Trust News

Trust chair Keith Morgan, who is a football finance expert, was among a group of fan representatives who attended a meeting with Cardiff City chairman Mehmet Dalman and other club officials before today’s Leeds United FA Cup game.

Below is Keith’s report on the key points of the meeting:

1. Transfer Embargo – I was wrong in an earlier post. As well as the EFL embargo, a FIFA one does exist in parallel but they are not consistent with each other. What is clear is that the club cannot presently meet the criteria to lift either. The club has written to the EFL pointing out some inconsistencies in their embargo ruling and expects to receive a response within the next week to their request to have the embargo lifted.

2. Appeal to Swiss Federal Tribunal – This is ongoing but no date has yet been set for a court hearing.

3. Other legal actions to recover losses arising – These are ongoing but full details could not be revealed due to legal confidentiality. However, it was stated that the claim against the club`s insurance brokers was a negligence claim.

4. Neil Warnock – It was categorically stated that the directors had had no contact with Neil Warnock about a possible return to CCFC and that they had no intention of doing so in the future.

5. Vincent Tan Financial Support –Mehmet Dalman stated that Vincent Tan had recently confirmed on several occasions that he was pledging to continue financially supporting the club.

6. Other matters discussed – It was revealed that not only was the Emiliano Sala transfer not recognized as complete by the Premier League at the time but was also not recognised by the players union the PFA. It was also said that players were being loaned out despite there not being the ability at present to bring replacements in as a manager`s decision on the basis that he didn’t believe they would have a part to play in the first team squad this season.

There is expected to be an update on various matters available within the next week and Trust members will be notified as soon as this is available.

• You can join the Trust for just £12 a year through our website or call into our office before the Wigan game. We’re near Gate 5 and open 90 minutes before kick-off. The more members we have the stronger voice fans have.

Keith Morgan

Trust chair Keith Morgan provides a briefing on the implications of the transfer embargo imposed on Cardiff City.

There seems to be a little confusion on social media about what our club can and cannot do under the current transfer embargo, so I thought it might be useful to summarise the actual position under EFL rules.

1. The club can only bring in new players if it currently has less than the maximum level of 23 players of “professional standing”. These are players who have played at least one game (including as a substitute) in any first team competition for any club.

2. New players cannot be permanent transfers for a fee but are restricted to loan signings or out-of-contract players.
3. Loans are restricted to a maximum period of half a season and free agents can only be signed on contracts until the end of the current season.
4. A loan fee cannot be paid in respect of any player brought in on loan and wages paid to him must be at a level no higher that the wages he was being paid by his parent club.
5. If a player leaves the club on loan this does not reduce the number of professional-standing players. .Eg loaning out Max Watters to Barnsley does not free up a space to bring in a replacement. This only happens if we sell a current player permanently.

Keith Morgan, Trust Chair

Dear Member

I hope you and your loved ones had a joyful Christmas.

It seems we have lurched from one crisis – the Covid pandemic – to the cost-of-living crisis which is hitting so many families and individuals very hard with rocketing food and energy costs.

With that in mind, I wanted to thank members for their fantastic support for the Trust’s collections for local foodbanks which have helped feed those struggling to make ends meet. We intend doing another collection around next Easter.

On the field, it has been another year of upheaval with Steve Morison replaced by Mark Hudson as manager and the team at the wrong end of the Championship table for a second consecutive year. We hope for a better second half of the season with the team retaining our place in the Championship.

Of course, there are plenty of off-field issues, principally the transfer embargo imposed by FIFA in the wake of Sala tragedy and the dispute over the payment of transfer funds to Nantes.

As you know, we have recently had meetings with chief executive Ken Choo to discuss the implications of the Fans-Led Review of Football carried out by former Sports Minister Tracey Crouch which proposes far greater involvement in clubs for supporters, something we welcome.

We also met Chairman Mehmet Dalman and other club executives and the Trust believes that far greater dialogue with supporters is crucial to the success of the club. Fans naturally want to hear from those at the top about where the club is going and we will continue to press the club leadership.

