Trust News

Tim Hartley, chair of Cardiff City Supporters Trust, commenting on the passing of Simon Insole, said: “Simon was always so very helpful to me and my family and friends, especially when we have travelled away with Cardiff City.

“He did so much to restore the image of the club over the last few years and he will be sadly missed around the Cardiff City Stadium. We offer our condolences to Simon’s family and friends.”

Trust chair Tim Hartley reports on a meeting with officials of Cardiff City FC on Monday, September 3rd:

The Trust had a chance to put your questions to the club earlier this week. Chair, Tim Hartley, Vice Chair, David Craig and Board member Keith Morgan met with the club’s Chief Executive, Alan Whiteley and Julian Jenkins. It was also good to meet the club’s new Sales and Marketing Manager, Tom Gorringe, who has joined the club from Portsmouth FC.

We are all keen to know the results of the recent questionnaire the club sent us. It actually went out to 42,000 people on the club’s database. 6,000 responded and Julian and his team are working through the responses. A focus group of some 20 fans, randomly selected, but with a gender balance, will then be asked to discuss the findings with the club. The Trust and the Supporters Club will also have a representative on this group in addition to the original 20. The discussion will be based on the questionnaire and will be within the parameters set in that survey. The club will publish the results of the survey, the group’s discussions and an indication of any changes as a result of the consultation. We as a Trust will be offered a presentation of the findings of the questionnaire at the start of October.

We wanted to know how many viewers are watching Cardiff live on TV in Malaysia. Home games are shown on the Astro channel there and if it’s not a Sky game the club itself and an independent production company provide the coverage. The viewing figures have not come through yet but the club says the exposure the coverage gives us is immense. The club says that the actual value of the TV deal in Malaysia is confidential but that the revenue received from our new digital advertising boards, which of course are seen on TV, is significant.

The club says the Memorial Garden near Sloper Road, which the Trust helped pay for, is all but complete. Many members however, are keen to see some fencing and benches placed there. There may be safety issues with a low fence but the club will put two benches on the site. Keith Morgan is already in contact with local schools to try to get pupils involved to help maintain the Garden.

Following from the Trust’s meeting with the club’s Financial Director we were keen to clarify whether Vincent Tan and his associates have a legal commitment to convert their interest bearing debt into shares. We were told that this was the intention but that the priority for the club and its owners is to solve the Langston debt issue first.

Many members have expressed their disappointment at the way the colour change was introduced and have asked whether there has been any further discussion within the club on how things may be different when something like this is proposed again. We as a Trust believe that the recent online consultation is a step in the right direction. Alan Whiteley told us that there are topics on which the club will try to engage usefully and there will be others where management need to manage in the best way they can. He said that on an emotive topic such as the colour change no amount of consultation could have prevented strong and heartfelt debate and that doing so would have delayed the decision and prolonged the disagreement.

Some members want to know whether the club will allow a peaceful protest against the colour changes at the stadium. Alan said that the club would not allow a protest on the site of the stadium and that such action would only serve to perpetuate the argument and conflict between fans. He said that the vast majority of supporters have accepted the colour change, even if they have done so reluctantly.

We asked a lot of questions about the financial aspects of the rebranding and specifically if the scheme does not sell as many shirts as anticipated or receive any new income/sponsorship would the club consider reverting back to the old colours? This answer was a definite no. We noted that there is still a 7% interest charge on Vincent Tan’s investment although the club says he has not taken any money out of the club. Why then is this interest charge there in the first place? We understand that while it is a loan the Malaysian investment will incur the same interest as other loans to the club. The whole amount will be overridden when and if the debt is converted into equity.

The club’s costs appear to have risen steeply since the arrival of our current owners and we were keen to know why. The 2011 published accounts show an operating loss effectively unchanged year-on-year despite a fall in turnover (i.e. costs have fallen not increased.) The club is driving efficiencies everywhere it can but says that the loss is ‘on the playing field,’ that is, down to player fees and wages.

