Jump to content

Big Motherwell Administration Thread

YassinMoutaouakil

Recommended Posts

YassinMoutaouakil

YassinMoutaouakil

Posted
Posted

Possibly me getting jumping to conclusions, but, with the club Well Society asking for fan loans to the tune of £1m to apparently save the club, we're clearly in a bit of bother.

Or is this just a cunning plan to avoid Play off defeat against Rangers and go straight down instead?

TO: ALL MOTHERWELL FOOTBALL CLUB SUPPORTERS AND FRIENDS

TO ENSURE THE SAFETY OF THE CLUB WE ARE APPEALING TO ALL MOTHERWELL SUPPORTERS AND FRIENDS TO HELP US RAISE £1M.

CAN YOU HELP PLEASE?

As you know, in order to keep alive the prospect of assuming ownership of the club, the Well Society was given until the end of November to take its total funds to £800,000. So far it has raised more than £500,000 and is still in talks over a soft loan with an interested party that would take it beyond the total.

However, it has become apparent in the past few weeks that the club potentially needs more financial security than the Well Society would be able to offer it, even with the soft loan. And it also became apparent that there was a real danger of the ownership of the club being lost to the local community for the first time.

So, over the past two weeks there have been discussions among the club board, Well Society representatives, John Boyle and some prominent Motherwell-supporting business people who have agreed to help out the club. We are now seeking wider support to form a partnership that would give the club financial stability and prevent it being sold to outside interests.

Together we have come up with a plan that, if successful, will do both things, but we need Motherwell supporters to come together and act quickly.

Our plan would see the Well Society acquire John Boyle's shares if a consortium of interested parties can raise enough money to provide the club with financial security. The Well Society would then acquire 75% of the club's shares.



BACKGROUND AND CONTEXT

The club is again facing a potential shortfall of cash in the second half of the season. It has lost a combined £780,000 in the two seasons 2011-13, and has predicted a loss for last season. In February 2013, the Well Society helped the club meet a cash shortfall of £150,000 by buying shares. Last season the Well Society lent the club £230,000, which has been repaid: the club also borrowed £125,000 from an asset finance company. With the cup exits this season and difficulty in replicating last season's SPFL prize money, there is the real prospect of a bigger shortfall. While the club has no bank debt it still owes more than £360,000 to John Boyle, who has security over the stadium as a condition. If we cannot meet the shortfall together, the club will need to be sold and could be sold very quickly.

So, Motherwell supporters can help by,


PROVIDING A LOAN

We have come up with a range of benefits (outlined below) that will be provided to anyone who can lend the club enough money as part of a consortium. The stadium would be used as security for the lending consortium on a pro-rata basis. We are looking for pledges of £10,000 upwards.

Lender Benefits

In summary, in return for pooling their resources and providing the loan it is proposed that the consortium members will receive the following key benefits:
all loan amounts repaid over an agreed timescale, with the club stadium providing loan security and protection
a competitive rate of interest, paid annually
a combined 20% share of any player's transfer fee to another club
a combined 20% share of any surplus if the club reaches the Scottish Cup Final
all benefits of the Well Society's amber members
a guarantee that John Boyle will transfer his shares to the Well Society, confirming fan ownership of the club.


THE FUTURE

Should the consortium successfully raise enough to trigger the release of John Boyle's shares, the new ownership of the company will execute measures to take the club forward based on the club's current financial position and a proposed business plan, both of which will be made available to prospective consortium members who express an interest.

Overall, the club will need to make cost-savings for next season and ensure it is not spending more money than it earns in future years. The Well Society would hold a majority stake and its representatives would form a board of directors along with other shareholders. Motherwell fans would thus control their club and prvent it being sold to outside interests who do not fully share our affinity with it. The Well Society would continue to raise money and recruit members to provide an on-going cash reserve that will help the club meet any future short-term cash issues.

We urgently need your help. Please join the consortium and avoid placing the club in financial danger or into the wrong hands.

If you agree to our proposal to become a member of the consortium, you are invited to join us for a 'sign-up' event on Thursday, 30 October in the Millennium Suite, Fir Park Stadium, at 6.30 pm.

Note: the meeting will be attended by members of the boards of Motherwell FC and the Well Society who will further explain the details of the consortium proposal and answer any questions about the loan details.

