Latest on Owls takeover talks

[F. Sidebottom 10]

Thanks for all that D_J_M, some very good points, and quite a number of things that I wan't aware of.

 

I think I may need to have a bit more of a think about this.....

[D_J_M 10]

Thanks for all that D_J_M, some very good points, and quite a number of things that I wan't aware of.

 

I think I may need to have a bit more of a think about this.....

 

Good on you. That's all I ask for.

 

On a similar note, this is from Square Football :

 

Sheffield Wednesday: When shareholders become scum

 

"Dave Allen - 'These people who call themselves fans are nothing but a bunch of cretins, and I hope you’ve got that word right, cretins, cos that is what they are.'"

 

Dave Allen is frustrated. Middle-aged and suited, with white hair smartly parted, he leans back in his chair and shakes his head at the TV cameras.

 

“You know, you can’t believe these people.”

 

Allen is chairman of Sheffield Wednesday Football Club. Together, he and fellow directors Geoff Hulley and Keith Addy own a controlling interest of 30% of the shares. Their latest attempt to sell those shares has failed. A bigger chunk of shares might be more attractive to a potential buyer. Allen knows where he might get some, maybe cheap.

 

Wednesdayite are the Sheffield Wednesday supporters’ trust. They run coaching courses for primary school children; their “smile” initiative buys match tickets from the club at full price and gives them to deserving people who would otherwise be unable to afford them; they donate money to local charities. Wednesdayite receive no funding from the club and no individual member can profit from their activities.

 

Allen works under no such limitations. Six years ago, he gave Wednesdayite a 10% shareholding saying, “The Sheffield Wednesday supporters are our greatest asset. They come to the matches, buy our shirts and do everything possible to support us. Their loyalty and commitment holds the key to our future. It is in recognition of this that myself, Mr Hulley and Mr Addy wish to make this gift.”

 

Now he wants it back. In return, he is offering to put £500,000 towards the acquisition and payment of players. The value of Wednesdayite’s shares is not clear, but is estimated to be in the region of £1.9m. Wednesdayite have declined.

 

Allen is displeased and has called a press conference.

 

“Ninety to 95 percent of fans of this football club are very happy with what’s going on, it’s just that lot that'll never be happy. You only want to come to the AGMs and listen to them…”

 

***

 

Cutlers’ Hall sits in the heart of Sheffield. A Monday night in November and people are gathering outside its extravagantly decorated main hall. They pause, blocked by the crowd. Squeezing through, they emerge into an aisle between two blocks of seating.

 

Above them a large chandelier dominates the elegantly corniced ceiling, while all around them giant formal portraits of past Master Cutlers are separated by marble-effect Corinthian columns. They scan the seats, 500 in total. All are taken. They return to the back of the hall and burrow in, standing wherever they can, facing a stage at the far end. There sit the directors.

 

This is the home of the trade guild of metal workers. Built in 1867 it is tonight the location of the Annual General Meeting of Sheffield Wednesday, a club formed in that same year and winners of four league championships and three FA Cups.

 

They have just sacked their manager, the ninth in as many years. They are £27m in debt. They are mid-table in the second tier of English football.

 

***

 

Dave Allen remembers: “By the way we were doing well.”

 

***

 

The meeting begins with the perfunctory execution of administrative tasks before questions are invited from shareholders.

 

Darryl Keys is the unpaid chairman of Wednesdayite. He was once a merchant bank director with responsibility for sports finance. Keys is concerned that, commercially, Wednesday are not as agile as they could be. He presents statistics illustrating how Wednesday’s revenue is significantly lower than comparable clubs at the same level. He provides examples of how those clubs maximise their income. He wonders whether Wednesday have room for improvement.

 

In reply, Wednesday’s finance director, Bob Grierson, rejects his advice, referring to the failure of Keys’ own business. He addresses none of the issues raised. Jeers rise up from the floor and a shout is directed towards the stage. “Shame on you.”

 

***

 

Dave Allen remembers: “These people who call themselves fans are nothing but a bunch of cretins, and I hope you’ve got that word right, cretins, cos that is what they are.”

 

***

 

A dark-haired woman walks, head down, to the front. Small and middle-aged, she tentatively approaches the microphone. Her eyes dart around the room, down to her hand-held notes, then around the room once more. She gives a small cough. Initially her voice is quiet and hoarse but soon she is speaking eloquently and passionately. Irma Kennedy has supported Wednesday for 40 years. She is not there to represent Wednesdayite. She talks as a supporter and as an individual shareholder.

