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In a passionate letter the propsed buyer states his cause and it will be interesting to see what happens as a result!
The letter has been on a few of the Yeovil unofficial sites. This is taken from
http://www.ciderspace.co.uk/features/0206-bromfield-letter.htm The site had 20,000 hits in the first hour of it being released!
28th February 2006
John
As promised I am writing to you re the ownership of Yeovil Town F.C. and can I start with two statements.
1 I have no idea what David Webb paid to purchase his 100% or controlling shareholding of Yeovil Town but I can confirm that if he is willing or wanting to sell all or part of his holding I would be very grateful to be advised accordingly. I am writing to you to ask you to advise the Board and shareholders that I am seriously interested in acquiring a shareholding and I will refer to finances below.
2 There might be quite logical explanations for a number of decisions that have been made by various parties in the past 6 months. However, and quite possibly as a result of an unfortunate sequence of decisions and their consequences as there is little doubt that to many fans the club appears to be in a period of instability which is quite a contrast to the preceding four years! Let me say I am the first to acknowledge that many fans let their hearts rule their brains and logic flies out of the window as far as their favourite team is concerned but to any neutral outsider a combination of the following would naturally lead to some concerns and I can understand why some fans have concerns, whether justified or not.
i A long standing and popular manager chooses to move on rather than stay with the team he built.
ii A new owner arrives who, although serving the club well if briefly in the past, has a controversial history having rightly or wrongly left a bitter legacy with some fans at previous clubs with whom he has been associated.
iii The new owner appoints himself as chief executive.
iv Three popular players, two of which have been virtually ever present and the driving force of the team for almost 5 years are sold without being adequately replaced.
v The new owner promptly resigns as CEO.
I think even if there are logical explanations for all of the above one can understand why there are concerns as the appointment and resignation of a CEO in little more than a matter of weeks does not indicate there is an agreed strategy and plan in place or stable stewardship. Furthermore the impact of all this is exacerbated by the contrast with the previous four years of consistency and continuity under your stewardship. Of course everyone knew that continual success was not going to last forever but you and I both know with proper stewardship and management Yeovil could and should be knocking on the doors of the Championship within three years after a necessary period of consolidation. However I think many people believe consolidation, which is acceptable, could be replaced by instability.
As a result of all the events I have listed above there has been some fans unrest and criticism and it can hardly be surprising if current concerns and uncertainties about the future (knowing the CEO has resigned is hardly a ring of endorsement in the future!) have had an adverse effect on both management the teams performances in recent weeks.
In short things do not look good from the outside!
If given the opportunity to acquire a shareholding my clear preference would be as majority and controlling shareholder. This is not because I am a control freak - far from it, as I will outline my philosophy on management and my skills below. It is purely to ensure my investment is fully protected and secure.
However I would not rule out the acquisition of a minority shareholding in conjunction with other shareholders or as part of a consortium. However there would need to be proper checks in place to ensure that a majority of shareholders could not increase the issued share capital to the disadvantage of minority shareholders.
For you as Chairman to consider my initial proposal and recommend it for initial consideration to both your principal (or only) shareholder and directors, it is important you have certain reassurances and information from me and I will address the questions that I would expect you to ask.
1 WHY WOULD YOU WANT TO ACQUIRE YTFC?
I am fully aware that cleverer people than myself have made fools of themselves trying to make a business out of their hobby whether it be to buy a pub or football club! I would expect the club to be run as a self-funding business with a clear strategy for the future both on and off the field. All possibilities of potential fund making should be considered and all expenditure justified. Like yourself I believe in the potential of Yeovil. Four years ago I told you I thought there were synergies between Casterbridge and Yeovil - both are in the leisure sectors and I also thought Yeovil was an excellent investment. I still believe that YTFC can become a regional power and a Championship club.
I believe the club will benefit from having the skills of a hands-on owner who is only interested in the fortunes of YTFC. I am neither a Jon Goddard Watts who did not take a seat on the Board nor a David Webb who has been involved with a variety of clubs. I combine passion for Yeovil and proven commercial skills and personally I thrive on new challenges.
