Thinker 886 Posted June 25, 2012 Share Posted June 25, 2012 but I suspect it will be division 1 so they can have their cake and eat it.. If the SPL and SFL merge, it's possible for them to have their cake and eat it regardless of what division we're in. One sponsorship deal for the whole of Scottish football, a TV deal that will screen games form all divisions (including ours) but spread the dosh about - we can be outvoted at every turn and fleeced. In my eyes, Division 1 is clearly the way to go. We can only get there by being voted back into the SPL and then subsequently punished for the events of last season. If the other clubs make us responsible for the past then they are effectively officially recognising that we re the same Rangers we've always been. I believe this to be extremely important longterm. The 140 year history is incredibly valuable - and any arguments about the validity of our claim to that history (however bogus they might be) damage the value of the club. 0 Quote Link to post Share on other sites More sharing options...
johnnyk 158 Posted June 25, 2012 Share Posted June 25, 2012 Seen this on FF... The following Guidance Document has been sent to all â??Well Society members ahead of the ballot on the â??Newco Rangersâ?? application to the SPL. It is not loaded to sway influence, nor is it designed to scare or panic â??Well fans into one vote or the other. It represents the Boardâ??s honest view with the information they have at hand on some of the risk and uncertainty surrounding each possible outcome of the vote on July 4th. Guidance Document Risks and Uncertainties to Motherwell FC Finances Although there is continued speculation on various NEWCO scenarios, there is, at present, only one issue to be determined, namely whether the application by NEWCO for transfer of the SPL share currently held by Rangers to the NEWCO, should be allowed. It is this scenario we put to members/shareholders in this ballot. This document seeks to set out the information and scenarios currently available to the Board to allow members and shareholders to cast their vote with maximum available information. We have written it as objectively as possible but require the obvious disclaimer that there remains very significant uncertainty particularly on the revenue impact of all scenarios. Current Trading In the financial year 2010/11 we made a profit of £541k. For financial year 2011/12 we do not yet have audited accounts, however, we expect a loss of circa £500k on the basis of income of £4.3m and costs of £4.8m. This loss was notified with our annual accounts last year. It is a result of our decision to maintain our football department budget at last year levels, increased performance related pay, increased cost due to Well Society launch, alongside lower revenues from Cup income, no European income and, crucially, our failure to secure a player trade in the previous 2 windows. It should also be noted that each league position, other than 1st and 2nd, is worth approximately £85k in revenue in SPL distribution and that our distribution obviously varies depending on performance. The flexibility of our cost base to adjust in the face of losses in income is limited. Our main cost is staff and, in particular, football department related. As always, the balance which requires to be struck is cutting costs to meet expected income while maintaining performance to the level where higher income can be achieved. As things stand our budget for expenditure for 2012/13 is £4.5m including a football department budget of £1.8m for players and a further £0.8m on other football activities subject to upside risks on the basis of performance. Clearly, a substantial portion of those costs relate to contracts which are binding on the Club and cannot be renegotiated at this time. It has been, and remains, irrespective of the NEWCO vote, essential that the Club identify, develop and trade football talent on terms that suit both player and club alike. The Board will always therefore consider competitive offers for our players if it is in the interests of all. We currently trade with no debt save a long-standing loan to our majority shareholder Mr John Boyle of £340k which is subject to a generous affordability repayment schedule. We have also benefitted in recent years from the generosity of Mr Boyle in making funding available to assist the Club cash flow from time to time. This is no longer something which we can rely upon, or expect. Europe The potential net income from our European qualifications is very difficult to predict but is likely to be a minimum of £250k on the basis of past experience. This estimated minimum amount has already been included in our budget forecast for 2012/13 as guaranteed income. In the event of us progressing successfully through the first round of fixtures there is significant upside to this. This is not an equation any Board can rely on for planning purposes at this stage. POTENTIAL IMPLICATIONS ON REVENUE â?? NEWCO DOES NOT RE-ENTER SPL 1. SPL distribution Last year this sum was approximately £1.56m or 36% of our total income. The main risk to this income comes from the existing or pending sponsor/TV contracts that themselves allow SKY SPORTS and other commercial partners to review in the event of the absence of Rangers or Celtic. Depending on the assumptions made this could mean a loss of income of around £600k. This is our best estimate however there are risks around this number dependent on negotiations with broadcast partners. 2. Gate Income Last year our cash income from gate receipts was £1.64m comprising £670k season tickets, £970k fans pay at gate. Of the pay at the gate cash income Rangers represented £300k or 31% while Celtic represented £285k or 29% while the other 9 SPL clubs totalled £300k or 31% of cash income (an average of £26k per game) The potential predictable loss of income from no NEWCO is around £275K (Rangers income minus average SPL other). In addition to this we would expect our commercial revenues from hospitality and sponsorship to reduce but the potential here is unknown. Our best estimate is that hospitality would be reduced by £40k. We do not anticipate a loss of other gate receipts under this scenario indeed it is possible that we may see a modest rise in attendance (which we do hope to encourage in any event) if we are successful in our marketing initiatives and the fans of all clubs, but especially our own â?? improve support in the face of the challenges this scenario provides. 3. Sponsor Income It is difficult to assess this impact which last year comprised around £275k of cash income (advertising and sponsorship). While the loss of the Rangers fan base will be a negative to any commercial contract we have to balance that with the upside of European competition and, other things being equal, the marginal relative increase in our ability to compete successfully in all competitions. 