A bit more detail here :
STATEMENT FROM FORMER BOARD MEMBERS OF FC UNITED ON CURRENT FINANCIAL PROBLEMS AT THE CLUB
Posted on
January 27, 2017
This statement is by all the following former FC United board members in alphabetical order: Adam Brown, Des Lynch, John Nicholson, Phil Sheeran, Mike Sherrard, Tom Stott and Alison Watt.
As former board members of FC United of Manchester, we are totally dismayed, disappointed and shocked at the rumoured redundancies of long-standing dedicated staff at the club. In this context we feel that we have to clarify a number of matters for members.
In April last year, a number of us took the decision to stand down from the board following an orchestrated campaign against the board, the staff, the club collectively and against some of us individually.
Debate at the club back then was increasingly being conducted in a fashion that was not acceptable, including unjustified personalised attacks on some staff, volunteers and individual board members. We warned then that this was not good for the future of the club and that it would lead to problems further down the line. We take no pleasure in noting that these problems now seem to be manifesting themselves in FC United having to make swingeing staff cuts, presumably as a result of the current board’s financial problems.
We want to place on record a number of facts that need to be understood as background and context to the current situation in which the club finds itself.
1. The overwhelming reason for the financial problems at FC United is the decline in members of around 1,500, the loss of over 500 season ticket holders and the huge amount of income associated with those declines, a loss of at least £65,000 and probably more. This has been exacerbated by the loss of a lot of long-standing volunteers, many of whom who have left in disgust due to the viciousness and rancour of the last 18 months.
2. Despite the current board’s claim to the contrary, the financial plan for Broadhurst Park was robust and extremely well researched. There were no reasons at the time why the financial targets should not have been achievable. It was scrutinised in detail by a wide range of organisations that supported the development including Manchester City Council, Sport England, Football Foundation and FC United’s own independent auditors. The business plan and its assumptions were also made available to members to scrutinise on numerous occasions; and a summary is still available on the club’s website.
3. In many areas, the first season at Broadhurst Park (2015-16) was ahead of the business plan. The number of season ticket holders (2,200) was well in excess of target and so were match attendances (the business plan was based on 2,700 and the club’s average in its first season was 3,400), but retention of these numbers appears much lower than should have been expected after such initial success.
In some areas the club was short on its projections – first year function room bookings particularly – but this was largely due to a number of factors including:
a) the delay getting into the ground meaning the club couldn’t take bookings until we knew we were in;
b) the collapse of the contractors meaning we had to take on snagging work and costs; and c) the amount of time taken up dealing with the ramifications of the campaign against the board.
4. The biggest single financial setback in the year was the loss of the Power to Change (PTC) funding to develop the space under the St Mary’s Road end of the ground as a revenue generating space under the stand on a match day and non-match day.
It is important to note the following facts with regard to this funding bid:
– The then board secured an offer from PTC of £250,000 grant and £173,000 community share funding in February 2016;
– This offer was on the point of signing in March 2016;
– Power to Change understandably had to put the offer on hold due to the malicious and baseless campaign conducted by some members and others associated with FC United, who astoundingly lobbied against the award being granted. It was this act of self-destruction that led to the offer being withdrawn and the development not happening in the summer of 2016. Without this destructive campaign, the funding would have been secured and the facility developed by late summer, leading to significant revenues throughout this season;
– The Power to Change bid was fully costed with a business plan showing increased income of £160,910 for the year, which is revenue lost to the club. Recent claims that there were no financial projections are wrong;
– Both the former and current bid are further undermined by people attacking the community business model on which they are based;
– The current board recently misrepresented the first Power to Change bid, claiming that the club contribution was £173,000. It was not – that £173,000 was proposed equity investment by PTC in the form of community shares.
5. A solution to the current problems at FC United cannot happen without a recognition by the current board of the destructive campaign waged leading to the loss of years’ of experience at board level; and apologies to those whose reputations have been unjustifiably traduced.
6. Unfortunately the opposite seems to be happening, with a continued campaign against current and past employees, board members and volunteers, a context in which the proposed redundancies must be viewed. There is no acceptance of liability for the current situation the club finds itself in by the current board and nine months on it continues to spend large amounts of its time attempting to smear the people involved in leading the club from its small beginnings to its newly built £6m facility in Moston, Manchester. This disillusions members and supporters and is wrecking the club’s prospects.
7. We would like to make clear that none of us have any desire or intention to go back to being involved at board level. However, we began the FCUM journey in 2005 believing wholeheartedly in the club, its aims and objectives, its democratic position and its desire to play affordable family football alongside the many thousands over the years who have also stood and watched and believed. We still do. FC United is a shining star of fan success and opportunity; it must not become just another football club. Together with members, our whole approach was always to try and ensure just that. But we felt that making some of these facts clear to the current membership and those who are still looking in from the outside, will enable them to be more aware and take steps to ensure that the club’s future is safe and that it is run in an open, honest and democratic fashion to protect the many achievements it has secured.
This statement is by all the following former FC United board members in alphabetical order: Adam Brown, Des Lynch, John Nicholson, Phil Sheeran, Mike Sherrard, Tom Stott and Alison Watt.
