PLYMOUTH PLAN TO SELL STADIUM TO EASE RISING DEBTS

Plymouth Argyle Football Club has announced plans to sell their stadium to their holding company to help raise money to combat escalating debts.

The sale of Home Park will bring in much needed revenue as the club posted a £2.8million loss which was blamed on an unsustainable wage bill and a decrease in match attendances.

The club is proposing the sale to a new property company which is owned by Plymouth Argyle Football Company Holdings Limited.

In February the stadium was independently valued as being worth £7.5million.

The club is also issuing 90,000 ordinary shares at a price of £22.22 per share in an effort to raise an estimated £2million to help tackle their difficult financial position.

In a statement, a club spokesman said: "The trading position of Plymouth Argyle Football Club continues to be challenging, with revenues from gate receipts lower than planned and the cost-base higher as PAFC has not been able to transfer players that are required for the core squad.

"The board believes that these measures will significantly improve PAFC's balance-sheet by reducing its level of debt and will facilitate the partial reduction of its operating costs."

In December the Football League applied a transfer embargo on Plymouth Argyle was for outstanding debts which was lifted in January after satisfactory payment.

The club believes these changes could improve chances of raising finance for stadium development as many financial institutions are reluctant to lend directly to football clubs.

Plymouth Chairman, Sir Roy Gardner told the club website: "This is one small step in the overall plan to strengthen the club, not just on the field, but also the facilities the club uses and the balance-sheet of the club.

"We are hoping that shareholders will support this by subscribing for their allocations and passing the resolutions laid before the AGM. Shareholders should review thoroughly the documents being sent to them and seek appropriate advice.

"On the field, our priority is to win games and move ourselves out of the relegation zone. There are more than enough points available to achieve this."

Posted on 09/03/2010