Developing MCT/GMFC Board Situation

[Deego]

48 minutes ago, Cappiecat 1.2 said:

When MCT first took ownership from the Raes, they were offered the services of an auditor who specialises in auditing policies and procedures.  This lifelong Morton supporter was a senior auditor for Deloitte and Touche for 20+ years, then was freelance for several years carrying out audits for Strathclyde police, then Police Scotland and also several audits for various government departments at the Scottish Parliament.

He was willing to work with the club, pro bono, to produce a report that could be used as a roadmap for the future.

The email offering his services was never answered. I know this to be true as the auditor is my brother, and it was me that sent the email.

Fancy firing them another email?

[Cappiecat 1.2]

1 hour ago, Deego said:

Fancy firing them another email?

No, but I will have a conversation with my brother tomorrow.

However, helping the club transition towards an efficient fan owned organisation is one thing, asking him to enter this burning three ring circus is something else altogether.

[Rossco]

Always defended fan ownership as I felt (still do to an extent) it is the best option for us but we really need to look at outside investment to supplement it along with a sponsor not with Dalriada being a sponsor & getting a spot on the board which seems to be what has happened here. Yes they are paying money in but is this restricting other investors we don't know.

I was reading a comment the other day on a reddit post about Falkirk fan ownership & their fan group is majority shareholders with 25% their investors seem to have invested in League 1 & not interfered with the fan model, they have a CEO running the day to day & seems to be doing a decent job. 

Looking at Motherwell who MCT seemed to base our model on their fan group were asked to vote on potential investor but I am not able to determine how much of a percentage they have but it seems there was some conflict about who this investor was.

[irnbru]

41 minutes ago, Rossco said:

Always defended fan ownership as I felt (still do to an extent) it is the best option for us but we really need to look at outside investment to supplement it along with a sponsor not with Dalriada being a sponsor & getting a spot on the board which seems to be what has happened here. Yes they are paying money in but is this restricting other investors we don't know.

I was reading a comment the other day on a reddit post about Falkirk fan ownership & their fan group is majority shareholders with 25% their investors seem to have invested in League 1 & not interfered with the fan model, they have a CEO running the day to day & seems to be doing a decent job. 

Looking at Motherwell who MCT seemed to base our model on their fan group were asked to vote on potential investor but I am not able to determine how much of a percentage they have but it seems there was some conflict about who this investor was.

I don't really have a huge issue with this. If there's a sponsor who's willing to be on the board and bring in some corporate experience then there's no real issue. The problem is if they start to interfere with decisions and act in their own interest. We've only got a small pool of supporters for the board so it needs supplemented by external people. 

I've also seen a few people query the two board setup. I don't think that's an issue in itself and (from memory) the articles of association for both are well intended. Again, the problem is if people act in their own interest. 

The GMFC board should be a majority of MCT representatives and the MCT board should be able to remove or change these members going by these articles. Since the MCT board are representing the members then it should allow members to force change via the MCT board. 

What's happened here is that the MCT board weren't happy with their representatives and tried to remove them but they refused to leave and went running to the sponsor. Whether the comms or way of telling them could have been improved is another story but the structure should work in theory. 

Just because Dalrada have a board seat shouldn't mean they have the deciding vote - it's majority MCT and the MCT people on it should answer to the MCT board (and therfore members) rather than act in their own interest. 

 

[TRVMP]

The joint statement was a few days ago. Anyone know what's happening since then? 

Allegedly the FIFA embargo is being lifted today as well but it's coming up for the end of the workday in Switzerland and we're still on their site. 

Edited May 15, 2025 by TRVMP

[Jamie_M]

Dunno, but the latest update from the club is about this.

Whilst I'm not on board with the replies shouting we shouldn't be updating on stuff when there's more pressing things on the agenda - this one is relevant because it's literally about something linked to Dalrada and talking about next season.

 

https://x.com/Morton_FC/status/1923015521500528751?t=GEx-QcM16ghdQ6Sqz9ZloA&s=19

 

[TRVMP]

Well, that's nice. No sarcasm, that's nice.

