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Report from Fans' Meeting
Report from Fans' Meeting

The business of Saving City

YORK CITY SUPPORTERS TRUST
THE WORK OF SAVING CITY - 25 APRIL 2003 (7:30pm to 10pm)

The meeting covered:

1. About the rescue package
2. Administration process
3. Necessity for a ground solution
4. Trust & Club relationship
5. Trust Chairmans closing remarks

[NB: For practical reasons, these extracts from the meeting largely relate to About the rescue package and the Trust & Club relationship. A separate powerpoint presentation supported the narrative and a series of questions were answered. This can be downloaded by CLICKING HERE ]

THE TRUSTS OBJECTIVES

The Trust is the body through which you, the supporters, have acted.

Back in June 2002 the members of the Trust elected a Board to carry out the Trusts work. That is, a small group of City fans who were prepared to volunteer their time and efforts to help save the Club they love. The work of the Trust has been led by that Board.

Of course, there have been plenty of other City fans who have also applied their time and cash to help the cause. The Trust has have always acknowledged that the success of Citys Trust is due to the efforts of many people and the positive support that the Trust has both created and received.

From the very start back in January 2002 - the Trust set out to ensure the continuation of professional football in York and to secure representation for supporters in the ownership and running of York City Football Club.

In November 2002, when it became starkly apparent that we could be facing the end of York City, the Trust set itself one ultimate objective:
To work to save York City Football Club from extinction so that our Club could continue playing in the Football League.

Everything that has done by the Trust has been carried out with this objective in mind.

All those involved in the Trusts work are genuine life long fans with only the best interests of York City at heart. All of the actions and decisions of the Trust Board have been carefully considered and have been made on the basis of what the Trust Board, as an elected body, believed was in the best interests to save York City for our community.
Of course, we all now know that, against all the odds, the supporters of York City achieved the objective of saving our York City Football Club.

Whilst it has been a great achievement by the City fans to save the Club, please be in no doubt that the new York City desperately needs the positive support of the people and businesses of York to help it survive in the future.

The meeting (on 25th April) sets out a summary of how that rescue package was formulated and put in place. Some aspects are quite complicated to explain.

Areas covered:
1. Background about the financial crisis that hit in November
2. The Trusts offer to save City
3. List of all the parties the Trust had to deal with
4. The sale purchase agreement
5. What has happened to the properties?
6. Where does the 1/2 million to do the deal go?
7. How are the 1.5 million debts settled?
8. Where did the money come from to do the deal?
9. The ownership of the new company
10. The players and the PFA
11. The Football League
12. Why are next years season tickets being honoured?
13. Financial planning for a sustainable future



BACKGROUND

In November 2002 the severity of Citys financial plight started to become apparent.

Since Batchelors takeover in March 2002, he had failed to deliver on key promises that meant the Trust had been kept out of the Boardroom and a various information had been hidden from us.

As the crisis started to bite, in November, Batchelor granted Trust representatives access to the financial records of the Club for the first time and it was only then that peoples suspicions and concerns about the dire financial state of the Club were confirmed.
To help save the Club, the Trust considered acquiring the Club from Batchelor. That attempt was reported at the time. However, it was apparent that he wanted to retain some form of involvement in the Club.

In one of many twists in the York City saga, youll recall Batchelors announcement on the pitch at half-time at the Swansea FA Cup match on 26 November, when he said he was prepared to hand over 100% ownership of the Club to the Trust.

Only the next day, that offer changed again, when it was clear he was still seeking an involvement in both the ownership and operations of the Club.

That same week, our own Steve Beck volunteered and had the unenviable task of telling all the players and staff of the Club that they would not be getting paid their salaries for November.
Batchelor was not at the Club that day to inform the staff and players apparently he was on other business. At the time, it was reported in the Press about how let down the players felt about Batchelors behaviour and how they, like others, had not been informed about the truth of Citys dire financial state.

The PFA then visited the Club and provided a loan to the Club of around 54,000 to enable the players to be paid for the month of November. They also negotiated that the players would receive no wages from the Club for the 6 week period from 1 December 2002 to 18 January 2003. Subsequently, the PFA have told us that the situation at York City, in terms of the massive imbalance between costs and income, was the worst they had ever encountered amongst all of the many club they had ever visited.