 

“He (Allen) has told me I know nothing about football. While I do not profess to be an expert, I think I have earned the right to have an informed opinion and to have that opinion respected. It’s time you put aside your petty views and looked to rebuild your relationship with all fans.”

 

Her speech is reported in the Sheffield Star as “the most impassioned plea of the night”.

 

As she makes her back to her seat, applause fills the hall. Shouts merge together into an indistinct rumble of encouragement.

 

“You must stop insulting people like me,” she said.

 

***

 

Dave Allen remembers: “There was one woman stood up, the most venomous bitch I’ve ever come across in my life, she’d got three pages of diatribe to read out about me, it was just absolutely appalling.”

 

Allen again shakes his head and searches for the right word to describe his customers and fellow shareholders.

 

“Scum.”

 

Dave Allen remains as chairman of Sheffield Wednesday.

 

Jeff Gold

25 July, 2007

[boboskins 10]

On Owlstalk (easily the best SWFC message board there is)

 

Surely that should read

 

Owlstalk (easily the most NEGATIVE SWFC message board there is)

 

God forbid you to have a different opinion on there. Unless you like getting shouted down by schoolie keyboard warriors or risk getting called a 'Happy Clapper'

[Vaughan 10]

Surely that should read

 

Owlstalk (easily the most NEGATIVE SWFC message board there is)

 

God forbid you to have a different opinion on there. Unless you like getting shouted down by schoolie keyboard warriors or risk getting called a 'Happy Clapper'

 

I was optimistic for the close season when our Chairman proclaimed we were "going to throw some money" at a promotion push.

 

We give away our best forward in years for free whilst buying up 3rd tier journeymen and 35 year old veterans.

 

We have sooo much to look forward to.

 

Where's the Bougherra money ?

[Jazzybmzoo 10]

You spelt 'venomous' wrong.

 

(There, that's shown him!).

 

Cheers Frank! I've just spat tuna sandwich all over my workstation. :hihi: LOL! Brilliant.

[D_J_M 10]

Cheers Frank! I've just spat tuna sandwich all over my workstation. :hihi: LOL! Brilliant.

 

Is that banjo music I can hear?

[Jazzybmzoo 10]

Oh dear; what a lot of ignorance and petulance we have seen in this topic. You've read a couple of pages in The Star and scanned the chairman's programme notes and you now think you're an expert on the business aspects of running a football club. Not for a second have some of you paused to consider that there might be an alternative viewpoint. Forgive me, for this is a long message but there are some things you need to think about before shouting out your ill-informed abuse. And I don't speak officially for the organisation, I am nothing but an ordinary man in the street who happens to have joined them.

 

Wednesdayite are ordinary fans just like I assume a number of you are. If you go to Hillsborough they will be all around you. They don't have secret meetings to throw petrol bombs into the boardroom, they won't torture your cat, there is no uprising being discussed. Their remit is to spend their own time and money on trying to help the club however they can by raising funds, offering services, raising the profile of SWFC in the community and carrying out charitable schemes. If they are so committed to removing the chairman, why do they keep voting overwhelmingly to try and work with him even as he does little but hurl insults and lies back at them? How shameful that they should be accused of being on a power trip or even anti-SWFC by the equivalent of a bunch of pitchfork and torch-wielding redneck yokels out of nothing more than their fear of outsiders.

 

Their work has included offering free football coaching to primary schools, buying match tickets for the underprivileged or other community groups, giving young season ticket holders the £5 club shop voucher that SWFC has withdrawn. They offer supporters travel to away matches, a lounge to meet and have a beer before a game and a car park opposite the ground. Forgive me, but where is the subversion in that?

 

It is often said that at something like 1,100 members they are a small minority of the club's support (about 5% of the average home gate). But how does that compare with the 3 men who run the club from the boardroom and have a financial interest in it, one of whom wasn't even interested in the game about 7 years ago and is apparently desperate to get out now? Are these millionaires just as committed to supporting the club as you? Wednesdayite is fully democratic, follows the wishes of it's membership and has no secret agenda. Can you really say the same about Allen and his cronies?

 

Wednesdayite could not possibly have supported Ken Bates takeover plans as they were not formed until AFTER this episode was over. They were born out of the discredited Owls Trust where John Hemmingham (who followed Bates to Leeds) decided without asking the membership to back the newcomer. It was a shabby episode to be sure and one that has done significant damage to the relationship between the club and it's fans. As far as I'm aware there are little or no links between the defunct Owls Trust and Wednesdayite.

