Terras face administration as Beer
deal is off
By Adam Summers
Saturday 14th March 2009
WEYMOUTH Football Club is facing administration after Devon
investor Stephen Beer pulled out of a £300,000 cash
injection into the debt-ridden club.
Mr Beer, who is still recovering in Dorset County Hospital
from a stroke he suffered on Tuesday, has told club officials
that he never realised the full extent of the problems at
the Wessex Stadium and that is the reason why he has pulled
out of the deal.
That has now left the Terras contemplating administration
despite repeated interest from former chairman Ian Ridley
and a local consortium of nine businessmen, who both submitted
separate offers of a rescue package last month.
A statement from the Weymouth FC board reads: Stephen
Beers investment, as has been well documented, is not
going to happen and that has now been confirmed.
There has been constant speculation from numerous ill-informed
sources about what will and wont happen but one thing
we can confirm that we are taking a lot of advice on is administration.
Once that is concluded a decision will be made after
Terras director Ian Winsor carried out the due diligence
on Mr Beers offer.
He added: Mr Beer clearly got cold feet. He did have
a bit of money and being a major football fan he thought he
could help the club.
However, what has happened, is that he has spent too
long in Weymouth over the last couple of weeks and through
speaking to people heard so much bitterness that he got scared.
After he had the stroke he admitted that the problems
at Weymouth were bigger than he thought they first were.
Now that clearly does not help the club.
Administration is being looked at but there are still
people prepared to talk, like the consortium of nine local
businessmen, Ian Ridley and Malcolm Curtis.
I strongly believe that the club must not go into administration
but it might well be inevitable. Whatever happens though,
a decision needs to be made quickly.
Mr Winsor said that he carried out all the relevant checks
on Mr Beer.
He said that the club was not actually required to do any
due diligence in law.
Mr Winsor said that Mr Beer said that the funds were coming
from Abbey National.
He added that because that was a bank in the UK the club
knew they would carry out all the relevant checks.
Mr Winsor says that he also did credit checks and looked
at Companies House to see if Mr Beer was a disqualified director
or part of a business that was in liquidation.
Mr Winsor said: There was nothing to suggest he was
involved in any criminal activity or indeed that he did not
have the money.
Mind you, there was also nothing to suggest that he
did have it.
I did ask him for a letter from the Abbey National
saying that the funds were in the process of being transferred.
I then asked for one again on the morning of the press conference
and he said he would get it because, believe me, I would not
have got up in front of everyone without it.
The only other thing I would have loved to have got
was a letter of good character from his solicitor.
Mr Winsor added that Mr Beers solicitor said he could
not do anything because he had not been acting for Mr Beer
Mr Beer was unavailable for comment.