In December 2002, the Club had accumulated debts of around 1 million. Without corrective action, those debts were forecast to climb by around a further 0.5 to 0.75 million by June 2003. Around this time, the threat of the Club being liquidated was raised for the first time. There was a very real fear that the threat of liquidation could have happened.

Liquidation would not only have meant an immediate end to the season for York City Football Club; it would also have been the end of York City as a Football League Club and the end of employment to all the players and staff. And, of course, it would have been the end of the Club we all love.

The severity of the situation should never be underestimated. The Club was very very close to liquidation.

Some people thought that the Club was beyond salvation. But we were not prepared to give up. The objective was to Save City and that is what the Trust worked tirelessly to achieve.

At the end of that week on the 29th November - Batchelor brought in Jacksons Joliffe Cork as advisers on the financial plight of the Club.
A few weeks later, on 18 December 2002, the High Court in Leeds granted an Administration Order for the purpose of realising the Companys assets in a more advantageous way than a winding up. The Administrator announced that parties wishing to make a financial offer for the Club had until 18 January to submit their offer.

In January 2003 Trust representatives held a number of meetings with a local business consortium led by former City Chairman Michael Sinclair. It was hoped that the local business consortium could, working with the Trust, provide a solution to Citys crisis. However, for their own reasons, the local business consortium decided to pull out and not to submit an offer for the club.

On 16th January, with the Club literally facing extinction, the Trust injected 92,000 to the Club. Based on the financial projections provided by JJC, these monies should have been sufficient to cover the Clubs shortfall between income and costs in the period to 16th February.

As at 16th January, the Administrator had received some form of Batchelor-fronted bid (that appeared to also involve John Heynes in some way). The Administrator reported that was the only offer submitted. The Administrator reported that he had received an indication from another party of their intention to submit an offer in the near future. As far as we are aware, that other party never submitted an offer.

At the time, no party, other than the Trust, was prepared to provide the 92,000 funding to enable the Club to survive for a few more weeks. If the Trust had not provided the funds the Club would have been wound up and become extinct in January 2003. The funding provided some breathing space for other parties to come forward and for the Trust to prepare its own offer to save the Club.

On 4th February 2003, the Trust submitted its offer to the Administrator. That was an offer thorough in preparation and one of substance.

At the time, both privately and publicly, the Trust had raised its doubts and concern about the substance of the Batchelor-fronted offer. Of course, subsequently, those doubts and concerns were proved to be well-founded as the Batchelor-fronted offer came to nothing.
It was not until late February that, in our opinion, the Administrator at last started to properly move forward with the Trusts rescue package.
It became a necessity for the Trust to provide a further 60,000 to the Administrator on 24th February to prolong the survival of the Club until the Trusts rescue package could be finalised.



THE TRUSTS OFFER

The structure of the deal is common to other football clubs who have been in Administration.
That is, the Trust set up a new shell company called York City Football Club Limited referred to as Newco.
The old company that held its place in the Football League was called York City Association Football & Athletic Club plc.
That is the Company that went into Administration and the Administrator had to try and sell its assets to pay back as much as possible to all those parties who were owed money.
With money from the supporters of York City, the Trust has invested in Newco. In turn, Newco acquires the business and certain assets of Oldco.

The money put into Newco is for two purposes.
Firstly, money to be paid across to the Administrator to acquire the business and assets of Oldco.
Secondly, money to be used by Newco in operating the business of York City Football Club.



DEALING WITH OTHER PARTIES

To put in place the rescue package the Trust had to deal with numerous other parties. And there were numerous issues that needed to be resolved.
Each individual aspect of the Trusts work and its actions should be viewed in the overall context of working to achieve the objective of saving the Club.