Let’s hope for a better 2023 for us all, both on and off the field.

Thank you for your continuing support for the work of the Trust on behalf of fans.

In the meantime, Happy New Year/Blwyddyn Newydd Dda.

Keith Morgan,

Trust Chair

Keith Morgan

Trust chair Keith Morgan reports on a meeting with Cardiff City’s Chief Executive Ken Choo in the wake of the first anniversary of the publication Fans-Led Review published by former Sports Minister, Tracey Crouch, MP.

November 2022 represented one year on from the publication of the original report, a copy of which was sent to the club at the time. The anniversary was marked by a meeting in the House of Lords last month which was attended by Tracey Crouch MP who chaired the committee which created the final version of the report, a number of Peers and MPs, senior members of the FSA (Football Supporters Association), representatives of the EFL and Premier League and a small number of representatives of football club Supporters Trusts. I was fortunate to be invited as one of those Trusts and afterwards was also able to have conversations with a number of South Wales MPs who are all in support of the paper. At the time I prepared a report on the meeting which was sent to our CCST members.

What is important to note is that there is strong cross-party support for getting the report enshrined into law up to and including the Prime Minister and Leader of the Opposition level and pledges from the current Sports Minister and the Chair of the Parliamentary DCMS (Digital Culture Media Sport) Committee to get a White Paper before Parliament “imminently” – within weeks rather than months. There has been a pledge from the same people that the report contents will not be “watered down” and that the only required amendments will be those involving wording necessary to get the legislation in place.

Throughout 2022 I have copied in updates on the position to the club asking for their views on its contents but the response has always been that the club did not consider it an appropriate time to discuss the matter. Earlier this month I received a call from Ken Choo agreeing to a meeting to discuss the topic and that meeting took place on Friday, December 16th.

The meeting was attended by club CEO Ken Choo and club Finance Director Phillip Jenkins and the key contents of the FLR report and current position were discussed in some detail. As a reminder, the key recommendations in the report are as follows:

1. The appointment of an Independent Regulator to oversee the Corporate Governance of the current football authorities such as the FA, Premier League and EFL. This is due to the deemed failure of those authorities to regulate themselves properly, leading to problems at Chelsea, Bury, Birmingham and Bolton amongst others.

2. A new improved owners and directors test. The current one is fairly weak and the new one is designed to ensure that not only are they fit in the general sense but can demonstrate that they actually apply their disclosed skills to a specific role at the club.

3. A new approach to corporate governance at clubs to try and ensure that they do not spend beyond their means and get into financial trouble.

4. A requirement of a published statement at each club as to how they deal with diversity and equality issues, to be overseen by the new Independent Regulator. This will include a policy on things like LGBT issues.

5. The creation of a fans` shadow board of directors at each club with whom the club`s directors will be obliged to consult on a regular and frequent basis. The club will have no opportunity to appoint members of that board which will be made up of fans elected by the fans themselves, The representatives will have to confirm and be seen that they have no conflict to their independence such as a material financial, family or contractual interest in the club.

6. A requirement that the club shows that it is at all times protecting the club`s heritage for its fans. i.e it will not be able to change a club`s location, name, colours or badge without the specific proven consent of a large majority of its fans. As a fan, it is embarrassing that our club is specifically mentioned in the report as a bad example in this regard and a reason to change the rules.

7. A fairer distribution of income from t.v. rights etc. between the Premier League and the EFL. This is an ongoing discussion between those two bodies.

8. Equal treatment for women`s football regarding the above topics.

9. Better protection of players` welfare in areas such as their recovery from long-term injury, mental health etc.

The key areas above were discussed with Ken and Phil in a constructive and sensible manner with comments from both sides of the discussion. The club wishes to have formal discussions only after the White Paper is issued, but has pledged to then sit down with the Trust in an effort to work with the club to implement the future legal requirements and overcome any objections which might be raised by the club owner. As and when such a meeting takes place and as and when the White Paper is issued I will keep Trust members updated.

