Statement from Wednesdayite - 23rd July 2010
Written by Richard Davies Friday, 23 July 2010 19:30
WednesdayiteStatement from Wednesdayite, The Sheffield Wednesday Supporters Society - dated 23rd July 2010.
After the shock and distress of hearing the news of HMRC's winding up order, we immediately contacted SWFC and arranged a meeting with CEO Nick Parker this afternoon. We were assured that the situation with HMRC is under control and the club and the bank are working together to sort the problem in time to avoid any winding up order.
The action is a consequence of the hard line being taken by HMRC who have acted very quickly and with far less flexibility than was expected.
So, the club tells us that it is dealing with this immediate matter. Let us see this happen.
The issue we all need to be working hardest on is to find a solution to the poor financial state of the club which has led to this situation arising. Investment in the club and significant changes in the board room are needed if any solution to the underlying probems is to be forthcoming.
Everyone in football knows the HMRC are getting tuff. So we decided now is the time not to pay the bills! If as NP says, this is an OTT reaction from the HMRC people...pay the bill.
Why send out this signal of instability, poor financial control and generate concern both inside the club and in the greater football world if we didn't have too?
I propose a new share issue along the lines of that discussed with Club9, but with shares offered to the fans. New shares at a face value of £100 each. If we can find enough fans to invest as follows, eg. :-
5,000 fans invest £1,000 each raises £5M
2,500 fans invest £100 each raises £250k
2 large investors put in £500k each raises £1M
Total new funding £6.25M
Lets say legal costs £250k, that leaves £6M
Bank agrees to write off £6.5M as per Club9 deal.
There is an improvement in the club`s balance sheet of £12.5M
£5M of the new money to further reduce bank debt
£1M added to the player budget
All new investors allowed a discout of 5% per £100 invested off season tickets and match day prices for the next 7 years,up to a maximum of 50%. ie. those investing £100 get 5% discount and those investing £1,000 get 50% discount.
Regular match attenders would recoup there intial investment (depending upon price category) over the 7 year period and would have a valuable asset as well, in addition to having a say in the running of the club.
I estimate the discounts would cost the club about £750/800k per year, but this would be more than offset by the saving in the interest burden.
And there would be no annual management fee to pay, as in the case of Club9. Also attendances may increase in view of the discounted prices, making up more of the potential lost income.
It is a better deal for the club, the current shareholders and the bank than the Club9 offer.
Obviously the figures are flexible. I don1t know whether there are 5,000 fans who would be prepared to invest £1,000, but on the other hand some may be prepared to invest more. In the medium term most fans who invest will get their money back and, indeed may make a handsome profit if the club gets promoted. I have my £1k ready and waiting.
Everyone`s a winner. Test the water Wednesdayite.
I am fed up with our boards actions leaving us Owl fans open to ridicule and mocking from other clubs fans. I usually spend about £25 a week in the club shop and about £10 in the ground each match. Well this is the last straw. From now on I am spending nothing more on the club until the board have gone. It's a good job I already have my season ticket or I wouldn't have bothered.
Great idea, Martin. It would do 2 things in one go. It would definitely help the club whilst keeping investment locally (and fan-based). It would also quieten the 'moaners' who have any number of complaints about why no investement etc. by asking them to put up or shut up.
An OAP, but I still have my £1K ready and waiting.
How about the offer being made first to W'ite members?
Think you'd have a major problem Eric making it restrictive as Wednesdayite are not a democratically representative body of all fans / potential investors. Don't get me wrong though, I like the idea and I'd even have a go at persuading the wife its a good investment long term.
My fear is that by giving this cash to the present board (good old Mr Grierson et al) would be like flushing it down the drain. We need dramatic change at the top to prove to the fans that change is real change not just another coat of paint over the fissures that have been there for years since the Dave Richards (sorry Sir David Richards) era! Poor financial management has been allowed to ruin a once great club, like the country's position the remedies are painful, unpleasant and likely to take a long time to rectify!
Hi Eric/Ian/Martin
Can I point you in the direction of the WTID Group website http://www.wtidgroup.co.uk
Thanks
Rich.
