Financial Demands Made on Mansfield by Former Directors

Mansfield Town have been rocked by their former owners demanding almost £1m of loans be repaid. Andrew Saunders and Steve Hymas, former Directors of the Stags, sent via solicitors a letter that the Club received on Christmas Eve. The Club does not deny it owes this money, but that it has an agreement not to repay until it can afford to do so.

Stags Chairman John Radford is said to have uttered “Can I have my money back too? I am still putting money in and we are losing between £60k and £100k a month. We are not in profit.”

The Club have issued a statement, which is summarised as follows:-

The Club is disappointed that two of its former shareholders and directors have commenced legal proceedings against it seeking to recover just short of £989,441.94. The claim arises from monies which Mr Steve Hymas and Mr Andrew Saunders lent to the Club during their period of ownership.

The Club does not deny that the loans were made nor that they remain a liability of the Club. However, as both the Club and its lawyers have made clear to Mr Hymas and Mr Saunders, the loans do not have a specific redemption date and are only repayable when both the Club and Mr Radford, the club’s chairman, agree that it is in a position to do so. Sadly, the Club is not in a position to make any such repayment and therefore the monies are not repayable at this time.

It is disappointing that the actions of Mr Hymas and Mr Saunders will involve further significant legal expenditure by the Club in defending the unmeritorious proceedings they have commenced. Not only will that mean that monies which would otherwise be available to the Club will be utilised and further delay getting the Club on a financial even keel, but it may sadly mean that monies which could otherwise be used to strengthen the Club’s financial position may not be available. The Board are also reviewing the effect this will have on its January spending plans.