Over the past few months the Trust has had to deal with:

- JJC and their legal advisers (Walker Morris) in relation to the Administration and completion of the Sale-Purchase Agreement;
- Tax authorities in the latter stages, it became necessary to deal direct with the Taxman as the main creditor to be satisfied by the CVA;
- Cobbetts our own legal advisers, as recommended by Supporters Direct, on all matters relating to the rescue package;
- The Players and their union in relation to their contracts;
- Staff at the Club under employment legislation and good practice;
- Financial backers from 1 to many thousands;
- Batchelor there are a number of issues from Batchelors time that have needed sorting;
- The Football Association relatively straightforward compared to the FLs requirements;
- The Football League the League have imposed a series of conditions on the Trust and Newco that it has been necessary to fulfil otherwise the rescue package would not have succeeded. This included the requirement to demonstrate that the Club has somewhere to play for at least the next 10 years;
- In relation to the ground issue, the Trust has had to deal with parties such as the Council and BCH;
- The media to help communicate to people whats going on and to help build support for the rescue package;
- Fellow supporters regular communications including press releases and newsletters; on the pitch announcements and in the match programme and so on.


In dealing with all these relationships, please remember that the Trust is simply a few fans working on a voluntary basis - each trying to balance their other commitments in life with the work of saving City.

In terms of the business of completing the rescue package there were many contributors and it was real team effort. Within the overall effort there was a core team of about half a dozen people most heavily involved in completing the business issues.



THE SALE-PURCHASE AGREEMENT

The rescue package was completed at precisely 1pm on Friday 28th March.
Under the legal agreement that was put in place, Newco (i.e. York City Football Club Limited) has paid to the Administrator 181,000 for the business and certain assets of Oldco.
Separate, but related to the deal, is a further sum to be paid to the Administrator by Jason McGill.
That amount is expected to be around 300,000. This relates to the property at 33 Grosvenor Terrace that is owned by Oldco.

The money paid to the Administrator by Newco comprises:

The 60,000 that was paid over on 24th February (that acted as a non-refundable deposit)
Around 80,000 was paid on completion
The balance is payable over time in monthly instalments
The assets acquired by Newco include, amongst other things:

- Office equipment, ground maintenance equipment, fixture and fittings
- Monies due from the Football League
- A little bit of stock
- Options from BCH that could be exercisable at some point relating to the Training Ground (at Wigginton) and a playing field (at Bumper Castle)
- The players registrations
- The right to obtain benefit of certain monies being released to Oldco over and above 70,000

Also acquired by Newco include:

- So-called Football Creditors of around 250,000
- Under employment law, all employee contracts transfer from Oldco to Newco, including those of the players
- The obligation to honour season tickets for both the remainder of the current season and for those sold for the 2003/04 season



WHAT HAS HAPPENED TO THE PROPERTIES?

The assets acquired by the new company do not include the ownership of any property.

Of course, Bootham Crescent is owned by BCH.
On behalf of Oldco, Batchelor surrendered a 25 year lease that the Club had to use Bootham Crescent. That lease was replaced by one that terminates on 30 June 2003 just two months from now. However, the new company will be entering into a new lease to use Bootham Crescent until the end of the 2003/04 season.

The property at 33 Grosvenor Terrace is occupied by a number of Citys Youth Trainees. This was the only property owned by Oldco.
For the Trusts rescue package to succeed, it was an absolute necessity for the property to be sold quickly by Oldco, as the value from the sale is paid into the CVA.

Jason McGill offered to acquire the property thereby enabling the Trusts rescue package to complete. The deal is expected to be for around 300,000. Youth trainees will continue to use the property once Jason McGill owns it.

Certain options that were held by Oldco are being assigned to Newco by BCH. These relate to the Wigginton Training Ground and the Bumper Castle playing field. The options are only exercisable following the sale of Bootham Crescent by BCH.



WHERE DOES THE MONEY GO?

Of the 481,000 payable to Oldco (being the 181,000 payable by Newco plus the 300,000 payable by Jason McGill), in effect:

- The 60,000 deposit was spent by the Administrator on the running costs of the business in February and March. That was the 60,000 raised in a weekend around the end of February;
- Approximately 230,000 goes to the NatWest Bank, regarding the overdraft that was secured against the value of the Grosvenor Terrace house;
- Up to 100,000 goes to the Taxman, as a contribution towards the 161,000 owed to him;
- the balance goes to JJC and Walker Morris for their fees (thats at least 90,000).



