Argyle pair deny profiting from mortgage on Home Park arranged via their company
PLYMOUTH ARGYLE executive director Keith Todd has denied he and chairman Sir Roy Gardner are "profiting" from a Home Park mortgage arranged via their company Mastpoint.
Mr Todd told The Herald they were receiving no "fees or margins" from the arrangement, set up to help the football club out of a financial hole.
-
He was responding to a story in the Guardian's sport section which ran under the headline "Gardner still profiting from Plymouth's plight".
The story said Sir Roy was "profiting from the club's financial difficulties" as a shareholder and director of Mastpoint.
But Mr Todd, who called the headline "disappointing", said the only way he and Sir Roy would benefit financially was as shareholders in the club.
"If Plymouth Argyle is successful, we will be successful as shareholders," he said.
Mr Todd explained that Mastpoint was a company set up to hold the Plymouth Argyle shares belonging to him, Sir Roy and others including high-profile US businessman Joe Plumeri.
But when the club hit the financial rocks last season, Mastpoint was used as a "mechanism" to raise cash.
The firm was used to attract "long-term investors" and "help finance a second mortgage" over the club's Home Park ground, now owned by a newly formed property company.
Mr Todd and Sir Roy acted as "security trustees" on behalf of those who provided the money.
Mr Todd said the Mastpoint arrangement, set up last December, was necessary because lending terms offered by banks were "outrageous" and Mastpoint was able to obtain money much more cheaply.
It did this by borrowing from "high net worth individuals".
Mastpoint then loaned the cash to Argyle as the second mortgage.
"The club has been losing money, that's no secret," said Mr Todd. "What we have done, and had to do, is continue to provide the finance to the club to enable us to develop some plans we have for the club going forward.
"The second mortgage is a means of helping the club borrow money more cheaply."
He said neither he nor Sir Roy were paid by the club or Mastpoint.
"Nothing comes to us," he stressed. "It's cost me personally in time and effort."
He added: "It's difficult for football clubs to raise finance — it's not the most attractive investment for many people."
But he said: "Secured lending is low-cost — it makes sense to provide that finance.
"We were able to reduce the cost of that financing.
"We made no fee, no margin, on any of that finance as shareholders of Mastpoint."
Plymouth Argyle was relegated from the Championship to League One, the third tier of English football, last season.
In 2008/9, it recorded a loss of £2.8million.
The Guardian reported the club already had a £2million property loan before the second mortgage was arranged.
In April, Argyle shareholders voted to sell Home Park to Home Park Properties Ltd (HPPL), a wholly owned subsidiary of Plymouth Argyle Football Company (Holdings) Ltd, for £7.5million.
21 Comments
View all
by Terry Hart, Peverell
Sunday, July 25 2010, 3:39PM
“This is not a question about loyalty or otherwise to a football club, it is simply about land ownership and what can be done with that land. Plymouth Argyle in the form of its directors and their various companies owns or has on long term lease a large portion of Central Park adjacent to Outlands Road. This land no longer has any access for the people of Plymouth and much of it has already been built on and I am sure that more of their land will end up as sites for housing or hotels as time progresses and their true intentions become more obvious. I fear that this is no altruistic act on the part of these people and the shareholders but a callous and calculated act that will result in more of our park land disappearing under the developer¿s bulldozers”
by GOM, Plymouth
Sunday, July 25 2010, 8:28AM
“What is so strange about wanting to make a profit from a business you have bought? It is very naive of people to think that G&T won't want a return on thier investment. Concerts etc are a great way to utilize the asset between matches.”
by b_mused, Saltash
Friday, July 23 2010, 10:47PM
“We know PAFC lost about £3m. in 2008/09. Last year's losses must be even greater with an excess of overpaid players and much lower crowds.
If you had to plot how to take a solvent business into extinction (and then asset strip), the boardroom and management decisions over the last 2 seasons would be the perfect recipe. Perhaps I am just a cynic.
P.S. The ticketing arrangements for the new season are geared to forcing all OAPs and youngsters into the corner and behind goal seating - it will be interesting to see how many new fans this generates.
Perhaps I am just a cynic.”
by Lee Finn, Plymouth
Friday, July 23 2010, 9:04PM
“Dare i agree that journalist need to ask more pertinent questions....how the Council sell off the ground at a massive loss to the taxpayer then sign the taxpayer up to the tune of 15 million to the shareholders of the stadium and FIFA......not forgetting how Fletcher and Co sold off and broke up the Plymouth & South West co-operative society? Time for some serious journalism?”
by David, Plymouth
Friday, July 23 2010, 7:36PM
“It would be useful if one or more of our local journalists asked a few awkward questions here.
You never know, we might learn something though I very much doubt it.”
by John, PLYMOUTH
Friday, July 23 2010, 6:48PM
“Dave in North Devon.
You totally miss the point.
IF these are asset-strippers at work, they have the club in hock to them, and they will have the club's only tangible asset - the ground, meanwhile the club we all think of, not the companies which are associated with its name, is left without a ground and in debt. It looks like G&T could well have done that to the club- and it makes me suspicious.
If they're only interested in money, they'll take the money and run, leaving the club high and dry.
Get behind them, then, will you?
I am reserving judgement - nothing is known yet for sure about why they are doing what they're doing. It could be a great strategy, a temporary measure to get money into the club, or anything else.
Until I am confident they're doing it for the club and not just for themselves I am not parting with my money to see it go in their direction.”
by Phredd, Lincolnshire
Friday, July 23 2010, 5:34PM
“Shades of the Yanks at Anfield !!!”
by David, Plymouth
Friday, July 23 2010, 2:52PM
“I think the money from the sale of the Holloway team went to buy the freehold of the ground.
Then the directors got greedy & sold part of OUR club to the "new investors".
Then after a century of being careful (tight!!) with money, we sign a number of cr@p players on stupid wages and/or ridiculous fees and PAFC goes from solvent to owing millions in no time at all.
Naturally it's the fans who are to blame because they fail to turn up in huge numbers to watch the dreadfull hoofball churned out by the aforementioned cr@p players.
And before you ask, yes I have renewed my season ticket.”
by JL, Plymouth
Friday, July 23 2010, 12:46PM
“That money went on a new surface to hold concerts, Craig. No, sorry, I meant pitch!”
by Craig, Exiled Green Aurrrrmy fan
Friday, July 23 2010, 12:10PM
“Hmmmm just 1 question, whatever happened to the money that we got from the sale of Norris, Ebakes-Blake, Gosling etc etc?? Profit to Loss”