Following the first of our weekly updates last week, please find our second update below.
Retained List 2020
The next steps for football remain uncertain and currently our staff are furloughed as part of the government’s Job Retention Scheme.
Therefore we are letting supporters know the Club have made the decision to postpone any final decisions on a retained list until such time as there is more certainty on the next steps for football, and we are in a position to return to usual operational activity.
Season Ticket Refunds
Several members have contacted us on this subject and it has been discussed at Board level. Our estimates are that a full refund would see a cost to the club of around £100k.
At this stage we are in lockdown and cannot make any firm decisions regarding refunds. A further practical issue is that all of our staff are furloughed and we have nobody to manage the transactions.
When the situation becomes clearer and the lockdown is lifted there will be a further communication regarding this matter.
Following on from last week’s communication. We have been made aware of a further Directors loan made by former Chief Executive Don Bircham. This was made by Mr Bircham as the result of a cash flow issue in May 2015. This related to a late payment to the club that season.
Mr Bircham paid the money into our account at the beginning of May and was paid back before the end of the month. The two transactions cancelled each other out and were not picked up at the time. Of course we are grateful to Mr Bircham for taking the action he felt was necessary at that time and we value his contribution to the club, not least as a long-term sponsor.
However, it is important to note that Club Board is now bound by the Governing Board and Operational Board Policy and this prevents the Club Board, or individual directors, from making individual financial decisions of this nature. The interests of members are protected by the following two clauses.
6.4 If any lending is required by the Operational Board, this must be agreed by the Trust Board.
6.6 Should the Trust Board be asked to authorise any spend of over one percent of the annual budgeted turnover, it should be presented with a written business case, and consideration given to sharing with the membership.
Members will note that the last instance of a short-term loan was handled in line with this policy and approved unanimously by the Trust Board at that time in 2016. There have been no cash flow issues since 2016 . This is despite the club operating without an overdraft of any kind.
Members may wish to reflect on this policy and consider any further measures they feel may be appropriate in the current period of uncertainty.
In light of the proposed takeover of Chester FC we have been asked to clarify the process if such an offer was received at Wrexham.
The answer is quite straightforward. A bid for the club could not be accepted under our current rules. Primarily
4.2 upholding the mutual ownership of the Club operating democratically, fairly and transparently.
To accept a bid for the club this rule would need to be overturned by special resolution. A Special Resolution requires a majority of 75% of members and at least 50% of members voting (Rules 51 and 100).
Following this there would need to be a further resolution to wind up the Society and distribute its assets to charitable causes in the local community (rule 105). All of the above would be a decision of the membership of the Society.
The Governing Board and Operational Board Policy can be downloaded here, and the constitution is available to download here.