HOW ARE THE DEBTS SETTLED?

Under the ownership and control of Douglas Craig and then John Batchelor, the old football club company had been spending far beyond its means.
Having spent all the windfall transfer monies of recent years and the 400,000 from Persimmon (that appeared to go to Batchelors Racing Team), the Oldco had accumulated debts of around 1 million by the end of December 2002.
Without corrective action, those debts could have grown further by the end of the season by perhaps a further 0.5 to 0.75 million.
As we have said before, the financial situation was very very bad.

The Trust has inherited this financial situation. Including contracted player costs, the Trust had to work a solution to satisfy approximately 1.5 million of liabilities owing by the old football club company.
In brief, this is done as follows:

- The Taxman is satisfied via the CVA, receiving up to 100,000
- The Bank gets its 230,000 overdraft repaid from the house proceeds
- Unfortunately, all other unsecured creditors (including local suppliers) receive no return. Although, where appropriate, the Newco will seek to maintain a trading relationship with such entities going forward.
- Football creditors of 250,000 including the League itself, Watford and Brentford, the PFA and the arrears to the players are to be settled in full. Some immediately and some over time.
- Season tickets for 2003/04 season of which there were sales of approximately 90,000 - will be honoured by the Newco (more on this shortly);
- Contractual commitments to players under contracts to either June 2003 or for some players June 2004 will be honoured in full. No player will be out of pocket. They will all receive the full monies under their contracts, although an agreement has been reached on the timing of payment (more on this shortly in another slide).


All together, the Trusts rescue package provides approximately 1.4 million of benefit to those parties owed money by the Oldco.

Thats a lot of money, but in all cases this was a necessary requirement. The alternative was the end of York City Football Club.



WHERE DID THE MONEY COME FROM?

In addition to the 181,000 invested by the Trust to complete the rescue package, the Trust had also injected approximately 130,000 previously to enable the Club to survive.

In addition to that, the new company required money to help fund the day to day business once the takeover was completed. Approximately 120,000 was injected to the new company on day one.

All together, thats around 430,000 that has been used to fund the Trusts rescue package.

Where did that money come from?

- About 110,000 from fundraising prior to December 2002
- About 200,000 into the Trust from the Loan Notes scheme
- An initial 50,000 direct into the new company from Jason McGill
- The balance came from other fundraising and donations this year.

A quite remarkable effort by the supporters of York City.

Some people said the Club was beyond salvation.

Some people said the fans would never do it.

The supporters of York City did do it !!



The Loan Notes mechanism was the form of fundraising mechanism advised to the Trust by Cobbetts. It was neither feasible nor desirable to make a public offer of shares in Newco.
The Trust has made efforts to bring on board substantial backers of 50,000 or more. To that end, the Trust had indicated to any such people that it was prepared to discuss a limited ownership stake in the new company.

There were only two individuals who made themselves known to the Trust prepared to inject at least 50,000. One of those has wished to remain anonymous and does not want an ownership stake. The other of those is Jason McGill and the Trust negotiated to provide him a minority ownership stake in the new company.

The package on offer from Jason McGill, both in financial terms and his time and business skills input, is such that we felt it was in the best interests of the Club and the Trust to recognise this by way of a direct shareholding in the new community club.



OWNERSHIP OF THE NEW COMPANY

Each current Trust member owns one share in the Supporters Trust. In turn, the Trust owns 212,500 1 Ordinary Shares in the new company York City Football Club Limited. This equates to 85% of the total ownership of the Club.

In addition to buying the house for 300,000, Jason McGill has provided an initial cash injection of 50,000 to acquire 37,500 1 B Shares in the new company. That represents a minority stake of 15%.

As advised by Cobbetts, a new class of B shares was created, that in some respects have limited rights compared to the shares owned by the Trust. That includes a restriction of 20% on the voting rights of the shares. This means that the Trust will retain majority control over Newco no matter how many B shares are in issue.

