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Report on the Shareholders’ Forum of Wycombe Wanderers Football Club - 12th February 2009

Introduction

On Thursday 12th February 2009, Wycombe Wanderers Football Club PLC held a Shareholders’ Forum to which both Ordinary and Founder Shareholders were invited. The meeting was hosted by the Board of Wycombe Wanderers Football Club PLC with Mr Brian Kane leading the event. There were short presentations by Mr Mark Ashton, the Club’s Chief Executive Officer (CEO) whose appointment had been confirmed earlier that day; Mr Richard Dobson, Head of Youth; Mr Brian Kane and Mr Peter Taylor, Manager.

The presentations were followed by a Q&A session. The Q&A was split into two parts: firstly, football related questions were addressed to Mr Taylor, who then departed to attend to matters ahead of the team’s away match against Bradford City on Saturday 14th February; and secondly, financial and business questions were addressed. Questions were asked both by the Trust’s Board and other shareholders attending the meeting.

Report on the meeting

In attendance
Members: A total of 52 members of the PLC (Ordinary and Founder Shareholders) including PLC Directors and Company Secretary: Mr Ivor Beeks, Mr Stephen Hayes, Mr Brian Kane, Mr David McGee, Mr Ian Mather, and Mr Keith Allen.

Seated at or beside the Directors’ table: Mr Mark Ashton (WWFC CEO and a non-member), Mr Neil Patterson (WWFC Head of Finance and a non-member), and Mr Alan Parry (WWFC Head of Media & PR).

The attendance was smaller than might have been the case because of snow early that evening that made travel difficult.

1. Welcome / Introduction.

Mr Kane welcomed everyone to the meeting and gave a short introduction.

2. Presentation by Mr Mark Ashton

Mr Ashton expressed his pleasure at having the opportunity to talk to everyone. He advised that he has been talking to Mr Hayes and the rest of the Board for some time, and he feels that Wycombe Wanderers is one of the best-kept secrets in football. He believes that there is an opportunity to progress and take things forward.

Mr Ashton started by providing some background information about himself. He has been involved in football since the age of 9, and had been a goalkeeper at West Bromwich Albion until he left at age 20. He started his own engineering company, but continued to coach part-time at WBA, eventually returning in a full-time capacity as a Community Office. He was employed by WBA for 10 years as Youth Team Coach and Goalkeeping Coach. He then moved into a commercial/marketing role, combining this with the motivation and engagement of young people in the community. His final position was as Director of New Projects. He was appointed CEO at Watford in 2004, and helped to turn the club around. He oversaw the appointment of Aidy Boothroyd, promotion 12-18 months later on the lowest ever playing budget, and the redevelopment of two sides of the ground. He left Watford just before Christmas 2008.

Mr Ashton advised he believes Wycombe Wanderers has a very good Board with a strong vision, and an excellent manager. He had met the staff at the Club on the morning of the meeting and was met with a great response. He wants to take the Club forward, increase revenue streams and reduce debt in order to make the Club more successful. He looks forward to meeting everyone.

3. Presentation by Mr Richard Dobson

In a very positive presentation, Mr Dobson advised it was very good to have the opportunity to talk about the Youth Department, although he doesn’t want to showcase our talented young players to the opposition.

He reported that Dave George (ex-Arsenal) has been appointed as a technical development coach for the Under 8s – Under 11s. He is a great asset to the Club and will be crucial to the long-term strategy. Matt Stannard has also been appointed as a youth administrator, which secures full grant aid funding from the Football League. Dave Evans is now helping with recruitment in the local area, which has proved a great success, particularly in the Under 16s age group.

Mr Dobson reported that the Club is now close to finalising next year’s apprenticeships. Wycombe Wanderers is now seen by Premiership clubs as an exit route for young players released from their academies, and this has led to a number of players coming to us for trials rather than to Championship clubs; including an England Under 16 international.

