| Trust Update... 20:34 - May 18 with 31456 views | marchamjack |
CONFIDENTIAL
This update is being sent to you as a registered member of Swansea City Supporters’ Society Limited, which is also known as the ‘Swansea City Supporters’ Trust’ (‘Trust’). If you are not a member of the Trust, please do not read it. If you are a member, please do not share it or pass it on to others. On the advice of our lawyers, we need to state that nothing in this update is, or is intended as, a waiver of legal professional privilege or any other type of privilege.
In January 2018 the majority owners of Swansea City decided to ‘put on hold’ indefinitely the ongoing discussions on the previously proposed deal relating to the part sale of the Trust’s shareholding in Swansea City Football 2002 Limited, which (through another company) owns the Football Club. With no indication as to whether the deal could be resurrected in the future, the Trust engaged further specialist legal advice in order to determine the next steps that could be taken to best protect the interests of the Trust and, therefore, our members. It will be recalled that we have previously reported that initial advice from Queen’s Counsel (a senior lawyer) was taken last year.
As a result, the Trust and our legal advisers have carried out a comprehensive review of the circumstances surrounding the 2016 sale of a controlling interest in the Club and the impact of these events on the Trust and our shareholding. This involved going back to 2001/2002, when the Club was saved from bankruptcy by the Trust and others, and establishing the relevant factual history and developments from then until the present day. Many people and sources had to be consulted to achieve this and the exercise has only been completed within the last few days.
Our lawyers have today sent (by electronic means or post) to the Club and its shareholders a detailed letter, setting out a number of legal claims on the part of the Trust, including complaints as to the very negative impact the sale and related matters have had on the Trust’s position as a shareholder. The letter and its schedules extend to some 60 pages.
On advice from our lawyers, and in accordance with Court guidelines, the Trust has offered to enter into a formal ‘mediation’ process with the majority owners and others, in order to seek to resolve these claims and complaints. The aim is to seek a provisional agreement to settle past differences, with a view to moving ahead together with the task of rebuilding the Club and returning it to top level football. Any such provisional agreement would be put to members for approval, by way of a consultation.
Mediation is a voluntary and confidential process in which relevant parties seek to resolve disputes with the assistance of a trained independent and impartial mediator. The mediator cannot impose a solution, but uses his or her skills to bring the parties together. The letter that has been sent proposes that mediation takes place in early July, to allow time for responses to be provided to the letter. While it is a voluntary process, mediation is increasingly being seen by courts as a necessary first step before any formal court proceedings are taken and costs sanctions can be applied for unreasonably failing to mediate. The Trust is duty bound to explore all available legal avenues to protect the interests of the Trust and our members. If mediation were refused or the process proved unsuccessful, and if Trust members support such action, future court proceedings are possible.
If a potential resolution is achieved via the mediation process, it will be set out in a binding, written settlement agreement. However, we can assure our members that any agreement will not be finalised unless it is approved by Trust members as part of a formal consultation exercise.
Members should be aware, however, that if the offer of formal mediation is accepted, that it is a confidential process. This means that the Trust Board will be limited in what we are able to report during the mediation process, unless or until a provisional agreement is reached (or alternative options are identified) on which members can be consulted.
We will update members as soon as we are able to provide further information.
Best wishes
The Swans Trust Team
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| Oh,..Dave, what's occuring? |
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| Trust Update... on 21:07 - May 18 with 2084 views | MattG |
| Trust Update... on 21:05 - May 18 by AngelRangelQS |
So the yanks would be buying a % of a championship club for the price of a premiership club? |
Effectively, yes although many felt the original sale undervalued the Club in the first place. |  | | |
| Trust Update... on 21:07 - May 18 with 2078 views | Phil_S |
| Trust Update... on 21:02 - May 18 by Wingstandwood |
Ahhhh good news then? Apologies to SCST and each and every official if criticism is unjust?
Legal action? If it happens? Then forever heroes officals and organisation shall become! |
Thats my understanding of what I have read and what I have been told.
This is effectively the first step towards legal action over the sale |  | | |
| Trust Update... on 21:08 - May 18 with 2068 views | FerrisBuellerJB |
| Trust Update... on 21:05 - May 18 by AngelRangelQS |
So the yanks would be buying a % of a championship club for the price of a premiership club? |
It will also mean the yanks will need to take more money out of the club to recoup the buying of more shares |  | | |
| Trust Update... on 21:08 - May 18 with 2063 views | MattG |
| Trust Update... on 21:07 - May 18 by Phil_S |
Thats my understanding of what I have read and what I have been told.
This is effectively the first step towards legal action over the sale |
I'm sure some will be quick to point out the irony of me saying this but I will anyway.....
