Board Statement

[Brazilian]

some mixed input so far, we need to remember the clubs trading income and the Society funds are two different entities

 

its pretty sad that on teh face of it there appears, just cause, to criticise volunteers effort and hard work, when in fact most of it is down to lack of clear communication channels

 

as well as whats been mentioned, there is also a full Well Society fundraising dinner event at planned for one of the holiday weeekends in the pipeline (think its September)

 

waiting on confirmation but I believe it will be the first acknowledgement by fans of Tommy McLeans contribution to our clubs history.

 

I'll also say that, even if its unpopular, all the excuses from the majority that a tenner a month to join the society is too expensive, is misguided. at every opportunity the society and club have said if you want to join and contribute go and speak to them (alison) and work something out.

 

Sure, if you dont want to do it , move along and just follow the club as you are.

 

Most season ticket holders on average are getting into games for around £16? add a society membership and thats around £22-£23, not cheap but surely achievable for more than 1 in 5 of our season ticket holders

 

and if that ST holder is getting a free kid or two, then its really £8-12 a head per game to be a ST holder and one adult member of society.

 

It has been said many times, maybe our fans would only realise what a vunerable position the club is in, were the worst to happen

 

PS, I'm not against alternative investment, be surprised if we have any fans with serious cash, who are not already involved,I'll be delighted if there are, like United or Killie,

 

but with external investment, comes seats on the board, JB called it that the last guy wasnt suitable, lets hope we are able to keep the ability to control the path of the club.

[numpty]

I'm sure it's not just you. For some folk following a team is something to do now and again on a Saturday, for others it's a way of life. We all fall on different parts of that scale, and shouldn't have to justify that position to anyone.

[sbcmfc]

Is it just me that doesn't get why you would want to pay for a second season ticket or indeed even fund the well society?

 

For me I'll pay my season ticket for the year (decent enough value) but I don't feel its my job to fund the club out with. And its just a hobby. Obviously I'd be gutted if there was no more Motherwell but I don't feel the need to pay twice for my cinema ticket because the cinema is having a tough time.

Maybe I'm not a "real" fan.

 

 

Charity begins at home!

 

Would MFC would tap me £20 to go to a game if I was skint?

 

I'm like you, I'll support the club by buying tickets, merchandise etc. but over and above that, I can't justify it.

 

I don't really understand the thinking that the punter in the stands should be throwing extra money in to make up the wages of £100k a year footballers, it doesn't compute in my head.

[Brazilian]

Sure its not just you Jam20, as I said if its not for you/others just carry on as is,

 

but for anyone that bemoans how things are run, lack of budgets, decent youth structure, high expectations of top six finish. let alone expectations of Europe etc.

 

then that product comes with a cost.

 

for the last few years we as fans been lucky to receive the end product at a bit of a bargain price, right now the choice is a couple of quid a week extra to help out, or an unknown, some would say wishful thinking of someone paying the shortfall

 

edit:

and with sbmfc comment it made me think perhaps we have the crux, he may think giving the society pays wages, whereas I dont think any society money is paying wages, the clubs income is paying the wages, the society funds allow the club to trade as they have been, in a industry where the cash income is not evenly distributed.

 

happy to be wrong on that and sb just thinks paying footballers is wrong

[underboyleheating]

A few interesting quotes from Geoff Brown as regards fan ownership. Is he right?

Fans can't run clubs says St Johnstone owner Geoff Brown.

[sbcmfc]

 

and with sbmfc comment it made me think perhaps we have the crux, he may think giving the society pays wages, whereas I dont think any society money is paying wages, the clubs income is paying the wages, the society funds allow the club to trade as they have been, in a industry where the cash income is not evenly distributed.

 

happy to be wrong on that and sb just thinks paying footballers is wrong

 

Sorry, was talking more generally re paying wages. Buying 2 tickets and the likes. I'm not anti 'well society at all, would and possibly will join in the future if I feel I can justify the expense. As a compromise I signed up my son in the meantime.

 

As for just giving money to clubs (like hearts fans) I find hard to comprehend.