 

Anyway, to the issues surrounding the shareholding in the club.

 

Wednesdayite's 10.07% prevents anyone taking over the whole business as company rules state anyone obtaining 90% can compulsorily take over the rest. Although it's unlikely that anyone would buy the entire club and then try and turn Hillsborough into a supermarket, precisely this scenario almost unfolded at Wrexham. And this 10% also enables them to propose motions at AGMs and call an EGM to hold those running the club at least somewhat responsible to their public. Of course, in reality this has been of negligible benefit given that about 40% of the shareholders never use their voting rights which enables the board's 31% to effectively control the club with no opposition. However, Allen's claim that Wednesdayite cause trouble and are constantly calling such meetings is utterly false as to date they have done so precisely ZERO times.

 

Their shareholding is not just about the here and now but are a foundation to build on for future generations of supporters. But they have no ambition to run the club themselves as some believe and ridicule them for. As a supporter's trust it is in their constitution, but it is an unrealistic and aspirational goal only in the same way that the United Nations seeks to bring about world peace. The practical and financial hurdles are much too great to consider this as a viable option.

 

Aren't you curious why Carson Yeung was supposedly put off at the 31% holding he could have at SWFC that would effectively control the club (remember 40% never use their votes) but was happy to accept less than that at Birmingham where other major shareholders could sideline him if they so chose? It has also been a similar story at Aston Villa, Manchester United and a handful of other clubs.

 

Any single party or collective group owning 30% of SWFC are compelled by company law to offer the market rate for the remaining shares to all other owners of them. So if a new investor bought all the board members' stakes he would trigger this clause. In all likelihood, a good number would accept the offer and thus significantly increase the new man's overall holding. There would be no need to buy Wednesdayite's shares to achieve this end.

 

Further, the board (either the current one or the new one) could underwrite a share rights issue. They could create new shares in the company (let's say 2 for 1 to keep things simple that would double the number at a stroke). All current owners would have the right to buy the number of new shares that would maintain their original stake (ie. someone owning 100 shares would be able to buy another 100 and keep their overall percentage the same). Many people would choose not to take up this offer, at which point the new shares would be purchased by the underwriters. This too would result in a considerable increase in the board's holding and make Wednesdayite's shares unneccessary again.

 

Between them, Wednesdayite and SWFC's board own around 41% of the overall shareholding. That means there are 59% out there ready to be bought by whoever wants them (assuming the owner agrees). But apart from a small purchase a couple of years ago, there is no evidence that Allen has made any effort to do so. Hardly consistent with someone attempting to gain more shares to sell to a new investor is it?

 

And why should Wednesdayite feel compelled to sell anyway? Are all other shareholders being similarly pressured? What is it about a supporter's group that makes them different from others like Dave Richards who owns something like 1.5% or other less prominent individuals? What right has Allen got to all but demand that someone else's property (which he never owned in the first place so can hardly claim their 'return') be handed over to him?

 

In my opinion, Allen is attempting to maximise his own profits. The much publicised £500k offered by him to Wednesdayite values the shares at around 5p each. It has been reported that Paul Gregg made an offer as much as seven times higher to Allen for his shares. According to Alan Biggs in The Telegraph, Allen prevented Gregg from approaching Wednesdayite directly. Now can you see Allen's motives any more clearly? Why buy other's shares at the going rate when you can try and get a large block on the cheap to then sell at a massive profit? There is no purpose served in Allen's strategy that benefits the club or it's supporters, only himself.

 

And to top it all, Dave Coupe of the Shareholders Association well and truly whipped the rug out from under Allen's feet by potentially making available the 20% necessary to get to the magic majority figure of 51% by recommending that all other shareholders consider selling to the SWFC board if it facilitates a takeover or new investment. This makes Wednesdayite's 10% irrelevant once and for all in the context of Allen's ranting.

 

How can you support a chairman who labels dissenters 'scum', 'yobs', 'cretins' or even singles out one lady who dared to ask him a question at an AGM as a 'venemous bitch'? Why do you believe that ordinary fans in your street and your neighbourhood are evil and power hungry for joining a supporter's group that desires nothing but to see the club as successful as it can be or because they know a little more than you do about ceratin aspects of the business?

