Watford Football Club have announced that they will take legal action against the Watford Observer after it carried an article saying that the club faced going into administration.
The article in today's edition carried the headline "Hornets facing cash crisis" and alleged the club faced going into administration as it was under pressure to settle a £6m loan as well as being £2m overdrawn.
The Directors of the Club, Graham Simpson, Mark Ashton and Andrew Wilson are taking legal action against the newspaper and the journalist who wrote the article, Kevin Affleck.
The club is demanding a public apology, and damages. Chairman of the Club, Graham Simpson said: "We cannot sit back and let this newspaper damage the reputation of this Club and the individual reputation of those responsible for running the club
This is yet another sorry case of the Watford Observer demonstrating its lack of professional and accepted journalistic standards and not even having the courage or courtesy to check its facts with the Club prior to print. They have given us no option but to take legal action and show our fans that their story is totally untrue again."
The article in the Watford Observer carried the following paragraph:
"Watford face the grim prospect of going into administration unless they can raise 10million through player sales by September. Aidy Boothroyd was told by chief executive Mark Ashton this week he needs to sell Dan Shittu, Tommy Smith,Jobi McAnuff and Jay DeMerit just to balance the books and prevent the Hornets from being docked 10 points."
Last season Watford's wage bill was reported as being around £16.8m. Their top earner was receiving about £11,000 per week.
The article related Watford's position.
Despite landing a windfall of £30m for reaching the Premiership, receiving £10m in parachute payments, generating £20m in player sales and £4.25m for the sale of the corners of the ground, Watford are under increasing pressure from the bank to settle a £6m loan and are £2m overdrawn.
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