Morton Club Together Updates

[TRVMP]

AGM is currently taking place. I took notes for the part I could attend. I arrived five minutes late on the Zoom call and had to drop off at 7:45pm UK time as I have a meeting starting in 15 minutes that I need to print some things for. So these notes are unedited and messy.

Highlights are:

• Four of the five candidates for MCT Board were elected, namely Brian Gillan, Jon Keen, David McCluskey, and Graham McLennan. The unlucky candidate who did not make it was Jim McEleny.
• All nine of the items proposed for adjusting the MCT Articles of Association passed with huge majorities.

There are director introductions and a Q&A still to follow; hopefully someone else is taking notes for those.

Here follow my unedited notes. Where things are written in the first person, that is the person named talking, not me.

Quote

 

I joined five minutes late due to work so this starts mid-conversation.

• Gordon Ritchie talking:
• Ticketing system - being fixed. Aim is for next season for everything to be working.
• If MCT shut down today and handed over the club to someone else, we can be proud, as we're in much better state than we were 1 year, 5 years, 20 years ago.
• Easy to save money when running a club - just go to Dougie (Imrie) and say we're slashing the budget by a half million. But we've kept a competitive team while making improvements.
• MCT is not the Gordon Ritchie slow, Graeme McLennan show or Stuart Farmer show. It's about the community, not just guys (and gals) who want to run a football club. We need people to step up to join the MCT board and the GMFC board.
• Gordon stepping down from the MCT Board tonight, thanks everyone for their support - not the tenner a month but the backing. We get abuse online from people but people shake my hand when they see me and thank me at Cappielow for what we're doing. A guy at Inverness recognized me and said he was doing great work, that's what makes it worthwhile.
• Don't think any of us believed that we'd be sitting here today after a year of community ownership thinking we'd be in this improved position.

 

• Stuart Farmer talking:
• Thank you for your support. Been vital. Moral support has been huge.
• Financial report. Should have a copy of the accounts. (NOTE: This was directed to people in the room. Online attendees received theirs 8/23.) Pretty simple. Money comes in. Legal fees, associated to transfer of ownership, were mandatory and had to be paid. What's left comes into the club and is spent on the club. Nothing else. Just legal fees and club expenditure.
• "Have you all seen the accounts?" One person answers: No.
• There's not a lot to say, to be honest. The balance of what's left at the end of the year, last year was 111k due to the COVID. This year the excess is 22k. But from a GMFC perspective it's net zero, meaning no tax burden.
• Asks for questions.
• Member "I.M." (not outing anyone who doesn't want to be outed) says some people wanted to know why ST money was going to MCT in some cases. Stuart says aim was to make it easier for fans. Looked at a finance company, but they charge a premium. We (NOTE: I assume he means MCT) already had a GoCardless account, knew how it worked, so used that. 10 quid admin charge, then split it across six payments. It was convoluted and there were some hiccups, but Stuart keeps an eye on it coming in, and ensures all ST monies are transferred to the club over that six month period. Next year he suggests - not his decision since he won't be on the board - that GMFC get their own GoCardless account.
• Member in the room asks about something to do with the 100k saving (I couldn't make this out very well) and wants to know when the actual AGM for GMFC is. Ritchie says we don't have to have one since it's a private limited company, but we want to have a general meeting soon as we're working on a fairly detailed for the GMFC Articles of Association, which will need to be approved by the shareholders of Greenock Morton. We have ~650 individual shareholders. Obviously 90% are owned by MCT. The General Meeting would be needed to approve/disapprove the amended article. Prior to this meeting, he assumes GMFC will pass info to MCT, and MCT will brief their own members on it.