 

(Perhaps I think this way because of my own experiences?)

[Guest]

Is it just me that doesn't get why you would want to pay for a second season ticket or indeed even fund the well society?

 

For me I'll pay my season ticket for the year (decent enough value) but I don't feel its my job to fund the club out with. And its just a hobby. Obviously I'd be gutted if there was no more Motherwell but I don't feel the need to pay twice for my cinema ticket because the cinema is having a tough time.

Maybe I'm not a "real" fan.

 

This is kind of where I'm at. Given that I live more locally than I have done over the past couple of years, I was thinking about getting a season book so I can just turn up with my old man.

 

I've got the cash to just about justify this now, but certainly not to get a season book and chuck money at a society which offers me pretty minimal returns as an extra on top of that, which was always my concern with the society. For a lot of folk, a season ticket is a stretch to begin with, so asking for more on top of that is just a bit much.

 

I understand the principles of it being 'our' club and such, but given the money which I and others already commit to supporting 'our' club, there comes a point where it feels more akin to throwing my money away.

 

That said, as mentioned, things like not having a fans game this year is a shame. I played in the first one a couple of years ago and was more than happy to spend the money at the time, and would happily do again because I got a tangible 'thing' for the money I was spending. It was a great day out, I had a great time and even having the pictures of doing it made the whole thing worthwhile. It seems like a perfect 'society' organised fundraising event. I can't imagine it cost a huge amount to put on for the day and I doubt I'm alone in feeling happy to pay for it.

[Toxteth O'Grady]

Statement from The 'Well Society Board‏

 

Most of you will now have seen the statement the Motherwell board issued yesterday outlining the stark reality of the club's financial situation and setting an ultimatum to the Well Society. We welcome the clarity and will emphatically embrace the challenge.

We would like to offer our thoughts on the way ahead but first of all we must apologise to Well Society members for a lack of communication in recent weeks following the annual general meeting.

 

There were a number of significant developments in the run-up to the meeting on May 2 and discussions with the club in the intervening period which made the situation very fluid. So, we felt it best that we wait to communicate with members once the club had outlined its position. But we acknowledge that communication must improve significantly in the weeks and months ahead.

 

In its statement, the club explained that it posted losses totalling about £780,000 for Stuart McCall's first two full seasons in charge and expects to record another deficit for the most recent season. The club has explained some of the reasons behind this performance: the loss of Rangers to the top flight; the continuing lack of league sponsorship; falling attendances (the average attendance at Fir Park was 700 lower this season than during Maurice Malpas's campaign in charge, when we stayed up on the final day); redistribution of money to the lower leagues; the decision to reduce the prize money for finishing second in 2013; declining commercial income.

 

Whatever you think of the financial decisions taken, the reality is that the club needs money to underpin these losses. In the past John Boyle plugged the gap but he is under no obligation or expectation to do so again having already donated his shares to the club. These shares were earmarked for the fans through the Well Society and can still be ours.

 

In the past few months the Well Society loaned the club £230,000 which helped it through a short-term cashflow situation, but the club also sought funds from a third party. The previous year the Well Society made a £150,000 capital injection during a similar period of cashflow issues. In the difficult months of February, March and April next year the club is likely to again need money to see it through to the end of the season when the full SPFL prize money comes in.

 

If the club cannot get the money from us, they need to seek it elsewhere. That means that time is running out for Motherwell fans to raise the money needed to meet the aims of the Well Society - the main goal being a majority stake in the club. We have been given until the end of November to reach the £800,000 mark, with the total being just over £420,000 at the end of April.

 

There are effectively three scenarios that will unfold from now onwards.

 

(1) We do not raise enough money and the club raises cash from external sources.

 

This could be soft loans from Motherwell-minded business people who are open to the idea of community ownership. We know the club retains the goal of fan-ownership as its priority and would seek to raise money under those terms. However, there is a possibility that the club could be forced to sell the shares donated by John Boyle to perhaps one individual or group. There are no guarantees that their motives and ideals would be shared by the Motherwell support, or that they could successfully run a football club.

