The big issue

[Santa]

......to me is not how the team will be picked etc its what will be the picture 1, 2 or 3 years down the line, imagine:

 

MyFC Ltd (aka Will Brooks) has bought a controlling interest in the club, presumably with other people’s money, everyone has got bored at MyFC for whatever reason as have MyFC Ltd and membership has dropped to 1000. Gates have slumped (further) to 250 because many fans have been alienated. MyFC members have pissed the money they invested up the wall on a couple of guest appearances by Beckham, employing big Ron as the manager and replacing Hookey with a couple of girlies with big knockers and short skirts. Entrance charges have risen to £20 and we are still wading ankle deep in piss in the urinals and showered with rust when the ball lands on the roof of the stand.

 

There are some things I think that the board in negotiating the deal and MyFC in operating the deal could do to reassure the existing fans that the above scenario is unlikely to occur and that MyFC Ltd and MyFC members have a long term interest in the club, its existing supporters and its prosperity:

 

1. Have an evergreen buy-back clause inserted in the deal that kicks in after say a year that gives the option of returning the controlling interest in the club to the existing directors or the Supporters Trust if certain criteria eg levels of investment are not met.

 

2. Have Will Brooks buy the shares himself (or at least as many as he can realistically afford) so that he can be seen to have a real stake in the club rather than acquire it with other peoples money (or is this against the ethos of MyFC).

 

3. Have the members of MyFC refrain from any voting action for a period of say 3 months in order that they might get a feel for the club and its players, its strengths and weaknesses.

 

4. Consider giving the Supporters Trust a block vote of say 1000 to give some insurance against any excesses (a seat on the board ?).

 

5. MyFC members consider paying for more years up front to show their commitment. A majority with only a one year investment is a real concern.

 

6. Ensure that the initial investment is averaged with subsequent years projected investment and spread over 3 or more years and amend MyFC members expectations accordingly.

 

If these or similar measures could be instigated then this experiment may have a chance, if not I fear for the future of EUFC as it struggles to satisfy the short term aspirations of its would-be controllers with little care for the future.

 

 

 

 

 

[doheochai]

Originally Posted By: Santa

1. Have an evergreen buy-back clause inserted in the deal that kicks in after say a year that gives the option of returning the controlling interest in the club to the existing directors or the Supporters Trust if certain criteria eg levels of investment are not met.

I am sure that the contracts will specify certain sums of monies will have to change hands. We'll see when the contracts are finalised

Originally Posted By: Santa

2. Have Will Brooks buy the shares himself (or at least as many as he can realistically afford) so that he can be seen to have a real stake in the club rather than acquire it with other peoples money (or is this against the ethos of MyFC).

Can't happen - Will Brooks doesn't own the money.

Originally Posted By: Santa

3. Have the members of MyFC refrain from any voting action for a period of say 3 months in order that they might get a feel for the club and its players, its strengths and weaknesses.

I would expect that something like this will happen - for certain issues at least. My impression is that there will be a transition period for example -with the team selection process.

Originally Posted By: Santa

4. Consider giving the Supporters Trust a block vote of say 1000 to give some insurance against any excesses (a seat on the board ?).

MyFC rules oblige MyFC to support the addition of ST representation on the board.

Originally Posted By: Santa

5. MyFC members consider paying for more years up front to show their commitment. A majority with only a one year investment is a real concern.

I agree - and I would expect that this will happen. 7% already have (current number 1,500-2,000 members). If I, personally, was given the choice of a three or five year subscription I would do it now. I initially signed-up for one year.

Originally Posted By: Santa

6. Ensure that the initial investment is averaged with subsequent years projected investment and spread over 3 or more years and amend MyFC members expectations accordingly.

I wouldn't have a problem with this - indeed there are proposals for the establishment of a reserve fund. Also I would think it is extremely unlikely all the money would be spent this year. It would be a very foolish thing to do.

Originally Posted By: Santa

If these or similar measures could be instigated then this experiment may have a chance, if not I fear for the future of EUFC as it struggles to satisfy the short term aspirations of its would-be controllers with little care for the future.

You would be entitled, as a member of MyFC, to request a vote on these matters. Even if you chose not to join I wouldn't be surprised if somethings on these lines happen anyway.

[Kenny]

I'll have a bash at these, but obviously I can only speak for me and my understanding of things:

 

1. All the money (that is, £27.50) per member will be going into the club - it might not get immediately spent as I understand there will be extremely tight fiscal controls to prevent the IPS from overspending and leaving the club in a hole should the following year's membership drop. Obviously the level of investment now and in the future depends on continuing and new sign ups so will be variable. However, if things went wrong and MyFC had to sell up I would suspect (and I must emphasise this is speculation on my part) that the shares owned would be made available to the Supporters Trust at a knockdown price.

 

2. You're right, that does go against the MyFC ethos because the idea is that of collective ownership. I think it's fair to say that he already has a huge personal stake in this though because he's been working on this unpaid for a year or so and moreover, if it goes tits up for any reason that can be attributed to him, then his reputation is ruined.

 

3. As far as I know this will happen. It would be ridiculous to complete due diligence and then have a vote straight away. There'll definitely be a learning curve period.

 

4. The nature of the thing is that fans can have a greater influence immediately by joining in. You don't even need to go through the ST any more, you have a direct say. I'm not sure what the board make up will be but I would imagine an ST rep is not out of the question.

 

5. Unfortunately when I signed up right at the start there was only a single year option. I had a look just now and there's no obviously any way to upgrade, but I would imagine that'll be something that becomes available sooner rather than later.

 

6. Like I mentioned in the first point, financial management is going to be pretty cautious. In fact the terms of the IPS mean that we cannot do anything which would financially endanger the club.

[Dewsbury SAFC]

"MyFC rules oblige MyFC to support the addition of ST representation on the board."

 

Where is this enshrined? Is it in the Society rules? I don't remember reading that.

[Dewsbury SAFC]

"6. Like I mentioned in the first point, financial management is going to be pretty cautious. In fact the terms of the IPS mean that we cannot do anything which would financially endanger the club. "

 

This keeps getting trotted out, and is just plain wrong! Believe me, I am chair of an IPS that is a football club, and we could quite easily get ourselves into debt if we wanted to.

[Kenny]

I don't mean the terms of IPSs generally, rather the terms we've imposed upon ourselves in setting our own one up.

[Dewsbury SAFC]

Originally Posted By: Kenny

I don't mean the terms of IPSs generally, rather the terms we've imposed upon ourselves in setting our own one up.

Feel free to point out in your IPS rules exactly where it says you are not allowed to get the football club you are intending to purchase into debt.

In fact the football club you are intending to purchase is already in debt - I believe part of the deal is to pay off the debt in 3 years, or re-structure it at that time.