4. Player Trading We do not anticipate that this scenario has a net impact comparatively but do note that all clubs look likely to be reducing their headcount and costs in the coming year which could have a negative market impact. That said it places a premium on the best talent. POTENTIAL IMPLICATIONS ON REVENUE â?? NEWCO ENTERS SPL 1. SPL distribution Last year this sum was approximately £1.56m or 36% of our total income. We do not anticipate a risk to this sum in the event of NEWCO re-entering the SPL. 2. Gate Income Last year our cash income from gate receipts was £1.64m comprising £670k season tickets, £970k fans pay at gate. Of the pay at the gate cash income Rangers represented £300k or 31% while Celtic represented £285k or 29% while the other 9 SPL clubs totalled £300k or 31% of cash income (an average of £26k per game) While we do not anticipate a loss of gate receipts from NEWCO fans under this scenario it is very possible that we see a significant loss of income from fans of other clubs and our own depending on the general view of the â??integrityâ?? of the game. This is impossible to judge at this stage but the numbers above give us the chance to draw our own conclusions. 3. Sponsor Income It is difficult to assess this impact which last year comprised around £275k of cash income (advertising and sponsorship). Again the risks in this scenario seem balanced. 4. Player Trading We do not anticipate that this scenario has a net impact comparatively but do note that all clubs look likely to be reducing their headcount and costs in the coming year which could have a negative market impact. That said it places a premium on the best talent. Conclusions The information above is written as objectively as possible given the uncertainty we face in making this decision. The Board is of the view that whatever decision is made on the NEWCO vote by the SPL clubs, the financial position of Motherwell Football Club will suffer. On a purely financial basis, a â??Yesâ? vote would likely preserve commercial revenues, however the impact on gate receipts is unclear. The risks presented by a â??Noâ? vote are slightly easier to quantify insofar as gate receipts are concerned, but even then are extremely uncertain given we do not yet know what the SPL commercial partners will decide. There are clear risks to the financial stability and very future of this Club presented by the current situation. In the event of serious financial difficulty, the Board will have to look to the members, shareholders and supporters to further step up their support for the club and the Well Society. This is likely to be in the form of increased prices, higher attendances and further Society memberships and contributions. The potential target for this we estimate should be at least a doubling of the existing sum raised by the Society of £320k cash in the bank with a total of £368k pledged. It should be noted that these events also mean that these sums may be required to ensure the Club can continue to trade in the transition and not to meet our strategic goal of generating a £1.5m strategic reserve which we will require to generate over and above the sums required to trade through any transition. It is clear that if we are unable to replace significant amounts of income lost under either scenario, the club could be facing an insolvency event. Following new rules recently introduced at SPL, this would lead to a 21 point deduction, being one third of last yearâ??s total. Whilst other clubs could also be in the same position, their points deduction would be lower. The Board will of course keep all of our members, shareholders and supporters fully informed of the state of trading and the requirements on all of us. 0 Quote Link to post Share on other sites More sharing options...
GovanAllan 0 Posted June 25, 2012 Share Posted June 25, 2012 I think one of their rules calls for a vote in not less than 14 days, but they can change the rules given the circumstances as I can't see anyone objecting to getting answers more quickly. They've changed every other rule on the fly in this mess what harm will one more do. 0 Quote Link to post Share on other sites More sharing options...
johnnyk 158 Posted June 25, 2012 Share Posted June 25, 2012 ICT also Vote No to NEWCO On SSN and STV twitter........ 0 Quote Link to post Share on other sites More sharing options...
der Berliner 3,282 Posted June 25, 2012 Share Posted June 25, 2012 At least they all seem to come to a quicker decision than HMRC. Refreshing. 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted June 25, 2012 Share Posted June 25, 2012 Surely we're not going to wait until this vote? It's mathamtically impossible already. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted June 25, 2012 Share Posted June 25, 2012 Aberdeen have now also confirmed they will vote No. This means that there are 5 no votes which is enough to push this over the line. Aberdeen, ICT, Hearts, Dundee Utd and Hibs. We should therefore just speed the process along and make application to the SFL. This may even cause more shifting of owners - I cant imagine Charles Green's investors being overly enthused about ownicg a club which is not in its top division. The joys of being a Bear. Will still ALWAYS prefer that over being the supporter of ANY other club out there. 0 Quote Link to post Share on other sites More sharing options...
craig 5,199 Posted June 25, 2012 Share Posted June 25, 2012 St Johnstone have also said the same thing. Time to move on and plan for SFL football. I just hope that ALL OF US BEARS follow follow because the club needs us now more than ever before. Time to show solidarity and come back even stronger. 0 Quote Link to post Share on other sites More sharing options...
simplythebest 0 Posted June 25, 2012 Share Posted June 25, 2012 Aberdeen have now also confirmed they will vote No. This means that there are 5 no votes which is enough to push this over the line. Aberdeen, ICT, Hearts, Dundee Utd and Hibs. We should therefore just speed the process along and make application to the SFL. This may even cause more shifting of owners - I cant imagine Charles Green's investors being overly enthused about ownicg a club which is not in its top division. The joys of being a Bear. Will still ALWAYS prefer that over being the supporter of ANY other club out there. Did Green and co underestimate/not understand the bad feeling towards us when they made the asset purchase deal in the event of a CVA failing? I never expected to be voted back in for a second. 0 Quote Link to post Share on other sites More sharing options...
CumbernauldGers 0 Posted June 25, 2012 Share Posted June 25, 2012 St Johnstone have also said the same thing. Time to move on and plan for SFL football. I just hope that ALL OF US BEARS follow follow because the club needs us now more than ever before. Time to show solidarity and come back even stronger. Agree mate, we should be planing for Div 3 right now. 0 Quote Link to post Share on other sites More sharing options...
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