 

We have already experienced administration and it was fortunate that John Boyle took a financial hit and stayed around to put the club on a level footing and give us the opportunity to own the club. But who knows what could happen if a new owner comes in and gets the club into trouble? There are too many examples of Scottish football clubs suffering financial problems in recent years not to have some concern about the unknown.

 

(2) Neither the club nor the Well Society raises enough finance and the Motherwell directors are forced to slash the wage bill.

 

The club statement revealed that Motherwell would be forced into a "very substantial reduction in expenditure plans" if they could not raise capital in the coming season, which would "diminish our competitive capabilities on the field and create a negative financial spiral". Inevitably, people will lose their jobs and more players will leave, and days like the other Sunday at Pittodrie and European trips will be highly unlikely to recur in the near future. Long term, the club could find itself fighting to maintain our top-flight status.

 

We know the Motherwell board would do everything they can to avoid that scenario, but again there can be no guarantee of raising sufficient capital from other sources. John Boyle put the club up for sale several years before the Well Society was founded and no suitable buyer emerged. St Mirren are among the best-run clubs in Scotland - a debt-free, top-flight club with a new stadium and training ground - but they have been up for sale for years without attracting an offer that is acceptable to their board. People are not queuing up to invest in Scottish football. As a support, we have possibly been spoiled by the safety net of John Boyle's personal wealth in recent years. If we can afford to, it is time we took responsibility for our own club rather than taking our eyes of the ball and depending on another white knight to come along.

 

(3) The Well Society meets a key target set to us by the club of raising £800,000 by the end of November.

 

We stabilise the club's finances and in return we would soon afterwards move into position to take majority ownership of the club while continuing to raise funds and increase our membership.

 

For us to meet the long-term goals, it is imperative that fans come forward urgently to join the Well Society if they have not already done so. We appreciate it is not easy to meet membership fees on a one-off basis but there are flexible opportunities to pay monthly so you can contribute whatever you can afford. We are also urging members to upgrade their memberships - again there are ways to do so gradually. It is now or never to show we can grasp this opportunity.

 

We are as frustrated as anyone by the lack of significant progress in raising funds. Some complicated issues have held us back - such as last year's share purchase and the subsequent change of rule over lending the club money and ongoing discussions over renewal fees/benefits - when we should have been focusing on recruiting members and raising cash. As a board we have had relatively little time to raise enough funds, but we know now that time is running out and we need everyone to pull together to help raise money and support for the Well Society. We will step up our fundraising efforts, re-launch our recruitment plans in the very near future and again try to simplify the model - but anyone can join at any time now.

 

Another frustration is that we have not been able to engage the business community as much as we would have liked and need to, despite extensive efforts. One of the decisions made at the AGM was the election of Robert Montgomery to the Well Society board, after Sandy Kilpatrick stepped down following 18 months of hard work. Robert will help focus Well Society efforts on attracting business investment.

 

We know that some fans might be reluctant to hand over money to the society amid uncertainty over whether it will achieve its goals. If we do not achieve majority ownership, our aim is to achieve a significant holding that can give the fans substantial influence in the way the club is run, and offer checks, safeguards and protection should a new majority shareholder come in. So every penny will count.

 

We will have discussions with the club on the mechanics of this if we do not achieve our main goal, and the decision will also rest in the hands of the members, but the aim of the Well Society board is to become a significant shareholder, even if we fall short of full control. But full control remains the goal to which we must all be committed.

 

To conclude our message, we make a general appeal to all those who can join the society or contribute more. Few fan bases get such an opportunity to own their club and protect it for future generations, outwith times of crisis, and sometimes times of crisis are too late. If the society does not raise enough funds in the coming months, we may indeed be too late.

 

If you are a Well Society member, please, please try to persuade more of your friends and family to join, or upgrade your membership, if you can. If you are not a member, please join now. Otherwise this once-in-a-lifetime opportunity to secure majority ownership for Motherwell fans may be lost forever. And no-one can tell what the consequences will be.