 

Bear in mind that Dave Allen and the board have overseen a doubling of the debt in the last seven years or so from £16m to overall liabilities of £35m as of the last set of accounts. We have recorded bottom line losses of at least £1m for ALL of these financial years. These are not made up numbers, they are a matter of official and public record out of SWFC itself. Some of our peers such as Ipswich, Norwich, Wolves, Southampton and even Sheffield United embarrass us in terms of commercial initiatives and financial performance (between them they average about £2m per year more in turnover than we do as I recall). Again, these are facts, not hearsay. It is also not widely understood that although Allen does have a seven figure sum tied up in the club, he is accruing large sums of interest upon it. The club can't afford to pay even the interest, never mind the loans themselves, but Allen is still earning from them regardless. And the amounts he's earning from the club are several times higher than the modest amounts he's gifted to the club. He will profit very nicely when he finally leaves from his loans and his shares and all this having overseen a catastrophic financial performance, disrepsectful if not contemptible appearances in the media, division of the fans and the second lowest league placing in the club's 140 year history.

 

I hope some of you can take the time to understand some of the deeper issues involved here rather than accepting the obvious.

 

Fantastic post, mate! Well thought out & superbly presented. Credit to you for getting these issues out in the open.

 

On a subjective note, the man himself inspires little confidence. His radio interviews last season were puerile and borderline offensive; he was like that bloke down the pub who is correct whatever, knows everything and is never wrong - when he blatantly is. This alone makes me want someone else to take charge at my beautiful club.

 

Objectively, I must support Allen's decisons last season to fight Bates tooth & nail and also his decision to sack Sturrock (who obviously hated him as much as a lot of supporters).

 

In all honesty, during the latest takeover farce I was thinking, 'Why don't they just sell him the shares and be done with it?' Thank you for enlightening me. Is it any wonder no-one understands the bigger picture down at Hillsborough when there appears to be such clandestine, financially-orientated motives dictating policy and ensuring that the average fan on the street hears little to nothing objective.

 

Being someone with a firm grasp of the subject, how do you propose we progress. Is it rather simply a question of working round Allen's pig-headedness or is there some other strategy that would perhaps bear fruit? Surely we must begin dialouge again between the board and the representatives of the supporters, as while we aren't even talking, how can we expect to progress?

 

Thanks again.

[Jazzybmzoo 10]

Is that banjo music I can hear?

 

Bear with us sunshine, I was composing a response thanks. You have to admit that was good.

[D_J_M 10]

Fantastic post, mate! Well thought out & superbly presented. Credit to you for getting these issues out in the open.

 

On a subjective note, the man himself inspires little confidence. His radio interviews last season were puerile and borderline offensive; he was like that bloke down the pub who is correct whatever, knows everything and is never wrong - when he blatantly is. This alone makes me want someone else to take charge at my beautiful club.

 

Objectively, I must support Allen's decisons last season to fight Bates tooth & nail and also his decision to sack Sturrock (who obviously hated him as much as a lot of supporters).

 

In all honesty, during the latest takeover farce I was thinking, 'Why don't they just sell him the shares and be done with it?' Thank you for enlightening me. Is it any wonder no-one understands the bigger picture down at Hillsborough when there appears to be such clandestine, financially-orientated motives dictating policy and ensuring that the average fan on the street hears little to nothing objective.

 

Being someone with a firm grasp of the subject, how do you propose we progress. Is it rather simply a question of working round Allen's pig-headedness or is there some other strategy that would perhaps bear fruit? Surely we must begin dialouge again between the board and the representatives of the supporters, as while we aren't even talking, how can we expect to progress?

 

Thanks again.

 

Credit to you for being open to an alternative viewpoint. Those of us trying to bring some of this to a wider audience are often subject to ridicule and abuse, especially in the face of Allen's opinions regularly finding their way into print and the broadcast media with little or no right of reply. Wednesdayite chairman Darryl Keys (labelled 'a tosser' on this board by one moron) has practically begged Radio Sheffield to allow him to answer some of the criticisms, but they are not keen to annoy the Owls chairman and risk reprisals (which I'm led to believe has been the fate of at least one reporter at The Yorkshire Post). He has also asked Dave Allen for a public face to face debate over their differences, but has repeatedly been ignored. Draw your own conclusions about who has something to fear or hide.

