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Next Game: Oxford City At Edgar Street On Tuesday 5th November At 7.45pm

Friday, December 19, 2008

Share Issue blocked at Millwall AGM

Millwall Football Club want to raise £2million but one of their shareholders has stopped the proposed share issue going ahead.

The League One club held their AGM this afternoon but Graham Lacey, who holds 27% of the club's shares, voted against the share issue which had to be passed by 75% of the shareholders.

Lacey's action will mean that Millwall debt is expected to increase and with the banks being wary of football clubs the only way that money can be raised will be through the directors.

"The only source of finance for this company is debt," said director Constantine Gonticas told the South London Press. "That has to be provided by the current board.

"This blockage, far from helping, means we only have recourse to more debt if we need money.

"This will become progressively more of a problem. Soon it will become an issue for a major confrontation," added Gonticas, who is also an adviser to Thor Bjorgolfsson, Iceland's richest entrepreneur.

Chairman John Berylson added: "Most of us have read what the banks are doing to other clubs.

"For Millwall, it is me that is lending the club money - but if it were a bank which was owed this amount, it would be very unhealthy for this club.

"And recent history has shown big debts have been a problem for Millwall."

Lacey called an extraordinary meeting of the club's shareholders in July in a bid to oust deputy executive chairman Heather Rabbatts - at a cost of almost £200,000.