The coaches are striving towards excellence, and a trip has been arranged to visit Espanyol, the Spanish La Liga team, which will provide invaluable experience. Espanyol have agreed to open the doors to their 1st, reserve team and academy facilities, and the visit will provide the opportunity to watch teams play and train, and to talk to the coaches. The visit will provide a vision of what it is like to run a top academy.

Mr Dobson advised that the Club is aiming to maximise its potential. The inclusion of Matt Phillips in the 1st team squad is a great achievement for the Club and a credit to Matt himself. We now have three players in international squads (a 15 year old invited to the Republic of Ireland Under 16 training camp, a 16 year old invited to the Republic of Ireland Under 19 training camp and another for Northern Ireland). Matt Phillips has been nominated as apprentice of the month for League Football Education and is shortlisted in the final three of League 2 Apprentice of the Year. He is a great example of a well-balanced, levelheaded young player, and Mr Dobson hopes there are plenty of players to follow with the same work ethic.

Mr Dobson asked that if anyone knows of any outstanding young talent then they should contact Dave Evans with the details.

4. Presentation by Mr Brian Kane

Mr Kane commented on the good things happening in the Youth Department. He advised he wanted to talk briefly about the Club this year. At the PLC AGM, Mr Beeks had advised that this year’s budged loss is approximately £1 million. Mr Kane advised that losses are still in line with that projection, although it is difficult to give a clear idea of figures.

The average home attendance has been 4,600 as opposed to the budgeted figures of 5,000. That figure has now increased to 4,925, so gate receipts should be clawing back part of the deficit. The transfer of Mike Williamson was not included in the budget, but player bonuses will need to be paid if we gain promotion. The Club is unable to predict the number of loan players coming in or out. The Club have done very well this year from televised games – Birmingham, AFC Wimbledon, Rotherham and Shrewsbury. Mr Kane believes that a key element in achieving this coverage is that the Club look after visitors from the television stations very well in order to foster good relationships.

On the downside, sales and marketing revenues are less than expected due to the current economic climate. The food and beverage department has been a key growth area for several years, but it is not expected to achieve more than budget this year. The Club is looking for creative ways to fill these gaps, and a lot of work has been done with the Asian Business Council. The Club would like to attract more people from the local Asian community to attend games as this group is under represented in attendees relative to their numbers in the local community.

The bottom line for 2010 will depend on which league we are in, the players, information gathering and the Football League Awards, all of which will influence the attractiveness of Wycombe Wanderers to better players. The Board is trying to build a successful and profitable club regardless of what is happening on the pitch. The goal is to break even at the very least. It will help if we are playing in a higher league, but in any event a third year of improvement on the financial front is expected.

5. Presentation by Mr Peter Taylor Mr Taylor commented that the team has not played very well in 2009. The team needs to score more goals, and he is hoping to sort that out. He is talking to the Board about bringing in new players. Team confidence is a little low due to the recent performances, and the high standards the players have set themselves means they now think they are not as good as they were.

Mr Taylor advised that at the start of the season he would have taken our current position. He is very pleased with how things have gone to date, and he is confident we will find form again and put in strong performances to gain enough points to win promotion.

Mr Kane declared the formal part of the meeting closed, and invited questions from the floor. It was decided that questions to Mr Taylor should be raised first.

Question and Answer Session

Football related questions to Peter Taylor
1. The Bucks Free Press has reported that Crewe Alexandra has looked at a Chesham United player. Has the Club looked at him?

Mr Taylor advised that the player in question had played against us in pre-season and has been watched since (prior to Mr Taylor arriving), but it was felt that he is not suitable at the moment. John Griffith has now joined the Club as a full-time scout and is very experienced. We are slowly getting more people out to watch local talent.

2. Please can you give an update on Will Antwi, including whether or not he is competing for a place in the team?

Mr Taylor responded that Will Antwi is a very good player, but as everyone knows has been prone to injury. To date, he has not seen enough consistency in Will Antwi’s performances to make changes. David McCracken and Leon Johnson are his current first choices, but he has no problem at all with including Will Antwi in the team if required. He would like to see him play more to decide what he needs to do in terms of signings for next season. Mr Taylor advised that Will Antwi’s loan spell to Northwich Victoria had helped, and that he will continue to play in the reserve team.