The Trust had indicated to people in February that it was prepared to discuss a limited ownership stake with anyone prepared to donate at least 50,000.

Jason was the only businessman who came forward with that backing and the Trust negotiated an arrangement with him that provided the minority shareholding with restricted rights attaching to those shares.

- Jason brings an enormous amount of business experience to the board of the new Club.
- His appointment as Commercial Director of the new company is on the merit of his business skills, not his donation.
- Jason played a crucial role in key negotiations in the final couple of months to help save York City from extinction;
- Jason is a life long City fan and has clearly indicated to us that he does not expect to profit in any way from his shareholding. In fact, the rules which govern the rights of the shares prevent this anyway;
- A new class of B shares has been created such that, however many are in issue, voting rights are restricted to 20%. That means, the Trust will retain majority control.
- Jasons shareholding cannot be sold or transferred to any other party (other than his family) without the consent of the Trust.
- The package on offer from Jason McGill was such that the Trust Board felt it was in the best interests of the Club and the Trust to recognise this by way of a direct shareholding in the new community club.



THE PLAYERS AND THE PFA

It is a Football League requirement that the PFA - and the players themselves - must be satisfied that all contractual obligations to the players are to be honoured in full.

As noted earlier, the players received their wages in November only because the PFA provided a loan to the Club.

The players received no wages from the Club for the 6 weeks from 1 December 2002 to 18 January 2003 albeit they did retain their right to receive those monies at some point in the future and this is a liability that has now been taken on by Newco.

The majority of the players were on standard fixed term contracts to June 2003 or June 2004. Eight players have contracts until June 2004.

The principals of the Trusts solution are not dissimilar to those adopted at other clubs. That is,
- It was necessary to break the contracts with certain players and negotiate a redundancy settlement. This led to four players leaving the Club (Basham, OKane, Okoli and Mathie).
- The remaining players have agreed to defer an element of their wages. That is, simply receive an element of their wages at a later date (but before they leave the Club).

We worked with the PFA to negotiate a satisfactory solution.

Just to be clear, like at other clubs, all the players will be paid in full over time. They have not taken pay-cuts, just pay deferrals.

In general, the players have been very supportive of the Trust and their willingness to be flexible is one of the key factors that has enabled City to be saved.


THE FOOTBALL LEAGUE

Each Football League club can only play its matches if it holds membership of the League.
When a Club goes into Administration, that Clubs League membership is effectively suspended and the League imposes certain restrictions on clubs in Administration.

It was an absolutely necessary requirement to satisfy The Football League with regard to various matters.

To some extent The FA also has to be satisfied, albeit, in general, The FAs requirements were a sub-set of matters to be satisfied for the League.

The main areas for which the Trust had to satisfy the League were:
- That the Trusts financial plans for the Club were workable;That the players and the PFA were happy;
- That all Football Creditors would be settled in full;
- That the Taxman was in agreement with the CVA proposals; and
- That the Club had security of tenure for at least 10 years.


In relation to the ground issue, with a lease that expires at Bootham Crescent on 30 June 2003, a solution had to be found.

The only feasible solution was for the Trust to obtain an extension from BCH to the use of Bootham Crescent.

An extension to the end of the 2003/04 season was agreed in principle on the basis that the Trust would look towards a relocation of the Club to a new stadium at the Monks Cross site (or Huntington Stadium site, whatever you prefer to call it) in time for the start of the 2004/05 season.

The Trust had to work a solution with BCH, Persimmon and the Council that would satisfy the Football League. If a solution had not been agreed, York City would have ceased to exist last month and would never have made it to the end of the season.

[At the meeting, the necessity for a solution to the ground issue was be covered in more detail by Steve Beck and several questions on the matter were answered.]

At a meeting of the Board of The Football League on 22nd April 2003, the transfer of League Membership to York City Football Club Limited was approved. The transfer of League membership is conditional on compliance with several conditions, the majority of which are relatively standard matters.

Certain conditions attaching to the transfer of membership do relate to the relocation of the Club to a redeveloped stadium at the Monks Cross site in time for the start of the 2004/05 season.