We asked the club whether there has been any monetary benefit to the club directly arising from the change of kit colours or rebranding of the stadium. The Chief Executive told us that the biggest monetary advantage is the securing of the investment as was made clear from the outset. The club also has a number of new sponsors on board including Ricoh, Sytner, Peters and New Law. All of these are attracted by the plans that the club has and which are being implemented as a result of the investment. In addition, the profile of the club is being increased in a number of territories through the live TV deal and the scale of the club’s ambition.

Season ticket holders get a discount to watch development games for the U21’s. It’s £5 a ticket but £3 for ST holders. The club says they cannot offer free admission to these games because opening them up to the public brings costs in itself. Any profits from gate receipts go to the Academy and they believe the subsidised rate is a fair deal for season ticket holders.

Those of us crossing towards the Ninian Stand on match days have noticed that when it rains hard there seems to be a permanent lake in car park adjoining Sloper Road. Wayne Nash the Stadium manager says they are aware of this problem and are looking into a permanent solution.

We were keen to know whether any progress had been made to get trains to stop at Ninian Park Station after games. This is ultimately a matter for Arriva Trains but Wayne is on contact with them to see how fans travelling to the ground can make the most of rail services.  Getting to and from the ground will be a bigger issue if we expand the capacity at the stadium. Those of us who were at the game in Brighton saw that they encourage people to use public transport. Brighton’s Amex is of course a brand new out of town stadium and although they have a railway station, road access is not good. We were glad to hear that Wayne Nash is in discussion with the council on the possibility of offering season ticket holders discounts on the buses on match days or of providing shuttle buses to the ground.

One Trust member commented that the new club badge design in black on the glass above the main entrance to the stadium is off centre. This was not a mistake but part of the redesign. Another member asked why rearranged games are played on Sundays when a Friday night fixture might mean the crowd is bigger and less subdued giving us maximum home. The club says that sometimes their hands are tied because of television contracts but that for everyone wanting to play on Friday there will be someone wanting us to play on Sunday.

As part of the investment deal we were promised stadium redevelopment and we asked whether there is any plan for stadium expansion even if we are not promoted to the Premier League. Alan said that there would be little point in doing this while we are outside the Premiership as we would not fill the current capacity. The expansion plans have always been demand driven. Any work to increase stadium capacity would be completed between May and the start of a new season, as far as practically possible.

There are two other matters raised by members which we discussed. The club’s website is being given a complete overhaul and the new site should go live very soon. Also, a lot of fans commented on the square corner flags at the Huddersfield game. As FA Cup winners of course City can fly triangular corner flags and this will continue to happen from now on.

This was a positive meeting. I think that the Trust’s relationship with the club is growing and we are keen to organise another meeting for Trust members with the club Chairman, the Chief Executive and his team. After a difficult few months things are settling down for us at the City and Sunday’s performance against Wolves really was something to shout about. Well done lads.

Read Joel Essex’s article which was in the Brighton v City programme. Joel hails from Cardiff.

Joel’s father and Trust member Richard Essex commented: “Now why couldn’t Malky support Cardiff City becoming a Community Benefit Society?!!”

https://www.lewesfc.com/malky-mackay-becomes-newest-lewes-fc-owner/

The Trust is meeting with Cardiff City’s Chief Executive Alan Whiteley and his team early in September.

If Trust members have any issues you would like us to raise then please email help@ccfctrust.org

On Monday 13 August , Keith Morgan , one  of the Cardiff City Supporters Trust board had a meeting with Doug Lee (DL) , the Finance Director of Cardiff City in order to discuss some questions which had been raised in recent weeks by Trust members concerning the club.

The Trust would like to thank Doug for the considerable time he gave to answer the questions raised in a full and frank manner.

The questions raised , and the answers given are set out below:-

1.    Is the often discussed conversion of the current debt owed to Vincent Tan and associated parties to equity a legally binding agreement subject only to the prior settlement of the debt due to Langston/Sam Hammam?