2 WHAT CAN YOU OFFER YTFC?
Casterbridge Tours, a company that reflects my own ethos and which is synonymous with both attention to detail and a quality product, has dominated my business life. If a thing is worth doing it is worth doing properly.
To be specific what can I offer as a majority or sole shareholder is the following.
I I have no particular footballing skills but an outstanding track record with both Casterbridge and my family company LPI with property development. I have a reputation as a workaholic when I am involved with projects and give 150%. I would be willing to devote the majority of my working time to YTFC and not take a salary. I thrive on new challenges whether it be setting up a new travel company or organising an international music festival and as you know many common sense skills are transferable - one just needs the determination to apply them!
ii I am seen as a catalyst who by a combination of my energy and enthusiasm makes things happen. I am very good at identifying the bottom line - not in financial terms but in identifying and acting on the key issue that has to be addressed and acted upon. I always ensure that issues are not avoided or left to fester. I am told I am an excellent Chairman in allowing all parties to speak and for all sides of a debate to be addressed. I will ensure that a decision is made so we can move on but more importantly I would ensure decisions are always acted upon. I am not afraid to endorse, act upon and enforce decisions where I have been opposed and in the minority because I am aware I am not always right and I have confidence that the people I appoint might know more than me in certain situations! As far as YTFC is concerned I would like to think I could attract and recruit a strong board of Directors who would go beyond the normal call of duty because I could sell them on where we plan to go over the next 5 years. (Please note that this does not imply any criticism of the current Board. I do not know them and would want to meet them, ask the key questions and form my own conclusions.) As I will refer to below I think I could also bring investors on board with me if that was required.
iii Without being presumptuous it is a fact that I think the club would gain a lot of positive goodwill if I was able to purchase a controlling shareholding of the club or be appointed to the Board as a minority shareholder.
Why?
Anyone who has read my book knows that I have a passion and love for the club. No one can accuse me of being a carpetbagger and not having the clubs long term interests at heart. It is documented in my book that I proposed buying into the club and indeed there has apparently been speculation on some internet chat sites that maybe I will be interested in making a bid for the club as a 'white knight' if David Webb no longer wants to be involved. I am known to have a sound commercial brain having built Casterbridge from scratch into a Queens Award winning company selling over $15m annually in North America.
iv With all the contacts I have made in the promotion of my book it will be relatively easy to get access to the media and build up positive PR for the club and its future. Furthermore having been born on the wrong side of the tracks I can categorically state that I have never lost touch with my roots and maintain what I would describe as a common touch (which comes quite naturally). Even if I owned one I would not be one for turning up at the ground in a Bentley but rather my wife’s Toyota!
v Above all I offer commitment, common sense, commercial acumen and continuity.
3 DO YOU HAVE THE FINANCIAL RESOURCES TO ACQUIRE THE YTFC?
I have no idea what David Webb paid for his shareholding. I think you referred to it as an acquisition of all the shares but the media continually refer to a majority holding and I have no idea what caveats were put on his holding and whether Jon Goddard Watts retained any shares or a buy back option. I have heard a figure of two million pounds frequently quoted.
I would not see any obstacles in funding a transaction in this area as I have a number of options available.
i Cash resources
ii Unmortgaged properties with a valuation of circa 1.5 million pounds.
iii The resources of Casterbridge Tours with an annual t/o approaching 8 million pounds.
iv Our family company owns a number of properties.
v I believe I have a number of personal and business contacts with funds available for investment, some of whom know a lot about Yeovil and others who would back my judgement in following me and backing my judgement and track record if I was to be involved.
In short if a deal was to become a realistic possibility for a full or partial acquisition and once I knew the sums involved I would think seriously about my preferred option - whether to proceed along the lines of a cash deal or to partly finance it and if the latter what sources to use.
It goes without saying I would want a period for due diligence period to confirm the valuation was fair and reasonable with no hidden skeletons in the cupboard.