Now that the new company formally holds membership of the League, certain monies that had been withheld by the League can now be released to the Club and certain Football Creditors can now be settled.


WHY IS THE NEW COMPANY HONOURING 2003/04 SEASON TICKETS?

As part of the Sale-Purchase Agreement, it was both necessary and appropriate for the new company to honour the season tickets for the remainder of this season and for next season.
As we all know, in September 2002 John Batchelor announced that he was able to offer discounted season tickets for 2003/04 season following a sponsorship agreement which the Club has entered into.

In response, in September and October the supporters paid approximately 95,000 into the Club, of which approximately 70,000 was paid by supporters on their credit cards. All that money, and more, was spent by the Club in October and November. As far as we are aware, the Club had not entered into a sponsorship agreement and no monies were received by the Club in relation to any such agreement that may, or may not, have existed.

During the course of formulating our rescue package, Batchelor was asked to provide some monies to the Trust and/or Newco in respect of the loss of income from selling season tickets at discounted prices.

Eventually, an agreement was reached whereby Batchelor agreed to make an ex gratia payment of 85,000 to the Company in Administration. This will be paid by Batchelor over time. Following the purchase by York City Football Club Limited of the business and assets of the old company, Batchelor is no longer involved in the running of York City Football Club.

Clearly, many supporters have expressed concerns about what happened at York City during Batchelors time. The Trust and the new Club Board have to focus on the future and we urge others to do the same.

Also in relation to season ticket monies, there was another difficult and somewhat frustrating issue to resolve in relation to those season tickets bought by supporters on credit card. This amounted to roughly 70,000.
Earlier, we explained how the sale of 33 Grosvenor Terrace for 300,000 would, after the Bank overdraft of 230,000 has been repaid, release approximately 70,000 towards the monies to the Administrator and the CVA.
For the rescue package to work, it has been necessary for the house to be sold by the old company to Jason McGill.

However, because the Bank holds some form of fixed charge over the value of the property in relation to the 70,000 of credit card monies, the Bank would not release this 70,000 of value to the Administrator for the CVA.

The 70,000 will only be released over time as fixtures are completed in the 2003/04 season.

Assuming all of the monies are realised from both the Bank and the Batchelor Agreement, during the 2003/04 season, the new company should benefit by 85,000.

Of course, given that many supporters in effect have already paid for their 2003/04 season ticket, the Club cannot generate cash in June and July as it would normally do. However, whilst still prepared to honour all 2003/04 season tickets, it has written to all those people asking for a voluntary financial contribution. It is hoped that all supporters will make this voluntary contribution to help the future of the Club.


A SUSTAINABLE FUTURE

Having saved the Club the hard work starts here!

The Trust has had to create a financial plan for the new company that not only sees the repayment of all the debts over the next year, but also enables the Club to survive going forward.
The financial outlook for the Club is challenging, but achieveable. The key principle for the Club is to only spend what it can afford.

That means increasing income and, more importantly, controlling costs. The key cost for any football club is the wages bill and within that the wages paid to players.

It is hoped that the salary capping to be implemented next season amongst Football League clubs will help clubs like York not to be driven into Administration by the actions of its directors.

Lower division football clubs like York are actually pretty small businesses in financial terms, though very significant in terms of media coverage and fan loyalty.

In broad terms, the Trusts financial plan for the Club for next season, was for outgoings of about 1.5 million to be matched by income of 1.5 million so as to break even.
The total wages to turnover ratio was planned at a sustainable level of around 70%.

As Mr Chairman Steve Beck keeps saying about football finances its time for reality football, not fantasy football.



THAT WAS HOW THE SUPPORTERS SAVED YORK CITY

A lot of information has been covered in this summary of how York City was saved.

The vast majority of that information was already in the public domain.

Through none of our doing, the whole situation was complex and it was against the odds that York City was saved.

We hope that those people who may have been frustrated over recent weeks and months about not understanding all of the details can see that even in a summarised form it has taken a lot of effort to set out the story of saving City.



