Overwhelming support for new financial partnership for Football Club
Football Club and Supporters Trust Bees United agree to financial partnership
Brentford supporters vote overwhelmingly in favour of a five-year, £5m+ partnership with Matthew Benham
Members of Brentford Football Club Supporters’ Trust – Bees United – have voted overwhelmingly in favour of forming a partnership with Matthew Benham – the Club’s largest creditor – which will see him invest at least £5 million in the League One club.
In their biggest decision since taking over control of the Club from Ron Noades nearly four years ago, Brentford supporters have agreed that Matthew Benham should have an option to take control of Brentford Football Club in return for investing a minimum of £1 million per year in the Club for the next five years.
“Brentford Football Club needs more investment, and I shall be investing substantial sums of money to help Brentford become a Championship team,” says Matthew Benham, a lifelong Brentford fan who owns Smartodds, a company that provides statistical research and football modelling services in the betting sector.
After the five-year term, Bees United can buy Matthew Benham out if they can raise enough money. If they don’t, Matthew Benham will have the right to buy majority ownership of Brentford Football Club. Bees United would retain safeguards over the sale of Griffin Park, the club’s home ground. Bees United organised a meeting for members with Matthew Benham on 17 August at St Paul’s centre. Over 100 members attended, had the opportunity to review the proposed heads of terms and question Matthew on the details of the deal. Voting took place over a three week period. In the event, more than 99% of Bees United members supported the proposed partnership in a postal ballot that was first announced on 31 July. The turnout was just under 70%.
The key figures were as follows:
Number of eligible voters: 1830
Total number of votes cast: 1250
Turnout: 68.3%
Number of votes invalid: Nil
Total to be counted: 1250
Number voting FOR: 1241 (99.3%)
Number voting AGAINST: 9 (0.7%)
“This is excellent news,” comments Bees United Chairman David Merritt, who with the rest of the Bees United board had unanimously recommended the proposed partnership. “I’d like to thank the vast majority of Bees United members for their support for the proposal, which we believe is in the best interests of Brentford Football Club. All that remains now is for the shareholders’ agreement and other formalities to be concluded.”
When the deal is finalised, Matthew Benham will take operational control of the Club for the five-year investment period. He will also obtain a minority stake of about 35% from former Club Chairman Martin Lange – around 25% – and just over 10% from Peter and Timothy Wheatley, the sons of a former Club Director.
Bees United will continue to be the Club’s majority shareholder with a 60% stake and have at least one representative on the Brentford Football Club board while it remains a major creditor of the Club. The Supporters’ Trust currently has four representatives on the Club’s board, including Chairman Greg Dyke as well Finance Director Alan Bird, Donald Kerr and David Merritt. These are likely to remain for the forseeable future.
Matthew Benham’s investment will be in the form of non-voting preference shares, and will not increase the club’s existing debt of around £9 million, stresses David Merritt. “Bees United exists to secure the long-term future of Brentford Football Club, and this partnership satisfies that objective in every way. It provides for substantial investment in the form of equity, protects against any further increases in debt, and at the same time ensures Bees United provides long-term protection for the Club,” he says.
At the end of the five-year period, Bees United can repay Matthew’s existing £4.5 million in loans to the club and can buy Matthew Benham’s preference shares according to a pre-agreed valuation formula. However, if Bees United does not do so, Matthew Benham has the option to take over control of Brentford Football Club by buying most of Bees United’s 60% shareholding and converting all his debt into more preference shares. Bees United would keep a minority shareholding and a ‘golden share’ protecting against the sale of Griffin Park.
In any event, Brentford’s plans for a new stadium at Lionel Road, Brentford, remain unaffected. “Both the Bees United board and Matthew Benham are fully supportive of the Lionel Road plans, which would transform the future of Brentford Football Club as a professional football club at the heart of the local community,” comments David Merritt.
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