 

Thank you for your support,

The Well Society board

 

To join the Well Society click on http://www.thewellsociety.co.uk/join-the-society/ or phone Alison on 01698 338006

[underboyleheating]

 

And no-one can tell what the consequences will be.

The consequences are that we will be back in administration just like Hearts. The gravity of our current financial situation should not be underestimated unless of course we can attract some much needed investment.

 

 

[maxywell]

The consequences are that we will be back in administration just like Hearts. The gravity of our current financial situation should not be underestimated unless of course we can attract some much needed investment.

 

 

 

 

 

 

Investing in a football team just isn't attractive to anybody, it's not going to make money over the long term so unless a Well fan wins the euro millions I don't see us getting another major investor.I don't see it being admin again but if we don't reach the targets then we'll be struggling to avoid relegation within 5 years and if we do go down we could find ourselves in a similar position to Dunfermline.

[Tickle Pickle]

Surely theres one really stinkin rich Motherwell fan out there?!

[Guest]

Investing in a football team just isn't attractive to anybody, it's not going to make money over the long term so unless a Well fan wins the euro millions I don't see us getting another major investor.I don't see it being admin again but if we don't reach the targets then we'll be struggling to avoid relegation within 5 years and if we do go down we could find ourselves in a similar position to Dunfermline.

 

Not sure that's a fair comparison at all, really. Even with a sizeable chunk out of our budget, I still think we'd be comfortably 'safe' in the SPFL.

 

Dunfermline didn't go bust because they were in the 1st, they went bust for a multitude of reasons, including vastly, vastly overestimating the number of fans who would come and see them get scudded every week in the SPL (From memory, their estimations were out by 1-2k fans p/w?), on top of years of mismanagement, and their chairman being a pure cunt.

 

I mean, like, Hibs are going to stay up this year, and they've been completely piss for months. The gulf between top three and bottom three in Scotland is pretty wide, so even with a cut in the budget, I'd still fancy us.

[Guest]

Surely theres one really stinkin rich Motherwell fan out there?!

 

What about this fine Motherwell man?

 

[wellfan09]

Don't know if it's been asked elsewhere but what happens if option 1 does happen from the Well Scoiety statement and an outsider does buy Boyle's shares that were for the Society? Do the members get refunded?

[weeyin]

Don't know if it's been asked elsewhere but what happens if option 1 does happen from the Well Scoiety statement and an outsider does buy Boyle's shares that were for the Society? Do the members get refunded?

 

Unclear, but the gist of the Well Society email today seemed to be "no". Instead the Society would still be involved in the running of the club.

[maddog]

It's too early to say what would happen if an outside investor came in looking for a major shareholding but it would be down to the Well Society members as a whole what route they wanted to pursue - whether it's a minority shareholding or refunding members or acting as a lender to the club. The statement says that the Well Society board would seek a minority shareholding but the wider membership will have the final say.

The society is due back the 230k from the club in the next few months. previous 150k investment was a share purchase as the rules at that stage did not allow loans and there was an urgent need from the club for the cash. that money was supposed to be ring-fenced by the club. any money raised from now will fall under the society's control.

[milo]

Jesus, that statements even grimmer than the one from the club!!

 

Are we fucked?

[Big Stall]

Jesus, that statements even grimmer than the one from the club!!

 

Are we fucked?

 

If we were fucked, the budget for next season would not be the same as this season, but slashed.

 

The garden is not rosy, but I don't imagine we are ready to call in the administrators. Not just yet anyway.

 

It probably shows another reason for Dempsters departure and the inability to offer a contract to Faddy.

[wellfan09]

It's too early to say what would happen if an outside investor came in looking for a major shareholding but it would be down to the Well Society members as a whole what route they wanted to pursue - whether it's a minority shareholding or refunding members or acting as a lender to the club. The statement says that the Well Society board would seek a minority shareholding but the wider membership will have the final say.

The society is due back the 230k from the club in the next few months. previous 150k investment was a share purchase as the rules at that stage did not allow loans and there was an urgent need from the club for the cash. that money was supposed to be ring-fenced by the club. any money raised from now will fall under the society's control.

