Bees United members have voted overwhelmingly in favour of forming a partnership with Matthew Benham – Brentford Football Club’s largest creditor – which will see him invest at least £5 million in the Club.
In their biggest decision since taking over control of the Club from Ron Noades nearly four years ago, Bees United members have agreed that Matthew Benham should have an option to take control of the Club in return for investing a minimum of £1 million per year for the next five years.
“Brentford Football Club needs more investment, and I shall be investing substantial sums of money to help Brentford become a Championship team,” says Matthew Benham, a lifelong Brentford fan who owns Smartodds, a company that provides statistical research and football modelling services in the betting sector.
After the five-year term, Bees United can buy Matthew Benham out if they can raise enough money. If they don’t, Matthew Benham will have the right to buy majority ownership of Brentford Football Club. Bees United would retain safeguards over the sale of Griffin Park, the club’s home ground.
More than 99% of Bees United members supported the proposed partnership in a postal ballot that was first announced on 31 July. The turnout was just under 70%.
“This is excellent news,” comments Bees United Chairman David Merritt, who with the rest of the Bees United board had unanimously recommended the proposed partnership. “I’d like to thank the vast majority of Bees United members for their support for the proposal, which we believe is in the best interests of Brentford Football Club. All that remains now is for the shareholders’ agreement and other formalities to be concluded.”
When the deal is finalised, Matthew Benham will take operational control of the Club for the five-year investment period. He will also obtain a minority stake of about 35% from former Club Chairman Martin Lange – around 25% – and just over 10% from Peter and Timothy Wheatley, the sons of a former Club Director.
Bees United will continue to be the Club’s majority shareholder with a 60% stake and to have at least one representative on the Brentford Football Club board while it remains a major creditor of the Club. The Supporters’ Trust currently has four representatives on the Club’s board, including Chairman Greg Dyke as well Finance Director Alan Bird, Donald Kerr and David Merritt. These are likely to remain for the foreseeable future.
Matthew Benham’s investment will be in the form of non-voting preference shares, and will not increase the club’s existing debt of around £9 million, stresses David Merritt. “Bees United exists to secure the long-term future of Brentford Football Club, and this partnership satisfies that objective in every way. It provides for substantial investment in the form of equity, protects against any further increases in debt, and at the same time ensures Bees United provides long-term protection for the Club,” he says.
At the end of the five-year period, Bees United can repay Matthew’s existing £4.5 million in loans to the club and can buy Matthew Benham’s preference shares according to a pre-agreed valuation formula. However, if Bees United does not do so, Matthew Benham has the option to take over control of Brentford Football Club by buying most of Bees United’s 60% shareholding and converting all his debt into more preference shares. Bees United would keep a minority shareholding and a ‘golden share’ protecting against the sale of Griffin Park.
In any event, Brentford’s plans for a new stadium at Lionel Road, Brentford, remain unaffected. “Both the Bees United board and Matthew Benham are fully supportive of the Lionel Road plans, which would transform the future of Brentford Football Club as a professional football club at the heart of the local community,” comments David Merritt.