MAUREEN DOWNIE RESIGNS

Well Society Board member Maureen Downie has resigned from the Society.

In a statement issued last night (Monday 10 June) she said: “It has been a privilege to serve on the board of The Well Society over the last eight and a half years.

“Whilst differences of opinion are to be embraced as they ensure that all perspectives are considered, I’m at odds with the strategic direction currently being taken and cannot in all considered conscience continue in my role as Board Member.

“Therefore, I tender my resignation with immediate effect.”

The Well Society Board wishes to place on record their thanks to Maureen for her service.

• WELL SOCIETY CO-CHAIR STEPS DOWN

  

  The Well Society Co-Chair, Douglas Dickie, will step down from the Society Board.

  Douglas said: “Following the statement released today from the majority of the Well Society Board, I unfortunately cannot align myself to much of the content. Accordingly, I find my position of Co-Chair of the Well Society untenable, and I announce my resignation from that position with immediate effect. I also intimate my resignation from the Well Society Board at the same time.”

  The board wish to thank Douglas for his leadership and service to the Society.

• WELL SOCIETY

  UPDATE ON PROPOSED INVESTMENT

  

  An update from The Well Society Board relating to the Wild Sheep Sports proposed investment in Motherwell Football Club has been released and is available here.

• ARCHIVE

  BAILLEY COLLINS PENS CONTRACT EXTENSION

  Monday 10 June 2024

  

  Bailley Collins has extended her stay at the club after agreeing a contract extension.

  The defender, who has been an integral component at K-Park since signing as a free agent from Aberdeen in 2023, has put pen to paper on a one-year extension after an impressive maiden season at the club.

  “Bailley has really hit the ground running,” Head coach Paul Brownlie said.

  “Even during a tough run of form collectively, Bailley’s performances stood out and her importance to the squad is reflected after featuring in every SWPL game last season.

  “Securing Bailley’s signature for the forthcoming season is a real statement of intent for our aspirations of a top-six finish next season.”

  Collins wore claret and amber 32-times in the SWPL last season, starting on 27-occasions and netting three times from the Motherwell backline.

  “I am delighted to have extended my stay at Motherwell,” Collins emphasised.

  “I really enjoyed my first season at the club and am looking forward to continuing my journey here.

  “I’m excited to see what we can achieve.”

  INVESTMENT UPDATE

  Monday 10 June 2024

  

  The club have now entered a period of consultation with Well Society members and Motherwell Football Club shareholders with regards to the proposed investment from Erik and Courtney Barmack, with voting scheduled to commence at the start of next month. 

  Following on from our last update, we can confirm that the Heads of Terms have now been agreed between all parties and will be distributed to all Well Society members and Motherwell Football Club shareholders in the weeks prior to the vote commencing on 1st July 2024.

  Contact details for any queries can be found below.

  At this point of proceedings, a clearer timeline of the proposed investment process can be made.

  This timeline is as follows:

  Monday 10th June

  Start period of consultation with option for shareholders to email questions to Club via shares@motherwellfc.co.uk. Well Society members can also contact the Well Society directly with any queries via members@thewellsociety.uk.

  Monday 1st July

  Ballot Opens for Well Society members and Motherwell Football Club shareholders – 2 weeks voting period.

  Sunday 14th July

  Ballot Closes.

  A note from our Chairman Jim McMahon

  As has been well documented, the club has been in discussions for a number of months with Erik Barmack, a Los Angeles based entrepreneur. These talks have centred round how Erik and his wife Courtney could make an investment in MFC and become involved in helping to run the club.

  These negotiations have now advanced to the point where MFC have signed Heads of Terms (HOT) about how this would work going forward and the Board of the club are recommending that shareholders accept the offer.

  I set out below:-

  • A synopsis of the HOT including the safeguards built into the agreement.
  • A note on valuation and the rationale for this deal.
  • A steps paper on how this would be done.
  • A note from Erik and Courtney about their aspirations for MFC.

  And I apologise for the amount of information which is involved. This is mainly because of the nature of the deal. The bulk of corporate transactions involve an acquisition – party A buys party B – the money goes to the shareholders in B, not the underlying business. In our case all the money is going into MFC by way of yearly subscriptions for new shares in the club and that makes it much more complicated.

  

  Heads of Terms

  1-  As you will see from Erik’s note below, he sees this as a partnership with the fans and the Well Society (WS) – one where both parties invest on a yearly basis for six years, with the Barmacks putting in £300k for the first three years and £350k for the next three.

  2-  The WS commitment is £200k for the first three years and £250k for the next three.

  3-  The current shareholders in MFC are WS 71% – other shareholders 29%.

  4-  Other shareholders will have the right to subscribe for their pro rata amount each year eg if a shareholder owns 1% at present, they will be entitled to subscribe for 1% of the new shares issued. If they do that, it will reduce the amounts the WS need to subscribe and the number of shares they receive on that share issue.

  5-  Erik and his wife will own 8% of the shares in MFC in the first year, going up by approximately 8% per annum until they reach 49% by year six.

  6-  As outlined above, this money is going in as share capital not debt and so strengthens the balance sheet; unlike other instances in Scottish football where excessive debt has led to significant problems for the clubs involved.

  7-  There is a buy back option for the WS up to the end of year two. If the arrangement isn’t working as envisaged, they can buy back the WS shares for £660k (two years contributions plus costs).

  8- As a further safeguard, 30% of any player sales above £2m will be put into a separate account and can be used to help that purchase eg Player sales have been £4m – the £600k in that account can be used to help fund the buy back.

  9-  Other safeguards:

  • The club cannot take on any external debt.
  • No value can move to the Barmacks other than normal expenses.
  • No assets, ground etc, can be sold.
  • No change to the club name, colours, home ground can be made without the agreement of 75% of the shareholders.
  • The existing loan from the WS to the club remain in place until the final payment is made in six years time and at that point half of the loan is forgiven.
  • Given the money the WS holds at present, to meet its commitments over the next six years it needs to raise £100k per annum – 60% of what it currently achieves.