The Yeovil Town Holdings Limited company have today registered a secured loan against land at Huish Park. An amount of £278,000 is now secured against the freehold land that is owned by the Yeovil Football and Athletic Club (aka the main Yeovil Town Football Club company).
The loan relates to sums of money that joint owner Norman Hayward loaned to Yeovil Town Football Club to deal with cash-flow issues during both the 2008-09 and 2009-10 seasons. These figures were identified in the relevant year accounts for the main Football Club company, with a total of £58,000 borrowed from Mr Hayward during the 2008-09 season increasing to £278,000 for the year ending June 30th 2010.
The 2009-10 accounts stated that "there is an agreement for the loan to be repaid on 30th June 2012 or at an alternative date that would be agreed in writing between the parties to the loan." The securing of the loan against land at Huish Park means that the whole loan declared in the 2009-10 accounts remains outstanding.
On March 24th 2011, the Yeovil Town Holdings Limited Company created a Legal Charge agreement between themselves and Norman Hayward. The amount secured is identified as being "£278,000 and all money and other liabilities which shall for the time being be due owing or incurred to the mortgagee by the mortgagor under the terms of the loan agreement." Liabilities are identified as "including, but not limited to, interest and costs" - actual details of any such charges are not included within the document.
The property that the loan is secured against is identified as "all that freehold land, comprising part of Yeovil Football and Athletic Club, Huish Park, Lufton Way, Yeovil, Somerset, BA22 8YF."
As yet, we've not seen the detail of how the land has been split between the Yeovil Town Holdings company and Yeovil Town Football Club, however, last August Chief Executive Martyn Starnes said that the stadium itself would remain with the main Football Club company, and so with the surrounding land now owned by Yeovil Town Holdings it would suggest that the loan has been secured against the stadium.
For those who are finding their heads spinning at some of this (and not everything here is clear to ourselves yet) in layman's terms, Mr Hayward's loan of £278,000 is now secured against the value of what is presumed to be the stadium. If the Football Club fail to repay the loan, or are liquidated, Mr Hayward's loan would need to be repaid either from the proceeds of the sale of that asset or by him becoming the owner of the secured property. It effectively strengthens his position above other creditors if Yeovil Town Football Club were to be declared insolvent, or is unable to pay the loan, but may also provide a bit of influence if the club is ever sold to another party.
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