3. It was asked how the decision had been made to release Scott McGleish on loan to Leyton Orient when we need more goals.

Mr Taylor stressed that the decision had not been made for any personal reasons. Scott McGleish had behaved superbly since his return from his loan spell at Northampton, and had been included in the team a couple of times. However, Mr Taylor was likely to select Matt Harrold and Jon-Paul Pittman ahead of Scott McGleish. Hereford had also enquired about taking Scott McGleish on loan, but Scott McGleish was not interested. He was however happy to go to Leyton Orient, and it may be that he gets more first team starts there. The Board is aware that Mr Taylor has plans to bring other players in.

4. Does the need for more goals mean we need more strikers or a better supply?

Mr Taylor admitted that we have not been creating as many chances lately as previously. The wide players need to do better, but the strikers also need to get into the positions to get goals. He is hopeful that we will have a new goal-hungry player soon. We need players used to scoring, but they also need help.

5. It was asked whether Mr Taylor has a particular player in mind.

Mr Taylor advised he is looking at a 24 year old player, so not one as young as Jon-Paul Pittman. There are lots of players in the Conference and Leagues 2 and 1 who would fit the bill and who want to prove a point.

6. Are you happy with the outcome of our set pieces?

Mr Taylor advised that the movement at set pieces is OK, the ideas aren’t bad (because they are his!), but the quality of the ball is bad except when the set piece is taken by Craig Woodman. Mr Taylor advised that Nathan Ashton is also good from set pieces. This is an area that needs improvement, and he is disappointed that we have not scored many goals in this way.

7. Has the recent bad weather disturbed training?

Mr Taylor advised that the weather has been a nightmare. Although it was frustrating that the Darlington game was called off, in some ways it was a relief because the players had hardly done any training. The training pitch has been frozen solid, and players who don’t live locally have had real difficulties getting to High Wycombe. He hopes that the weather will now improve and the players can get back to training every day.

There being no more questions from the floor, Mr Taylor advised that he is thoroughly enjoying things at the Club. The Board, Club staff and players are all excellent. They have a lot more to do before the end of the season, but he is very confident that we will be OK over the next 18 matches.

Questions to the Directors
8. There has been much talk surrounding a possible move to a new stadium and, in response to a written question submitted in advance of the AGM, it was stated that 'All parties are committed to trying to relocate the stadium...'

Has the Board compiled a detailed business plan, which confirms that the Club can operate profitably on a sustainable basis at a new stadium?

If not yet, by when will this process be concluded and why is the Board committed to trying to relocate the stadium if it doesn't yet know the extent of the financial viability?

Mr Hayes responded by advising the devil was in the detail as far as that question is concerned. He can’t announce anything at the moment as the deal is with Wycombe Sports Development Limited. Wycombe Wanderers and London Wasps are interested parties.

Work has begun on a business plan, but this doesn’t just involve the stadium. He has not yet spoken to the PLC Board about it, so he is unable to give details to shareholders. He has an agreement with Wycombe District Council not to go public, and cannot go against that agreement. However, the fact that there is no information is nothing for the shareholders to worry about. He will go to the PLC Board as soon as possible, including full involvement of the two Trust Directors.

Mr Hayes advised that you have to be committed to something to be able to do it, but it doesn’t necessarily mean that it will happen. It is a difficult and complex situation, made more so because it involves land that we do not own and the land is currently occupied. He is working hard on the stadium relocation project, and has a team working on it. However, it may or may not come to anything. He knows he must report to the PLC Board, and will do so in the fullness of time.

The current economic climate hasn’t helped, and this applies not only to the stadium but also to the infrastructure. The new stadium will be a community stadium, aimed at righting things wrong with High Wycombe – lack of jobs, drugs etc. The project is not currently costing the Club any money.

Mr Beeks commented that a reasonable amount of work has been done by Wycombe Wanderers and London Wasps’ financial teams in terms of looking at appraisals to see if the stadium relocation is possible. It is wrong to speculate when there are no concrete proposals. Although the Directors are committed to a community stadium in a better area with better access, they will need to ensure safeguards are in place so that it is the right decision.

