A message from Chairman Jim McMahon ahead of the voting period opening today.
A lot of the debate about the Barmack offer and the Well Society (WS) plan has been constructive and forward looking.
Some has been more negative and I cover a couple of those aspects below in the hope they can now be put to the side in the decision on how to vote.
Point one, I can somehow benefit personally if the deal goes ahead.
I don’t have shares in the club. I have never held shares. I have contributed to the WS since it was formed. I have one vote as a member.
Point two, why do this now?
We don’t need to. And here my words “We have enough money to see us through this season and a bit of next” have been quoted and it’s been suggested they should be “Shouted from the rooftops.”
They are completely accurate and I agree they should be shouted out. Everyone involved in getting us into that position should be proud of what has been achieved over the seven years of fan ownership. But my next sentence should be included for balance.
“You get the best deal when you don’t need the money – if you do need money the terms will be much less attractive.”
This is an attempt to move away from season-to-season budgeting to a more sustainable basis.
As has been pointed out, this is a vote on the Barmack proposal not the WS outline plan. But there is one key area where some read across is vital – new investment.
New investment will determine how the club’s finances look in the future. Both plans trail that. The Barmack deal outlines the investment amount, £1.95m, which has stringent safeguards built in and accepts that all the increased value from that investment stays inside the club.
The WS plan also looks to bring in new investors and highlights that the Society is talking to interested parties. It is unfair to expect that aspect to have been finalised and to ask for chapter and verse on how this would work at this point.
But it is fair to ask in general terms:
- How many interested parties are there at present?
- If they all become investors how much investment would that mean in total?
- Will all of this be new money?
- Will this be put in as ordinary share capital and therefore become part of the permanent capital in the club?
- Will this be at a value for the club which is greater than the Barmack offer?
- Will this come with the agreement of the investor that all the extra value created by their investment will stay in the club?
This basic information will allow members and shareholders to weigh the current offer against other alternatives.
Jim McMahon
Chairman