[dunning1874]

As Motherwell were mentioned in the thread, I worry we're heading for a similar situation to where Motherwell found themselves last summer, but even worse.

The fact the joint GMFC/MCT statement said that the proposal from Dalrada needs to go to MCT members means it can't just be another sponsorship deal. By far the most likely explanation is buying shares from MCT. If that's some sort of minority stake then fine, let's look at the terms of it. However I fear that it's actually going to be an attempt to take full control of the club, which again I'm not necessarily opposed to in the right circumstances but I certainly don't think Dalrada can be trusted after recent events.

The Motherwell situation last summer was that they had a club board made up of a majority of Well Society reps who were supposed to be there to represent that fan organisation, but seemed to think their actual task once there was to do everything in their power to undermine fan ownership from within and find whatever private buyer they could to take control, no matter how bad a deal it was for the club and fan organisation - it would stop those board members, who would stay on after the takeover, having to face any oversight from the pesky fans who put them there, and that's the main thing. So far, so familiar.

The deal the Motherwell board agreed with Erik Barmack (film producer and former Netflix vice-President) was frankly insane. He would buy 47% of the club, but this would give him full control of the board with the fan organisation being sidelined. The investment was trumpeted in the media as being worth around £2M, but in reality he'd have taken full control of the board from day one, on a payment of £300K, with it taking six years to invest the full £2M, and the Well Society's stake remaining at 50.1% being predicated on matching almost every penny Barmack spent over that six years - they were effectively being asked to pay for the privilege of their shareholding being massively diluted, and if they failed to keep up their payments more shares could go to Barmack. When it came to a vote, Barmack withdrew before the voting was closed because it was clear it was already heading for a resounding no.

Now maybe this comparison is massively unfair or paranoid on my part, but in the void of silence speculation is natural and there are some things pointing to it. We keep hearing this £700K figure being thrown around, but quite often it's been prefaced as "up to £700K". What if this isn't for sponsorship at all, it's for buying half of/a majority of/all of MCT's shares, but the base price isn't anything like £700K? What if it's say £350K up front and the other £350K is contingent on MCT also raising £350K and matching Dalrada's contribution, with the scenario that MCT only put in eg £100K meaning Dalrada also only put in a further £100K? Back of a fag packet figures here, but the danger of this scenario is clear - for essentially what they've been paying just for shirt and stadium sponsorship, Dalrada would seize control of the club while continuing to get that sponsorship and MCT would be expected to pay for privilege of diluting their own shareholding.

The reason I say this situation would be far worse for us than for Motherwell 12 months ago is at least they weren't over a barrel in the timing of it, which is the exact same reason I can't trust that Dalrada have the club's best interests at heart. Their manager and players had been given the budget for the season and gotten on with pre-season because the third party buying in wasn't also the shirt and stadium sponsor who could cut and run if it didn't go through, it was all background noise as far as the playing side of the club was concerned. We however do appear to be over a barrel.

If the GMFC board, whether by accident or design, have created the situation where we have absolutely no backup plan for shirt and stadium sponsorship if Dalrada don't provide it when the budget for next season should have been confirmed to the manager weeks ago, and Dalrada providing anything is dependent on being given a majority stake in the club, we're basically between a rock and hard place. We can choose between rushing into losing control of the club without being given time to scrutinise the details, or Imrie not being allowed to do his job. You can find alternative shirt and stadium sponsorship, but we don't have weeks to waste finding it. No one could blame Imrie for walking in the latter scenario, but no one could blame the MCT membership for reluctance to commit to the former either.

If Dalrada had the best interests of the club at heart they could commit to sponsorship regardless of the outcome of an entirely separate attempt to purchase shares, or alternatively could have made an approach to buy shares months ago when the club could look for alternative sources of sponsorship without destroying the manager's preparations for the following season, while if it was a good deal that benefits the club as much as Dalrada then they wouldn't need to resort to putting a gun to MCT's head in this manner to approve it.

