We can confirm that the voting papers are being distributed today to Club shareholders who should receive their packs in the coming few days.
Should any shareholder not receive theirs by the end of next week we would urge you to contact the Club by email to shares@motherwellfc.co.uk or by telephone 01698 333333. The Well Society will be in touch separately with their members.
Ahead of the voting commencing on Monday (8th July) the Executive Board felt it appropriate to summarise the investment proposal from Erik and Courtney Barmack, following further queries posed to the Club and also in light of recent releases from all parties.
Within the Barmacks’ and the Well Society’s (WS) business plans, there are lots of interesting ideas. We welcome both. Having studied both at length, it is our view that combining these ideas, locally and internationally, gives us the best chance of broadening our reach and appeal, and therefore generating additional revenues.
The Barmacks’ proposal would mean:
- Certainty of new funding of £1.95m in addition to our existing funding sources.
- Certainty of continuance of fan ownership – the WS will own 50.1% of the shares and the Barmacks have undertaken to work in partnership with them on every aspect of the club’s business.
- There is a buy back option for the WS which is built in as a safety measure. This has been questioned by some as being potentially detrimental to the WS because it could deplete its resources to the extent that it could endanger its future. However, if the buyout clause were to be triggered, there is likely to be money in the player transfer fee account which the WS can access, alongside further funds which the WS will raise meantime, to acquire the Barmacks’ shares, thereby allowing the WS to retain its strategic reserves.
- There would be no external debt to burden the Club’s future finances.
- All the club assets including Fir Park Stadium are ring fenced and therefore completely protected within the club.
- 100% of any extra revenues and growth generated, remains to be reinvested within the club. Any return on the Barmacks’ investment can only be from selling on their shares after a minimum of six years and does not involve the Barmacks gaining from the realisation of any club assets.
- The WS plan also envisages outside investment, partly by linking with strategic partners who will invest in return for a share of the extra income generated or cost savings. All of that value will therefore not stay in the club – unlike the Barmacks’ proposal.
- Experience suggests that finding investor(s) who are willing to commit to a total investment of £1.95m with the conditions agreed in the Barmacks’ proposal would be extremely difficult, especially when the investor cannot become the majority shareholder.
When we started seeking investment for Motherwell FC, it was to change from the current model of season-to-season budgeting, heavily reliant on player transfer income to break even and instead move onto a more certain funding basis which facilitates more strategic longer-term planning.
That is a very difficult task, and two key outcomes are required to achieve it.
- Regular and certain funding
- Significant new sources of income
We believe that the Barmarks’ offer, working in partnership with the WS, gives us the best chance of achieving those outcomes. In our opinion, it also fairly values the Club when factoring in all of the safeguards incorporated within the proposal.
Therefore, the MFC board is recommending that shareholders accept the proposal.
The Barmacks’ business can be found here.
The Well Society’s business plan be found here.