A letter from the Chairman of Watford Football Club.

Having read the letters in last week's Watford Observer, I thought it would be appropriate to reply in person and to give Watford fans the opportunity to read my response and judge for themselves as to where we are going as a Club.

I was surprised and saddened to read so much apparent despondency and lack of understanding as to the Club's present situation. There are some valid points made, but the majority of what has been written is based on hearsay and speculation rather than facts. The wrong picture is being painted and I cannot allow this to continue without giving my side of the story. So I propose to deal with the main issues.

Watford Football Club Chairman Graham Simpson

Club's Financial Position

It seems from last week's letters that there is a general concern about the Club's finances, let me reiterate once and for all this could not be further from the truth. There is simply no comparison to the state of the Club I took over in 2002 and the position we find ourselves in now.

For an in-depth analysis of our financial position past, present and future, please refer to my Chairman's letter in our 2007 Annual Report and Accounts, which is available by clicking here. Alternatively, if you require a hard copy of my letter please contact us at the Club on 01923 496000 and we will forward it to you by post.

In simple terms you will see over the last six years the Club has lost £21.7m, and this includes the £8m profit that we made last year. It also shows quite clearly that the equity raised over the same period equates to £21.6m. Please take time to read and digest it.

We are in real terms a million miles away from those dark days of 2002. I will never forget the huge responsibility that weighed on my shoulders becoming Chairman of a Club that in my first year I already knew was going to lose £10m. It was a very sobering and frightening scenario.

My Personal Circumstances and Finances

I have never really discussed my personal situation and finances in public before but I will now as I think it is relevant. I've invested in shares in Watford to the tune of £4.3m plus I also loaned the Club a further £2m. Currently we are valued, according to our AIM listing, at £9.44m (shares 21.5p). This puts my current equity valuation at approximately just under £1.6m, so at present on paper I have lost £2.7m. I am pleased to say my children are still speaking to me.

On top of this, because of my obsession with turning this Club around over the last five years, I have completely neglected my other businesses. Simpson Travel has virtually stood still and suffered from my lack of day-to-day involvement. My other business based abroad has stagnated and I've had to put it on hold for the last five years whilst I put all my energy into securing a safe and long-term future for Watford Football Club. Had I not volunteered to be Chairman in 2002 and had stayed in the private sector; I would probably be far better off than I am today.

The bonuses received by myself, Mark and Aidy were paid in relation to our promotion season based on success and not for relegation. These bonuses were agreed at least one year prior to promotion being achieved and were unanimously ratified by the Board.

Let me make it clear, I have no regrets about taking on this job and I certainly don't feel sorry for myself. This is not a sob story. It continues to be an honour and a privilege to be Chairman of the Club I have supported since 1959.

The Club's staff, commercial aspirations and 2010 vision

Mr Baldwin (Watford Observer, 18/1/08) questions our 2010 vision for the Club. I have on numerous occasions clarified this. We have a robust and self-sustaining three-year business plan in place. In our 2010 vision we are working towards building a very special Club both on and off the pitch that has a united leadership team, with a shared vision, a common language, and a determination to become a top 10 Premier League Club.

Regarding staff comings and goings, this is just one of many aspects of running any successful business. Sometimes it can be very difficult to tell somebody that they cannot remain at the Club, but it is something that if you are a leader you have to be prepared to do.

We have at the Club a very dedicated team of talented individuals who all understand our vision for the Club. We are all working together to achieve our goals.

At present my wife and I host small groups of staff over for dinner at our flat in Watford so I can meet and talk to everyone individually to gauge their opinions on how we are moving forward.

One of the points that particularly disappoints me in the letters page from last week is from Steve Johnson who wrote "the Club needs people in it who care passionately, who have history with it, but these people have, one by one, been removed until we have people running our Club that don't care about it only in advancing their own careers and futures". I think that sadly that ignores our loyal staff, so let me inform you of the following dedicated long-serving staff, all who are playing a crucial role in taking the Club forward:

Paddy Flavin, 8 years, Alex Ashby, 9 years, Rob Clarke, 12 years, Gaby Dryan, 7 years, Katie Wareham, 12 years, Michael Jones, 13 years, Ann Watt, 13 years, Michelle Ives, 10 years, Tom O'Connor, 10 years, Rob Smith, 12 years, Jane Philips, 10 years, Jo Simmons, 10 years, Gill Winfield, 10 years, Linnette Croucher, 21 years.

And there are many more staff who care passionately about this football club.

Our commercial aspirations have never changed and will not while I remain Chairman, we have a very focussed and innovative team who are always striving to improve revenue. Mr Whittall (Watford Observer, 18/1/08), I take on board your points. I think your idea of local football teams having presentation nights is excellent. With regard to conferences and the Olympics we have of course explored these in some depth.

The Club's Community Sports & Education Trust has made significant strides in the last couple of years developing meaningful partnerships with local, regional and national agencies to develop a range of projects that have an impact on local people from all areas of society. Myself and Mark Ashton have been instrumental in creating the Community Sports & Education Trust as a registered charity that is able to work so progressively in the local community.

Mark had the foresight to change the structure of the community department to allow it to flourish and also took the strategic decision to recruit a Community Director, Julian Winter, to place the work of the Community Sports & Education Trust at the heart of the football club for the long term. Perhaps the Watford Observer and the Club need to be more proactive in getting the good news stories out to its readers and supporters to promote the very positive work that is being undertaken and how a real commitment to the community has been made.