9. Are there serious proposals to develop Adams Park?

Mr Hayes advised that London Wasps are looking at the possible development of Adams Park, but as yet nothing has been presented to the PLC Board. When asked if there was any conflict due to his position, Mr Hayes advised that he is neither the Chairman of Wycombe Wanderers nor London Wasps. He will step back from any conflict, and has complete trust in both Boards. Mr Hayes stated it is just two businesses and that it doesn’t matter who owns what.

10. What does the Board envisage the total debt might be by the time the Club is relocated to a new stadium? If it is not possible to give a single figure then please provide a probable range of figures.

Mr Kane advised that this is an impossible question to answer, and depends on if and when the Club moves i.e. within a 5-10 year timescale or a 10-15 year timescale. The other key factor is how soon Club operations can break even, which will depend on the ambitions of the Club. The major cost is playing staff. The Board is ambitious and has invested in the playing staff. They could operate at break even, but couldn’t maintain the Club’s ambitions.

Mr Hayes advised that the Board is very pleased with Mr Taylor. He is supportive of the youth set-up and of Richard Dobson. Mr Hayes advised that both he and the Board want to keep Mr Taylor at the Club for a long time. He got Hull promoted, cares about the community, youth, the players and fans. Mr Taylor spends the Club’s money as if it was his own. It is a relief for Mr Hayes that the manager is experienced and enjoying himself. The Board needs to be ambitious to support him.

It was asked what other major costs there are in addition to salaries. If we can’t increase income and reduce the playing costs, what else can we do? Mr Patterson advised that major costs include food, utility bills at the ground and the training ground, interest costs on loans and vehicles.

Mr Hayes advised that there are clubs in the lower divisions that cheat in order to minimise costs e.g. not employing enough stewards. The Football League is currently trying to do a deal with HM Revenue & Customs so that the Football League must be told if clubs don’t pay their tax bills. Certain clubs are not happy about this. Mr Hayes advised that maintaining the facilities is a drain on resources. It recently cost £40,000 to rectify a leak in the roof, which it was suggested other clubs wouldn’t have paid to repair. Mr Hayes has been looking for a CEO for three years; it has taken him a long time to find the right person, but it is a good investment for the future. Not all things turn out right, and that costs money.

Mr Mather advised that Mr Beeks has been campaigning for clubs to meet minimum Football League standards in terms of the pitch, floodlights, supporters’ facilities etc., and that one reason why Mr Beeks was not re-elected to the Football League Board was because not all Football League clubs meet these standards and some do not want to be forced to do so. If clubs can reduce the standards set then it makes it easier and cheaper for them to comply. This is not to Wycombe Wanderers competitive advantage.

Mr Beeks provided the following example: 15 clubs in Leagues 2, 1 and the Championship do not have floodlights that comply with the Football League requirements. This situation will now change because the Football League has changed its rules and will send someone out to make the necessary changes if the clubs don’t make them themselves.

11. In response to a written question submitted in advance of the AGM, it was stated that Mr. Hayes has confirmed that he is willing to fund any cash loss for the current financial year. Further, it has been stated previously that loan notes to Mr Hayes cannot be repaid without prior approval of Mr Beeks and Mr Kane. Is Mr Hayes continuing to provide the Club with required funding via loan notes and are they covered by an agreement requiring approval for repayment by Mr Beeks and Mr Kane?

Mr Beeks stated that there is an agreement in place, and another was signed before the last set of Accounts to cover loans until the date of the last accounts. Mr Beeks advised that to allow two people to say if and when loans can be repaid is a serious commitment to the Club by Mr Hayes. Mr Beeks is certain that Mr Hayes has the best interests of the Club are heart. The Board is currently in discussions concerning the future, but they will all do their best to make sure the Club is OK.

12. The Club is in an enviable position with good facilities and is able to achieve income from activities such as conferencing, meetings and functions. In view of this, why does the Club lose money at a higher rate compared to other clubs, who achieve smaller match day attendances and have little or no facilities to generate additional income?

