An increase in broadcasting revenue (£615K) thanks to our 5th placed finish in the league was the main factor in raising turnover to £4M last season. Poor cup runs again cost us dear although gate income did have a modest rise.
The directors stressed that the viability of the club remains dependent on loans. “The board acknowledges that the Club’s liquidity position is reliant on the continuing availability of the facilities from Mr Hutchison, Mr Boyle and the Well Society and that without the provision of these facilities, a material uncertainty would exist which may cast doubt over the Company’s ability to continue as a going concern.”
However there is an optimistic view that following the sale of the club to the Well Society and agreement has been reached to restructure the loans (£1.5M to Les Hutchison and £329K to John Boyle). For the first three years any repayments will be based on a percentage of player transfer income only. Thereafter a fixed payment schedule will apply. There is a “reasonable expectation that the club will have adequate resources to continue in operational existence for the foreseeable future”.
Income from player training compensation and sell on fees rose to £511K from £146K in the previous year. With fees to come for departures of Ben Hall and Marvin Johnston the aim of fostering an income stream from the development of players seems to be on track.
The change of ownership will result in the creation of a Supervisory Board (initially the Well Society Board) to sit alongside a newly formed Executive Board (effectively the current Motherwell FC Board). The day to day running of the club remains unchanged.
The 111th Annual General Meeting will take place at Fir Park on Tuesday 6 December.