John Laird was reported to have travelled to the US in late March/early April for talks with Dalrada. We're now in mid-May and we've had no confirmation of what came of that meeting. Is this why Dalrada were so keen to keep the current board members in place, that there could be no contingencies made of finding alternative sponsorship when there was time to do so without fucking Imrie over, due to the GMFC board fully supporting a sale without ever having consulted members? Leaving MCT members presented with a fait accompli, where refusing to give Dalrada the keys for shite terms would leave planning for next season in an even greater mess than currently and pretty much guarantee relegation?

Maybe I'm being a paranoid idiot with unhelpful speculation here and this is all massively unfair to both Dalrada and the GMFC Board, and I hope that's the case. The more I think about what Dalrada could actually be looking to get out of this though, the more I worry.

[dunning1874]

Christ, even by my standards that post was far too long. Put me out my misery and announce something.

[Stevie Aitken's Love Child]

Yeah it's definitely one of these 

[CM48]

I’m at the stage of where all I’m worried about is avoiding a Hamilton or ICT scenario. People might scream things about “lack of ambition” or “seaside leagues” on here or commenting on every post on socials the club will put out about family sections or season tickets (which the club should be doing imo).
But if we have to go part time due to Dalrada pulling out then so be it.

The crowds and budgets may be smaller but full time football for well over 20 years hasn’t seen us up in the top tier so not sure what status or success we’d be giving up? 
 

I’d take MCT being in control, and having to answer to 1000 or so contributors, over any other set up, even though there will always be difficulties with turnover of those willing to try and run things.

As far as the last communication from Michael Harkins (who I though came across very capable and honest) regarding the clubs finances, there would seem to still be a small surplus in the bank to help cover costs during any adjustments and losses in the coming season.

Also moving to spending less doesn’t guarantee a dire relegation season, whatever team assembled could do well as Arbroath managed a few years back (bit of a freak scenario I know).

At the risk of misreading the room don’t most of us just want to know that we can go to Cappielow and enjoy following the team, no matter what level?

So sick of all this shite.

[SpoonTon]

1 hour ago, dunning1874 said:

John Laird was reported to have travelled to the US in late March/early April for talks with Dalrada. We're now in mid-May and we've had no confirmation of what came of that meeting. Is this why Dalrada were so keen to keep the current board members in place, that there could be no contingencies made of finding alternative sponsorship when there was time to do so without fucking Imrie over, due to the GMFC board fully supporting a sale without ever having consulted members? Leaving MCT members presented with a fait accompli, where refusing to give Dalrada the keys for shite terms would leave planning for next season in an even greater mess than currently and pretty much guarantee relegation?

 

I mean, Laird may or may not have been over there to simply receive the suitcase of cash that was owed.

I doubt think Laird or the board have ever contemplated an alternative to whatever they've been planning with Dalrada. 

[SassenachTon]

4 hours ago, CM48 said:

Michael Harkins (who I though came across very capable and honest) regarding the clubs finances,

So sick of all this shite.

Agreed. He came across as a proper finance guy who knew exactly what he was doing - and who also had the baws to report this year's loss honestly and accurately rather than fudging the issue. I also take Gordon's opinion seriously that Dale is 'out of his depth' - but as someone else has said in this thread - maybe he's being tasked with doing way too much. Nothing against the bloke - but the chances are that he's working as Laird's mouthpiece with one hand tied behind his back. I know that @Toby has a beef about him not replying to emails - but FWIW around a year ago, I sent him a list of ideas which Morton could maybe use to increase MCT membership with a consequent increase in revenue. That mail didn't get answered either.

Edited to add - Although part-time Arbroath had a shite season and got relegated from the Championship in 2023-2024, it hasn't stopped them from bouncing straight back up as League 1 champions. A PT Morton team maybe not as bad as some would understandably fear.

Edited May 15, 2025 by SassenachTon

[Gareloch Gnomes]

A couple of points on company law.

- Per section 172 of the Companies Act 2006, “directors must ask in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members (shareholders) as a whole”.

- Section 175 says “directors must avoid situations where they have, or could have, a direct or indirect interest that conflicts, or may conflict, with the interests of the company. This includes conflicts arising from exploiting any property, information, or opportunity for personal benefit”.

