Motherwell Football Club has issued a formal statement regarding a proposed investment from Erik and Courtney Barmack. The issues surrounding this proposal and the need for clarity have sparked extensive discussions among the shareholders and the Well Society members.
The club has underscored the necessity for shareholder and WS member consultation prior to a formal vote on the proposed investment in order to ensure that decisions are made based on accurate information and a clear understanding of the details surrounding the investment.
One of the primary concerns is the spread of inaccurate information on social media, prompting the need for transparency and detailed communication from the club Board. Requests for further information on the investment proposal have been received in response to the desire for clarity.
The most common areas requiring further clarification include the club’s current finances, the valuation of the club, the club’s share ownership, and the composition of the club Board.
Regarding financial stability, the club has emphasized that the pursuit of investment is not due to immediate financial pressures. While the club is not facing imminent financial difficulty, its financial results for the year are yet to be finalized, as they depend on variable factors such as football awards and income from transfer processes.
An increase in transfer income has prevented significant losses, leading to a more stable financial position for the club. However, the possibility of financial support from the Well Society reserves may be required in the upcoming year if there is no transfer income and no significant cup runs.
The valuation of the club has been a topic of debate, with differing opinions on the proposed value of £4m for the club’s equity. The club’s detailed analysis of its financial records, accounting entries linked to the Scottish Government Covid Loan, and transfer income have contributed to the valuation exercise.
One area of contention is the perceived undervaluation of Fir Park and the playing squad, which the club has addressed by emphasizing the importance of safeguarding Fir Park, alongside the challenges of valuing players’ contracts and future income.
In terms of ownership, the investment proposal revolves around the issuing of new shares, ensuring that the existing shares remain in issue and are not transferred to Erik Barmack. It also involves the preservation of fan ownership through the issuing of new shares to the Well Society and other individual shareholders.
The composition of the club Board has also been a subject of discussion, particularly with the proposed expansion of the current board to include new members. The presence of the CEO and Finance Director is seen as crucial in maintaining an independent balance within the board.
These clarifications and detailed explanations aim to provide shareholders and Well Society members with a comprehensive understanding of the investment proposal and its potential impact on the club’s future. Clarity and transparency are essential in ensuring that all stakeholders can make well-informed decisions regarding the proposed investment.
The club’s commitment to fan ownership and financial stability underpins the importance of thorough communication and detailed explanations to address any misinformation or concerns related to the investment proposal. By providing comprehensive information, the club aims to maintain trust and transparency with its stakeholders, ensuring that decisions are made based on accurate and factual information.