Chesterfield Football Supporters Society

Minutes of the meeting of Wednesday 7^th June 2006

Venue: CFC Boardroom

Present: P.Tooley (Chair), R.Willett, A.Fantom, P.Whiteley, M.Cook, C.Young, A.Haywood, A.Wheatcroft, P.Taylor,

Apologies: D.Bowler, I.Browes, R.Pearson

Secretary: R.Busby

1. Notes of the previous meeting and Matters Arising

The minutes were accepted after correction of some minor typographical errors.

Matters arising - none.

2. Mike Warner Letter

The Chair circulated a letter from Mike Warner, addressed to the CFSS Board. The letter sought to draw attention to projected trading losses of approximately £170,000 in the next financial year and to seek the views of the CFSS board on how the problem should be addressed. In addition to the letter Mike had also prepared some notes, concerning the longer term future of the club.

A wide ranging and open discussion about the ownership, management, and financing of the club then followed.

The main points of the discussion were:

Are the projected losses realistic? The Chair responded to this by stating that he and 3 other CFSS board members (AF. JC, PRT) had seen and analysed the detailed cash-flow projections and concluded that the projections were real but cautious but based on the sound financial management approach that has allowed the club to recover from Darren Brown's mismanagement and to become stable without suffering relegation. They should therefore be taken seriously. We should also not lose sight of the fact that although progress is slow, the Club has consistently "punched above its weight" in the League over the last four years.

CY said CFSS did a great job when it needed to be saved, but its now time to move on, sell it, but retain control in the form of covenants which would prevent any new owner from asset stripping the Club by disposing of the ground.

The Chair agreed that the key issue is about protecting the ground and mentioned a new form of ownership, the "Community Interest Company", which can provide for situations like this. Alternatively, Planning Permission controls could also be used to achieve the same result.

In response to Mike Warner's assertion that CFSS should raise more money several board members wished to point out most of the successful fund raising initiatives (e.g. Barnsley Building Society Accounts, MBNA Card, Player Fund, Business Club,) now operated by the CFC Board and appearing in their accounts were conceived, initiated, nurtured and then transferred to CFC as successful funding streams.

PW suggested that this should be made more transparent by requiring the CFC Board to show clearly in their accounts the original source of funding streams. This would redress the balance and make clear the huge contribution CFSS activity makes to the well being of the Club.

AW commented that the CFSS members individually already make a magnificent contribution.

In terms of falling gates several Board members said that supporters in general are most strongly influenced by results on the pitch, and that we must not lose sight of the need to provide sufficient funds to ensure that our squad reaches and maintains the level of quality needed to continue to make progress in the league.

Attention then turned to consideration of the implications of the projected figures in the context of the plans for a new stadium. Whilst final figures have yet to be concluded current debts of approx £1.6m are expected to rise.

AH felt it is equally reasonable to ask the CFC Board members about their intentions. AF said there are options to finance the new and existing debts. The current arrangements, whereby the greater part of the £1.6m debt is in the form of debentures held personally by the CFC Board directors, could be refinanced as part of the mortgage arrangements for the new stadium. Loans could be raised via commercial routes, from councils or mutual companies or from other individuals.

There is also the need to consider the cash flow requirements during the transition from Saltergate to a new ground. JC has experience of the difficulty in accurately projecting cash-flows in these types of situation and pointed out that a significant short-term contingency fund needs to be available to cover ad hoc costs until the finances settle down again.

At present the Business Case for the new stadium is incomplete, with the cost of the land still awaited, therefore it is not possible for the CFSS Board to consider every issue in the round. The legal responsibility for the good stewardship and governance of the all aspects of the Club's existence rests with the CFSS Board, which has delegated day to day running of the Club to the CFC Board. Now that a crucial decision has to be made about the wisdom or otherwise of moving to a new stadium, and in so doing increasing the Club's debts, it is imperative that the two boards work together in trust, in order to reach the right outcome.

As many of the points raised cannot be progressed without an open and honest exchange between the two Boards a proposal was put forward to request a full meeting of both Boards, with an agenda focussed on clarifying objectives and intentions, and seeking a mutually acceptable approach for going forward.

ACTION - the Chair to respond the Mike Warners letter, confirming thatCFSS is legally responsible for the Club's debts, and that a negative cash-flow is acceptable in the short term, but only if a plan to reverse that situation is in place. That plan is to include agreement by the CFC Board to action a previously agreed proposal for employment of a full time paid fundraiser. The Chair will invite the CFC Board to a full meeting of both Boards to discuss the matters arising from the discussion about the content of Mike Warner's letter.

3. Ground Report

PRT reported that negotiations continue with McAlpines. The latest costed proposal is approx £9m but this is still not final, because specifications for various works, mainly health and safety requirements are not yet complete.

To progress these matters, a meeting with the Health and Safety group took place earlier this week. Issues such as the need for a stretcher carrying lift, "green guide" provisions for the number of places for wheelchair users and their helpers, and requirements for emergency vehicle site access were discussed.

PW asked how much the stadium design took account of environmental issues. PRT replied that wherever it is realistic and affordable "green" design had been incorporated and water recycling, solar powered lighting etc. are being actively considered. PRT also added that discussion has taken place on the possibility of the Stadium car park being a suitable location for a "Park and Ride" scheme on non-match days.

Club Report

Season Ticket sales are going fairly well. MC asked if policy on age concession had changed, as the application form now shows the lower age limit for both male and females to be 65. PRT responded that equalities legislation requires that the concession be identical for both genders.

4. Treasurer's Report

AF presented the monthly accounts. With a balance of £4362 available AF recommended transfer of £3000 to CFC. Agreed.

The Treasurers report was accepted.

5. Membership Report

AW reported an encouraging start to the new membership year.

Life Members477(+1)

Full Annual86(320 last year)

Full Triennial239(+19)

Concessionary Annual69(139 last year)

Concessionary Triennial200(+13)

Total 1071(1342 last year)

Current membership for the new season (2006/7) is already at 79.8% of last years total but 36 standing orders have not yet been processed, and renewal forms are still arriving in quantity.

Donations to date £216.50

The Membership director's report was accepted.

6. Events

The Queens Park event posters and handouts are now being distributed.

Next Volunteer Meeting 28^th June at 7pm in CFC Boardroom.

7.Any Other Business

SIFA Update - CY reported that 40 (of 200 registered) members had attended the meeting to discuss the Association's future. The meeting was positive, lots of ideas were discussed and it is felt that there is sufficient interest and support to continue at least for another year. Previous links with the Supporter's Club will be maintained to plan shared travel arrangements where appropriate.

Meeting closed at 22:00

Next Meeting:Wednesday July 5th 2006, 7:30pm.