, are important or not, is largely irrelevant now. Stability has been provided, and all takeover talk can finally be banished.

For now.