Source: FOOTYMAD
Can Motherwell learn from Buddies' buyout?
Motherwell FC is about to undergo a radical transformation as it changes from a limited company with a dominant shareholder into a community based enterprise. Can anything be learned from the plans for a change of ownership at St Mirren? The financial settings at the two clubs are different, in that John Boyle’s donation of shares means that there is no need for a buyout but the future structure at Motherwell is likely to have some similarities to that proposed at St Mirren. 1000Hours, the body formed as a vehicle for the takeover, will have to raise £2 million to purchase their controlling interest. In Paisley there are plans for a Community Interest Company (10000Hours) to buy 52% of the shares in the club. This new company would appoint a majority of directors to the club board. This type of structure has certain financial advantages and an ‘asset lock’ feature to ensure community ownership. They plan to have three categories of membership; individual, community and corporate. Initial thoughts are that individual members will pay £10 a month, community groups pay £500 a year and corporate members contribute £10,000 on an annual basis. Various benefits will come with membership; the ability to elect directors to the company and access to facilities at the stadium among others. They claim to have firm declarations of interest from 700 individuals, 21 community groups and 10 corporates. The fan base in St Mirren is a little smaller that Motherwell’s (2010/11 average SPL home crowds: Motherwell 5490, St Mirren 4453) but there are enough similarities to make a comparison meaningful. Could we attract say, 700 fans willing to subscribe £10 a month? In these difficult times are there local businesses able to spend many thousands for a network of contacts and some rime seats? Can local community groups, already squeezed by local authority cash restrictions raise some hundreds to support the local football team? The clear advantage we have is that the money raised will go directly to the club and not into the pockets of the current owner. If our membership scheme is able to raise a sufficient amount to give the club a big enough pot to smooth out the irregular income flow that is a feature of the football industry then we might have a sustainable future. We await the proposals for the way forward with interest.