 

• Graeme McLennan answers an earlier question:
• A question about not having a development squad - aka the reserve team - was asked. The GMFC club board says this was NOT a financial decision. It was because of a lack of players. It was a unanimous decision. There has been a financial gain but the point was what's the point in having a reserve team coach if we don't have a reserve squad. It was McLennan who tabled the motion but it was unanimous. Follow-up question from the room. Asked about the youth coach. Ritchie: It's a full time job. He runs seven squads, does all the admin, does scouting.
• We didn't make John Sutton redundant per se. We made Reserve Team Coach redundant. That was him.
• Question from the room: Right, could we not have augmented the development squad with academy players in order to have enough players?
• Gordon Ritchie: Normally you'd have 5-6 reserves, you'd want 3-4 first teamers getting match fitness. But right now we can't augment the squad with the youngsters because they're *mostly* first year U18s who aren't ready to play against men. Against Thistle U18 on Friday night we looked slower, less muscular. But next year we might be in a position to step up.
• Member: With all due respect that's a football decision, not a financial decision. Can the manager make that decision?
• Ritchie: Indeed - we had numerous discussions with Dougie, Sutton, Anderson. Everyone had different views. But ultimately we decided they weren't ready.
• Audience and Ritchie: Clarified that we're not ending youth development. We just closed the dev (reserve) squad. We still have a youth academy. McGregor and King have shown that they can bridge the gap. There's one guy out at Broomhill who's not quite ready but might be ready next year. There is no point in having an academy if we don't have a development path for the players.
• McLennan: The Academy is fundamental for MCT. We've fought tooth and nail for three years to ensure we have an Academy. There wouldn't be an Academy if not for the MCT membership. McLennan wouldn't have personally wanted MCT to take on GMFC without that Academy. We have over 100 players from U11 to U18. Fundamental to the future of the club. It's a balancing act; the reserve team WILL be reviewed in the future but there was no point in having one.

At this point I.M. asks if members can save questions for the end so that we can get through the appointed business. 

• Ritchie: Director elections up next. Five people stood up. Four were successful. Gillan, Keen, McCluskey, McLennan. 326 voted out of the 960-odd. 33% turnout.

VOTE TIME
Ritchie: Articles of Association. All the proposed amendments came from members. Heartening that people take an interest. Proposed amendments, voting on zoom and in the room. The board recommends voting in favor.

1) ARTICLE 4.4.A. Approval of a general meeting if selling shares results in a <75% holding. That was removed due to earlier discussions with a proposed investor. Those discussions collapsed. Board recommends we reinstate the amendment.
THE AYES HAVE IT.
Huge majority. Online it was 66 Y, 1 N, didn't count the absentions. Passed in the room.

2) In the event of MCT proposing sale of shares that go below the 75% shareholding, amount of shares to be sold and the identity of the buyer must be revealed to MCT membership.
Question from the room: does that mean less than 10% can be sold without asking members? That is correct.
Board recommends voting yes.
THE AYES HAVE IT.
Massive majority again. Online it was 70 Y, 0 N, four abstain.

3) Number of directors and methods of appointing. Maximum of 6, min of 2 at moment. Proposal to be 7 and 3. Proposed because there's a lot of work to do, many hands make light work. 
Question: Someone can be co-opted onto the board? Yes. But they'd need to pass election the following year.
Question: Does a co-opted member need 21 nominations? No. They can be co-opted just by board approval. But they're allowed one year before they must be voted on, whereas elected members serve two year terms.
THE AYES HAVE IT.
68 Y, 2 N, 5 abstain online. Passes in the room too.

4) Board may include one or more Associate Directors. Limited responsibility. Will not have voting rights etc. A new class of "director" to spread the workload but also teach people how to maybe take a path to full directorship. Steep learning curve.
THE AYES HAVE IT.
63 Y, 5 N, 6 abstain. Passes in the room.

5) Associate Director may be removed from any time by the Board. Any reason (e.g. not doing their job, conduct) and they can be booted.
THE AYES HAVE IT.
68 Y, 3 N, 3 abstain. Passes in the room.

