Current MyFC membership

[Gravesend_Princess]

The point I’m making is that should a really good player become available, but would only sign a multi year contract, would the MyFC membership not be tempted to vote for him, while only being able to guarantee financing his wages for that current year?

[Digitalis]

Originally Posted By: Gravesend_Princess

But can't these rules be changed by a majority vote of it's members?

Although there will be some rules they can vote on and change I don't they can in relation to the debt side, because that would negate the conditions of being a Trust.

[chris blanc]

Aren't they allowed to run up a "managable" debt? How much is that exactly?

[Gravesend_Princess]

Originally Posted By: Digitalis

Originally Posted By: Gravesend_Princess

But can't these rules be changed by a majority vote of it's members?

Although there will be some rules they can vote on and change I don't they can in relation to the debt side, because that would negate the conditions of being a Trust.

Doesn’t this will mean we will always be at a disadvantage when trying to sign good players?

We're gonna need a bigger float

[chris blanc]

Originally Posted By: Gravesend_Princess

We're gonna need a bigger float

Oh, you just became my new favourite poster lol

[PatMan]

Originally Posted By: Gravesend_Princess

Oh! but they do Pat! However tenuous the link may be, a legal friend informs me that under the Law they are the owners! The fact that they only hold that position for one year’s membership (at a time) of the MyFC Society and do not have Shares in EUFC would at first sight, look as though they were not the owners, but apparently as the MyFC is the major Shareholder in Ebbsfleet United, by law they are deemed to be the Governing Body, making it’s current members the Owners! Confusing but true!.

I knew I should have paid more attention in Law! But, has been mentioned here before - what DO they own?

[Digitalis]

Originally Posted By: Chris Blanc

Aren't they allowed to run up a "managable" debt? How much is that exactly?

Well as with most "legalese" it can always be open to intrepretation, giving the lawyers more opportunity to increase their fees by arguing about it in court, but the Rules state:

"...provided always that the Society may not (i) borrow any monies or enter into any arrangement with a similar effect; or (ii) grant any security to any person over any of its assets."

Seem pretty solid. Just hope I don't get into trouble now for letting any non-members see a part of the rules

[David Holden]

But that doesn't stop you running up losses, it merely prevents you from borrowing money to cover them.

 

From the day you take over, the club will still be losing some £20,000 a month until such time as you have increased attendances by a little of 1,000 a match or you bring new income streams online.

 

Where does that money come from?

[Santa]

Originally Posted By: doheochai

But MyFc is also prohibited by its rules from running up any debts for the day-to-day running of the club.

I have seen this quoted before but how does it equate with a club that is losing £26K - £28K a month plus approx another £100K pa for a CE (did previous directors take a salary ?) and training facilities ?

[Gravesend_Princess]

Originally Posted By: PatMan

Originally Posted By: Gravesend_Princess

Oh! but they do Pat! However tenuous the link may be, a legal friend informs me that under the Law they are the owners! The fact that they only hold that position for one year’s membership (at a time) of the MyFC Society and do not have Shares in EUFC would at first sight, look as though they were not the owners, but apparently as the MyFC is the major Shareholder in Ebbsfleet United, by law they are deemed to be the Governing Body, making it’s current members the Owners! Confusing but true!.

I knew I should have paid more attention in Law! But, has been mentioned here before - what DO they own?

They own one share in MyFC, while they are a paid-up member. MyFC Society owns 75% of EUFC Shares, therefore its the governing body!

[Gravesend_Princess]

Originally Posted By: chris blanc

Originally Posted By: Gravesend_Princess

We're gonna need a bigger float

Oh, you just became my new favourite poster lol

Thanks! as they keep telling us " where there's a Will there's a way! X

[Digitalis]

Originally Posted By: David Holden

Where does that money come from?

Dunno! From what I've read so far, I would assume that the way the deal is structured, there's going to be MyFC money left in the pot after the initial investment, which will cover off running cost deficits for a while. Hard to go into any specifics until we get to see the accounts, which is supposed to be in March.

The Due Diligence would/should have picked up any probability that it wasn't viable.

[David Holden]

Quote:

Hard to go into any specifics until we get to see the accounts, which is supposed to be in March.

 

Whose accounts?

[Digitalis]

Originally Posted By: Santa

did previous directors take a salary?

Off the EUFC website article "Fleet officials address fans' concerns"

"The Directors will remain, but in a non-executive capacity, and will continue to be unsalaried.

The Supporters Trust will retain their shareholding."

[Gravesend_Princess]

Pop goes the Weasel!

[Santa]

Originally Posted By: Digitalis

Originally Posted By: Santa

did previous directors take a salary?

Off the EUFC website article "Fleet officials address fans' concerns"

"The Directors will remain, but in a non-executive capacity, and will continue to be unsalaried.

The Supporters Trust will retain their shareholding."

Thanks, I assumed that was the case, just making the point of the additional cost MyFC have taken on. With 28,000 members post purchase it would leave only £135K in the kitty.

[Gravesend_Princess]

 

Quote:

Thanks, I assumed that was the case, just making the point of the additional cost MyFC have taken on. With 28,000 members post purchase it would leave only £135K in the kitty.

 

 

Is this the reason we were unable to buy a good striker? Did Liam have one in mind? Were MyFC unable to give the required cash? How much cash was made available for transfers?

All questions that should be answered under the new transparent way the Club is now being run!

[Digitalis]

I agree about the transparency. I'm holding my breath.

Time will tell. It does look as though funds were short, based on LD's comments in the News Shopper article on 22nd January:

----------------

The vote to confirm the MyFootballClub takeover is expected tomorrow, although Daish urged fans not to get their hopes up for a huge spending spree once it has been completed.

 

He explained: "There is nothing written in stone to say there is going to be a lot of movement.

 

"I've been making numerous phone calls because there are some players out there who I want, but their clubs don't want to let them go.

 

"They want fees and that is going to be very hard for me.

 

"What is more likely to happen in the short-term is for the negotiations to begin on extending the contracts of the players we already have here."

--------------

[David Holden]

Quote:

Thanks, I assumed that was the case, just making the point of the additional cost MyFC have taken on. With 28,000 members post purchase it would leave only £135K in the kitty.

 

Santa, I think you are forgetting that the 635K is not all payable this year. Only £400K gets paid this year, which does leave some money, but without knowing how much has already been spent finding a club and carrying out due diligence etc, we don't know how much is available to cover running costs.

[Santa]

Originally Posted By: David Holden

Santa, I think you are forgetting that the 635K is not all payable this year. Only £400K gets paid this year, which does leave some money, but without knowing how much has already been spent finding a club and carrying out due diligence etc, we don't know how much is available to cover running costs.

Hadn't forgotten, assumed y2 money was ring fenced, as given their statements about not taking the club into debt etc they would not dip into that pot (significantly) without the security of knowing they could replace it when the time comes, which I don't see how they can at the moment.