It’s ‘business as usual’ at Croham Manor Road, where four old boys’ clubs are set to take over following the collapse of their sports ground’s management company. EXCLUSIVE By STEVEN DOWNES
Like it never closed: people behind the new company to run the Old Whits sports ground say they had been organising the move for some time
A new lease for the Old Whitgiftians’ sports ground and clubhouse on Croham Manor Road should be in place “within the week”, according to a source close to the four sports clubs who are working together to take on the management of the club.
The move appears very much like a “phoenix” operation, in which a business with massive debts opts to fold, and re-emerges as a new entity a short time later, leaving the former business’s creditors – from the taxman to local small businesses who had been its suppliers, to the public who paid hundreds of pounds in deposits to host events at the venue – out of pocket and with no recourse to recover the money owed.
Such sharp practice is not illegal, but it could do serious reputational damage to those associated with it, who include the Whitgiftian Association, the old boys of Whitgift School, and the registered charity, the Whitgift Foundation.
HM Land Registry records obtained by Inside Croydon reveal that the owners of the land at the Croham Manor sports ground could, through a 75-year-old covenant, ultimately be the Foundation, the borough’s largest landowners.
Inside Croydon reported exclusively this week how the Whitgift Sports Club in South Croydon has gone into liquidation, potentially owing creditors more than £300,000.
This week, Edward Connell and Daryl Warwick of specialist solicitors Armstrong Watson LLP were formally appointed as liquidators of Whitgift Sports Club Ltd. They were unable, at this stage, to provide a full register of creditors, nor confirm the amount owed by Whitgift Sports Club.
Bar bills: sports fixtures are planned for the Croham Manor ground this afternoon
According to the last set of accounts filed by Whitgift Sports Club Ltd (to August 2022), it owed creditors £309,861. “That’s an awful lot of grass seed,” according to one reader with extensive experience of managing community hospitality venues.
Whitgift Sports Club was an independent trading company, operating the clubhouse as a hospitality business while providing facilities for four Old Whits sports clubs: cricket, rugby, hockey and football. The Old Whits ground is part of a nexus of organisations all with links to the Foundation.
According to Land Registry records, the clubhouse and land on this leafy plot in South Croydon is owned by Old Whitgiftian Trustees Ltd. This company, formed in 1944, appears all but dormant, with little in the way of business recorded in its most recent company accounts.
None of the company’s six directors were listed among the directors of Whitgift Sports Club. Its last set of accounts, published by Companies House, showed total assets of £257. The land off Croham Manor does not appear in its accounts under “assets”.
The title for that land was passed to Old Whitgiftian Trustees in June 1950, documents held by HM Land Registry show.
The land had been bought that May for £4,700 on behalf of Whitgift School’s old boys’ club, the Whitgiftian Association. The freehold title is held “as bare trustee” by Old Whitgiftian Trustees Ltd.
“Under the terms of the conveyance the asset can only be sold, at that price, to the Whitgift Foundation.” So while the Foundation does not actually own the property, they do exercise considerable, ultimate control over it.
Land titles: just what has King Edward VII got to do with a slip of land in South Croydon?
The land is adjacent to, and was once part of, the Croham Hurst golf course. Other clauses in the covenants show that land ownership stretched back to the start of the last century.
“The conveyance dated 5 May 1950… contains a provision that if at any time during the lives of the issue now living of His Majesty King Edward VII and the last survivor of them and 21 years after the death of such last survivor the Purchaser should desire to sell the land in this title or should cease to require the said land for the purpose of use as a single playing field the Governors should have the option of repurchasing the same in the manner and on the terms therein mentioned.” All clear?
Edward VII, son of Queen Victoria, died in 1910. The survivors of his “issue” include 11-year-old Prince George, son of the Prince of Wales, grandson to the King.
So basically, it is going to be a very long time before the owners of the land are free to sell it for flats…
Further covenants confirm that the “adjoining land”, the golf course, is “now the property of the Foundation”, and detail various conditions relating to boundary fences and upkeep.
Further conditions make for interesting reading, too: “2, To use the said land only for the purpose of a Playing Field and for no other purpose and to retain the same as a whole and not during the life of the issue now living of His Majesty King Edward VII and the last survivor of them and 21 years after the death of such survivor to sell or dispose thereof except as a whole (or except in the case of a sale of part to a local or other authority having compulsory powers of acquisition) whether for the purpose of a Playing Field or otherwise.”
Property tycoons: 16th Century charity has become a 21st Century property business
And: “3, Not to do anything upon the said land or any part thereof or the roads adjoining the same which may be or grow to be a nuisance or annoyance of the Governors or the owners occupiers and tenants of adjoining premises and in particular will exercise proper supervision over the parking of cars.” Oh.
