Roots Hall is to be sold to pay off Southend United's £3.87 million debts, the Blues confirmed today.
Chairman John Main revealed that Southend's home will be sold for £4 million in an effort to refinance the club.
Once the ground is sold it will be leased back to Southend by Roots Hall Limited, a subsidiary of Blues' owners Martin Dawn, which will be jointly owned by their partners Delancey Southend Limited.
The news was broken to club shareholders in a special report.
However, Blues' supremo Main was quick to calm the fears of supporters who are rightly concerned that Roots Hall will be developed - leaving the team without a home.
He said: "There is no question of Roots Hall being bulldozed to the ground before we have relocated to a new stadium - this club will not be homeless.
"From day one we knew the frightening financial situation facing this club and we have had no choice but to take this action to ensure that Southend United survives.
"Over the last few years the situation has got worse and worse and the club has had to sell the family silver to keep its head above water.
"But this hasn't been enough and if we are to take this club forward and make it successful then we have to follow this path."
The shareholders' report reveals that the sale of Roots Hall will mean that:
Blues will be given a four-year lease to stay at their current home without any statutory security of tenure
Southend will pay an annual rent of £400,000 - following an initial rent free first 12 months
If during the term of the lease a third party wishes to purchase Roots Hall, Southend will be given first refusal at an equivalent price.
Southend will benefit from a 30 per cent share of any development profit on the site - capped at £1.5 million - and receive an additional £250,000 on vacation of Roots Hall.
However, this isn't the first time Blues' owners Martin Dawn have entered a sale and leaseback arrangement with Southend to try and boost the club's empty coffers.
In May 1998 Southend sold the existing lease of their training ground in Eastern Avenue to Martin Dawn for £525,000 and took a new 25-year lease on the ground at an annual rent of £72,000.
Blues fans are understandably apprehensive about the news to sell their club's spiritual home.
Supporters club chairman Trevor Bashford said: "I'm extremely worried that we could be going down the same path as Brighton who have no ground.
"Their Goldstone Ground was sold off before another stadium was built and they groundshare in Kent with Gillingham now - but this mustn't be allowed to happen to us.
"I'm fearful for our future and I'm panicking at the thought that something I love so dearly could be about to disappear."
The transaction is expected to be signed and sealed at an extraordinary general meeting at Boots and Laces, Eastern Avenue, on Wednesday, March 24.
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