I must also stress that what I would bring to the club would be commitment, time and effort to ensure your vision of Championship football is achieved. I would not bring unlimited resources and largesse because to build a football club on this basis is to build on a foundation of straw as we have seen at Rushden and may one day see at Chelsea. I would want to see a strong and focussed board who were all buying into the same vision, all singing from the same hymn sheet and all willing to devote time and expertise to ensure the club developed a range of income streams to fund the clubs ambition of playing football at the highest possible level.
I know you also believe a club should trade on its merits and expenditure should be covered by income - maximising the income without selling key assets is the tricky bit!
I hope I have addressed the questions that I would be asking if I was a non-shareholding Chairman being asked to pass a proposal on to the company owner and Board.
There are also some additional points that I think are appropriate to make at this time so you are fully aware of where I am coming from and the motivation behind my proposal to acquire a shareholding.
A CONSORTIUM
Although it is my clear preference to be a majority shareholder I would not rule out being part of a consortium AS LONG AS i was comfortable everyone was on the same page. I am confident in my ability as a majority shareholder to recruit, motivate and incentivise a strong team but I accept the club may have other options and if so I would certainly want to be considered as part of any consortium that might be an alternative option. As I have said, I do not consider the acquisition of the club to be beyond my budget as I have a number of options to draw upon but depending on the sums involved I might also choose to contact one or two colleagues to see if they wanted to join me if I consider they had the time and expertise that would benefit the club. I would also not rule out a consortium or Board structure that included some of the existing personnel who wanted to remain involved such as David Webb with a reduced shareholding and yourself who I think has unrivalled expertise regarding the club and who still has a lot to offer. I would hope you would still wish to be involved.
MY MANAGEMENT STYLE
I have made it clear my preference is to acquire a controlling share and that is because as I go through life I always like to be in control of my own destiny. It does not mean that I am a control freak and want to micro manage every decision. It would be ludicrous to say I want to have people with expertise involved and then ignore their advice! I believe I have a good track record of recruiting good people and not being afraid to act on their advice and views in their areas of expertise even when it varies from mine. Indeed I think it is a positive aspect to my proposal that I would be keen to recruit good people to act in the clubs best interests rather than to unilaterally try and micro manage everything. There is a lot to be said for autocratic leaders if you get the right person (!) but generally I think collective expertise is to be preferred and that is why I have always questioned having one person occupy the role of CEO and Chairman...........and I have done it successfully like you but I think we are examples of the exception that proves the word and generally it is not good practice.
As I have said I believe a particular strength of mine is to provide a sound structure and organisational framework, identify the key issues to be addressed, ensure individuals remain focussed on their tasks and keep them enthused and motivated. Countless people have told me my energy and enthusiasm for issues I address came across when they read my book and I can only say we all have strengths and weaknesses and one of mine is taking people with me and selling them on the dream. If people get through the first year of working with and for me they will often stay for decades so I must be doing something right!
JOHN FRY
I have always found it a little incongruous that you have been CEO/Chairman without holding a single share as you told me was the case after Jon Goddard Watts insisted you and Mr Haywood sold him your shares as the price for his continued involvement. Unless that situation has changed in the interim I presume that situation is unchanged.
I reward several of my staff with a bonus equating to a shareholdings share of the profits so I do not think it is essential that key personnel are shareholders but I think if you wish to remain involved with YTFC then you deserve the opportunity to buy in.
Indeed this is something you may have discussed with David Webb already. Let me say that I would be happy to include you in any proposals to make an acquisition that might emerge from this initial approach if that was your wish and similarly if you were considering putting your own consortium of investors together to lead a buy out please consider me in your plans because when push comes to shove I have a lot to offer.
There is another aspect of my proposal that concerns yourself.
If a club has too many eggs in one basket or too much power in a combined CEO/Chairman (!) all the skills are concentrated in the hands of one person and they are consequently that much more difficult to replace. In short the club needs a succession plan and your first successor as CEO has lasted a mere few weeks!
