Motherwell FC has published an update on the proposed Barmack investment. It will do little to comfort those who oppose the Well Society becoming a minority shareholder.
The lengthy statement (link below) is a response to the fierce resistance that many expressed in the wave of condemnation that followed the launch of the bid last week. The MFC tweet introducing the statement states that it comes from Erik and Courtney Barmak.
It re-affirms that the club is in no financial difficulty but underlines the need for future investment. The executive board of the club believes that the £2M injection by Erik and Courtney Barmak over a six year period together with his immediate chairmanship is sufficient to allow a dilution of the Society’s control. The Well Society board opposes that view.
The upshot, if the proposal was to succeed, would see Barmack the majority shareholder with 49%. The Society and other shareholders (currently holding 29%) would hold the remaining balance of the enlarged share pot. The board argues that fan ownership remains.
A definition of fan ownership from the Football Supporters Association is that it requires a minimum of 50% + 1 of the voting rights of the club to be controlled collectively by a democratic entity which has an open and inclusive membership based on one member one vote.
By that measure the proposal would fall short and fan ownership would be lost. It is a price not worth paying.