6) No fewer than 10% of members currently eligible can petition to vote to remove a director. A safeguard for the members who can try to get the director removed. Triggers a general meeting. 10% is enough to not make it a huge barrier but not enough that a group of mates sitting in the pub can't kick someone off for a laugh. 
Question from the room about how we adjust when the membership grows. 10% is 95 members. Something to think about.
Question from the room: how do we identify what a director does? How can we judge if a director isn't doing their duty if we don't know what the duty does? Ritchie: To some extent we have a structure in place but the board might want to publicize it next year. It has been previously published what people are working on but needs to be re-published.
THE AYES HAVE IT.
Online 70 Y, 2 N, 2 abstain. Passes in the room.

7) Article 23. Special GM other than AGM may be called if:
A written requisition signed by 50 members or 10%, whichever is higher, is delivered to the company address. Must state what the meeting is for. Secretary (or, in absence) Board member will chair the meeting.
Question: Why 50 instead of percentage? Percentage is better. Answer: Functionally it's percentage now since it's higher, around 95. But we must vote on the proposal as written.
THE AYES HAVE IT.
Online 70 Y, 1 N, 3 abstain. Passes in the room.

SGM called according to the above requisition must be heard within 28 days. Meeting is to only transact the business specified in the requisition, nothing else. Exactly what it says on the tin.
THE AYES HAVE IT.
Online 70 Y, 0 N, 4 abstain. Passes in the room.

9) SGM procedure will follow the AGM procedure, i.e. follow the same rules.
THE AYES HAVE IT.
Online 69 Y, 0 N, 4 abstain. Passes in the room.

VOTING ENDS

Meeting continues but notes end here.

 

 

Edited September 7, 2022 by TRVMP

[Madton]

Hope to use stadium for other events but couldn't go into detail

Expects new players this month and 1 very soon apparently( heard that before GR) Emphasised the need for a striker once again.

Getting good value on our loan deals, Dumbarton and Annan paying more than average rate.

Desire to stay full time.

New Operations Manager in place and will take on most tasks a typical CEO undertakes.

Decision to patch Dev team was purely down to lack of numbers, wasn't a financial one albeit, we have gained financially from it.

 

 

 

 

[TRVMP]

MCT have sent out their own summary, which made one amendment to a comment made on the night:

Quote

The Greenock Morton Football Club Board would like to place on record a correction. It was stated that the disbanding of the Greenock Morton Development Squad was an unanimous decision at club board level, this is in fact not correct. It was a majority decision at club board level. 

Fair enough. Based on what was said, and the need to prioritize the first team, and the fact that we have a pyramid system that allows players to go out on loan, for what it's worth I think it was the right decision. There's no point in having a bridge squad between youth and first team if we have neither the numbers nor the quality to justify it. It makes more sense for players who aren't going to make the grade at Morton to transition to another level of football, for those good enough to join the first team squad, and for those in the middle to spend time out on loan.

[BishopBrennan]

21 hours ago, TRVMP said:

MCT have sent out their own summary, which made one amendment to a comment made on the night:

Fair enough. Based on what was said, and the need to prioritize the first team, and the fact that we have a pyramid system that allows players to go out on loan, for what it's worth I think it was the right decision. There's no point in having a bridge squad between youth and first team if we have neither the numbers nor the quality to justify it. It makes more sense for players who aren't going to make the grade at Morton to transition to another level of football, for those good enough to join the first team squad, and for those in the middle to spend time out on loan.

Disbanding the Development Team is absolutely the correct decision. As you say, if we have players who have outgrown the U18s but aren't ready for the first team then we can pick a suitable level of the pyramid to loan them out to. Not only, in my opinion, is it more beneficial to players, but it saves us circa £100,000 a year. It's a no brainer. 

[Madton]

On 9/7/2022 at 8:30 PM, Madton said:

Hope to use stadium for other events but couldn't go into detail

Expects new players this month and 1 very soon apparently( heard that before GR) Emphasised the need for a striker once again.

Getting good value on our loan deals, Dumbarton and Annan paying more than average rate.

Desire to stay full time.

