WST statement on loans, why not made public, and mystery tweet update

[Rob]

https://wst.org.uk/wp/?p=1193

Splitting it into separate threads

Statement has a mini Q&A on the tweet / loans / administration:

"Source of unauthorised Tweet
This was traced back to a source that gives the sender anonymity. Access to the account was limited to a few individuals, most of whom are still with us.

The WST is at fault because no system was in place regarding the Twitter password. It’s sad that we should be targeted in this manner but a system is now in place and there will be no further occurrence.

Financial “black hole”
There was no black hole, there were no shocks. A black hole implies that money has gone missing. It was a cashflow issue that needed a short-term solution. The solution chosen was the most cost-effective solution for the club and was voted on unanimously by the WST board at the time.

There had been one other instance prior to this where a short-term directors’ facility was made to the club. No interest was charged and the facility was cleared at the end of the season. This situation was caused by a combination of reduced trading income than forecasted over the Christmas period and matchday income between January and early March 2016 average £6,000 per game behind budget.

The options considered included arranging a three-month bank overdraft, but this would have taken time to arrange and would incur interest and arrangements fees. It would be likely that the bank would also require personal guarantees and it was felt at the time the facility provided by the directors was similar in nature, but was quicker to arrange, and carried no additional cost to the club.

Administration
Administration happens when a business cannot meet its obligations. There was never any danger of the club going into administration. To suggest otherwise is a malicious assertion seemingly designed to hurt the football club.

WAFC has one shareholder which is the WST. The members of the WST are committed to supporting the football club from its members’ funds. A members’ resolution is passed every year to allow up to £150k to be injected into the football club as needed. Current WST funds stand at £170k and we have injected £20k in the last month to assist with the COVID-19 crisis.

Why was this not made public?
There was no obligation for the Football Club or WST board to make this public. Members delegate authority to the board to run the business. The problem arose and was dealt with in a manner beneficial to the club.

Publicising any cashflow issues could have created issues for the business. We may have found our credit terms altered as suppliers would be nervous about dealing with us. We may have found players less likely to sign for us.

We recognise that this has caused some concern amongst Members and would ask you to consider what level of information you would like on our financial situation as we move through this crisis and beyond. We can put this forward at the next AGM, but it is a complex issue and needs some thought."

[northwalian dragon]

Statement also reads:

Second Disabled Platform
Following the recent announcement regarding the cancellation of the Lionel Richie concert we are now in a position to start progressing the platform. Following the initial submission of plans to the local authority, feedback was received requiring slight amendments.

Previously, the concert used this area of the stadium and it was decided to hold back on submitting revised plans until after the detailed plans for the concert were fully known. Now that the concert has been put on hold, we will work on amended designs to submit for approval to the local authority.

We would like to take this opportunity to thank director Phil Salmon whose company AEC Engineering are building the structure at cost. This is a huge support to the club.

Director Shadowing Resolution 2019
Some progress has been made on this resolution, but it has been difficult to implement as envisaged by the membership at the last AGM. Primarily the availability of members to attend training, resignations and latterly the COVID-19 crisis have had an impact.

The board of the WST will be looking to bring amendments to this resolution, with the support of our parent body the Football Supporters Association, for members to consider at the next AGM. We recognise the importance of succession planning and we need a system that supports an effective club board.

AGM 2020
This year’s AGM was due to take place in June. However, due to the current restrictions in place it will not be possible to hold our usual meeting. The Trust Board are currently looking at different programmes that will enable us to hold a meeting.

We need to accommodate up to 3500 members, enable those members to ask questions and to vote on resolutions. Our plan is to hold a members meeting in June to test the new system and, if successful, to hold the AGM in July.

You will receive the usual notifications in due course, however members may wish to consider any resolutions that they wish to put forward or if they wish to stand for the WST Board. Details on how to do so will be provided with the AGM notices.

WST Board Vacancies
There will be several vacancies on the WST Board this year with several Board Members standing down.

John Mills, Steve Lloyd, Rob Stock and Sarah Smith Howard will all be standing down and the Board would like to thank all of them for their efforts over the past few years.

[Rob]

Originally Posted by northwalian dragon

Statement also reads:

Have created two other threads for other discussion or there will be one hell of a messy thread.

WST update on financial situation

WST statement - several vacancies on the WST Board

WST statement on loans, why not made public, and mystery tweet update

[northwalian dragon]

Originally Posted by Rob

Have created two other threads for other discussion or there will be one hell of a messy thread.

WST update on financial situation

WST statement - several vacancies on the WST Board

WST statement on loans, why not made public, and mystery tweet update

My apologies Rob, can you add the detail about the second platform to one of them though?

[jacthelad]

They really need to decide what tbey do and dont need a mandate for. If they are there to rin the business surely looking for a decent investor could be something they can do.but no a mandate is needed. Few loans that nobody needs to know about. Yeeeeeah fine
Posted via mobile theme

[northwalian dragon]

The reasoning for not “publicising” doesn’t sit right with me

What’s the excuse for not informing members at the AGM once the loan was repaid?

[Jaded]

Originally Posted by Rob

Why was this not made public?
There was no obligation for the Football Club or WST board to make this public. Members delegate authority to the board to run the business. The problem arose and was dealt with in a manner beneficial to the club.

Am I missing this, or have they not addressed whether Rich Ulrich is correct in saying the WST board weren't informed about the director's loan? Presumably even if ordinary members didn't need to be informed, the Trust board should have been?

[fezbob]

Originally Posted by Rob

Why was this not made public?
There was no obligation for the Football Club or WST board to make this public. Members delegate authority to the board to run the business. The problem arose and was dealt with in a manner beneficial to the club.

Publicising any cashflow issues could have created issues for the business. We may have found our credit terms altered as suppliers would be nervous about dealing with us. We may have found players less likely to sign for us.

We recognise that this has caused some concern amongst Members and would ask you to consider what level of information you would like on our financial situation as we move through this crisis and beyond. We can put this forward at the next AGM, but it is a complex issue and needs some thought."

I thought that quote sounded familiar so I went back to my copy of Animal Farm:

"No one believes more firmly than Comrade Napoleon that all animals are equal. He would be only too happy to let you make your decisions for yourselves. But sometimes you might make the wrong decisions, comrades, and then where should we be?"

[3pmsaturday]

Originally Posted by Jaded

Am I missing this, or have they not addressed whether Rich Ulrich is correct in saying the WST board weren't informed about the director's loan? Presumably even if ordinary members didn't need to be informed, the Trust board should have been?

Says above it was voted unanimously by the Trust Board.