A re-financing package set to save more than £750,000 over five years shows there is belief in Brentford fans owning their football club, according to Bees United (BU) chairman Brian Burgess.
Burgess said the fact that Matthew Benham was happy to lend £3m to reduce the club's interest payments without taking any shares in the football club shows the trust's ownership is working. “It is a great vote of confidence in fans ownership of the club that he is happy to put the money in with BU in control,” continued Burgess.
“There is criticism that the model isn't working and yet we have someone willing to lend £3m of his own money.”
It was revealed earlier this week that Benham, a lifelong Brentford supporter, had provided the cash interest-free to the club for five years by taking over loans owed to Altonwood, the company of former owner Ron Noades, and Barclays Bank.
As part of the deal, after negotiation with Bees United, Noades agreed to write off a £250,000 loan due to be repaid to him last week and he has no further involvement in Brentford Football Club, in any capacity.
It strengthens Benham's involvement with the club as, through his company Midas Way, he put up a loan of £500,000 a year ago when Bees United completed their takeover. Midas Way also provides a £500,000 standby facility that the club has not yet needed to use.
“This latest deal will save the club over £150,000 a year in interest,” explained Burgess. “With the interest rates rising, our £2m loan from Barclays was getting even more expensive.
“People question the effectiveness of Bees United owning the football club. The year before we took over, the club had an overdraft approaching £5m and the interest was going up to around £280,000 a year.
“Under BU, in just over a year, the interest is now down to about £50,000.
“Apart from when it needs to use the £500,000 overdraft facility at Barclays bank, the only interest the club pays is on the £500,000 loan from Hounslow Council and BU are currently loaning the money to pay that each month.
“Under BU's ownership the club has saved over £230,000 a year – where else was that going to come from?”
But this is not the end of the club's financial worries, as Burgess freely admits. Benham has bought out loans that were owed to Altonwood and Barclays Bank, and saved the club money in the process, but the debt is still there.
“This doesn't solve the problem, as it is still not enough to fund a decent playing squad,” said Burgess “We will need to do more, but it is a start. The debt is £250,000 lower than it was and there is over £230,000 a year less going out. “We now need to find a way of making up the gap on an annual basis to fund a competitive playing budget and keep finding ways to pay off more of the debt.
“The football club board has the challenge of balancing the budget and Bees United can concentrate on raising money to pay £550,000 that is due to investors in January 2009.
“Before this deal we were faced with having to repay £250,000 this year and £1,550,000 in 2009. It gives us more breathing space.”
Burgess explained that after the new deal there were now two payment deadlines on the horizon, one in 2009, when Bees United's loans are due for re-payment, and a further one in 2011.
In four years time the first loan from Benham, of £500,000, and the £500,000 owed to Hounslow Council are due to be re-paid. “This deal is a good start,” continued Burgess. “During the takeover BU ended up putting £1m more into the club to get it through last season.
“Even with selling DJ Campbell, reaching the play-offs and the FA Cup Fifth Round we lost £500,000 and that had to come from the BU acquisition financing.”
And Burgess was quick to praise supporters who had put their hard-earned cash into Bees United to ensure that money was found. “This has come about through supporters putting in a lot of hard work and contributing what they can,” said Burgess. “And the Fighting Chance scheme is just another magnificent example of Bees fans rallying round when it is needed.
“That hard work was combined with an intelligent professional approach to our financial situation, and Matthew Benham. If it weren't for him this wouldn't have happened.
“The great thing is Matthew is a Brentford supporter, he is a dyed in the wool fan.”
With Bees United just passing the first anniversary of their ownership of the club Burgess took the opportunity to look back on the last twelve months.
He admitted things hadn't always been easy for supporters, and said he could understand some frustrations, especially given the position in the league table, but added hard work behind the scenes would soon show fruit. “No-one is happy about being bottom of the league,” said Burgess. “And it is no fun watching the team when they're bottom.
“But the only way we will turn it around is to get behind the manager.
“Increasing our commercial income is difficult to achieve, the staff team at the club is small and they work very hard, but they are stretched and we can't afford to bring in a lot of people.
“Keith Dickens has made a start in sorting out the commercial deals, with the brewery, Refreshing Solutions and kit deals. “Fans won't se the results immediately and I can understand that people wonder whether any progress is being made but thing are being fixed as quickly as possible given the position we find ourselves in.
“We can't just hire people and throw money at it, we can only improve things within our constraints.
“Recruiting an experienced, professional MD in the shape of Keith Dickens was the right thing to do and it is taking time but results will show.
“We will see a new roof on Ealing Road and I am hopeful we will make progress on a new stadium at Lionel Road.
“But this is a football club and it is only as good as its results on the pitch, everything else pales into insignificance.”
Brian was interviewed by Chris Wickham.