TUST

TUST UPDATE

We would like to thank all members who have replied to the consultation on the proposed partnership with the Bryn Consortium and the use of the Forever Yellow Fund (FYF). The positive and constructive feedback received from members is much appreciated and will inform the actions of the TUST board going forward. Much as we would like to reply to each e-mail individually, it is more practical to summarise some of the main questions asked in a communication to all members as we believe that they will be of interest to many of you.

We would also remind members that the consultation period closes at midday on Friday 31^st May. So, if you would like your opinion registered and taken on board, please contact us by e-mailing info@tust.co.uk before that time.

Questions arising from the consultation

What is the relationship between TUST and the Bryn consortium and what gives the TUST board confidence to partner with them?

TUST has worked closely with Michael Westcott since early March in order to find the best possible solution to the crisis which has threatened the very existence of our club. We share with Michael and the other consortium members the vision of a sustainable, supporter-focussed football club, operating at as high a level in the football pyramid as is possible. We have witnessed first-hand the amount of work and the level of business expertise required in order to save the football club. It is the commercial acumen of the investors as much as their financial contribution that leads us to believe that the club will never have a better opportunity to realise the shared vision.

TUST recognises the importance of having a legal framework to the relationship. A written shareholder agreement will be agreed between the Bryn consortium and TUST and will be reviewed and approved by TUST’s legal advisors before any money is actually paid over. We had hoped to have had this agreement in place by now but fully appreciate that the consortium members have literally been working night and day on other priorities to save the club and to ensure that everything is in place for the start of the season.

Should the FYF be retained and only used if a phoenix club is required?

It is well documented that TUST has for some years been planning for a worse case scenario, including the possibility of forming a phoenix club should the existing club fail. TUST would not have had sufficient funds to rescue the club from administration, so without the partnership with Bryn the phoenix plans would now have been put into action.

However, it has always been our preferred option to rescue the existing club if possible. The joint plan devised by Bryn and TUST achieves that and is backed by a detailed business plan for the club as a sustainable operation.

If we do commit the £50,000 now TUST will still retain a significant cash sum (in excess of £30,000), has ongoing income from membership fees and has the option to rebuild the emergency fund should that be deemed necessary in the future.

How will the money from FYF be spent by the club?

The money invested by the Bryn Consortium will be largely used to meet immediate debts and thereby save the club. The sustainable business plan includes an early cash injection from TUST to allow the club to prepare for next season, to move forward and not tread water in the short-term.

What will TUST get in return?

Supporters, through TUST, will own a proportion of the football club. That proportion will be relative to the size of investment compared to money invested by the consortium. The initial cash injection will also guarantee one seat on the board of the football club with increased representation depending on further capital raised and invested.

What power will TUST representatives on the board of the Football Club have, will they be involved in footballing decisions and will they represent the views of supporters?

We understand that TUST representatives will have the same status and voting rights as consortium members. We share with consortium members the view that footballing matters should be left to those with football experience without undue director influence.

TUST will actively canvass the views of all supporters and our representative will be the conduit for presenting supporter input to the board. The appointed board member will be available to fans at home matches and contactable by email.

We are confident that the consortium’s commitment to fan engagement is genuine and we all agree that this will herald the start of a new era of transparency and open communication.

Will TUST-appointed board members be accountable to members?

Yes. We will propose that such appointments will be for fixed terms of one year and that there will be ample opportunity for members to record their satisfaction or dissatisfaction before re-appointment is considered.

How will TUST-appointed board members be chosen?

It is proposed that the TUST board will elect the representatives to sit on the club board. Whilst the first appointee is likely to be a TUST board member, subsequent appointments may not be but rather be nominated for their experience and what they can bring to the role.

This is the election process often adopted at other clubs with supporter representation on the club board such as Exeter City. TUST board members are, of course, democratically elected by the membership and any TUST member can stand at the annual elections. We anticipate greater interest from candidates in the future with supporters having a stake in the club.

Should use of the FYF have been subject to a formal vote rather than a consultation?

The TUST board took advice on this from the Football Supporters’ Association (FSA) and Exeter City Supporters’ Trust and were advised that a full and meaningful consultation is appropriate. The consultation allows us to fully take on board all comments and suggestions from members. If there are any indications that a significant number of members have concerns about the proposal following the consultation and feedback such as that provided in this document, we would proceed to a vote.

Will more information be made public before any Community Share Issue is launched?

Yes! We fully understand that any supporter will need to have full confidence in the board and the business plan before committing funds. Both the Bryn consortium and TUST will ensure that supporters have as much information as possible to inform their decision. The share issue will be launched with an open meeting for all supporters with members of the consortium and footballing staff present.

Would funds from a Community Share Issue be supporters’ last investment in the club?

It is important that we grasp this opportunity to maximise the capital available as soon as possible. The main reason is that the cash raised would immediately boost the club’s ability to move forwards quickly, although this would also have the beneficial effect of increasing the percentage of the club owned by supporters via TUST and increasing board representation.

However, it is probable that there will be future fundraising campaigns to further increase TUST’s stake in the club. It is likely that any such further contributions will be linked to specific projects such as youth development, community outreach or enriching the matchday experience.

Thank you for taking the time to read this feedback. Please let us have your thoughts by the deadline next Friday.

JOIN HERE – http://www.tust.co.uk