Stoke-on-Trent City Council will not give Port Vale any more cash

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Wednesday, August 15, 2012
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The Sentinel

PORT Vale supporters have been warned the stricken club will receive no further subsidy from taxpayers – even if they are faced with liquidation.

Stoke-on-Trent City Council's leader Mohammed Pervez has ruled out any further public funding for the club as efforts to sell the club continue.

  1. FAILED BID Keith Ryder.

    FAILED BID: Keith Ryder.

Administrators are currently in talks with three potential buyers after the original preferred bidder Keith Ryder failed to come up with the funds to complete his takeover.

And Mr Pervez issued a further warning to other interested parties that they must meet the terms of Keith Ryder's bid to retain the support of the city council, which is Port Vale's biggest creditor.

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He said: "If any new bid is substantially different it will be a very hard sell.

"We would be very reluctant to accept any further loss."

The city council has spent £440,000 on a bailout to keep the club afloat after it went into administration in March.

It is owed £1.86 million from a 2006 loan deal, bringing the authority's total liability to £2.3 million.

If a takeover is completed on the terms agreed with Keith Ryder, the council will be refunded in full its bailout cash and receive an estimated £300,000 as part of the sale.

It will mean a total net loss of about £1.5 million to taxpayers.

Mr Pervez said: "Everybody seems to agree that the council has done the best it could to protect the club and it is extremely disappointing that Keith Ryder has failed to come up with the money.

"I don't think fans can expect the city council to do any more than we have.

"The city would be all the poorer without a second football club and from my point of view I would be deeply saddened to lose Vale.

"But there is a limit to what taxpayers can be expected to fund. If no viable bidder comes forward then I'm afraid the only option I can see is liquidation.

"It would mean Port Vale is not a sustainable entity going forward."

Administrators Begbies Traynor have pledged to continue running the club, potentially until the end of the 2012/13 season, without asking for any extra council money.

If Keith Ryder completes the deal, or any replacement deal adheres to the same terms, the takeover will not need further council approval.

But any changes will need renewed support from elected members.

The authority steered Vale into administration to prevent it being wound up over an unpaid tax bill.

It would have meant the end of the football club, and recovery of the money the council is owed from the original loan would have depended on a fire sale of assets with proceeds split between competing creditors.

But the city council's financial support for the club has proved contentious in some quarters against the backdrop of major budget cuts hitting staff and services.

Councillor Dave Conway, leader of the opposition party City Independents, said his group will strongly oppose any further public funding for the club.

He added: "Our group is unanimous and we have made ourselves very clear. As far as we are concerned there is no more money."

Port Vale supporters' club chairman Pete Williams said: "We've got a lot to thank the city council for and we realise it isn't a bottomless pit. They have other services to run.

"As supporters we won't let liquidation happen. We've got to see what the other bidders bring forward, take each week as it comes and support administrators and the club as much as we can.

"It's a situation nobody wanted and it's unfortunate that Keith Ryder has taken the stance of non-communication.

"He should either inform the administrators that he intends to proceed and set a firm date, or take himself out of the running and accept that he has lost the money that he has put in."

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  • Profile image for james208

    by james208

    Monday, August 20 2012, 9:03PM

    “I am sorry for all the fans of Port Vale but unfortunately things have to come to an end. Stoke council cannot continue to underwrite a failed enterprise and fans must accept that Port vale is doomed. I cannot understand why any businessman would want to invest in a doomed club. A collateral does not exist: the ground is worthless. All things come to an end.”

  • Profile image for camband

    by camband

    Monday, August 20 2012, 4:22PM

    “August 3 2012 - To mark the 2nd anniversary today of the launch of its Pakistan Floods Appeal the DEC (Disaster Emergency Committee) has published a report highlighting the need for improved Disaster Risk Reduction (DRR) in Pakistan.

    The above shows to what extent the consequences of the impact of the 2010 Pakistan Flood Disaster. Many hundreds of thousands are still living in desperate conditions being experienced directly from the worst flood disaster on record.

    Ironic therefore that a millionaire owning leisure business called 'water-world' -should be more concerned with owning an English Football Club than using his immense wealth to help out his country folk (dual-nationality)..... And he's not the only one either to 'know where his heart really lies'. In the Boardroom at Vale Park. And where such a position will see a part of that wealth 'seep away' into the pockets of those who 'gain from football' -players and their agents.

    DEC Chief Executive Brendan Gormley said:

    'The UK public can be proud that the extraordinarily generous £71m they donated to the DEC Appeal has helped 1.8m people in Pakistan, including ensuring many people are already better able to cope with future disasters.”

  • Profile image for camband

    by camband

    Monday, August 20 2012, 3:47PM

    “We live in very very strange times indeed, -and this episode at the Vale puts it into stark reality.

    Globally too, we live in very strange times I mean... and there's a connection here in the Potteries re the 'fail-vale' issue.
    There's been recent media coverage on the controversy surrounding the fact that although the British Government continues its long history of donating huge amounts of taxpayer's money annually -totaling billions over the years in aid -for development to such as India and Pakistan -while at the same time India, for instance, is spending £20 billion a year on defence -beside at the same time -the billions its spends on 'Space Research'..

    http://tinyurl.com/84vj89f

    What's all that to do with what's going on up at Burslem -in the city of Stoke-on-Trent -one might ask. Well, there's a backdrop to all this, to all things football, where 'massive far eastern investment into English Premiership comes into play, with the 'buying of what are now seen as 'brands' rather than what they are -'football' clubs.

    -Cardiff City have been told that unless they are willing to swap their historic 'blue shirt strip' for a red one -then the multi-million promised pound buy-out -to get them out of financial difficulties,-and which could secure Cardiff City for decades into the Premiership, won't go ahead -because the Malaysians see blue as a negative colour.

