Soccer: Loan doubts hang over club

Terry Serepisos. Photo / Natalie Slade

The future of the Wellington Phoenix is becoming increasingly unclear with widespread nervousness around whether owner Terry Serepisos will receive the loan he needs to keep the club going.

Serepisos had announced a $100 million loan package from Western Gulf Advisory that would allow him to restructure his Century City empire, of which the Wellington Phoenix are a part, and pay off all his debts. But the loan has not yet arrived from WGA, the company of new Spanish football club owner Ahsan Ali Syed.

Reports in Australia have claimed financially-stricken businesses had paid up to A$30 million in up-front fees to WGA on the promise of favourable loans. They are largely businesses desperate to stay afloat and with little hope of financial backing in their own country.

Ali Syed has strenuously denied allegations against him, describing those who have made them as "fraudsters".

Serepisos admitted this week that he has paid a fee to WGA, understood to be more than $1.5 million. He wasn't available for comment to the Herald on Sunday but was quoted by the Dominion Post this week as saying he was still confident the loan would eventuate.

"I am still comfortable," he said. "I've done my homework on this gentleman."

Ali Syed failed in a bid to buy English Premier League side Blackburn but recently acquired Spanish La Liga club Racing Santander. He claims to have access to $8 billion. The Australian reported Sydney public relations firm Jackson Wells - hired to promote WGA as potential providers of loans up to A$500 million - "sacked" the company as a client. John Wells, the founding partner of Jackson Wells, told the newspaper he had severed ties with WGA and regretted having made the connection.

"Last August, Jackson Wells had a disagreement with Western Gulf Advisory after we had asked the company to substantiate [the truth of] a number of announcements it had made through the media relating to the funding of projects in Australia," Wells said.

"WGA refused to substantiate these announcements. Jackson Wells parted company with WGA immediately. We told WGA that we were no longer prepared to work for them. Jackson Wells is owed a substantial amount of money in unpaid fees."

The IRD are pressing ahead with efforts to liquidate five companies owned by Serepisos, including the one that owns the Phoenix, as they seek $3.5 million in unpaid taxes. The case is due back in the High Court at Wellington tomorrow.

The Christchurch earthquake would not have helped Serepisos' efforts to get a definitive statement of his accounts for WGA - with a handful of his loans said to be with South Island companies.

Phoenix chief executive Nathan Greenham said he wasn't privy to Serepisos' business dealings and had to assume everything would be sorted.

"It's business as usual," Greenham said. "We are in the middle of strategic planning for the off-season and new season with every confidence the situation will be sorted out by Terry when the time comes.

"I would be lying if I said I didn't worry about it [the future of the club] from time to time. The same applies to the staff in the office, we are only human."

There is some confidence, however, that others would be willing to buy the Phoenix should Serepisos need to sell. Trade Me founder Sam Morgan and Infratil boss Lloyd Morrison have long been linked to the club, while NZF are aware of a handful of potential owners.

Speculation and concerns will go away for Serepisos and WGA if the loan is forthcoming.