(Please confirm your attendance by calling Katie McCrossan on 01698 338006 or email wellsociety@motherwellfc.co.uk

We apologise for the very short notice of this meeting – time is not on our side!

If you are unable to attend but would like to consider joining the consortium and receive some more information, please telephone Alan Burrows, General Manager of MFC, on 01698 338012.

Please note that this is a once-only invitation on a first-come basis. Once we reach the target figure the invitation will be withdrawn. So please hurry, don't delay.


PROTECT YOUR CLUB – JOIN NOW

THANK YOU FOR YOUR SUPPORT

FROM: BOARD OF DIRECTORS OF MOTHERWELL FC AND THE WELL SOCIETY






LOANS TO MFC

BACKGROUND AND TERMS


1. BACKGROUND

(a) The proposal is to raise £1m through loans made to MFC

(b) This is the amount of money needed to:-

(i) Meet the gap in working capital for this season

(ii) Allow other loans to the Club to be eliminated over the next 3 years

(iii) Restructure the cost base so the Club is on a 'break even' budget going forward on a worst case scenario

(iv) Let John Boyle transfer his share to the Well Society so that the Society becomes the majority shareholder in the Club

2. TERMS OF THE LOANS

(a) There will be a number of individual loans totalling £1m

(b) Minimum loan will be £10k

© Each loan will have identical loan documentation

(d) Each loan will have the football ground as security

(e) Loans will rank equally – ie repayments, interest will be pro rata – eg, a £50k loan will receive 5% of any general repayment made or interest payment

(f) The loans will be for an initial 5 year term but MFC will have the right to extend any amounts outstanding at the end of 5 years for a further 5 year period (so the Club has 10 year money effectively)

(g) An arrangement fee of 1% of the loan will be paid on 30 September 2015

(h) Annual interest will be paid on 30 September 2015 and every year until September 2020 (and beyond if loans are extended) at the following rates:-

(i) Years 1 / 2 2.5%

(ii) Years 3 / 4 3.0%

(iii) Year 5 4.0%

(iv) Any loans extended beyond year 5 – rate becomes 5.0%

(i) In addition to annual interest:-

(i) payment will be made to loan holders of 20% of all transfer and sell on fees and net proceeds of a Scottish or League Cup Final if more than 50% of the loans are outstanding at the start of that term

(ii) 10% of those fees when the debt is below 50%.

(j) Any individual who does not wish to receive this income can choose to forgo all or any part of it.

(k) All the benefits which accrue to an 1886 member of the Well Society will be available to a lender

(l) The payment waterfall each 30 September will be:-

(i) Annual interest

(ii) Annual other income (Transfer fees/Cup)

The Club can then redeem the loans if it chooses in multiples of £1k – pro rata

Link to comment
Share on other sites
  • Replies 88
  • Created
  • Last Reply
Podlie

Podlie

Posted
Posted

A bought two jambo Gnomes to help them out a bit (shot their heads off), no gnomes in your shop though. If you Well P&B guys are going to start a fund thing drop us a pm and will paypal you £20 if it will help.

Link to comment
Share on other sites
welldaft

welldaft

Posted
Posted

Yassin jumping to conclusions and starting a thread that is not required.

Money is tight, that much is true, but the Well Society are having a last push to ensure fan ownership. If it does not come off then Boyle will sell his share holding to a private buyer, if there is one out there.

End of.

Link to comment
Share on other sites
vikingTON

vikingTON

Posted
Posted

Yassin jumping to conclusions and starting a thread that is not required. Money is tight, that much is true, but the Well Society are having a last push to ensure fan ownership. If it does not come off then Boyle will sell his share holding to a private buyer, if there is one out there. End of.

Yep, because Motherwell is definitely the sort of town whose residents have a collective £1 million down the back of their shitey DFS sofas.

Link to comment
Share on other sites
the_team_for_me

the_team_for_me

Posted
Posted

Yep, because Motherwell is definitely the sort of town whose residents have a collective £1 million down the back of their shitey DFS sofas.

you come from the shittyest, scummyest part of scotland ffs :lol:

Anyway, theres nothing to worry about here. we just need a few extra quid to ensure the club doesn't end up in the hands of some fishy number like the ones who fucked rangers sideways and still are tbh. We will never be that deluded or desperate Nothing to see here, move on please. :shutup

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

Go to topic listing

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...