Keith Morgan, Trust Chair

Trust Chair Keith Morgan attended a meeting chaired by club chair Mehmet Dalman at the Cardiff City Stadium.

Keith’s report of that meeting follows:

“On Saturday, December 17th,  I was invited to attend a meeting involving supporter groups and which was chaired by CCFC Chair Mehmet Dalman. The meeting started at 12.30pm in the club boardroom, lasted for approximately 30 minutes and was immediately followed elsewhere in the stadium by the club chair holding a meeting with local media. The invitation was at short notice and had no advance agenda issued to attendees.

“In addition to the club chair, the club was represented by CEO Ken Choo, Head of Operations Wayne Nash, Finance Director Phillip Jenkins, Head of Communications Mark Denham and CCFC Foundation Head Gavin Hawkey. In attendance to make contributions on legal matters was Chris Nott, a Senior Partner in Capital Law, the club`s UK legal advisors.

“Supporters were represented by myself,  some members of the Supporters Club Committee and Keiran Jones of the Disabled Supporters Group.

“You may have already seen a WalesOnline report by Paul Abbandonato following his meeting with the club. I have had the opportunity of discussing this with Paul and can confirm that his report on what was discussed at his meeting is consistent with what was discussed at the supporters` groups meeting which preceded it.

“Some points arising from Paul`s report and some further points of clarification:

1. Fans present were indeed generally supportive of the club`s stance in continuing with various legal matters which are complex and involve many matters, as follows:

2. The club is indeed currently under a transfer embargo imposed by the EFL following the loss of the appeal case to CAS announced in August this year which effectively brought into play the FIFA ruling against the club in September 2019 which imposed a three-transfer window transfer embargo unless and until the initial transfer fee installment of just over £5m is paid to Nantes. CCFC have reiterated that they have no current intention of paying that money until all ongoing matters are resolved. Mehmet Dalman expressed his opinion that the matter will be resolved in the near future but could not promise that this would occur before the end of the January 2023 transfer window.

3. Despite social media claims to the contrary, the Swiss Federal Tribunal (SFT) has not rejected a club claim to them to have the CAS decision reversed or otherwise amended. Preparations for a hearing, which is likely to take place in January or February 2023, are ongoing but the details have to be kept entirely confidential under SFT rules so no further information could be given to the meeting. The SFT will only consider an appeal of a CAS decision if it can be shown that there was a fundamental legal mistake, error or omission in reaching their decision. They cannot overturn the football decision that the Sala transfer was complete and that the transfer fee is payable but may rule that any payment is deferred until a successful counterclaim for financial loss arising from the sad demise of Emiliano Sala is settled.

4. An insurance industry Press article recently stated that CCFC is taking legal action against their insurance brokers (a large international organisation) for something that they failed to do when insuring Emiliano Sala at the time of his arrival at the club. Again, legal confidentiality prevented a great deal of detail on this but it would appear that the club`s regular policy of signing players and then insuring them shortly thereafter has not been queried beforehand by those brokers or insurers. For previous transfers, this ended up being irrelevant but in the Sala case his sad death occurred between what FIFA and CAS have ruled was the date of completion of his transfer and the relevant insurance being finalised. A claim could not be made against the insurers beforehand as the club remained adamant that the player`s transfer had not been completed and that there was therefore no “asset” to insure. The CAS ruling has changed that.

5. Other social media claims include one that the club has set aside the cash to pay the full Sala transfer fee and related costs. This was specifically denied by the Chair and clarified (as has been done before on social media by others) by Phillip Jenkins. Ever since the May 2019 accounts, a provision has been made in the club`s audited accounts for payment in full of the transfer fee. This has nothing to do with a cash reserve to pay it (which does not exist). If eventually, it has to be paid it is prudent to provide for it and ensure a continuing compliance with EFL Profitability and Sustainability Rules (the club remains compliant even after that provision). If it has to be paid than it will not have an adverse impact on the club`s compliance. If it doesn`t have to be paid then the club`s balance sheet position will improve by over £20m.”