Chairman’s Update
Well, it has been a very long two weeks since the news broke about our Club entering administration for the third time in less than nine years. Whilst we were all devastated by the news, and it was very sad that all the concerns we have had since the Spring about the Club’s finances and management were proved to be well-founded, it was heartening to see that, at long last, the Club are, finally, taking responsibility for this perilous position.
The bad news started with the long expected outcome of the FA inquiry. Unsurprisingly, the FA charged the Club and former directors with a range of allegations. What was surprising was the sheer number of charges raised (55). For months, loyal supporters have been assured, by the then directors, that there was nothing to worry about. Our Chairman went on BBC radio and confirmed that it was all ‘a storm in a teacup’. Considering that a detailed appraisal of the Club’s position and finances had been conducted by Mr Pinkney and his advisors in April and May, we were all asked to ‘draw a line in the sand and support the Club’. Whilst the charges are only allegations at this stage and we wait to see the defences put forward by the Club and former directors, we were disappointed by the media frenzy caused by silence from those accused and their failure to take the sensible course of action and step down, at least until this issue was resolved, if not for good. Despite calls from all quarters, Mr Mitchell and Mr Bagehot refused to act honourably and stubbornly tried to cling on to their positions at the Club. It seemed that everyone could see the true problem at the Club except the ‘problems’ themselves!
As pressure from supporters, media, TiL and LLSC mounted on the Chairman and his directors, the welcome news broke that Mr Mitchell and Mr Bagehot’s reign at the Club had been bought to an unceremoniously abrupt end. Immediately we received calls and emails from supporters who were relieved that their tenure of management, PR spin, constant mistruths, contempt for fans and obvious lack of financial control, was now consigned to the history books.
We have noted with interest the comments made privately and in the media by Mr Mitchell claiming that none of this was his fault and rather was caused by people/factions with (now famous) hidden agendas. We are well aware that these are comments from a man desperate to salvage something from a sorry period of being a major influence in the ruining of our great Club. Hence, TiL see no reason to sink to his level – his record, his financial management and his subsequent reputation, sadly speaks for itself. Whilst Mr Mitchell and Mr Bagehot will soon be forgotten, it is hugely unfortunate that their actions taken whilst at the Club will haunt us for a long time to come. The only sadness we have is that they will not now be held to account to explain their actions. However, Mr Mitchell and Mr Bagehot will take nothing more out of the Club, except of course their famous calculators!
Within days of the welcome news of the departure of these two directors we were hit by the hammer blow of administration. The seriousness of the financial mismanagement of the Club throughout 2006/07 became totally evident. Questions and challenges raised throughout the year by TiL were answered in the worst possible way – by an administrator. An unbelievable £400,000 losses per month, transfer income wasted, debts running into millions, a spiralling wage bill and legal claims against the Club. Whilst TiL knew the situation was potentially bad, we could not guess at the sheer extent of the debt. With hindsight, it is no wonder that no Club director wanted to fulfil their legal duty and give TiL the information that we repeatedly requested. It can also be seen that protests of ‘hidden agendas’ and ‘factions of fans’ were shallow attempts to talk their way out of the problems for which the directors were totally and solely responsible.
Even now, the Chairman continues to blame players, fans and external factors for the plight of the Club. Let’s be absolutely clear: there is only one group of people that signed cheques, contracts and land deals; there is only one group of people that owned a holding company, borrowed money and invested little; there is only one group of people that let the Club operate beyond its means and racked up debts of £10 million in just the last twelve months; there is only one group of people who had the authority to do this, the control of the Club to allow it and the knowledge that it was happening. This group is not the players, it is not the playing staff, it is not the backroom staff, it is not the fans, media, council or anyone else we care to mention. It was the owners and majority shareholders of the Club. The longer it goes on that they do not recognise their part in this disastrous period of the Club’s history, the more they alienate the very people who can play a major role in getting them out of this mess. When our Chairman asks why a calamity was needed to pull people together, perhaps he should ask himself why it has come to this in the first place? Maybe he might find the answer in comments like ‘baseball bats’, ‘storm in a teacup’, ‘2%’, ‘follow me or don’t come’ and ‘the best CEO ever’. Maybe he can now see that administration was inevitable as far back as May 2007 – before the fans ever turned on the board, with some voting with their feet. Maybe he should look in the direction of his ‘friend of thirty years’, whom he continues to defend. Blaming the FA, players and a leaflet drop is a ludicrous comment from a seasoned businessman that can only be designed to continue the campaign of attacking, negative PR spin pioneered by his former staff. We had hoped that he might have learnt that transparency, honesty, engagement and leadership are powerful tools in bringing people together to work for the success of our Club.