 

Unfortunately, I see little prospect of forcing Allen into doing anything he doesn't want to do. The majority of supporters are still largely unaware or even uninterested about some of the darker realities at the club. Without mass support, nothing will inspire change. As the board have only 31% of the shares the potential is there for the other 69% to vote them out, but as I posted before about 40% of them never vote or just award Allen their proxy rights for him to use. If a number of these could be motivated to become involved there might be impetus for change, but there's not much prospect of that any time soon as far as I can tell. However, the announcement by Dave Coupe of the Shareholders Association might have made a first step down that long road. It's only conjecture, but it appears to me that Allen wants to squeeze every penny possible out of his loans and shares and that this is the real obstruction to regime change. You have to ask why 4 proposals have all collapsed over the summer when clubs elsewhere are seemingly having no trouble with their own takeovers.

 

All we can hope for is that the information is presented to a wider audience for them to come to their own conclusions without resorting to the sort of misrepresentation and insults that have been coming from Allen (allegedly). And it looks like the local press aren't particularly interested in being the objective outlet they ought to be. It may take a while, but the impetus is all in one direction. I know of many people who have changed their minds from pro-Allen or neutral to anti-Allen but I am unaware of even a single one going the other way. Sadly, this process is not happening fast enough for my liking. There are a couple of avenues for a hostile takeover if anyone could buy or get support from the 69% of shares outside the boardroom, but I wouldn't hold out much hope of that happening given that the shares are spread around so many different parties and it would potentially cost quite a wedge. Not to mention the business you'd be inheriting is hardly awash with profit.

 

I'd recommend the Owlstalk website. The majority on there are cynical and negative about the board and how it is being run to a degree which might irritate some. But all viewpoints are represented on there to one degree or another. It's a shame that it doesn't have a wider reach, but it's a start. But beware as there are solicitors constantly watching for potentially libellous statements and at least one individual is currently being threatened with legal action, such is the paranoia Allen is suffering from (allegedly).

[rustyfunk 10]

Surely that should read

 

Owlstalk (easily the most NEGATIVE SWFC message board there is)

 

God forbid you to have a different opinion on there. Unless you like getting shouted down by schoolie keyboard warriors or risk getting called a 'Happy Clapper'

 

 

 

...and there you have it.

 

Of all the info in DJMs posts that is all the comment you can come up up with!

 

Bravo, the art of debate is not dead.

 

Getting 'shouted down by schoolie keyboard warriors' say more about yourself than the site, imo.

 

Great work btw DJM - hopefully people are starting to see what is really going on

[bladesufc1 10]

DOES IT MATTER anymoe please move on SWFC fans, nothing like holding on to the past hehe

 

Onwards & Upwards

[boboskins 10]

...and there you have it.

 

Of all the info in DJMs posts that is all the comment you can come up up with!

 

Bravo, the art of debate is not dead.

 

Getting 'shouted down by schoolie keyboard warriors' say more about yourself than the site, imo.

 

Great work btw DJM - hopefully people are starting to see what is really going on

 

Well seeing as i was just picking up on one part of his posts how do you know my stance on all this? You tell me what part of that statement i made isn't true? You know what Owlstalk is like coz you've been linked to this site from it. Oh and what part of your post aides the debate then, in that case your post was just as bad as mine!

 

I don't need to be told by either side of this argument who's right or wrong i've paid my £5 to park in the car park (yup non-member) whenever i can be arsed to drive down to the match. I can see for myself what things Wednesdayite have organised and the various fundraising schemes they've done only for SWFC to throw the cash back in their face. But i'm also not blind to the few positive things that Allen has done. Even you've got to admit Bates being fended off and the sacking of Sturrock (i was fuming at the time) have helped progress this club. Although looking back it's really the Bates saga that is at the heart of this rift so maybe it wasn't all good! (yes i know it wasn't Wednesdayite but i think they've been 'tarred with the same brush' so to speak)

 

The simple thing is we all want a new regime at Hillsborough and the news about David Coupe and the Shareholders Association is a huge positive step towards getting this. Allen knows some of the things he said in the Press Conference were bang out of order and is starting to back track some what with his comments in today's Star. I dunno maybe i'm being too optimistic but Friday's events may have kicked started a movement by the silent majority of shareholders into doing something other than just buying a shares to get a free season ticket in the South Stand every year (if they still do!) and play an active part in getting the club into the Premiership.

 

Anyway that's my two penneth and any other Owlstalkers are free to come on and show me the light

 

Yours a pitchfork wielding yokle