BIAS Press Release

[BIAS]

PRESS RELEASE

Brentford Independent Association of Supporters (BIAS) is urging the small shareholders at Brentford Football Club and its associated company Griffin Park Stadium Limited to oppose the proposal for the football club to buy back its stadium.

Although BIAS supports the principle of the club owning the ground it does not believe that the conditions attached to the sale are in its best interests. BIAS will oppose the proposals for the following reasons:

• The “Special Share” issued to former Chairman Martin Lange is exclusive to him and cannot be transferred.
  It will be invalid on the death or bankruptcy of Martin Lange or if an objection to a proposed sale of Griffin Park is not received within a specified time. This means there is a real risk that despite everything the ground could be sold without being vetoed by Martin Lange.
• The board’s decision to use interest received from the deposit of funds raised from the sale of Griffin Park for the general purposes of the Football Club.
  This will mean that the real value of those funds will reduce in value over time. The board may justify this by claiming that it will help to balance the books but in essence it’s pretty much like selling off the ground bit by bit to pay the bills, an exercise we’ve been through before.
• Altonwood have been benefiting from “Group Tax Relief” and Marlborough House will enter into a similar arrangement meaning that both companies benefit from Brentford’s trading losses.
  Although this is quite legal it has always seemed a little immoral in view of the fact that the Football Club receives no material benefit from it at all. We
  do not understand where the board’s incentive to reduce the trading losses will come, particularly as all debts will be repaid from the sale of Griffin Park.
  If the two companies were to make donations to the Supporters’ Trust equal to the tax relief, enabling the Trust to recycle the money through the club, or use it for the new stadium sometime in the future, perhaps the arrangement would be more acceptable.
• It is not clear what the future of Griffin Park Stadium Limited is, or what happens to the £1,300,000 it will ultimately receive from the sale of Griffin Park.
  We see no clear reason for the continued existence of Griffin Park Stadium Limited, and are concerned that this money too will be lost to the club.
• The relief from tax on capital gains applies if the club is successful in its quest for a new stadium, within three years of the sale of Griffin Park.
  Ron Noades has been at the club for three years already and has frequently stated that the club has spent many years trying to secure a new stadium. There is no guarantee whatsoever that Brentford will ever enjoy the benefits of this tax relief. There has been very little progress on a new stadium and it therefore seems foolish to transfer ownership of the ground at this present time on this basis, unless the plan is to dispose of it as soon as possible. The Chairman of Woking has stated that he has no intention of offering Brentford a long-term home and there is now a very real fear that we will end up like Brighton or Wimbledon.
• We believe that the gross proceeds of any sale should be used for the purchase of a new stadium and that any debts incurred by the club should be carried over.
  We know that the interest saved will be substantial if debts are repaid immediately but it is the duty of the board to protect the assets of both companies. The proposals for paying off the debts are probably being made with the best of intentions but I think it’s more important to concentrate on reducing them to as close to zero as possible rather than consider using the ground as some kind of future endowment.

BIAS do not expect minor shareholders to win in a vote against the propositions and have no wish to prevent the club from taking back ownership of its ground, but think it’s important that the directors understand supporters’ concerns.

ENDS

 

[rebus]

i suggest BIAS contacts everyone on the members register from the list available in companies house

 

[Isleworth Bee]

Sorry to digress slightly from the Press Release. Does anybody know the current approximate market value of a share in Brentford FC. I know somebody with 10 shares who has intimated he may be prepared to sell some.

If not the value, how many shares have been issued by Brentford FC Ltd.

Thanks.

PS. I will try to persuade him to cast his vote as above.

 

[Edmundo]

There isn't a market in Brentford shares as such. They aren't listed on any stock exchange, so it's really down to what a willing buyer and a willing seller can agree. My impression is that when shares are acquired from the estates of deceased shareholders, only par value is paid. The par value of a share in Griffin Park Stadium Ltd is 50p (I think there are 100,000 in issue) and the par value of shares in Brentford Football Club Ltd is 1p (I think). I'm not sure how many shares in BFC Ltd exist, but it's probably the same.

As for trying to put a value on the shares, well I think there are probably four points worth considering:

• profits and dividends are usually used as an indicator of value, but as BFC doesn't make profits or pay dividends, the shares are basically worthless on these criteria
• the ability to influence decisions of the Football Club. Altonwood Ltd has a controlling interest and therefore ten shares confer no ability to influence decisions, so the shares are basically worthless on this criterion
• the value of the assets over the liabilities if the club is wound up - ten shares would entitle you to 0.01% of the proceeds if the club was wound up, or about £100 for every million. On this basis the shares probably do have some value at present, but this should probably be discounted on the basis that the club would only be wound up in the event that liabilities exceeded assets
• sentimental value

If your friend is willing to give you some shares, I suspect that it is down to you to assess what value you attach to them.

Of course, the value of the shares held by Altonwood Ltd is much greater because they exist as a block that confers a controlling interest - which explains why Noades paid several hundred thousand pounds to David W£bb. If all the small shareholders were able to band together, perhaps they could assert some influence, if not a veto, on decisions made by Ron Noades - something for Bees United to consider, perhaps?

[This message has been edited by Edmundo (edited 18 June 2001).]

 

[Gee Bee]

I believe that any small shareholders who effectively have no say in how the club is run and because of this has little or no value to them should transfer their shares to Bees United, in order to get a little voice slightly louder.

 

[shaggy]

Excellent Press Release. Well done guys.

I hope Lange is willing to support the objection.

 

[Thorne In The Side]

Fair play to those willing to spend their own time writing up such statements.
As for the sale of shares, if anyone who has shares and no longer has an interest in the club then they should out of decency be given to someone who would be proud to own them. The more that lay dormant means that the chance of grouping lots of small shareholders together to form a fair proportion will never happen.
If you want to sell them then I'll be prepared to take them off your hands for a fee, other than that then Bees United is a good option.

 

[shaggy]

I am very disspointed this hasn't provoked more reaction. This is critical to the future of our club.

 

['Ayes B]

<font face="Verdana, Arial" size="2">Originally posted by shaggy:
I am very disspointed this hasn't provoked more reaction. This is critical to the future of our club.</font>

Fair Call Shaggy.

To be honest I was lost for words when I read the proposal, I didn't understnd it but seamed to smell funny.

The BIAS statement makes alot of sense.

Hopefully it will be reported in the local press or even on TV.

 

[Bigbee]

<font face="Verdana, Arial" size="2">Originally posted by 'Ayes B:
Fair Call Shaggy.

To be honest I was lost for words when I read the proposal, I didn't understnd it but seamed to smell funny.

The BIAS statement makes alot of sense.

Hopefully it will be reported in the local press or even on TV.</font>

whats Ayes B says about the proposal ,I guess people think that about me

Good work BIAS .

 

[IsleofWight_Bee]

Take your point Shaggy but I reckon the lack of response is down to the fact that the fans without shares - i.e. nearly all of us -have no say in this.

Seems protest is our only option!!

 

[Russell]

Excellent statement from BIAS and it strikes right to the nub of things.

Further to the disposal of any profits made by the football club, I recall that part of being a professional club registered with the FA is that any funds available cannot be paid as dividends to shareholders, unless of course you're a plc and Noades took us back from that a couple of years ago. Of course, you could award yourself a nice annual fee of say £167k and the money's yours isn't it?Then again, I could be wrong and shall willingly apologise if I am corrected.

No to Woking
No to the sale of GP to BFC in this form.
No to double dealing crooks who want to evict football clubs from their own property.