    And the connection of all that with the Vale -well there's a 'local far eastern connection hovering in the background re the Vales woes -in the shape of Mohammed Chaudry... of Waterworld fame. He's made it plain for a few years now -ever since dear old Bill Bratt threw the towel in that he's love to be the owner and big boss up at Vale Park.

    Now when the terrible floods hit Pakistan (Mo's birthplace) two years ago, and which the UN rated as the greatest humanitarian crisis in recent history -with more people affected than the South-East Asian tsunami and the recent earthquakes in Kashmir and Haiti combined.

    An estimated 610,000 people died, and 13.8 million – have suffered losses requiring long or short-term help.
    In the aftermath of the disaster, which left the Pakistani Government unable to cope on their own, a huge plea went out to the world from the Pakistan Government for help. Mo Chaudry, gallant and charitable man that he is, answered that call.
    With a very strong sense of his roots, he gathered together a team of fellow British Pakistani businessmen -kinsfolk, and travelled to Pakistan to dispense directly to some of the the stricken villages, large amounts of money -bypassing the corrupt and cynical Pakistani Government in the process. A highly commendable humanitarian act kindness and concern by anyone's standards.

    http://tinyurl.com/2btg4n5

    However, given that the 'aftermath' of that disaster, -Billions of pounds will be needed to rebuild affected areas but western nations have pledged only tens of millions in aid. Radical Islamic groups are jockeying to fill the vacuum left by government incompetence and relative international indifference.... to say nothing of the endemic poverty of that country.

    Can it not be argued therefore, that Mo Chuadry's interest in the Vale, is somewhat misplaced? Given that no English Football clubs make any money for their owners -but are solely seen as being an 'image-maker' -enhancing their reputation in the wider business and social communities.
    But in this respect, at the humanitarian cost to his fellow Pakistani brothers back home. The more he 'plays' with football, the less his countrymen and women will benefit from his admirable business success in his families' adopted country.

    I believe his priorities have become compromised as he attempts to become a stakeholder in the soul of the potteries people. Suffer the little children.”

  • Profile image for R_WStripes

    by R_WStripes

    Friday, August 17 2012, 12:38AM

    “Focus386 ? Not all stoke supporters want to see the Vale go to the wall! Why don't you focus on supporting your club and making sure it survives ? There are always going to be wind up merchants !!”

  • Profile image for mrdoulton

    by mrdoulton

    Thursday, August 16 2012, 5:06PM

    “SImples the brit was a cut price stadia that stoke council sold to SCFC.
    It been investigated and proved nothing ileagal had been done dispite a£5,000,000 gift to stoke city, all given by that corrupt one eyed stoke fan ted smith
    It a moral mess it looks like stoke council favour SCFC which on face of it they do, however they given vale a bit of cash .
    IN a nut shell we should ask for our 1.2 million b ack and our 5 million back and put that cash to better use”

  • Profile image for Vale_For_Real

    by Vale_For_Real

    Thursday, August 16 2012, 2:20PM

    “BigMS,

    Still not to blame for anything then?

    No matter how much you have got it wrong and how much harm you can now end up doing to the club?

    You lot are like someone who doesnt like his wallpaper and carpets so he sets fire to his own house.

    I had been in favour of a change of ownership for vale for a long time and I still am.

    That doesnt mean that any change to anything else at all is OK.

    And specially it doesnt mean that a change to nothing at all and no more Port Vale is OK.

    The vote at the EGM showed that it was possible to change the ownership of Vale but do it in a sensible way.

    What it needed was the same again but with a much better new owner to unite the fans, instead of someone who's "activities" in the Stoke area have been well known since the 1980s and who was just interested now in making money and promoting himself.

    Instead you lot just pushed the club over the edge while you had no money and no plan to pick it up again.

    You just thought it was all magic and a grown up would come along and fix it for you.

    Go and have another read of what Mr Pervez is saying.

    Thats the state you have put our club in now.

    And I havent got a clue how the supporters can dig it out this time round.”

  • Profile image for BigMS

    by BigMS

    Thursday, August 16 2012, 12:12PM

    “VFR - "I wonder if all of the people who deliberatly drove Vale into admin have finally woken up to the fire they have been playing with?"

    I wonder if all the people who thought there was nothing wrong at the Vale and we could just plod along as we were have finally pulled their heads out of the sand and actually understand the mess that Vale were in - irrespective of the SEO campaign???”

  • Profile image for papalazaroo

    by papalazaroo

    Thursday, August 16 2012, 11:01AM

    “It's travesty that the city could lose a crucial piece of its history: it's up to Vale "fans" to stop moaning about Stoke and the Brit and start concentrating about how they're going to save their club”

  • Profile image for Vale_For_Real

    by Vale_For_Real

    Thursday, August 16 2012, 10:00AM

    “Mr Pervez said
    "... there is a limit to what taxpayers can be expected to fund. If no viable bidder comes forward then I'm afraid the only option I can see is liquidation.

    "It would mean Port Vale is not a sustainable entity going forward.""

    I wonder if all of the people who deliberatly drove Vale into admin have finally woken up to the fire they have been playing with?

    Now that all the supposed investors they were certain were not being allowed to take over the club have turned out to be hollow men or not exist at all.

    Or is it all still never there fault no matter what happens to the Vale?

    I'm very very worried about the future of our club.”

  • Profile image for hasod

    by hasod

    Wednesday, August 15 2012, 10:57PM

    “Why are people keep on about the Brit . Its the Vale thats being discussed . Might as well use Old Trafford or Villa Park . The Brit is nothing to do with The Vile ..”

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