New Operations Manager in place and will take on most tasks a typical CEO undertakes.

Decision to patch Dev team was purely down to lack of numbers, wasn't a financial one albeit, we have gained financially from it.

 

 

 

 

GR a few weeks ago we will bring in a few players this month.

He really needs to learn his lesson with the stuff he says in public!

 

[vikingTON]

We did bring in a player and the board do not (and should not) dictate specific signings for the manager.

Take your latest tantrum elsewhere. 

[Madton]

1 hour ago, vikingTON said:

We did bring in a player and the board do not (and should not) dictate specific signings for the manager.

Take your latest tantrum elsewhere. 

So you've actually agreed with my point, he shouldn't be promising new players( multiple signings) in public.

Cheers champ.

[vikingTON]

27 minutes ago, Madton said:

So you've actually agreed with my point, he shouldn't be promising new players( multiple signings) in public.

Cheers champ.

If you think that's a 'promise' for you to throw your toys out of the pram over, then you must live a very sheltered existence. 

[dunning1874]

Went under the radar on here with the anniversary of Imrie getting the job, but MCT announced that as of Hogmanay that'll be £500K put into the club since contributions started, with membership currently at 945.

The stories coming from Inverness and Kirkcaldy of impending financial meltdowns while Hamilton continue to be a basket case suggest there couldn't have been a better time to get our house in order with a break-even budget. The security of having fan fundraising in place is certainly looking preferable to relying on one rich backer who could walk at any time when you look at where other clubs relying on that model find themselves.

[irnbru]

5 hours ago, dunning1874 said:

Went under the radar on here with the anniversary of Imrie getting the job, but MCT announced that as of Hogmanay that'll be £500K put into the club since contributions started, with membership currently at 945.

The stories coming from Inverness and Kirkcaldy of impending financial meltdowns while Hamilton continue to be a basket case suggest there couldn't have been a better time to get our house in order with a break-even budget. The security of having fan fundraising in place is certainly looking preferable to relying on one rich backer who could walk at any time when you look at where other clubs relying on that model find themselves.

While I agree there's a lot of positives, it sounds like Dalrada dug us out a bit of a hole at one point and is essentially a rich backer. 

The good thing for me though is that the interview with their guy name checked Sam Robinson who has really impressed me since he got involved with MCT so people within the club are actively seeking (and getting) investment. Everything you've listed will support this though so all in all a positive year. 

[TRVMP]

1 hour ago, irnbru said:

While I agree there's a lot of positives, it sounds like Dalrada dug us out a bit of a hole at one point and is essentially a rich backer. 

The good thing for me though is that the interview with their guy name checked Sam Robinson who has really impressed me since he got involved with MCT so people within the club are actively seeking (and getting) investment. Everything you've listed will support this though so all in all a positive year. 

Certainly the Dalrada contract can't be underestimated, but community ownership was never at odds with corporate sponsorship. It's testament to the good work people are doing within the club that a major sponsor like this was tempted in the first place.

[irnbru]

3 hours ago, TRVMP said:

Certainly the Dalrada contract can't be underestimated, but community ownership was never at odds with corporate sponsorship. It's testament to the good work people are doing within the club that a major sponsor like this was tempted in the first place.

That last bit is the point I was trying to make. It's not simply about community ownership but things like this will make getting external investment easier. 

[TRVMP]

Crunch time on Thursday. It's the club AGM and the new proposed Articles of Association have been published. See the attached.

MCT introduces them thus:

"One of the key parts of the AGM is to approve the new club Articles of Association. You might recall in August 2022 we highlighted to members that the existing club articles had not been updated in a significant period of time. In addition to this, we also highlighted how new club articles were being drafted and that they included a pathway to the club board that improved the democracy of the club by introducing a pathway where MCT members can work toward becoming a director of the football club. 

"The new club articles also correspond to changes in the MCT articles approved at the September 2022 MCT AGM that give MCT improved governance oversight over nominees to the club board to protect against individuals acting in a manner that is counterproductive to the aims and general ethos of a club owned by its community, you, our members. 

