Ron Martin explains PFA loan to cover wages at Southend United (From Echo)

Ron Martin explains PFA loan to cover wages at Southend United

10:11am Wednesday 10th March 2010 in

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SOUTHEND United chairman Ron Martin has confirmed that the club are using a lending facility from the Professional Footballers Association as a bank loan to help meet wages.

As was revealed in yesterday’s Echosport, the PFA have given Blues a loan to meet the players’ salaries for January.

That means the Shrimpers have been placed under a transfer embargo.

But Martin was keen to explain the exact situation.

“We have to be clear because I believe there is a serious misunderstanding as to what role the PFA play,” said Martin in a statement to the Echo.

“If a club is in administration then the PFA may well help with the wages without security.

“However, in all other respects, the PFA acts not dis-similar to a bank.

“It’s a bridging loan that in this instance is being automatically repaid in just five weeks.

“In an ordinary market it would be available from a high street bank but not currently.

“Without security the PFA would not advance money as it must be copper bottomed.”

And Martin also insisted that the transfer embargo would not hit Blues hard.

“The downside in loans being facilitated by the PFA is that it attracts an embargo but with just a couple of weeks before the window closes, at this present time, is not an impediment,” said Martin.

“So, in that respect, the PFA’s helpfulness and speed of facility was welcomed enabling the club time to conclude its longer term working capital requirement.”