More cuts at Watford despite a £5m boost

Four senior players and goalkeeping coach Kevin Hitchcock face the axe in the latest round of cutbacks at struggling Watford.

Neal Ardley, Micah Hyde and Paolo Vernazza are all out of contract this summer and are yet to be offered new deals. Sean Dyche has already been told he can leave, while Hitchcock may be replaced by Alec Chamberlain, who can also provide goalkeeping cover.

Watford lost £10.3million last year and are still paying high wages to some players who signed deals during the days of Gianluca Vialli.

The club this week raised £5.25m through loans and a share issue, but much of the new money will be spent on the Vicarage Road freehold.

Chairman Graham Simpson said: "Our wages are now below 60 per cent of our turnover and we are going to continue to bring that figure down." Watford only avoided administration in 2002 by agreeing a 12 per cent wage deferral with players and staff.

Simpson has indicated the 12 per cent will be repaid this summer, but only if the club stay in the First Division. He said: "We will look at it at the end of the season. It is subject to league status."

Despite investing £1m in the share issue and lending Watford another £1m, Simpson is no longer the club's largest shareholder.

The latest round of fundraising saw the millionaire Russo brothers buy a 30 per cent stake for £2.5m. It also meant a major dilution for all existing shareholders.

Simpson, who holds a 23 per cent stake, admitted he has lost £1.5m since November 2002 but insisted the share issue was vital.

He said: "I can tell you that hurts - the feeling in the pit of your stomach when you see £1.5m disappear."

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