THE RELATIONSHIP BETWEEN THE TRUST AND THE CLUB

With the immediate future of York City secured, as well as a Trust to continue operating, there is now a football club business to run on a day-to-day basis.
In this section, the following areas were covered:
The role of the Trust Board;
The Club Board;
A Code of Conduct that will govern the relationship between the Trust and the Club; and
Details about the next Trust AGM and elections.



ROLE OF THE TRUST BOARD

The Trust is run by the Trust Board on behalf of the members, working in accordance with the Trusts rules with the best interests of York City and the community in mind.

The Trust Board comprises twelve life long City fans.

Ten of the Trust Board members were elected at the time of the inaugural Annual General Meeting in June 2002.

Two of the Trust Board members have since been co-opted.

At the elections in June 2002, twenty five people stood for election and 64% of members submitted their ballot papers to Electoral Reform Services, who conducted the election on behalf of the Trust.
Throughout recent months, with the objective of saving York City in mind, the Trust Board have worked towards that aim and achieved it.



THE CLUB BOARD

In March, having set up a new limited company as the vehicle to acquire and then run the football business, under Company Law, directors needed to be appointed.

As the majority member, the Trust has control over the composition of the Club Board.

It was decided that the Club Board should consist of six directors. Three of those were to come from the Trust Board. The other three appointments were to be made of people to fulfil specific roles in running the Club to help make a success of our new community club. The specific roles of the three positions were determined based on the overall balance required that, in part, was resulted from the assessment of the roles for the initial directors nominated from the Trust Board.

The Trust Board had to act quickly as the possible ownership of York City was not far away. There was a football club business that needed to be run effectively from day one.

The initial appointments to the Board of Directors of York City Football Club Limited were three people from the Trust Board. These are three supporters who were elected to the Trust Board by the members (i.e. fellow supporters) of the Trust in June 2002.

Three elected Trust Board members Steve Beck, Mike Brown and Sophie McGill - were prepared to be nominated to the Club Board and they were supported unanimously by the remainder of the Trust Board.
Steve was nominated to be Chairman of our new Club;
Mike is to work in the area of Marketing and IT; and
Sophies main area is communications.

Subsequently, three further City fans have been appointed as directors of the Club:
Ian McAndrew as Stadium Development Director
Jason McGill as Commercial Director
Terry Doyle as Finance Director

Acting on behalf of the members, the Trust Board considered and then unanimously approved the appointments of Ian, Jason and Terry.

If ever felt necessary, under Company Law, the Trust can remove directors from the Club Board. Each of the Club Board Directors have some very significant skills to bring to the successful operation of our football club. None of them will benefit financially and all are committing a significant amount of their time each week to help run the Club.



CODE OF CONDUCT

A corporate governance framework is in the process of being finalised.

This Code of Conduct will govern the relationship between the Trust and the Club.

This will include formal reporting, on a regular basis, by the Directors of the Club to the Trust Board. It also sets out that the Trust Board is to be formally consulted on certain aspects in relation to the operations of the Club.

This is a structure that provides both a pragmatic solution to operating and sustaining a football club on a day-to-day basis and accountability to the Trust Board and to supporters.

Under Company Law, each of the Directors of the Club owes his/her ultimate responsibility to the Club as a director.

We are also expecting the Club Board to engage the assistance and support of many other City fans in a variety of ways.

For example, within days of the rescue package being finalised, the new Board has already sought input from City fans in relation to design aspects for the new stadium.

And earlier tonight we have seen some of the product of the Marketing Taskforce.



NEXT TRUST AGM AND ELECTIONS

The next AGM has to be held within six months of the Trusts financial year end. That means the AGM is likely to take place some time in October or November later this year.

Whilst it is not a requirement of the Trusts constitution, there are likely to be 4 Trust Board positions up for election ahead of the AGM.
Any Trust member will have the opportunity to stand for election. All City fans are encouraged to become members of the Trust and, if they wish, to stand for election to the Trust Board.

At the election, the members can then choose which of their fellow fans they would like to see help carry forward the positive work of York City Supporters Trust.




Please continue to support the Trust to support the future for the new York City Football Club.

 
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