And: “6, No building or structure of any kind shall be erected on the said land except in connection with its use as a Playing Field and until the plans and elevations and site plan shall have been submitted in duplicate to and approved by the Surveyor for the time being of the Governors…”.
Going by those Land Registry documents, the owners, or the Foundation, could not flog the land to developers if they wanted to.
So it’s business as usual, as the four sports clubs club together to take over the management of the venue.
The news of the liquidation of Whitgift Sports Club Ltd brought some criticism of the former managers.
Playing fields: HM Land Registry records from 1950 define the property that was set aside for the sports ground, costing £4,700
And our report also drew a message to members of some of the sports clubs that use the grounds. The message seems to confirm the “phoenix” move, and that it had been in planning for some time.
“Many of you will have seen the article concerning the liquidation of the previous facilities management company of the clubhouse ‘The Whitgift Sports Club Ltd’ (WSCL),” it said.
“As club members, this will not be news to you, as we have kept you informed of developments with WSCL. The story has simply only now hit the press, following the creditors’ meeting on 10th October.
“We want to remind and reassure you that all four sports sections have formed a new company together, and we’re in a good position to drive things forward in the directions we feel are best for our club and wider community. This is an excellent position to be in.” Especially since they have no liabilities to the previous company’s creditors.
“As club members you are perfectly positioned to be witnessing daily that sport and socialising continue at Croham Road. The debt is solely a matter for WSCL, and not for us.” Rising from the ashes…
“We are entering a new and exciting phase of our club life at Croham Road, as ever, valuing the support of all our members. Thank you and see you at the weekend!”
This news is unlikely to go down as sweetly with the various businesses and customers who were stiffed by the collapse of Whitgift Sports Club. Nor will it reflect very well on the Whitgiftian Association or the £250million property business that is the Whitgift Foundation, who last week sought to distance themselves from the business collapse.
“The Old Whitgiftian Association is a separate organisation to John Whitgift Foundation. The Foundation does not own the sports grounds or buildings or manage its sporting operations, clubs, or events,” they said.
But then, the Foundation, with its £1.4billion failed gamble on redeveloping the Whitgift Centre and the closure of Old Palace School, already has plenty of its own problems to worry about.
Old Whitgiftians rugby club are due to play their latest fixture (versus Old Amplefordians in Counties 2 Surrey) at Croham Manor Road this afternoon. 3pm kick-off.
The bar in the clubhouse might even be open.
Read more: Boris Johnson’s former aide given Whitgift Foundation top job
Read more: 16-year-old Whitgift pupil’s death is linked to text blackmail
Read more: Foundation abandoned new school plan after taking £70m loan
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I thought the Phoenix was that dodgy club in Bolton run by Brian Potter
I’m glad that it has to remain a green space indefinitely. Thanks for your investigation.
So rather than just the monarchy failing itself, if the bloodline of the Windsors no longer retain the monarchy then the developers can come marching in and concrete over this stretch of land. I am not at all saying some property magnate will have a motive for regicide, but with how this land lies in such what of a hollow and with the grounds prone to flooding in an era of global warning. They may make wonderful Lakeside properties in Manor Way.
Hmm. I rather saw it as the Edwardian vision of the end of the world…
As far as I am aware you cannot legally let something exist in perpetuity. The Edward VII clause names a specific but highly unlikely event. It’s used a lot in trusts.
Reading through the public records, this rings more of almighty cock up than slight of hand phoenix venture. The company was formed in 2012 and lost £41,000 in its first accounting period. The Whitgiftian Association knew it was going to be loss making for a time and provided support by means of a loan which peaked at £95,000. Covid doubtless reduced income substantially and things never improved, so the OWA wrote their loan down to zero. The company wanted to surrender its lease but was not let off the hook, OWA probably being a creditor in excess of £80,000 at the time of insolvency. The company had invested in equipment at the clubhouse (net book value £77,000) so now negotiations will be ongoing between the administrators and the OWA who obviously need the equipment. A fine mess. Whilst I sympathise with other creditors all this information has been available for any supplier to read. I agree that it is hardly good for reputations though.
As previously reported, significant service charges raised by Whitgift School’s groundkeepers’ department could also not be met.
From sources at the four sports clubs who are forming the new management company, it appears that this “plan” has been in preparation for some time.
Are you sure the Edward VII clause doen’t mean the “survivor” of his issue has to have been living in May 1950?
It’s set out here—–https://en.wikipedia.org/wiki/Rule_against_perpetuities
I’m sure the creditors are falling about laughing