How much is the club in debt?
In the past four years the clubs recorded debts have risen from £1m to £7m, including a loan of £1.3 m to an associated company Griffin Park Stadium Limited that is due for repayment in 2006. It has been suggested the debt to Griffin Park Stadium might be deferred indefinitely reducing the actual debts payable to £5.7m. The debts are approximately three times the clubs annual turnover. The board of directors are now proposing to sell the ground to a housing developer, subject to acquiring planning consent, and move the club to a new home.
If the ground is sold, where does the club go from here?
The board is proposing to move the club to Kingston, Surrey to groundshare with Kingstonians, a non-league club until a permanent site for a new stadium can be secured. Although intensive discussions with Hounslow Borough Council have been undertaken over the past few months, no new site has yet been secured.
What can Bees United do?
Bees United have an option to purchase the majority shareholding in the club. To exercise the Option Bees United need to secure finance of £5 million now for secured debts and probably a further £2 million to fund projected deficits until a new site can be acquired.
Where will the money come from to take up the option, fund the clubs ongoing losses and build a new stadium?
The Option
Firstly, from donations and fundraising among the Fans – this is the £1m fundraising appeal launched by Bees United in June 2002 that has generated £250,000 in cash and pledges in the first two months.
Secondly, from negotiations with the Chairman with respect to the existing funding of £3.25m provided to the club through his company Altonwood, and lastly, and subject to success with the one and two above, from external financing i.e. a mix of bank borrowing and equity investment in the club.
Ongoing Losses
Bees United intends to run the club within its available income and concurrently seek to increase both the average gate and the level of local business support. It is expected that a breakeven position could be achieved within two to three years.
The New Stadium
Bees United are seeking a partnership with the local council to develop a community stadium in the borough that can be used year round for a range of activities. The surplus from the sale of Griffin Park after debt repayment is earmarked for investment in this new stadium. These negotiations are still at an early stage and subject to securing a suitable site.
Why can Bees United succeed where others have failed?
In a nutshell because of the backing of the fans. Bees United are a community trust owned by the fans and with the single objective of securing the future of Brentford Club in the local community. The club will be run for the purpose for which it was established – the playing of football and not for any ancillary commercial purposes.
Who will run the club?
The supporters trust will act as custodians of the club and appoint suitably qualified directors to oversee the key functions of the club including player contracts, youth development, football in the community, marketing, finance and club operations.
What will you do differently?
We will seek to live within the means of the clubs supporters and develop players from kids in the local community with roots here and an attachment to the club and the area.
What happens if Bees United cannot raise the money to take over the club?
The board propose to sell Griffin Park to the highest bidder, with or without planning consent, and the club will play at Kingstonians.
What happens if the club runs out of money before the ground is sold?
If the club becomes insolvent or is likely to become insolvent before a sale is concluded an administrator would be appointed to prepare a rescue plan within three months that is agreed by the creditors. The principal creditor would be Altonwood, the club Chairmans' holding company. The rescue plan could involve agreeing debt reductions with Altonwood and other creditors and a refinancing of borrowings or sale and leaseback of the ground provided the administrator was able to show that the club could operate profitably going forward and meet it's obligations.
What happens if no rescue plan is agreed with the creditors?
If there are insufficient funds available to fund an administration or if no rescue plan is agreed by the creditors, the court will order Brentford FC Limited to be wound up and a liquidator would undertake the sale of Griffin Park.