Meeting with Julian Winter and Michael Jones
Watford Supporters Trust (WST) board members, Graham Sterry, Steve Temple and Frances Lynn, met with Julian Winter, Watford FC CEO, and Michael Jones, Head of Customer Sales, at the club’s offices yesterday (Wednesday) to discuss the recent events surrounding the club as well as their plans for the future.
Julian informed us that he has put together a Q&A which will be published in the Watford Observer and on the club’s website this weekend. The purpose of this Q&A is to answer many of the questions that have arisen out of the events at the AGM and the subsequent announcements regarding the rights issue. It is hoped that this will give Watford fans a greater understanding of the underlying issues and will instil in them a confidence in the future of the club following a time of great turmoil. The WST board do not wish to pre-empt the club’s own announcement, but we did want to pass on to WST members our impressions from the meeting.
It was clear from our discussions that the disputes between the major shareholders over the past couple of years have caused many problems to those trying to run the business, but there is a feeling now that the club is in a better situation than it has been for years.
There is no indication at this time that any new directors will be appointed to the Watford Leisure plc board. It is certainly Lord Ashcroft’s stated intention that the plc be run by an independent board working for the best interests of the football club without any interference from major shareholders whose decision-making could be coloured by their own financial positions. This is the third time that Lord Ashcroft has put money into the plc. In the past, he has had a representative on the board in the form of Andy Wilson. Going forward he emphasises the need for a completely independent board without his own representation. The present non-executive directors, Graham Taylor, Stuart Timperley and David Fransen, are all Watford FC supporters whose actions to date have indicated that they will certainly fulfil this independent role. Julian Winter, the CEO and remaining board member, has also impressed greatly in the way that he has run the business over the past year and is certainly highly thought of by the other directors.
While the details of the rights issue are yet to be finalized, the consequence of this process will be to leave the club effectively debt free and to provide financing for the remainder of the season. Following the rights issue, it is anticipated that there will still be a shortfall of circa £1m through to the end of June 2010 to cover the club’s current liabilities. Lord Ashcroft will not be the complete answer to the solution but the independent board members will be in control of decision making on all future funding and raising £1m is not considered to be a major problem. Going forward there is a business plan that has been drawn up with the purpose of allowing the club to operate within its means. It is clear that player-trading will be essential within this plan, but the aim is to run a club that will remain competitive within the Championship. Much of the cost-cutting required both on the playing side and on the business side of the club has already taken place. Going forward decisions made on and off the pitch will follow the business model to ensure that the club can continue in a sustainable manner.
The WST board members left the meeting greatly reassured that the events of the past couple of weeks will ultimately prove to be in the best interests of the club going forward and that those running the club will make these considerations paramount in their decision-making processes. Also, having heard details of the proposals that were put to the plc board from both Valley Grown Salads and Fordwat, the WST board members in attendance were unanimous in their opinion that the Fordwat proposal was the option that was in the best interests of the football club going forward. We thank Julian and Michael for taking the time to meet with us and answer our questions.