I certainly have no problems with your continued stewardship of the club but at some point you are going to want to cut back. It may be one year, it may be five years or it may be longer but at some point you will step down and you will need to be replaced by someone of a similar ilk. That transition should be seamless and with someone familiar with both your duties and the club. Clearly whether justified or not your replacement by David Webb has not been well received. In contrast Gary Johnson's replacement by Steve Thompson was well received.
I believe that succession is one of the advantages of my proposal to acquire a controlling share of the club. I bring a lot of skills in both man and commercial management. I am now independently wealthy and control 90% of a company that pays me a generous salary package and I am willing to work for Yeovil pretty much full time at no cost to the club. I would be willing to work as a 'fixer’ or executive assistant for you, which would enable me to learn the ropes regarding football management whilst you deploy me on tasks that reduce the load on your shoulders. And when you step down there is then a ready-made replacement in house. If you think about it the role that I am proposing and my situation is not so different from when you first joined Yeovil!
FANS
I think this may be where we have a difference of opinion because I know how frustrating and difficult you found it 10 years ago when you had multiple shareholding fans who all wanted a voice at the table and on every decision. This is NOT what I am proposing.
For better or for worse one has to accept that owning a football club involves some baggage that is rather different from any normal business. The fans think it is 'their’ club and not the shareholders. Whilst this is of course nonsense, one must acknowledge and accept that a football club occupies a special role in the community and accept that interest and a close inspection of 'their' clubs management and administration is inevitable. On going interaction and indeed at times criticism from local fans is inevitable whether one likes it or not so it should be managed and structured to the minimise disruption of the club's operations.
Clearly there is some bridge building to be done with local fans who have been through a traumatic 6 months that included the resignation of a legend, the sale of two star players and the resignation of a new CEO let alone flirting with resignation.
A new owner would earn a lot of brownie points by making available say 20% of the shareholding for a properly constituted fans consortium that was a legal self governing entity and who had the right to representation at Board level in proportion to the shareholding, e.g. one director representing the fans who would report back under confidentiality to the fans consortium. This would be a win win situation. The fans would have a voice at the table and their representative on the Board would also be exposed to the realities of difficult decision making situations and could offer a reasoned voice of explanation to fans from one of their own.
I am all for building bridges with fans, having them involved and not alienating them and my proposal could win a new regime a lot of respect and good will.
I think I have now covered all the important points I wanted to raise and at some length and you will note that I have not commented on football matters which I think have no place in this initial proposal to you. I do not come with any agenda although I would dearly like to see Gary back one day (as a shareholding manager?).
Perhaps the only additional point I should make at this time is in regards to my movements. At present I am a non resident in the UK which restricts the days I am in the UK in the current tax year and I only have three days remaining until April 6 and I am due to lead two treks in the Himalaya between April 6 and May 16 when I am due to return to the UK. I do not necessarily see this as a problem because if essential I could fly back to the UK for up to five days (arrival day, departure day and three full days) but in reality for any deal a period of due diligence would be necessary and I have bank, financial and legal advisors readily available with whom I have worked for many years and whom I trust and can both instruct and authorise to act on my behalf.
Thereafter I am under no obligation to continue as a non-resident or have any restrictions on my time in the UK. It saves me a six-figure sum each year but I have already been thinking that two years is enough and that I would like to spend more time in the UK from this May in any case. If I was involved with Yeovil I would for sure forego my non resident status so that I could be involved on a full time basis as outlined above. My company runs itself under a trusted set of senior managers and I can pick and choose which projects or mountain treks I want to be involved in so you need have no concerns about me not being around or available. I can assure you that I would be available and around if I was involved with Yeovil Town.
I will end by apologising for the length of this correspondence. As I am not speaking directly with you and am not aware of the situation with regard to David Webb and his shareholding I have tried to cover all eventualities in this email without knowing his preferences at this moment.
