PART TWO.
MEDIATION UPDATE
I think it is fair to say that the road to mediation is long and fraught and that is probably an underestimate. Indeed, it is hard to believe that it was October that we provided the last meaningful update which, frankly, is unacceptable despite all the reasons for the ‘radio silence’ being valid.
I don’t think any of us involved in these discussions underestimated the amount of work involved but I think it is fair to say we probably underestimated just how much things can be derailed from what is a reasonably clear plan towards progress, especially when not all parties have been willing to fully participate in that process.
I do appreciate, and understand, the repeated calls to get this towards a courtroom however it is clear – from advice we have been given – that we, like the defendant parties, must attempt the mediation process to get it to that stage or risk costs sanctions by the High Court down the line.
Whether the mediation process will get us to the stage where we have a palatable solution to present to you as our membership is a matter for debate and I am sure that as members we all have viewpoints on that. That aside, it is a process that the Trust must go through. What I would hope will come out of that process is a third option to present to you all in the upcoming consultation which will stand alongside the two options we currently have, which are “Do nothing and carry on as we are” or “See you in court”. Both options have pros and cons that need to be carefully considered when you make your decisions.
Firstly, let me say that we have a confirmed available date for mediation of 28th February to 1st March. These dates have been confirmed with the American owners and Huw Jenkins, though the other selling shareholders have yet to confirm their availability.
We can confirm that, in November, we received a response letter from the legal representatives of the majority owners setting out their defence to our claims. It is worth noting that this response did not cause our legal representatives to reduce their view on the merits of the Trust’s case.
However, we are yet to receive a similar response from Chris Farnell (the solicitor operating on behalf of Huw Jenkins and other selling shareholders). It is clearly critical that the selling shareholders explain their position if mediation is to have any chance of success. It has been eight months since the Trust issued a detailed claim letter outlining our issues and it is extremely disappointing that the selling shareholders, who have long claimed to have the interests of the football club at heart, have not sought to engage fully in this process during that time.
In the meantime, we will continue to prepare for mediation in the hope that it can go ahead at the end of February. Outside this formal mediation process, we have held several separate discussions with the American ownership in order to seek to bring about a solution. These discussions will continue up until those mediation dates, however we are not yet able to present a proposal to our members in that regard.
One thing I should make it clear here is that, as your representatives, we have always made it clear that none of us have the authority to ‘sign a deal’. Any decision regarding agreeing a deal, or not, will be one for our members. I see the role of the Trust board as one where we will seek to negotiate with the other parties and then present the various options via a consultation with our membership as we did in 2017, with the pros and cons around each option, so that you can make an informed decision on the best route you think we should take.
It is fair to say that every one of us will have differing viewpoints on what will be the right approach to take. However, we are a democratic organisation and the Trust board will follow the results of that consultation when it happens. Given the dates I have outlined above then I would anticipate this consultation taking place during March. We should note that if mediation does not happen on these dates, due to further delays from the other parties, then the Trust Board is not prepared to extend the timeline for consultation with our members.
As mentioned, there are various possible paths we can take as a Trust. In order to provide our members with the option of taking legal action, we have also entered into discussions in order to provide litigation funding and/or legal costs insurance to both enable the Trust to take legal action but also protect the Trust in case a case is not won. Another thing that has become abundantly clear is that litigation funding and/or insurance is another of those things that is a long drawn out process to obtain. It is very easy to think that this can be achieved through a simple phone call (and maybe I believed it was much simpler than it was) but it is a complex undertaking requiring a significant amount of paperwork and legal documentation, including an update from our QC. However, our solicitors are optimistic about the outcome, as are the brokers they are using to find the best package for the Trust.
For commercial and legal reasons, we have been advised not to state more on this at this time, however when it comes to a members’ consultation, we will outline the full details surrounding this option.
As you can see, we have some critical dates coming up and the focus of the Trust Board right now is on those two mediation dates of 28th February and 1st March and events leading up to them. After that, we will fully prepare for a consultation with our members which, as in 2017, will involve the preparation of a comprehensive pack detailing the pros and cons of each option. It is difficult to know the exact timeline for that activity, which will depend on the options we have available, although clearly we are aware that the clock is ticking from 1st March onwards.
In the meantime, we will keep open the lines of communication between us and the other parties, as advised to do so by the legal team. While we would like this to be resolved as soon as possible, even before mediation if possible, what is important is that the discussions are timebound and our members can decide regarding the path we take.
I hope from this update that you can see your Trust board is making every effort to bring this issue to a conclusion and, whilst it is not as easy or as quick as most of us would like, we are gaining clarity on the various paths we can take and progressing various options.
At this point I would like to thank every member of the sub group that have worked countless hours on this. I would estimate that each of us spend in excess of 10 hours per week working through endless pages of legal updates, discussion, meetings and calls to get to this stage and, as volunteers, I do believe that this should be commended given the minefield we are trying to wade through.
We will of course revert at the end of this evening for questions around this process of which I am sure there are many so look forward to taking your views at that point.
Now before I hand over to Stuart to give his treasurer’s report it would be amiss of me not to mention the football club following our relegation back in May from the Premier League. It is fair to say that I don’t think any of us wanted to be relegated but we should applaud the job that Graham Potter has done with the team, which sees us sat in the top half of the division within touching distance of the playoffs and progressing to the 5th Round of the FA Cup. Given the decimation, and there is no other word, of the squad back in the summer it has been nothing short of remarkable that we are where we are. It has also been very pleasing to see a return to the footballing style of play that we enjoyed for many years, after the last few seasons of trying to avoid defeat and relegation.
That said, the summer transfer window was a direct result of the poor transfer dealings of the past few years and that is an area of the club that has still not been fully resolved despite requests – both privately and publicly – from the Trust for that to happen. We continue to take the stance that changes need to be made to continue the transition of getting the football club completely back on track and to ensure that some of the dreadful decisions of the past three years cannot be repeated.
I thank you all for your ongoing support of the Trust and hope that I have given you some food for thought in terms of where we are and what the short-term future is going to include for you all. We are about to reach a very large crossroads as an organisation, and it is my intention that we will present you with all the options, facts and knowledge you need to make the right decisions as Trust members as to the way forward.
I look forward to receiving your questions later this evening.
Phil Sumbler
Chairman, Swansea City Supporters Trust