Good stuff. | | | |
| Trust Update... on 21:09 - May 18 with 2046 views | jack2jack |
I think I right in saying that in any contract dispute, mediation is always the first step, if that fails,it will end up in court, if I'm wrong, I'm sure I'll be corrected. |  | | |
| Trust Update... on 21:09 - May 18 with 2043 views | Jackfath |
Does anyone know how long this process will take? First the mediation and then possibly court action? |  |
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| Trust Update... on 21:10 - May 18 with 2039 views | Phil_S |
| Trust Update... on 21:03 - May 18 by PozuelosSideys |
What is that value out of interest? |
I am searching my memory to get this right now but I think it was about £95 a share, maybe a little more | | | |
| Trust Update... on 21:11 - May 18 with 1993 views | AndyNak |
| Trust Update... on 21:03 - May 18 by PozuelosSideys |
What is that value out of interest? |
Think it was valued at £100m so £1m per share meaning the Trust could be owed £21.1m if a full share sale was persued |  |
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| Trust Update... on 21:12 - May 18 with 1988 views | max936 |
| Trust Update... on 20:58 - May 18 by Jackfath |
Holy Shit, we are being monitored! |
Pity they didn't monitor the ones that really needed to be monitored, we may not be where we are now then. |  |
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| Trust Update... on 21:13 - May 18 with 1967 views | Phil_S |
| Trust Update... on 21:05 - May 18 by AngelRangelQS |
So the yanks would be buying a % of a championship club for the price of a premiership club? |
Yes assuming that the legal case finds in the trusts favour if mediation doesn't resolve
This is going to be a tough period for members as the board will have been told that they wont be able to comment for fear of interrupting the mediation process so expect a period of official silence (obvious comments not needed!!) | | | |
| Trust Update... on 21:13 - May 18 with 1964 views | Banosswan |
| Trust Update... on 21:11 - May 18 by AndyNak |
Think it was valued at £100m so £1m per share meaning the Trust could be owed £21.1m if a full share sale was persued |
That's per percentage of shares |  |
| Ever since my son was... never conceived, because I've never had consensual sex without money involved... I've always kind of looked at you as... a thing, that I could live next to... in accordance with state laws. | | Poll: | How do you like your steak? |
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| Trust Update... on 21:13 - May 18 with 1953 views | SwansNZ |
| Trust Update... on 21:09 - May 18 by Jackfath |
Does anyone know how long this process will take? First the mediation and then possibly court action? |
I just hope the mediation process is not drawn out. We’ll get into a situation where the Trust don’t want to hinder our promotion/relegation fight, and postpone any action for another year. |  |
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| Trust Update... on 21:14 - May 18 with 1940 views | Phil_S |
| Trust Update... on 21:08 - May 18 by FerrisBuellerJB |
It will also mean the yanks will need to take more money out of the club to recoup the buying of more shares |
No it doesn't and they cant | | | |
| Trust Update... on 21:14 - May 18 with 1932 views | AndyNak |
| Trust Update... on 21:13 - May 18 by Banosswan |
That's per percentage of shares |
Correct - my mistake | |
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| Trust Update... on 21:14 - May 18 with 1931 views | Jackfath |
| Trust Update... on 21:12 - May 18 by max936 |
Pity they didn't monitor the ones that really needed to be monitored, we may not be where we are now then. |
Indeed.
We have to go with this though. Perhaps, just perhaps there is light at the end of the tunnel.
Softly, softly, catchee monkey | |
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| Trust Update... on 21:14 - May 18 with 1928 views | PozuelosSideys |
| Trust Update... on 21:10 - May 18 by Phil_S |
I am searching my memory to get this right now but I think it was about £95 a share, maybe a little more |
Thanks
And just to clarify, if the Americans are forced to recompense, then it is out of their own funds and cannot be debted against the club or any holding of SCFC? |  |
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| Trust Update... on 21:15 - May 18 with 1918 views | Phil_S |
You need to go back to the recommendation last summer which tells you how much th first part of the Trust sale was worth - that will tell you what the sale price was | | | |
| Trust Update... on 21:16 - May 18 with 1888 views | pencoedjack |
| Trust Update... on 20:52 - May 18 by Phil_S |
Yes I think they add weight to the legal claim as well but the way I have read this is this is formal mediation which if unsuccessful will lead to a courtroom battle I assume |
Out of interest Phil do the trust have the funds to fight multi millionaires in court ? |  | | |
| Trust Update... on 21:17 - May 18 with 1870 views | Phil_S |
| Trust Update... on 21:14 - May 18 by PozuelosSideys |
Thanks
And just to clarify, if the Americans are forced to recompense, then it is out of their own funds and cannot be debted against the club or any holding of SCFC? |
I dont believe it can no but I wouldn't 100% swear to it | | | |
| Trust Update... on 21:17 - May 18 with 1859 views | Phil_S |
| Trust Update... on 21:16 - May 18 by pencoedjack |
Out of interest Phil do the trust have the funds to fight multi millionaires in court ? |
Bank balance is circa £800k | | | |
| Trust Update... on 21:18 - May 18 with 1845 views | FerrisBuellerJB |
| Trust Update... on 21:14 - May 18 by Phil_S |
No it doesn't and they cant |
They’ve got investors to appease. What I’m saying is there’ll be less amount from the profits being put back into the club | | | |
| Trust Update... on 21:20 - May 18 with 1801 views | rlw |
Forgive my ignorance.
Is this the whole of the issue, share sales not purchased when we were worth something? Suggests that the shady deal done and not including the trust in the original sale would be considered done were mediation (read payment) successful?
If so that is so soft. | | | |
| Trust Update... on 21:20 - May 18 with 1799 views | pencoedjack |
| Trust Update... on 21:17 - May 18 by Phil_S |
Bank balance is circa £800k |
I’m no expert but I’d imagine legal action would wipe that out ( although I want legal action) | | | |
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