Sunday, 29 August 2010 09:43

Members meeting 16th August 2010

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The presentation given at the Members meeting 16/080/2010 is available HERE. (Registered Members only)

The following are responses to the Frequently Asked Questions identified following the meeting:

This article will be updated as and when appropriate. In the mean time if members have any queries regarding the potential purchase of the club please e mail the secretary @ the following address.- This email address is being protected from spambots. You need JavaScript enabled to view it.

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 What is the next step?

We are waiting for Wrexham Village to give us the details of what is for sale and at what price.

 When will this happen?

Mr Roberts had agreed to meet with the trust in the next two weeks. That period has passed and we have now written to him on this matter.

 Would the Trust buy the club without the ground?

It is difficult to say at this stage. The ideal would be to buy the club and ground together. However, if we felt that the club was sustainable without the ground (IE long lease and low rent) then we would have to consider it.

 Mr Moss has said that he wants £2m for the club and ground and we havent got that kind of money?

£2m is an opening gambit that Mr Roberts has admitted is a ball park figure. We would need to see if the assets we were purchasing would be worth that amount and we can only do that when the club make a proposal.

 Would you take on partners in order to reach that sort of target?

Yes. The Society would be happy to work with any party that had the clubs best interests at heart.

 Would the WST consider being a part of an alternate consortium?

Yes. The Society would be happy to work with any party that had the clubs best interests at heart.

 Will members have a say in the final decision?

Yes. The Board will negotiate the best deal possible and this will be put to our members to approve, or not. Any potential deal needs to have the support of the majority of fans in order to have any chance of success. We would urge all Wrexham fans to join the Trust 

 If the WST does buy the club, who will run it?

The club will be run by a board of directors supported by a few key paid employees, such as a Chief Executive.

Will the board of Directors be the same people as the WST board?

No. The Trust board will run the Trust and be answerable to its members. The Club board will run the club and be answerable to its shareholders, of which the Trust will be one. There may be Trust board members who sit on the club board but this is yet to be decided. Day to day decision making will be the responsibility of the club board. Until we know what the clubs proposal is then everything is speculation.

 What would happen if the WST was not the outright owner and was working with partners?

We would discuss the make up of the board with our partners and agree the best people for the role. In theory the WST would reasonably expect board representation in direct ratio to our shareholding.

 n.b. At Swansea the trust owns 19.9% of the shareholding and has 1 seat on a board of 9.

At AFC Telford the trust owns 100% of the shareholding and appoints the whole board.

 Most important is that the board is competent and fully committed to the club. This outweighs any issues around the size of board membership.

 At the members meeting you talked a lot about sustainability. Could you expand on that?

The Society board recently discussed on what terms they would, or would not, buy the club. As you can appreciate this is such a wide ranging topic it would be difficult to get a consensus on every eventuality. We agreed that we could not take the club on if we did not think that we could run it effectively for the longer term.

 Let me use Stockport County as an example. The County trust took on the club with a large number of negatives. Firstly they had to pay a huge rent to the clubs owner. Then there were limits on the income they could generate from non match day activities. They were on a hiding to nothing.

 Oxford United are another example. Although not Trust run, the club have to pay a six figure sum to Mr Kassam for the use of the ground. He owns the rights to all the catering outlets and also all of the advertising boards. Although the club have done well to get back into the league they will always be under the added pressure of carrying this burden.

 If the figures do not add up then we are under no obligation to purchase.

 So if Wrexham Village wants too much money, or will only sell it under certain terms, the Trust will not proceed?


 Will club funding for the new Kop be affected by a sale?

The Village have confirmed that they will not be putting any more money into the football club. We had to establish this fact as the Society would not want to deprive the club of the promised funding from the development. This funding no longer exists.

The Society is currently working with the local authority to apply for funding from the Assembly to build the new Kop.

 Are the Crusaders part of the deal?

No. We have no remit to buy the Crusaders.

 Why did the Trust break confidentiality by going public on this issue?

We did not break any confidentiality. We have correspondence between the club and the Society which backs this up.

 Even if the Trust can afford to buy the club there is no way that they can afford to run it. We need people who can afford to fund the club long term.

This is a myth. The club has never had individuals who are willing to do this and it has only ever been the fans who have poured money into the club.

 People confuse investment and loans. The current ownership has only loaned money to the club and in so doing has increased its debts. This is not unique to Wrexham and is, unfortunately, the norm in football.

 For example:

 Fulham have debts of £164 million, £159 million of this is owed to Mr Fayed.

 Wigan have debts of £54million, £39million of this is owed to Mr Whelan

 It cannot be healthy for these clubs to live so far out of their means and be totally dependant on the generosity of an individual. Both of these clubs are vulnerable to relegation and could end up in a very similar situation to Portsmouth.

 A Trust owned club would run to a strict budget that would ensure a profit was made each year. We will not spend money that we do not have. This is the way forward in the football industry as more and more clubs fall victim to the failed benefactor model of ownership.

 So would the budgets be less than is currently the case?

The club has lost over a million pounds a year for the past two years. If stricter budgets are not set then there will not be a club to support. Expenditure has to be brought back in line with income as quickly as possible. The Village has already made a start in this respect.

 You cannot spend money that you do not have.