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Raise young players, sell them for millions ;) 

Include sell-on clauses when you sell them....and don't include release clauses when you replace them  :o 

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25 minutes ago, Dens Bound Rhino said:

What's the magic formula??

Get lucky? Swansea were the model club when it came to fan-run clubs and even that turned to sh*t.

Let's see how Motherwell deal with the inevitable relegation battle. That's when the knives come out.

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Just read the BBC piece on Motherwell, and note that it says "Motherwell FC now operates with zero external debt and - for the first time in 40 years - will work with no fixed or floating charges over Fir Park Stadium to external parties"

To own their stadium with no bank or other 'mortgage' on it will be a very reassuring position for their Board, but the key word in the above statement is "external". This means no loans from banks or external 'investors', but it does also mean that they may have funds loaned to the club by directors....ie not 'totally' debt free. 

Whilst they are 'fan owned', that may just be a majority ownership, and there may be a few other directors with what is often referred to as 'soft loans', ie with no fixed repayment terms attached....though if a director in that position decided to sell their shares, and leave the board, their soft loan would probably need to be repaid, either immediately or by an agreed date.

In our situation, any loans from FPS would also not be 'external debt'. FPS have, thus far, regularly converted any loans covering annual losses into increased shareholding, which effectively means we could also make the same claim, to 'have no external debt'.

However....Motherwell's is still an enviable position, by comparison to many other clubs.

[ps....Cobra, they're in 3rd place again, something we've not seen since 1962....seems unlikely they'll see relegation battles for some time, considering the state of a third of the current premiership clubs. Of course, if their supply of good homegrown players dries up, that could change the picture.]

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I wonder what sort of position Motherwell would be in now had they been relegated in 2003. 

 

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for a start own your own ground.

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2 hours ago, markthedee said:

I wonder what sort of position Motherwell would be in now had they been relegated in 2003. 

Quite likely in a similar position to us, as they'd gone into Administration in April 2002 (when there was no points penalty), and didn't exit from that until April 2004. Dropping a league in the midst of that would probably have damaged them significantly.

Ironically, it was after that Administration that they set up the youth academy that has served them so well in recent seasons.

If we can get this aspect right, maybe it'll trigger our own 'recovery'. 

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On 10/02/2020 at 18:52, Dens Bound Rhino said:

As title suggests. Hats off to them and they are really showing how fan ownership should be done. What's the magic formula??

https://www.motherwellfc.co.uk/2020/02/10/motherwell-settle-outstanding-debt/

There's quite a lot of good discussion in their thread on the Pie and Bovril forum starting roughly here: 
https://www.pieandbovril.com/forum/index.php?/topic/230925-motherwell-fc-a-thread-for-all-seasons/&do=findComment&comment=13495841

They've cleared their debt because they've sold a number of players for decent money.

The repayment structure to their previous owners was based on them splitting transfer income. If they hadn't taken £1.5m for James Scott, £1m for Kipré, £500k for Moult, £400k for Heneghan, £300k for Hastie plus whatever sell on they received for Marvin Johnson and the various Academy players they've moved on eg: McKinstry to Leeds and McAlear to Norwich then the bulk of the debt would still be on their books.

In that respect their relative success has nothing to do with being fan-owned, it's simply down to being effectively run. They budget based on finishing 10th, with no player sales and cup runs, their recruitment is good and their Academy is well regarded it's summed up in this post here:

Quote

"Where I do think we are a good example and worth praising is that we have - within very tight financial constraints - put a lot a "building blocks" in place that set us up well for the medium term. We've put in place a good coaching infrastructure/youth setup, we seem to have as good -if not better - a recruitment policy as our peers, we've got as good a media/PR team as there is in a club of our size and through fan ownership and media, we seem to have got the supporter (and especially younger supporter) engagement stuff right.

All of those pieces mean that there is a sense that club is on an upward curve, almost separate to the on field stuff (where 3 losses in a row is still a crisis worthy of a sacking just as its always been)..."

They've a clear strategy and they have a CEO who not only understands the league, the club and his fanbase but seems able to implement and put the strategy in practice. It's interesting to read that P&B thread and see St Johnstone fans making the distinction between the way the two teams operate - Motherwell's gates have grown and the past two seasons have seen record ST sales (despite fairly average league positions of 9th (their most recent "relegation battle"), 7th and 8th) whereas St Johnstone seem to be the opposite - they've had the same sort of relative success plus a Scottish Cup but the club struggle to engage with the fanbase.

It may not be a "magic formula" but when you listen to Alan Burrows talking about their strategy and how they run and market the club it's certainly not a case of luck - it's also worth remembering that the fan ownership model is something that Motherwell had been pushing since the early 10s, it's not an overnight thing.

Edited by Jimmy McNulty
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