Morton Club Together Updates

[LargsTON]

So we’re putting in 400k over 3 years towards the playing squad for him to write off the debt that he’s already said will be written off anyway?

Yeah that's what I dont get.

[TONofmemories]

No, he said at the Q&A it wouldn't be persued and would be written off if there was the right investment or change. MCT are trying to make it happen since there doesn't seem to be anything else forthcoming.

 

He did say that it's pretty much on paper only (and their accountant advised to keep it there) but it would be nice to get rid of it and at the same time increase the playing budget.

 

As others have said though, MCT have a lot of work to do to prove they are the ones to secure this change.

This is my recollection of what he said.

[capitanus]

I think folk are nit-picking at literally anything to do with MCT now. Granted, the website isn’t the greatest but in fairness to Graham he has came out and provided a 14 minute vlog providing plenty information relating to the scheme as well as shedding more light on a number of grey areas.

In fairness to MCT, they did eventually disclose who was on the 'leadership' team, although they did try and blank those requests initially, but it transpires that there are some good folk involved and I wish them well. However, that doesn't excuse or make up for it being a poorly devised idea. The website design is the least of the concerns, to be honest.

 

Graham McLennan did his YouTube presentation thing, and I watched it in its entirety a few times but it still poses questions rather than answers, even newer ones, such as with the money going direct to GMFC, who are in turn a commercial enterprise, will the monies be considered revenue and therefore subject to taxation? If GC are going to 'gift' a shareholding to MCT, as that 'gift' will have a monetary value would it be subject to Capital Gains Tax? Would the supporters in turn be asked to contribute even more money to pay for a CGT liability?

 

He also said that the MCT is 'better' than the SMISA scheme where they bought out the shares from existing shareholders, when the SMISA scheme seemed far more clean-cut and straightforward to be honest.

[HamCam]

I view the video as a positive step in terms of communication. I, however, continue to have reservations over delivery. As others have said, it was a major failing in credibility to launch the MCT with a website that had more teething problems than Hawke's turnstiles. Leaving aside the rehash of the 'bring a friend' business plan I am also struggling with the numbers. If 300 have signed up so far, pledging £115k, how do you get to £400k? If the 300 encourage two more people to sign up surely that only gets you to £345k? My other major reservation/concern, that has still not been addressed, is the expectation that as fans pledge towards running costs, existing shareholders (Raes/Golden Casket) just put in less and the status quo remains. I know doing nothing is not a solution but after the GMST debacle, I am disinclined to throw good money after bad.

Edited June 5, 2019 by HamCam

[irnbru]

I view the video as a positive step in terms of communication. I, however, continue to have reservations over delivery. As others have said, it was a major failing in credibility to launch the MCT with a website that had more teething problems than Hawke's turnstiles. Leaving aside the rehash of the 'bring a friend' business plan I am also struggling with the numbers. If 300 have signed up so far, pledging £115k, how do you get to £400k? If the 300 encourage two more people to sign up surely that only gets you to £345k? My other major reservation/concern, that has still not been addressed, is the expectation that as fans pledge towards running costs, existing shareholders (Raes/Golden Casket) just put in less and the status quo remains. I know doing nothing is not a solution but after the GMST debacle, I am disinclined to throw good money after bad.

Shareholders won't be putting any money in anyway. The club have said they'll only spend what the bring in and can afford so MCT would just be adding to that.

[capitanus]

It's a sticking plaster over a serious wound then?

[irnbru]

It's a sticking plaster over a serious wound then?

I'd say it's a bonus to where we are now?

[HamCam]

I'd say it's a bonus to where we are now?

Surely it is more the little boy with his finger in the dyke? If the Raes through whichever front are not putting in any more cash, on a status quo operation, we run at a loss of approximately £400k. MCT is only looking at filling the void for two years - what happens after that?

[vikingTON]

Having watched the video, I remain concerned that MCT has been knocking back the Rae's Kool-Aid about how current attendances are piss poor and can be brought back to some higher level to solve the current shortfall. ~2000 average gates for a mid-table Morton in the second tier without Sevco, Hibs or even the spoon-burners in the same division are entirely par for the course by any historical comparison. But even if there was scope for doing so, the club's own ST policy directly undermines any drive to boost crowds: you simply cannot raise prices by fully 50% in one year and expect your custom to increase, all other things being equal. That side of the 'profitability in two years' time' plan therefore does not stack up at all.

 

I've said enough already about the other half of GMFC/MCT's vision - a conveyor belt of Braeside La Masia sell-ons - all that needs to be pointed out here is that pinning the bulk of the club's financial recovery on securing healthy transfer fees within the next 24 months is not a credible strategy at all. So what is almost certainly going to happen here is that MCT will underwrite the shortfall (i.e. plugging a gap in the first team budget) while GMFC as a underlying business continues to lose a good sum of money between now and the summer of 2021.

 

Having a group like MCT undertaking that role in tandem with the club is not IMO a bad thing, though I can see why being up front about that prospect would deter some pledgers. But what I think will do much more harm is when MCT have to turn round in two years time, account for why the club is in barely any better shape and convince people to back a new begging bowl pledge when the first one didn't deliver on the set of unrealistic promises it put forward. The organisation should distance itself from current boardroom strategy so that it doesn't see its own reputation tank when the club inevitably changes tack again for about the seventeenth time in the GC era. That's part of what did for the Trust before it. 

[capitanus]

Surely it is more the little boy with his finger in the dyke? If the Raes through whichever front are not putting in any more cash, on a status quo operation, we run at a loss of approximately £400k. MCT is only looking at filling the void for two years - what happens after that?

Also, is putting money into the transfer funds the best use of £400k at this level of Football?

