Dundee United chairman quits

In May, auditors sounded a warning over whether Dundee United can continue as a going concern.

The warning came in financial documents confirming pre-tax annual losses at The Dundee United Football Company Ltd of £1.55 million following the club's relegation from the Scottish Premiership the previous season.  The latest annual accounts are due by the end of this month.

Mr Thompson's departure comes a matter of days after the club sold off their Gussie Park training facility.

The Tangerines completed the sale of the GA Arena, which sits over the road from Tannadice Park, to Mr Martin for a fee in the region of £1million and was expected to provide a major injection of ‘working capital’ for the Championship side.

A statement from the club, saiad the transaction would "offset the financial challenges of a second successive campaign in Championship football" and allow Dundee United to focus on ‘the absolute priority’ of promotion.

The Federation of Dundee United Supporters’ Clubs, Fans United and the Dundee United Supporters’ Foundation had previously welcomed  Mr Thompson’s previously stated intention to stand down as chairman.

But they made it clear last month that they do not want current Mr Martin to replace him.

In a statement they said: “A possible candidate to take over the chairman’s role would be Mike Martin, who to many Arabs has gone under the radar as director on the board and has recently purchased a 33% shareholding of the club.

“This, however would be of great concern to all groups given Mr Martin’s seven year involvement at the club as a full director and close ally of Mr Thompson with both men presiding of the Club both on and off the park over the past few years."

READ MORE: Auditors warn of "material uncertainty" over Dundee United as a "going concern"

“A possible candidate to take over the chairman’s role would be Mike Martin, who to many Arabs has gone under the radar as director on the board and has recently purchased a 33% shareholding of the club.

“This, however would be of great concern to all groups given Mr Martin’s seven year involvement at the club as a full director and close ally of Mr Thompson with both men presiding [at] the club both on and off the park over the past few years."

Mr Thompson also confirmed his intention to dispose of the bulk of his current shareholding during the next few months as "he pursues his own global business and sports ambitions", said the club.

Earlier this month the fans three fans groups had  called for Mr Thompson to relinquish his majority shareholding as soon as possible.

The Thompson family are estimated to have spent in more than £5 million on the club since taking control in 2002.

The club said Mr Martin, who recently acquired an over 30 per cent  shareholding in the club as well as completing last week’s purchase of the GA Arena "brings a wealth of corporate financial and commercial experience to the chairman's  position having served in the international financial sector for over 35 years".

Mr Martin said: “I know that Dundee United has excellent potential and when the opportunity arose to purchase a significant shareholding in the club.   I saw it as a real chance to contribute more effectively to the challenge of turning round the club’s fortunes.

"Being elected chairman puts me in a position to further influence the change of direction required to revive the fortunes of the club, working alongside my experienced and committed colleagues in the board room. 

“It is clear that  Dundee United benefits from an excellent staff and arguably the most loyal and passionate support base in the country. We have all experienced pain in the recent times but I ask all fans to judge me, as chairman, on my actions and get behind the club as we look to ensure a bright long-term future.”

Condie and Co, which took over auditor responsibilities after the resignation of Deloitte in November, l2016, last year highlighted a "material uncertainty which may cast significant doubt about the company's ability to continue as a going concern, and therefore its ability to realise its assets and discharge its liabilities in the normal course of business."

Sharon Collins of Condie and Co said in a view signed off at the end of February, last year that she took into account the club's need for "significant additional funding" in the next 12 months in order to enable the company to meet its liabilities in the normal course of business."

Mr Thompson insisted at the end of March that year that the club will not slip into administration, should they fail to return to the Premiership this season.