In October, 2023, John Liard was appointed chairman of the club and to this day has refused to become a company director. A truly bizarre situation. I’ve been informed that he also opted not to use a club e-mail address and instead uses a personal one for club business.

As chairman of a community owned club, he allegedly refused to join MCT and pay his tenner a month.

My own loose association with him dates back decades to our time together in the BB and what I can say is that while he never struck me as the community spirited type, I would guess he is quite clued up in company law.

What is clear is that he has now removed every person on both the club and MCT boards who challenged him or called out his motives. He fought hard to keep Graeme Barr and Sam Robinson and is now completely surrounded by a collection of yes men, lackeys and useful idiots. It hasn’t likely dawned on them that they are mere pawns on his chess board.

I hope I am wrong with my thinking but suspect we will learn soon as to his reasons for not being legally liable for protecting members’ interests.

[Jamie_M]

48 minutes ago, SassenachTon said:

FWIW around a year ago, I sent him a list of ideas which Morton could maybe use to increase MCT membership with a consequent increase in revenue. 

Genuine question - why did you send an email about MCT memberships to the GM of the club?

[TRVMP]

1 hour ago, Gareloch Gnomes said:

A couple of points on company law.

- Per section 172 of the Companies Act 2006, “directors must ask in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members (shareholders) as a whole”.

- Section 175 says “directors must avoid situations where they have, or could have, a direct or indirect interest that conflicts, or may conflict, with the interests of the company. This includes conflicts arising from exploiting any property, information, or opportunity for personal benefit”.

In October, 2023, John Liard was appointed chairman of the club and to this day has refused to become a company director. A truly bizarre situation. I’ve been informed that he also opted not to use a club e-mail address and instead uses a personal one for club business.

As chairman of a community owned club, he allegedly refused to join MCT and pay his tenner a month.

My own loose association with him dates back decades to our time together in the BB and what I can say is that while he never struck me as the community spirited type, I would guess he is quite clued up in company law.

What is clear is that he has now removed every person on both the club and MCT boards who challenged him or called out his motives. He fought hard to keep Graeme Barr and Sam Robinson and is now completely surrounded by a collection of yes men, lackeys and useful idiots. It hasn’t likely dawned on them that they are mere pawns on his chess board.

I hope I am wrong with my thinking but suspect we will learn soon as to his reasons for not being legally liable for protecting members’ interests.

If he's clued up in company law he'll be aware of case law around shadow directors, surely? 

[TopCat]

Should we set up a sweep for what % of shares Dalrada are going to make an offer for? It'll need to be fairly high to protect their investment* properly as well as sort out the cash flow cliff-edge we'll be facing if they don't step in**.

 

 

*investment and sponsorship are interchangeable terms depending on what suits Dalrada best.

**running costs now much higher than year 1 MCT ownership due to Dalrada-driven backroom staff hires.

[Ecb]

This feels like it’s running like a Star Wars trilogy and we’re at the end of the Empire Strikes back.

looking forward to return of the Jedi 

[SassenachTon]

3 hours ago, Jamie_M said:

Genuine question - why did you send an email about MCT memberships to the GM of the club?

It was a reaction to (what I think) was his first-ever interview when he talked about how important it was for the club to maximise all revenue streams. Since I'd just upped my MCT contribution, the email I sent him was a reminder about who owned the club, and how just 10% of these owners upping their contributions by a few quid would make a worthwhile difference. I also made a few points about how he (as the new club's theoretical new spearhead) should be taking every possible step to increase the number of supporters becoming part-owners of the club and spending a few monthly quid to be a part of that.

[Jamie_M]

36 minutes ago, SassenachTon said:

It was a reaction to (what I think) was his first-ever interview when he talked about how important it was for the club to maximise all revenue streams. Since I'd just upped my MCT contribution, the email I sent him was a reminder about who owned the club, and how just 10% of these owners upping their contributions by a few quid would make a worthwhile difference. I also made a few points about how he (as the new club's theoretical new spearhead) should be taking every possible step to increase the number of supporters becoming part-owners of the club and spending a few monthly quid to be a part of that.

My point being though that if he read it, the most likely action would be hitting forward to MCT.