 

It has probably escaped everyone's attention that very few if any clubs at this level spend money on player transfers anymore, and clubs like Partick Thistle, who always seem to be able to put a competitive side on the park at this level, never have done historically.

 

£400k would be better used on building up the infrastructure of the club in things that could make the club sustainable going forward, for example, building a stand with a social club where supporters could get a beer before/after the game, have functions etc. With profits going towards the club, rather than squandered on a short-term fix like this.

[irnbru]

Surely it is more the little boy with his finger in the dyke? If the Raes through whichever front are not putting in any more cash, on a status quo operation, we run at a loss of approximately £400k. MCT is only looking at filling the void for two years - what happens after that?

GC aren't putting any more in and neither is any other shareholder and the board will be running the club at (at least) break even. Any money coming into the club would be in addition to that and would hopefully help increase revenue to the point where it's not needed.

 

I guess looking for shares in return for the investment is to help make sure its spent wisely and not on a single player or something.

[vikingTON]

No, he said at the Q&A it wouldn't be persued and would be written off if there was the right investment or change. MCT are trying to make it happen since there doesn't seem to be anything else forthcoming.

 

He did say that it's pretty much on paper only (and their accountant advised to keep it there) but it would be nice to get rid of it and at the same time increase the playing budget.

 

Yet again, Crawford Rae cannot actually speak for GC because he does not have a controlling stake in that company. No person or organisation should therefore be relying on Crawford's pinky promises - well-intentioned or otherwise - when the reality of dealing with GC in a hard-headed business negotiation will be another thing entirely. 

[vikingTON]

Also, is putting money into the transfer funds the best use of £400k at this level of Football?

 

It has probably escaped everyone's attention that very few if any clubs at this level spend money on player transfers anymore, and clubs like Partick Thistle, who always seem to be able to put a competitive side on the park at this level, never have done historically.

 

£400k would be better used on building up the infrastructure of the club in things that could make the club sustainable going forward, for example, building a stand with a social club where supporters could get a beer before/after the game, have functions etc. With profits going towards the club, rather than squandered on a short-term fix like this.

 

By transfer funds they mean the wage bill. 

[capitanus]

By transfer funds they mean the wage bill.

 

What is all the season ticket money, prize money and gate money supposed to pay for?

[vikingTON]

Any money coming into the club would be in addition to that and would hopefully help increase revenue to the point where it's not needed.

 

Except that the two main revenue-increasing wheezes listed by MCT are: 

- getting more fans through the gate (at a higher price than before, no less) and

- selling on youth players for megabucks 

 

So as far as it stands then, the money is just plugging a shortfall in the wage budget for two years while GMFC sees whether its own guilt-tripping and Braeside La Masia strategies finally pay off*. It says something that more revenue-increasing investment ideas have been cited on this page of this cesspool of a forum than in that entire fifteen minute vlog entry tbh. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

they won't

 

[irnbru]

What is all the season ticket money, prize money and gate money supposed to pay for?

It all goes into the same pot as any money from other sources and the club will budget to spend less or equal to that. That will be the same whether it includes MCT money, new sponsorship or anything else.

[irnbru]

Yet again, Crawford Rae cannot actually speak for GC because he does not have a controlling stake in that company. No person or organisation should therefore be relying on Crawford's pinky promises - well-intentioned or otherwise - when the reality of dealing with GC in a hard-headed business negotiation will be another thing entirely.

I didn't say they should be there's obviously been a clear indication from him and he's going to have spoke to the shareholders before saying that. Once the money is raised then both sides can come to formal agreements.

[vikingTON]

What is all the season ticket money, prize money and gate money supposed to pay for?

 

A: Shan turnstiles and a squad of Dylan Dykes jobbers, because the club has been so chronically mismanaged by GC and their big mate Iron Man that it can no longer afford to do any better. MCT is there to step into the breach and provide a semi-competitive budget - until 2021 of course, when obviously the next James McCarthy comes through, nets us £2 million and we're laughing again.  

[irnbru]

Except that the two main revenue-increasing wheezes listed by MCT are:

- getting more fans through the gate (at a higher price than before, no less) and

- selling on youth players for megabucks

 

So as far as it stands then, the money is just plugging a shortfall in the wage budget for two years while GMFC sees whether its own guilt-tripping and Braeside La Masia strategies finally pay off*. It says something that more revenue-increasing investment ideas have been cited on this page of this cesspool of a forum than in that entire fifteen minute vlog entry tbh.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

they won't

 

I'm not arguing for MCT BTW, just that whatever they raise is neither here nor there at the moment. Regardless of if it succeeds or not then then club have clearly said they'll only spend what they can afford and there will be no more investment from GC.

 

The points you mention are for people to make their minds up on if they back them or not.

[vikingTON]

I didn't say they should be there's obviously been a clear indication from him and he's going to have spoke to the shareholders before saying that. 

 

Did he speak to the same shareholders before pledging a three year plan to take Morton to the top flight just twelve months ago, only to be told 'nah, that's not happening' and was forced to renege on that vision within the same season? 

 

There's as much supporting evidence for GC's willingness to write off the debt as there is for the above plan. Now that doesn't make pledging money to MCT pointless, but this idea that GC is either tacitly bound or has agreed behind the scenes to whatever Crawford wants to tell people right now is truly laughable. We should not trust GC to act in anyone's interests but their own - it's a business, not a fucking charity. 

 

Once the money is raised then both sides can come to formal agreements.

 

 

And the formal agreements will not be achieved by the support of Crawford Rae alone, but rather by the larger shareholders who actually call the shots. 

Edited June 5, 2019 by vikingTON