"As mentioned previously, we know that transparent governance has been a point raised by members previously, and we believe that the changes to the club articles, the previous changes to the MCT articles and the fact that members can listen in on the AGM reflect these aspirations.

"As a result MCT can confirm we are supporting the adoption of the new club articles. You can find a copy of the proposed club articles via the link below."

I have not yet read them personally. It would be useful if they highlighted exactly which articles had changed and which remain as-is. But I'll have a look at the rights of callback and transparent governance sections tonight.

Proposed_Greenock_Morton_Articles_of_Association.pdf

[Greacen2000]

On 3/17/2023 at 5:23 PM, TRVMP said:

Crunch time on Thursday. It's the club AGM and the new proposed Articles of Association have been published. See the attached.

MCT introduces them thus:

"One of the key parts of the AGM is to approve the new club Articles of Association. You might recall in August 2022 we highlighted to members that the existing club articles had not been updated in a significant period of time. In addition to this, we also highlighted how new club articles were being drafted and that they included a pathway to the club board that improved the democracy of the club by introducing a pathway where MCT members can work toward becoming a director of the football club. 

"The new club articles also correspond to changes in the MCT articles approved at the September 2022 MCT AGM that give MCT improved governance oversight over nominees to the club board to protect against individuals acting in a manner that is counterproductive to the aims and general ethos of a club owned by its community, you, our members. 

"As mentioned previously, we know that transparent governance has been a point raised by members previously, and we believe that the changes to the club articles, the previous changes to the MCT articles and the fact that members can listen in on the AGM reflect these aspirations.

"As a result MCT can confirm we are supporting the adoption of the new club articles. You can find a copy of the proposed club articles via the link below."

I have not yet read them personally. It would be useful if they highlighted exactly which articles had changed and which remain as-is. But I'll have a look at the rights of callback and transparent governance sections tonight.

Proposed_Greenock_Morton_Articles_of_Association.pdf 362.36 kB · 1 download

Would appreciate if anyone in attendance this evening could post updates in here.

Despite me being a shareholder(and having provided the club with updated contact details recently), I was not contacted to inform me of the AGM, and only found out via MCT.  I was told today that I would be sent a zoom link, but this never arrived.  I also filled in the form to attend as an MCT member but again received nothing.  This leaves me wondering who (if anyone) will be in attendance other than the board members.  Not ideal.

[TRVMP]

6 hours ago, Greacen2000 said:

Would appreciate if anyone in attendance this evening could post updates in here.

Despite me being a shareholder(and having provided the club with updated contact details recently), I was not contacted to inform me of the AGM, and only found out via MCT.  I was told today that I would be sent a zoom link, but this never arrived.  I also filled in the form to attend as an MCT member but again received nothing.  This leaves me wondering who (if anyone) will be in attendance other than the board members.  Not ideal.

I'm in the exact same boat, to the letter. I'm an individual shareholder, for whom the club has contact information (they have marketed to me many, many times, and I'm an online overseas stream subscriber) and to whom the club by its own rules has an obligation to provide notice of an AGM. They chose not to provide that notice.

MCT, to their credit, did provide notice. However, I also didn't receive the Zoom link despite signing up online.

From neither party is this good enough. The Club is relying on the current good feeling around the Dougie revolution; if they blank shareholders and supporters when times on the pitch are good, they can see what happens when times on the pitch are bad. MCT talked a good game about democracy and oversight, but when push came to shove they didn't provide a means for remote fans to attend the AGM, despite their promises.

Socks are needing pulled up both in the boardroom and at MCT. Complacency is setting in. Sort it.

[port-ton]

I received a link from MCT for zoom yesterday afternoon however something came up that meant I couldn't attend. Shame if other people didn't get the same email as I did if they registered their interest. 

