Walsall Supporters’ Society: notes
from the AGM of Walsall FC Ltd,
Location:
the Swifts Lounge, Banks’s Stadium, Walsall
Date:
Monday 26 November 2007, 9 a.m.
·
The meeting started at 9 a.m. and finished at 9:13 a.m.
·
The Board of Directors, represented by Mr N. Bond and Mr K.R. Whalley.
Apologies were tabled by the other directors.
There were four shareholders represented.
·
Mr Bonser and Mr Whalley were re-elected. The shareholders were thanked for their continued show of
support.
·
The board noted that they will do all they can to take the club
forward. They noted, the thanks they
had received from shareholders for their efforts.
·
Other than those tabled by the Walsall Supporters Society, there were no
other questions. The clubs answers to
our questions are given below.
1.
We note that for the fifth consecutive year the board have been required to
extend the amount of refinancing of Walsall FC Ltd.. For what purpose was the
loan of £495,000, secured from by way of a legal charge over the football
stadium, drawn down? How do the Board plan to get out of this cycle of
extending refinancing?
There is not a ‘cycle’ of extended refinancing.
The collapse of ITV Digital in 2002 and the subsequent loss of £2
million of income per year for three years prompted three years of investment
by the Board to meet contractual costs the Club had already committed itself to
on the understanding, the ITV Digital payments would be made good.
Following the Club's return to profitability and stability in 2006,
further investment was sought during the last two years to improve the
infrastructure and facilities at the Club in order to guarantee and enhance
future income streams, such as the development of the Stadium Suite and the new
Club Shop.
The purpose of the £495,000 loan in 2007 was to contribute towards
financing the New Training Ground the benefits of which should prove invaluable
to the Playing side of the business.
No further financing is envisaged at this stage.
2.
We note that for the first time refinancing has been secured from a source
outside of the Board. Clearly, the Board of Directors have an emotional as well
as a financial stake in Walsall FC, and we are grateful for their continued
commitment to provide the necessary financial support for the next 12 months.
Will the Board clarify from whom this external refinancing has been secured and
why an external lender has been needed?
The external financing has been provided by Marstons PLC. This has proved to be the most economical
option available to the club.
3.
What are the implications for the Club of implementing a refinancing policy
involving an external lender who may have less of an emotional tie to Walsall
FC? How does this impact on Walsall FC’s future?
Marstons PLC have enjoyed a long association with the Club and are
currently tied into a five-year deal with regards to the ‘Stadium Naming
Rights’. As such, the external
financing will be repaid over a fixed term and this will have no impact on the
financial future of the club.
4.
Will the board clarify why no Supporters’ Focus Group meeting has been held in
the last 18 months? We believe that these are a useful way for the Board
to discuss its plans with supporters, and we were grateful for Mr Whalley's
involvement at these sessions. It is also a commitment made to the supporters
through the Customer Charter. Do the Board plan to re-instigate Supporters’
Focus Groups?
The Board will be happy to reconstitute these Focus Group Meetings in
2008.