Craig Hemmings sets out two-year takeover target amid Preston North End assurances

Departing Preston North End Chairman Craig Hemmings has issued an extensive club strategy update.

Published on the club’s official website, the update followed the news that Hemmings will be stepping down as Chairman after more than six years. He will be replaced by Ian Penrose, who will become Non-Executive Chairman from October 13.

In his update, Hemmings emphasised he and his family’s love for the football club before highlighting his most proud achievements while chairman. Below, we round up all the key points from takeover talk, to PNE’s next steps.

Summer transfer window

Hemmings states, ‘The budget for this season has been increased compared to last season. Any suggestion to the contrary is incorrect.’ He goes on to highlight that PNE’s current squad is its most expensively assembled ever, and that the ‘majority of extra investment comes directly from us, the owners’.

Takeover interest

Hemmings denies any speculation of the ownership failing ‘to engage’ with interested buyers, or putting them off with ‘high valuation demands’. He assures that they have ‘always been willing to engage and accommodate’ any bona fide approaches, and would have a ‘realistic valuation’ while welcoming interest.

PNE’s future

Following a review with Rothschild & Co, Hemmings concludes that PNE must ‘reach out and engage with international sports organisations, private institutions or investment funds better geared, both commercially and financially, for maximising the true global potential of PNE.’ It’s made clear that the owners will be ‘actively engaging’ with anyone of such potential.

Hemmings further adds: ‘What we, the owners, don’t have are the right global sports insights, experience and investment firepower to take on the parachute funded clubs at the top end of the Championship (whilst ever this outdated financial disparity between the Premier League, and the Championship remains).’

Two year target

Hemmings assures ‘long-term financial stability’ and ‘no immediate requirement’ to sell PNE, but has set a two-year target to find the right buyer(s). In the meantime, it has been confirmed there will be ‘no changes’ in how North End are funded. Ensuring success for the club is a ‘priority’. After two years, options will be reviewed.

Ian Penrose appointment

Hemmings is stepping down due ‘increasing responsibility’ towards several other family businesses. Balancing that with his role as chairman of PNE, and giving it the time it ‘requires and deserves’, has become a sizable challenge.

Penrose will be a ‘huge asset’ to North End in Hemmings’ eyes, given his ‘extensive experience of working with sports in the UK and North America’. He will ‘oversee the club’, ‘manage significant annual investment’, ‘focus on the club’s long-term sustainability’ and ‘assist in achieving objectives of success on and off the pitch’.

Investment

Hemmings explains how £100m plus has been invested in the last decade. He confirms that PNE’s Academy is now ‘Grade 2 status ready’. Proposals are ‘in development’ as extra funds for the required indoor dome are sought. Investments in other areas of the club are targeted but cannot all be done at once.

Independent Financial Regulator

Hemmings does not hold back on the current financial model within the game. He labels it as ‘not fit for purpose’ and says ‘football needs a complete financial reset for the good and for the soul of the game.’

The spending power of relegated clubs is described as ‘way beyond any rational level of sustainability.’ Hemmings calls on the Independent Regulator to ‘ensure a fairer distribution of resources across the whole of the pyramid’.

Spud Bros and Season Cards

This summer saw the ‘highest-ever launch sales of PNE replica shirts’, resulting in increased sponsorship and corporate income for the club. Season card sales were an all-time high and Hemmings explains how that, along with the FA Cup quarter-final against Aston Villa, led to club-record revenue of c£20.6m.

Conclusion

Hemmings finishes by saying: ‘As owners/custodians of PNE we know that the lifeblood of any football club are the fans. We are doing our very best to protect and enhance our great club, but we know we cannot achieve anything without the fans.

‘We have invested considerable sums in strengthening the squad over the summer and have made a very encouraging start to this season. I therefore urge all of you fans to help us maintain this good early form and get behind the manager and his coaching team, get behind the players, get behind the whole club. We need your continued support.’

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