English second division side Watford feared for its future on Wednesday after the club’s loss-making parent company asked for its shares to be suspended following the resignation of key board members.
Watford Leisure, in a statement to the London Stock Exchange, warned that it may fall into administration — a situation that would see it run by independent accountants and trigger an automatic ten-point penalty on the team.
Watford currently lie tenth in the Championship — one tier below the Premiership — on 30 points. A drop to 20 points would see the club drop to fourth-bottom in its division, one place above the relegation zone.
“Watford Leisure announces that immediately prior to the company’s annual general meeting, held yesterday evening, Jim Russo, Vince Russo and Robin Williams resigned from the board of Watford Leisure with immediate effect,” said a statement issued on Wednesday.
“Following the resignation of the aforementioned directors, the board received a written demand from Valley Grown Salads — a company in which (brothers) Jim and Vince Russo have an interest — for the repayment of its 4.88 million pounds of loans made” to Watford Leisure.
The statement added: “In the event that a funding solution cannot be obtained then the company may have to be placed in administration.”
Watford’s most famous fan is pop legend Sir Elton John, who owned the club during its most successful era that spanned the late 1970s and most of the 1980s.
Under the guidance of Graham Taylor, who went on to manage the England national team, Watford rose from division four obscurity to finish second behind Liverpool during its first ever season in the top tier of English football.
A year later, in 1984, the Hornets reached the FA Cup final, losing 2-0 to Everton.
Reacting to the current crisis, Taylor said it was a “very crucial time in this club’s future”, adding: “We have to face up to it, we are threatened with administration and the demand from Jimmy and Vince for their money to be returned will put us into administration.
“I make no bones about saying that because that is a reality,” Taylor was quoted as saying by the Watford Observer website.
Watford club statement
