Andrew Wilson started the meeting and introduced the directors Jim McMahon, Derek Weir, Leeann Dempster, Bill Dickie and John Swinburne. The main players were Derek Weir who outlined the thinking behind the plan and Jim McMahon who has detailed knowledge of the financial planning that underpins the move to wider ownership.
The philosphy behind the Well Society is that the future of Motherwell FC lies in fan ownership. We are able to move in that direction because of the opportunity presented to us by John Boyle's decision to donate his shareholding to the commmunity and not (as is often the case elsewhere) through desperation caused by some financial crisis.
Most of the details that appeared followed a series of questions that came from the audience (somewhat short of 100). It seems that the board feel the project will need to raise at least £250,000 to be viable. Failure to reach that target would force the club to search for another funding stream and would mean that fans would have their monies returned. That scenario would be a disaster for those who advocate greater fan involvement in the running of our club.
The cash raised by joining fees and subscriptions to the Well Society will go directly to the club and not remain with the Society. It would be used soley to smooth cash flow and would not be drawn down to subsidise any losses made by the club following a poor season. The Society will have, as an initial stake, 35% of the club's shares but the hope is that "as soon as sensible and humanly possible" it will have all of Boyle's shares and therefore have 75% of the club. In practice the Society will have the economic bulk of the shares after two years since Boyle's remaining shares will have no value after that time. (There will be an 'embarrassment clause' which would ensure that an early - and unexpected- sale of the club before that time would give him some return. After two years his shares will have no value.).
It was also revealed that if the club was to be sold by the Well Society at some time in the future that the proceeds would go to the newly formed Motherwell Community Trust. It has been established to give the club's Community Department access to other funding streams eg Lottery funds, that would not otherwise be available to the club. Discussions covered topics such as ex-pat membership and deals for seniors and children. The club accounts currently show a director's loan of £350,000. The repayment of that is being negotiated with John Boyle but is expected that the payments will be timely and flexible. Money raised from the Well Society will not be used for this purpose.
One of the key issues discussed was the 'trigger' that the club board will use to judge when (or if?) the bulk of the share transfer should occur. It could well depend on 'fit and proper' persons being as nominated to join the club board from the Society. There were hints that one or two likely candidates had already been identified. There is no doubt that the unanimous and strong view that was presented was that the board are committed to the transfer of ownership to the fan base and the wider community.
It is an opportunity that is offered to supporters of very few clubs, especially one that has no bank debt, and it looks like a scheme that deserves to succeed. The final version of the draft Society constitution will be delivered to the FSA this week and it should not be long before the Well Society comes into existence.