 

Surely an organisation which is responsible for hundreds of thousands of pounds of people's hard earned cash should have an idea of what would happen under all the possible scenarios, and not just what happens if it all goes to plan.

[maddog]

it's a membership organisation so whoever is running it will have to be directed by members' wishes, which are difficult to predict in advance. but there's no doubt there have been grey areas from the start, from when the club set it up, and things will hopefully be simplified in the weeks and months ahead. however, the key point is that members will have to choose how they go about things under the different scenarios, which for me is a good thing. if an individual comes in to buy the bulk of john boyle's shares, which may or may not happen anyway even if the Well Society fails to hit the target, then some members might want a refund and others might want to purchase shares as the Well Society, so flexibility can be a strength rather than a weakness.

[weeyin]

Jesus, that statements even grimmer than the one from the club!!

 

Are we fucked?

 

I don't think so - I think it's more about shaking fans out of their complacency. Not that it's anyone's fault, but the Board has done a great job off the park keeping things running close to budget and the team has performed relative miracles on the park under increasing financial constraints.

 

As a result, it makes us all feel, to a greater or lesser extent, that everything is fine. In reality, we need to be continually looking at ways to boost finances.

 

If nothing else, it might have given a kick up the arse to fans like me who intended to throw some more cash at the Well Society on an installment plan, but never quite got around to setting it up.

[wellfan09]

Another question, i've had a look the website but the information is again pretty vague. How does the whole installment thing work in terms of are the installments you paying off the one off fee first and then once they reach this it's your annual fee or once you start paying is that you a member and you just pay everything off over time and get all your membership benefits etc once you start paying?

[tottenmfc]

I still don't see what the long term plan is for the Well Society. If they had raised all the required cash today and took control of the club, what happens then? Do we just use the cash to sustain the losses and hope that Rangers and Hearts return to the top league next year and solve all our problems? Do the fans need to keep paying over and above the standard outlays for tickets / merchandise etc. to keep the club going?

 

 

[numpty]

Another question, i've had a look the website but the information is again pretty vague. How does the whole installment thing work in terms of are the installments you paying off the one off fee first and then once they reach this it's your annual fee or once you start paying is that you a member and you just pay everything off over time and get all your membership benefits etc once you start paying?

Hopefully somebody who's actually doing it can tell you for sure, but I believe you're paying up the one-off fee first and don't become a member (or get the benefits) until that's paid in full. Whether you can pay the annual fee in instalments after that, I dunno -- but it's kind of moot, as AFAIK you remain a member whether you pay the annual fee or not.

[maddog]

wellfan09 - the instalments pay for the membership fee (ie the 300 quid) - i'm pretty sure that you get a vote straight away but not the benefits until its fully paid up. once membership is paid up the renewal fee (ie the £50) is optional. if you take the benefits then the £50 effectively goes to the club to pay for the benefits. if you don't pay the £50 then you don't get benefits after the first year. if you pay the £50 and don't take the benefits, the society keeps the money to put towards its total. the society were looking into simplifying the model but the club (leeann) set it up and it has proved complicated. you are right, the details are vague and i hope that's improved soon.

 

tottenmfc - the ultimate purpose of the Well Society, if it succeeds in raising the 1.5m or whatever final figure emerges, is to run the club sensibly - or employ someone to run it day to day while setting the budget and the strategy, just like other football club boards do. the 1.5million was meant to act as a buffer to sustain losses during difficult periods, but equally there should be years when the club makes profit. It's unsustainable to think fans can continue paying over the odds, clubs need to be self sufficient. whether we should be losing money when finishing 2nd or whether the MFC board have been scuppered by unforeseen/unprecedented factors is another debate but the aim of the Well Society would need to be to run the club on an even keel, as I'm sure the vast majority of fans/members would want. the reason that the well society is/was such a good and unique opportunity is that the 1.5m would go into the club's coffers as back-up money rather than going towards paying the former owner for his shares. It is still a unique opportunity - a one-off payment should secure the club for good as long as it's run sensibly.