Clearly Yeovil need some continuity at this time and I am sure you will agree someone buying the club, appointing themselves as CEO, signing his son, selling key players and resigning does not exactly send out a reassuring message that there is either a structured plan or continuity in place. Indeed my first thought when learning that David Webb had resigned was that if he had bought the club with the intention of being CEO and had already stood down then the chance was that he was not going to be staying very long. I am sure that is what 90% of fans thought as well which just adds to the uncertainty around the clubs stewardship.
I have deliberately refrained from commenting on any specifics with regards to the future because that would be futile without being privy to the clubs financial situation and I have always been very careful never to promise what I cannot deliver.
What I can promise is to deliver time, energy, enthusiasm, commitment, sound management and proven financial acumen. I am also aware that as far as I am concerned the owners of any football club (that inevitably plays a pivotal role in the community) needs to be mindful of the additional obligations and responsibilities to the local community and fan base. Yes, a club needs to operate on a sound commercial and financial footing but whereas a normal business has the aim to make good profits a football clubs aim should be success on the field. If an investor does not appreciate this cardinal role is an obligation of ownership then they should be looking elsewhere to make their investments. The purchase of property, stocks and bonds are more appropriate for such investors. When I buy antiques I appreciate that I am their guardian for a generation or so and ownership then passes on for someone else to enjoy. The trusteeship or stewardship of a football club is not dissimilar.
When I was Chairman of Governors of what was became the third smallest Grant Maintained School in England (a task many considered to be beyond us) I was insistent that the school be run on sound commercial lines (we only bought in services we could afford, cut out waste and focussed on the kids actual needs and not the teachers perceived needs) but I was insistent that Governors were always focussed on the fact that unlike most businesses our role was not to make profits but to deliver quality education. That should tell you everything about my approach to the stewardship of a football club and as a result I suggest the local community would see my involvement with the club as a positive step. I have used the same philosophy with Casterbridge - operate within our means, concentrate on providing a quality product and the profits take care of themselves. I always remember one of our non-executive Directors comment
'This is one of the most profitable travel companies in England and I have sat around this table for six months and not heard the word profit mentioned once!'
I must apologise if parts of this email are presumptuous or appear to be teaching you to suck eggs. None of my comments are intended to be critical of yourself and anyone would be churlish in the extreme not to be eternally grateful for what the club has achieved in the last 10 years under your stewardship. Given that I am asking you to approach David Webb on my behalf with a proposal to acquire all or some of his shareholding I really have no alternative but to talk about myself, my philosophy on management and what I can offer and hope to achieve if I was to become a sole or part owner of the club. As the club has very much been your baby or indeed your life in recent years it is important to me that you (as an initial conduit to David Webb) are comfortable with me as a prospective owner. If in talking about myself it comes across as presumptuous then I am sorry but so be it!
I trust you will see the length of this correspondence as a reflection of the seriousness of my approach and I would be grateful if you can forward this on to David Webb whether or not he has given you an indication of his long term plans and intentions. He may not agree with everything I have written but he will surely realise that I am serious in both my intentions and wish to be involved with the club and have the clubs long term interests at heart, hopefully as is also the case with him. What he might not agree with is the description in my book of his defending style with Southampton in the 1960s!
John, I have written to you at length and I would be really grateful if you can let me know in general terms (and I am not asking for you to divulge any confidential information) about the likelihood of having the opportunity to acquire a shareholding in the club. I wrote to you four years ago advising you of my/our company’s wish to acquire a shareholding and also told you how disappointed I was to learn the club had been sold to David Webb without being given the opportunity to make an offer. I think you will have to agree that at present the verdict is still very much out on whether that sale to David Webb was in the best interests of the club and I would be very disappointed if another transaction was to take place without the principal shareholders and the Board of Directors being aware of my interest.
Thank you for the time you have spent getting this far and lets hope that a couple of positive results on the field can remove the haunting spectre of relegation and ensure that we put 2005 - 06 in the record books as a year of consolidation and not the year when everything the club has achieved starts to unravel.
Meanwhile I look forward to hearing from you.
With Best Wishes
Michael