Thursday, 21 August 2008

16 August 2008 Statement

16 August 2008

Statement from the Board of Martyrs to the Cause.
This morning, the Board of Martyrs to the Cause met with Wyn Holloway, Perry Johnson, Martin Greenham and Leighton Davies of Merthyr Tydfil Football Club at Pendarren Park.In that meeting, we presented an outline offer to the club, following initial discussions with our legal representatives, the key points of which were as follows:
  • Firstly Martyrs to the Cause would loan the Club the money (on an unsecured basis but via a legal agreement) needed immediately to meet pressing creditors.
  • Wyn Holloway’s shares in Merthyr Tydfil Football Club Limited would be immediately transferred to Martyrs to the Cause for no consideration, however we would be prepared to consider the transfer of a controlling stake in the company only, with certain guarantees – to be agreed.
  • All of this would take place with the simultaneous resignation of the existing directors (without compensation) with a new board appointed by the Trust, which it is expected would be the current board of the trust.
  • The new board would meet the Club's ongoing debts and commitments.Under the terms of the deal, what we believe to be substantial existing loans and credit from a number of sources, would continue to be guaranteed by the existing directors (as they are now). And as a sign of our intention to ensure eventual repayment of those loans, we propose that the new board would make monthly goodwill payments in order to assist in the ongoing maintenance of those loans.
  • We also propose that annual reviews of this arrangement would be factored in so progress can be monitored by all parties to their satisfaction.However, all of this is contingent on due diligence of the club’s most recent accounts.

However we note that these have not yet been filed with Companies House, although we also understand that they have been completed. If there is any way in which Martyrs to the Cause can assist – financially or otherwise – in releasing these accounts, we would also be willing to discuss providing assistance as part of any deal.

Sadly I have to tell you that Wyn Holloway and his fellow directors rejected this proposal out of hand. We are unsure as to where this now leaves us, however our door is always open for discussion, and we will leave this offer open, and are prepared to discuss this further.We believe that this deal represents an opportunity for Wyn Holloway and the other directors of Merthyr Tydfil Football Club Ltd to be released from their current over-burdening commitments, which must cause significant stress to all of them.

In operating the club, we would be doing so as a team, alongside the fans as owners. We would also be advised by Supporters Direct, which has a great deal of expertise in this area, and which has already assisted with fifteen supporters trusts in taking over or restarting their clubs, four of which are in the Football League.The involvement of the supporters is critical to the future of this football club, and we believe that now is the time for us all to step up to the plate and return our club to its former glories. The board of Martyrs to the Cause is committed to our great club having a future, and that future being under the ownership and control of the supporters of Merthyr Tydfil Football Club.

We will be making no further comment at this stage.