Mr Hayes advised that a few years ago he would have thought that a club at the top of its division with good facilities would have had a support of between 5,500 and 6,000. It would make a huge difference if that were the case. He advised that the CRM system takes a time to reap results, as with the youth system. He stated that the only thing Mr Taylor questions about the Club is the lack of supporters. There are between 500 and 600 season ticket holders who don’t renew their season tickets each year. This is not support lost due to London Wasps, because CRM and ticketing records have been checked.

Mr Beeks thinks that people have fallen out of love with League 2 football, but is hopeful there will be more attractive opponents in League 1 next season. It is easy to find excuses for people failing to attend games. Mr Beeks advised he would welcome any thoughts or ideas on this subject.

Mr Hayes mentioned that they are working on improving access to the ground for next season, but was unable to say any more about it.

13. As reported in the 2007 annual accounts, Wycombe Wanderers had a turnover of close to £4.7 million with a staff number of 104 and a loss of a little over £1.6 million was recorded. By comparison, Ipswich Town FC, who reported a turnover of a little under £10.5 million had a total staff number of 143, including their community Trust staff, and recorded a loss of £1.2 million. Does the Board feel that Wycombe Wanderers has a disproportionate number of staff in relation to the total turnover and the size of the club compared to an established Championship club such as Ipswich Town?

Mr Patterson advised that this was an impossible question to answer. Whatever level of football you are at you need a playing staff, manager, kit man, physio, accountant, secretary etc. There are 42 administrative staff and 57 playing staff (29 1st team, 4 management, 3 training ground, 16 youth players and 3 coaches) at the Club and 5 Directors. Administrative positions could be broken down to 4 finance, 4 sales and marketing, 2 shop, 1 lottery, 4 ticketing, 1 IT, 2 media, 1 big screen, 2 stadium, 1 secretary and 21 food and beverage.

Mr Hayes stated that only IT support is outsourced because the Club wants to do everything else in house. It is very difficult to run the kiosks, and we need to do this well so people have a good matchday experience. If we get things wrong ourselves we need to try and get it right next time.

14. The Board has previously indicated to shareholders that the relationship with Wasps is profitable for the Club, but has declined to confirm the true value for the stated reason that the Board didn't want Wasps to know exactly how much the Club were making from the relationship. Now that Mr Hayes owns Wasps and is presumably fully aware of the financial benefit to the Club, will the Board now reveal to shareholders the value of the contribution resulting from the Wasps ground share for the last financial year and the budgeted expectation for this year?

Mr McGee advised that the information is business sensitive and the PLC Board are therefore unwilling to reveal the figure, which must remain confidential. However, he advised as a new Director, that he had been given access to the accounting data and that he was genuinely pleasantly surprised when he was made aware of the value of the contribution.

15. To Mr. Hayes: How will it be possible to negotiate the best possible rent from the Wasps for the use of Adams Park when you are the owner of Wasps? Does this not create a conflict of interest?

Mr Hayes advised he felt this question had been answered earlier during the session – see question 9.

16. To Mr. Hayes: Do you feel that merging the Club and Wasps would be a beneficial move for the future of both clubs?

Mr Hayes answer was “no”. He stated that he is looking at cost-saving measures by both clubs working in partnership, for example, in the area of ticketing. Mr Hayes is looking at a call centre for ticketing, but this is a big financial commitment. He can never see the merger of a football and rugby club working. However, in certain areas e.g. shop, there is no difference between the two. He concluded that a merger makes no sense.

17. Please provide information for shareholders on the appointment of Mr Ashton as the new CEO. Please include answers to the following questions:
17.1 What is the CEO’s role and mandate?

Mr Mather advised that this had been covered earlier in the evening – see Mr. Ashton’s comments.

17.2 Why is it believed that it is important to employ someone in this role at this time?

Mr Mather said that Mr Hayes has taken a very active, almost day-to-day role in the Club over the past two years. Mr Hayes now wishes to step away from those responsibilities to concentrate on other things. Someone else with experience of sports business management was required to take over. They are looking to trim costs and build the business, and Mr Ashton fits the bill.