[The Bewilderedbeast]

8 hours ago, TRVMP said:

I'm in the exact same boat, to the letter. I'm an individual shareholder, for whom the club has contact information (they have marketed to me many, many times, and I'm an online overseas stream subscriber) and to whom the club by its own rules has an obligation to provide notice of an AGM. They chose not to provide that notice.

MCT, to their credit, did provide notice. However, I also didn't receive the Zoom link despite signing up online.

From neither party is this good enough. The Club is relying on the current good feeling around the Dougie revolution; if they blank shareholders and supporters when times on the pitch are good, they can see what happens when times on the pitch are bad. MCT talked a good game about democracy and oversight, but when push came to shove they didn't provide a means for remote fans to attend the AGM, despite their promises.

Socks are needing pulled up both in the boardroom and at MCT. Complacency is setting in. Sort it.

With the exception of me not being overseas, snap

[port-ton]

No one know how it went then? I was fine with missing it when I thought everyone received a zoom link but looks like only I did

[irnbru]

12 minutes ago, port-ton said:

No one know how it went then? I was fine with missing it when I thought everyone received a zoom link but looks like only I did

I'd have thought MCT would have a report to members but they don't seem to do much now. 

[HamCam]

Irnbru your bitterness towards MCT knows no bounds. You had your day - move on. Just to add I am not a member of MCT.

I responded to the shareholder AGM e-mail, was sent a link and had no problem joining the meeting. My two boys also got send the e-mail but were not able to participate. The issue with some stakeholders missing out however requires to be urgently addressed. Gordon Ritchie appears to be the point of contact and I would hound him to get it resolved. 

As for the AGM, I am sure when one of the volunteers has a moment they will provide a proper summary. In the meantime my take on it as follows: 

- The loss in 2021/22 was concerning/alarming but has to a great extent been addressed after MCT took over. The feeling was historically costs were not as closely monitored when people assumed there was always a sugar daddy down the line to bail the club out.

- This years accounts, when they are published (after the year-end in May) will show a healthy profit largely due to the cup game with Celtic bringing in over £200k. Even without this 'windfall' the Board are confident the club would break even.

- Recent sponsorship deals are crucial to the financial balancing act. If I picked it up correctly, the main sponsor Dalrada provided a 12 month package with the option for a further 5 years. Dalrada require the club to share in their ambition for GMFC to succeed and the Board are optimistic/positive Dalrada will take up the option to exercise the option to extend sponsorship at the end of this season. 

- The majority of the new sponsorship monies has all gone to the manager to improve the squad hence the additions, contract extensions and loanees in January.

- All players contracts have been reviewed updating from a template someone found on the internet to a more bespoke arrangement reflecting the modern world of football.

- The Board are aware with success other clubs could come in for the manager and players. The Board have tried their best to protect the Club but accept if the money is right they will not stand in the way of an individual looking to better themselves. It is a difficult balancing act protecting the 'assets' without handing out lengthy and onerous contracts to players who maybe do not ultimately fulfil their potential (my words not the Board).

- For the first time I heard people explicitly stating the ambition is not just survival in the league but promotion. Realistically recent results have made a title win more difficult but we should be targeting a play-off place.

- Average gates are slowly increasing.

- The ongoing ticket and entry farce at Cappielow was fully acknowledged. No quick solution this season but the proposed arrangements in the future should hopefully resolve the issue.

- Proposals in hand to improve the fan experience and tidy up Cappielow. The Board are looking at the options for the parcel of land they acquired to do something similar to what Ayr provide in their car park. I believe it is a mix of something for the fans on the ground floor and offices above.

- Importantly the proposals to replaces the 'Articles' were passed with only one minor amendment requiring (not optional) the Board to hold an AGM.

- The three Board members, in attendance,  highlighted they would encourage any fan to come forward for election to the Board if they believe they have something to offer. The Club is now 'ours' and it is up to us to ensure it not just survives but moves forward.

I am sure there are aspects of the AGM I have omitted but hopefully the above is an accurate recollection of the main points I recollect.