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What can this board do to pacify the fans?

 

Is there anyway the directors can turn both the finances and the trust of the supporters around?

 

With the club unable to repay George Lethams loan and the stark warnings from London that the investors may not support the short sighted share issue to the level required (75% uptake or the issue will not proceed). The fact that the club couldn't convince or provide 2 potential investors to underwrite the share issue let alone see any of the controlling investors (BPH Marg and Laxey) put their hand up to do so, then what is next should the share offer fail? Mr Letham has gracefully given the club a short time to re pay his loan and I can't see this being done if as it looks, the share issue doesn't provide enough capital.

 

Does the immediate future of our club rely on this short sighted offering? If it fails will the directors be in the unenviable position of declaring insolvency? It certainly looks like it.

 

One thing has been missed by many board apologists since Fridays announcement, why with the finances in such a state did it take so long for the board to even attempt to seek this small investment via share sales?

 

With the amount of accountants at our club surely one of them must have been able to see this coming sooner and not left it till the last possible minute to panic. Did they maybe want the season ticket sales to finish before setting the alarm bells as I see no reason that fans have been able to predict even with 100% st renewals that the club would not get through this calendar year without investment.

 

I spoke to Mr Wallace as far back as February and asked him what the club would do should the season ticket sales not reach the required level and I also asked him at the same meeting why not do a share issue now if one was available. Mr Wallace at this time suggested waiting as the price would be higher later in the year. I raised an eyebrow at this claim as I would have thought the less cash in the bank would surely not increase the share price but Mr Wallace has vastly more experience than me and I wrongly took his word on this. Maybe he didn't gauge the reaction to ST renewal notices that were working their way to postboxes at this time

 

I have no doubt that the board apologists will say " aye it's because of the low season ticket sales they need the money and it's the fans fault they can't raise the dough" REALLY? The season ticket deadline was back in April and the board have had almost four months to react to the results, my goodness that's around 120 days which seems to be the normal reaction time round our boardroom to do anything these days.

 

My prediction and that shared by many others is, if the share option fails to reach the 75% buy in, the fans will be blamed for not buying enough ST and putting the directors in this position, then the shareholders will be blamed for not bailing them out and the outcome will be "we needed to do a deal on the training ground/ cheap deal on naming rights to get us out of trouble, we are a good shiny new board"

 

I actually feel sympathy for a director or two at this time because not only are they struggling to keep the lights on, they have to contend with in fighting and power struggles in the boardroom which will no doubt be also hampering their efforts to do the right thing

 

I haven't even touched the "where's the promised investment?" question which has been promised now by both sides of the boardroom split.

 

All this drama going on while a potential investor has declared the willingness to invest £30m but can't even be giving financial information when he's been asked to underwrite a share issue. The mind boggles.

 

Sort out your boardroom differences, cut the crap and spin and pick up the phone. It's good to talk and you did claim you're "ready to listen".

 

 

Craig

 

 

https://www.facebook.com/SonsOfStruth

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It will be time for a serious escalation in fan action if they start selling the family silver.

 

As the Board have a legal obligation to maintain the business as a viable concern they may have no alternative. I genuinely hope we do not see that day

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  1. The offer will succeed.
  2. The loss of 10,000+ fans per game is costing the Club £500,000 per month (2 games per month)
  3. It's time the " potential investor (who) has declared the willingness to invest £30m " stopped using Mr Houston and his boggling mind as a mouthpiece;
  4. And it's also time he said something positive about the Club; like encouraging people to go along and watch the games for example.

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