17.3 The Club’s statement includes the comment that Mr Ashton will be a director of Wasps. Will Mr Ashton also be a director of the Club? If so, will Mr. Ashton have a vote at Board meetings?

Mr Mather confirmed that Mr Ashton will be a Director of Wycombe Wanderers and will vote at Board meetings.

17.4 Will Mr Ashton receive separate remuneration for the two roles; Club CEO and director at Wasps?

Mr Mather confirmed that Mr Ashton will receive separate remuneration for the two roles.

Mr Hayes was asked whether the CEO job was advertised; he replied that it was not. Mr Hayes believes this is an issue of personality. He had worked with Mr Ashton whilst at Loans.co.uk and has a good idea of his personality, but Mr Ashton was not available when he first started looking for a CEO. Although Mr Hayes conducted four or five interviews, he would not have wanted to interview someone found from an advert.

18. Is the Club actively seeking new Investors? If so, what is amount of capital being sought and over what period of time is it required?

Mr Kane advised that the Club is not looking for investors at this point in time.

19. At the recent AGM, a major issue to be discussed was the massive loss of £1.6 million registered in the previous financial year. However, no questions were allowed at the AGM regarding the finances of the Club. Notwithstanding the possible absence of directors, can the Board give an assurance that future AGMs will always allow questions from the floor on the Club’s financial statements?

Mr Kane confirmed that questions from the floor will be allowed at future AGMs, provided two from Mr Beeks, Mr Hayes and Mr Kane are able to attend. It was a very unusual situation this year as Mr Kane and Mr Hayes were both initially unavailable to attend the AGM.

20. People may have read stories about Mr Ashton’s last year at Watford, and the question was asked as to what had happened to generate that level of interest in his departure.

Mr Ashton advised he has learnt not to pick a fight with a man with a pen. He enjoyed four good years at Watford that included promotion on the lowest playing budget ever, debt cleared, relegation, and another promotion attempt. The decision to rebalance the books was unpopular, results on the pitch weren’t good and the manager changed, meaning he had a difficult last year. However, Mr Ashton advised he left Watford with good memories. He wishes people at Watford all the best for the future, and has received calls from people there wishing him good luck here. Sometimes you have to make unpopular decisions, but he believes he ran the club professionally and intends to do the same here. He has been asked to look at commercial synergies to maximise revenue for Wycombe Wanderers.

21. Why didn’t we receive more money for the sale of Mike Williamson than for the sale of Roger Johnson?

Mr Hayes advised that Roger Johnson still had a year left on his contract when he was sold to Cardiff, whereas Mike Williamson was out of contract at the end of this season. It also made a difference that there was no other club bidding to sign Mike Williamson, as the competition would have increased the price. It was Mr Taylor’s decision to sell Mike Williamson. If Mike Williamson is a better player than Roger Johnson, then the Club should do better from the sell-on clause. Although the price wasn’t a lot of money, once a player’s head has been turned it is very difficult to stop him from leaving. It would be wrong for the Club to ruin his chance to play at a higher level, and you have to be careful not to affect the players left in the dressing room. We could have waited until the end of the season and then received nothing, but at least we have received a fee and there is a good sell-on clause.

Mr Hayes was asked why the fee paid for Mike Williamson had not originally been disclosed. He advised that this was at Watford’s request, as we had stated we would disclose fee. Brendan Rodgers (manager of Watford) then announced the wrong fee. The Club wish to build a good relationship with Watford, so the Club will not be making an announcement. In some ways the disclosure worked against the Club, because if the figure had remained undisclosed then the Club may have been able to sign Strevens from Dagenham & Redbridge. As it was, when they became aware of the reported amount received for Mike Williamson they increased their demands.

There being no further questions, Mr Beeks closed the forum and thanked everyone for attending.

The Trust's commentary on the event will follow.

posted in club-issues | 24.04.2009. 12:57

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