In the previous newsletter we told you that we had met with the Directors of Wrexham Village and that we would update you on that meeting in our next newsletter.
At that meeting we queried a statement made by the club in relation to the accounts on April 8th:
"Whilst the Club is currently wholly owned by Wrexham Village Ltd and remains financially dependent on its financial support, we believe that the Club can now be separated from the group, debt free, if so desired."
In response to our enquiry we were informed that the club was for sale and that we (WST) could acquire it from Wrexham Village.
Wrexham Village briefly stated two options:
WST to acquire the football club for a pound.
WST to acquire the football club and ground for £2m.
We agreed to meet again with the Village to discuss these options in more detail.
Unfortunately the departure of the Chief Executive has somewhat delayed progress in this matter; however we have been assured that the Village are still keen to pursue this.
Our initial reaction was to ascertain how a sale of the club would affect future benefits from the Student development. WST would not wish to see any income stream withdrawn because of a sale of the club.
We were told that there was no more money coming to the club from the development. We queried this because the Village had always stated that 100% of the proceeds from the development would go back into the club.
Mr Roberts stated that this was never the case and that the club had already benefitted from the sale of the development to the tune of £6m, this being £3m more than it is worth.
In light of this the Board of the WST have agreed to pursue this opportunity and are currently awaiting documentation from the Village. It is our view that the Village will not be able to put together any detailed proposals until the clubs accounts for 2009 are finalised, so this process may take a little while yet.
How we value the club in cash terms has yet to be decided. The club is a heavily loss making business. Large parts of the ground are ageing and our support is declining in relation to a pretty grim product on the pitch. Turnover is down and our losses are up.
The board have discussed the basis of a WST bid and have agreed that we can only purchase a club that is sustainable in the longer term and to that end several friends of the Society are working on a business plan to support this.
At this stage, that is all we can say with any degree of certainty.
We will update our members as and when the situation develops, however we will need to be careful how much information we put into the public arena.
The ideal course of events would be that we meet with the Village and negotiate a realistic and sensible deal that we can put to our members for their consideration. There will not be any deal agreed before the membership of the society has had the opportunity to discuss and approve its contents.
Perhaps now would be a good time for our members to reflect on the state of the current club and the things that we would have to do to turn around its fortunes.
If, and it is a big if, we do acquire the club then I can guarantee that there will be a role for everyone who would wish to see our club restored to its rightful position in the Football League
I would like to take this opportunity to invite you all to our next members meeting on August 16th at the Wrexham Lager Club when we can discuss the opportunity in more detail.
Members unable to attend are encouraged to e-mail the Secretary with any queries.
Press - Lindsay Jones 07976046755