For our part, we have been heavily involved in numerous, wall-to-wall meetings to bring all parties together in order to secure the very future of Luton Town Football Club. TiL, LLSC and LTSC are committed to thinking to the future and, to coin a phrase, ‘draw a line in the sand’. We are all in total agreement that now is the time to forget the past and get behind the team, Club and staff. Through no fault of fans or players, we find ourselves in the relegation zone with further punishment still to be handed out by the FA. The only way we will preserve our League 1 status is to join together, support each other and unite as one. Our thoughts go out to the staff who, yet again, face an uncertain future. However, please let everyone at the Club be totally assured – we are working very hard to secure your future as well as the Club’s. We are in this together and we will not give in, now or ever.
Since the news of administration broke, representatives of the supporters’ organisations have engaged with many people who may be able to help the club to survive and with this in mind, we soon hope to be able to support a terrific bid to take the Club out of administration. Any bid will have to follow the timetable and meet the financial demands set by the administrator as laid out in his sales particulars, which, are yet to be issued.
In the past, many fans have questioned whether there is indeed anyone out there with the money and vision to take the Club forward. The answer is a resounding yes. In the past, many fans have questioned whether such people share the fans’ desire to see the Club run properly, openly and without hidden agendas. The answer is also a resounding yes.
Trust in Luton would be delighted to support any genuine bid that follows our principles for managing our football club:
1) Where football and community are the main incentives for investment
2) Where operational transparency is maintained under a suitable level of corporate governance
3) Where financial management is put before blind ambition
4) Where a structured relationship with the fan base is embraced
5) Where the Club and community support each other
6) Where a renewed environment creates a passionate, fun and fair culture synonymous with a sporting business
In addition, any bid we are associated with:
a) must not be tied to a specific location for a new stadium,
b) must commit to an independent feasibility study to identify the best location for the new stadium – both for the long term future of the Club and commercially,
c) must ensure the fans are represented amongst the shareholders through a share allocation,
d) must not accept or contain any financial backing in the form of loans or debentures or anything secured on assets or income of the Club (so that the Club can never be held to ransom again or create additional debt),
e) should not have a holding company or, if one is needed for tax reasons, it must be open and transparent to all shareholders of the football club via independent audit (and not just the shareholders of the holding company as was the case with Jayten)
TiL, backed up by LLSC and LTSC, will only support investors who are prepared to commit to these principles. We are taking a unified and professional approach.
Of course, we would be happy to talk to any potential investor or group, who may be preparing to bid but it is interesting to note that, so far, only one potential group has seen fit to engage any of the fans’ groups in their bids. And let’s not kid ourselves, there will be other bids placed with the administrator. Any bid considered by the administrator that does not have the full support of the fan base (with the huge support and financial input that we bring) cannot surely be in the best interests of the Club? For a group to enter a bid without the support of fans is either arrogant or stupid. As I say, we are prepared to talk to anyone to put our views forward and I hope that some of the people making enquiries see fit to give me (or LLSC or LTSC) a call. Our cornerstones are clear and fair so parties with hidden agendas need not apply!
The process of engaging potential partners has been hugely time consuming for those involved on behalf of the supporters’ groups and fans and I truly thank them for the time, effort and expertise with which they have gone about this huge task – remember, just two weeks ago we had no idea that administration was looming! This process has also been stressful for everyone involved. Because of this it is with regret that I have to confirm that Martin King has left the TiL board. In the time Martin has been on the board, his energy and drive have made a huge impact in making us the professional organisation that we believe that we are today. On behalf of all of the board and all of the members, I thank him for his contribution, advice and work. We wish him well and look forward to seeing him at games in the future.
The next few weeks are going to be eventful! There will be bids that are well thought out but we must be on our guard for opportunistic attempts to make a fast buck out of the stadium relocation. True Luton Town fans will be here for generations to come and it is for future generations that we are working today. We want to consign the events of 2007 to dark history and we want 2008 and beyond to be our bright future. We implore all fans to attend games, buy merchandise, support the team and, above all, spread the word so that there are no spare seats to be seen. With your continued support, combined with the right leadership, LTFC will come back from this stronger than ever.
We want our Club back. We want exciting football. We want a secure, stable future. We want positive energy. We want to unite as one.
Come on you Hatters!
Liam