King’s Lynn Town have responded to stories circulating on social media regarding the club approaching their Blue & Gold supporters club for a donation to assist the club following the season suspension due to the coronavirus pandemic.
The National League North club explain:
After reading reports that the Leyton Orient supporters club ( LOSC ) had given a donation of £20,000 ( having already donated £31,000 over the last few months) to help ease some of the cash shortfall created by Leyton Orient’s own shutdown, the club approached the Blue & Gold Trust over the weekend asking for a donation to be made to the club to help out in the same way as the donations being made by individual supporters have been.
After consulting with their board members the Trust informed the football club that there was no ‘consensus’ to lend any money to the football club. Their suggestion was that there was a possibility that a loan could be made but it would be subject to adequate security. They would accept security of a charge on the lease of the stadium which would need to be approved by the Council. This would require Council approval and would not be a short term solution.
The trust further pointed out to the club that if the club defaulted on the loan then whilst Stephen Cleeve would own the football club they would own the lease on the Stadium and we would need to negotiate with them a deal to move forward. We were also told that the trust would add their legal fees to the loan amount’.
The football club has declined the trust’s offer of assistance but thank them for speaking to their board of directors and making an offer to the club.