Dear Bees United Member,
I am writing to you regarding the most important decision currently facing Bees United and Brentford FC. It is a decision which will have fundamental implications for the immediate and long term future of Brentford FC. It is a decision which, by virtue of the democratic nature of Bees United, rests in your hands.
As Chairman of Bees United, supported unanimously by the Board, I am recommending that we enter into a five year partnership with Matthew Benham which (if agreed) will transform the finances of the Club. Matthew is a lifelong supporter of Brentford FC, and has provided substantial financial support over recent years.
At the end of the five years, the deal has the potential to change fundamentally the ownership of the Club in the long term. There are three possible scenarios at the end of the period. One of these gives Bees United the ability to increase our current shareholding (providing we have the very substantial funds required to pay for it). Another, perhaps more likely, scenario is that Matthew takes majority ownership of the Club by significantly reducing the Bees United shareholding. The third scenario would see Matthew continuing as a significant minority shareholder.
Our task at Bees United – working to secure the long term future of Brentford – will continue unchanged regardless. Whatever the decision, Bees United will continue to have significant loans to Brentford FC, will continue as a shareholder in Brentford FC with board representation, and will (either as majority shareholder or via a golden share) have the power of veto over any sale of Griffin Park (or any future ground) so long as Brentford FC remains solvent.
The recommended deal with Matthew will secure £5m plus (a minimum of £1m a year of investment as equity, i.e. it is not debt which will hurt us in later years, for each of the next five years) in return for effective operational control over the Football Club (although Matthew has indicated that he is not planning to make significant changes to the Board of BFC on completion of the deal). The details of his proposed investment, and of what Matthew gets in return, are set out in a Heads of Terms (summarised in the attachment to this letter).
Please read this document carefully – this deal may result in Matthew taking majority ownership of Brentford FC after the five years, so it is critical that you spend the time to read and understand all of the details provided. In order to provide further information and give members the opportunity to ask questions prior to the voting deadline, a members’ meeting has been arranged for the evening of 17th August – see attached for further details.
Whilst we can clarify the implications of supporting the deal with Matthew in some detail, the alternative – should the proposal be rejected – is not so clear. The Club is already massively in debt, and continues (despite all our efforts) to lose money each year. Some of the Club’s existing debt became due earlier this year, and without raising significant long term funding it will be difficult to ensure the Club remains solvent. This is not new – the Club has been losing money for many years, as do many other football clubs – but it does mean I can offer no guarantee as to the future of Brentford FC if the proposal is rejected.
On the back of promotion as champions to League Division One, I am therefore recommending that we take a clear step to give Brentford FC the best chance of financial stability and further playing success in future seasons.
This deal is the culmination of a long period of negotiation, primarily with Matthew, but also with the other lenders and shareholders whose support is necessary for this to work. I would like to thank all those involved for their willing participation during the negotiations. As a result of this process I am confident the deal represents the best terms on offer.
While the Rules of Bees United give the Board the authority to enter into an agreement with Matthew without seeking the views of the members, the Board have agreed, in the spirit that Bees United was set up, to ask the members to indicate how they would like us to proceed.
We are therefore, as a Board, asking you the members a simple question – whether you wish the Board to enter into a transaction with Matthew (“FOR” the motion), or whether you wish it to be rejected (“AGAINST” the motion).
I would urge you to consider which route offers the best chance of long term sustainable success for Brentford FC.
I have, and I will be voting “FOR” the motion.
Yours sincerely,
David Merritt
Chairman
Bees United