While there is no such legally binding agreement in place or a firm conversion timetable , the club`s executive directors remain extremely confident that this conversion will take place. This confidence is based on ongoing reassurances received on a regular basis from Vincent Tan himself who has the option to convert in his financing agreement with the club.

As far as Langston is concerned , DL stated that settlement remains in the hands of Sam Hammam/Langston , who have received a series of settlement offers from the club who are now awaiting a formal response. The club do not intend making any further offers.

2.     The board of Cardiff City Football Club (Holdings) now has more directors than at any time in its history , but little is known about them or their roles at the club by either the fan base or many minority shareholders. Could Trust members who raised the question be given this information?

The current board can be divided into two main groups – Executive directors and Non-Executive directors. The Non-Executives can then be further sub-divided into two groups – UK based directors and non UK based directors.

Dato Tan Tien Ghee is Chairman of the club , overseeing  and contributing to all board activities. He is a long term business associate  of Vincent Tan. Despite being based in Malaysia , he is a regular attender of board meetings when in the UK.

The Executive directors are Alan Whiteley (Chief Executive Officer) and Doug Lee (Finance Director) , although Doug is not formally listed as a director at Companies House. They are responsible for the day to day decision making and running of the business , working with senior employees such as Julian Jenkins and Wayne Nash.

The UK based Non-Executives are Steve Borley , Michael Isaac , Paul Guy , Mike Hall and Mehmet Dalman.

SB is a long standing director and fan of the club , MI is the second largest shareholder (11%) behind Vincent Tan (36%), PG and MH are the main directors and shareholders of PMG Estates who are major creditors of the club. Mehmet Dalman was introduced onto the board by Vincent Tan due to his extensive experience in finance raising , his knowledge and interest in football matters , and his extensive business connections in the Far East.

All UK non-executive directors attend the vast majority , if not all , board meetings which tend to be held on a quarterly basis or when a specific business matter requiring attention arises.

The non-UK based non-executive directors were all appointed to the board by Vincent Tan. They are all Malaysian based employees of his Berjaya Group businesses brought on board for their specific skills. Derek Chin – legal , Len Kong –marketing , Ming Lim – accounting.

Danni Rais was also appointed by VT in June this year and also has a marketing background and an employment link with VT companies.

The Malaysian based non-executives usually  attend board meetings  by teleconference , and occasionally in person.

3.     Why has an Annual General Meeting been called for 16 August rather than an Extraordinary General Meeting needed to pass a resolution to increase the share capital needed to bring about future conversions of debt to equity?

The aim of the meeting is to provide minority shareholders with an opportunity to question directors on recent events and to formally accept the audited annual accounts for the year to 31 May 2011.

No EGM with resolutions has been called as the directors are of the view that it is best to await the outcome of the Langston position and , thereafter , the timing and quantum of the required debt to equity conversion before convening such a meeting.

4.    Erskine Finance Limited and Edgedale international limited are mentioned in the 2011 accounts as investors in the club and also have debentures over company assets , but don`t appear to be registered at Companies House. Who are they?

These are non-UK registered companies having an association with Vincent Tan . No further details of their structure or ownership were given at the meeting as this was deemed to be commercially sensitive information.

5.    Is there a specific plan in place to deal with the Financial Fair Play requirements adopted by Championship clubs and which take effect from the season just ended?

This is a complex area which will not take full effect until season 2013/14 but is already being worked on by the directors (in particular DL) Complexities involve the timing and extent of new equity investment , and the reduction of current levels of trading losses being incurred by the club at Championship level. Variations to the required standard model include spend on stadium infrastructure , youth development and education and depreciation of the new stadium cost.

6.     Why was the change of club home kit from blue to red notified to the League at such an early stage , when League rules allow this to be done at any time during the close season , which was several months later?

DL stated that this is as a result of the League pressing the club hard for the information to incorporate in various publications and circulars , even though their own rules say it could be submitted at a later date.