AFC BOURNEMOUTH: Yours for only £60000

By -

The saga of the Murry takeover continues as Baker and Murry have started slinging mud.

Baker only wants £60,000 for the club, a hefty drop, around 25% of the original asking price. Why? I have no idea, but Baker’s desperate and it instantly suggests that there’s are a few more accumulated debts hidden away. But offering £0 is taking the piss, at least offer them a £1.

THE MURRY STATEMENT

KEY POINTS
Paul Baker wanted £250,000 for his shares and Jeff Mostyn to tear up his legal agreement
Paul Baker would settle for £60000

“Paul Baker issued a statement last evening in respect of the negotiations with The Murry group.

We are responding in order to provide our supporters with the facts behind the delay in completing a deal with Paul Baker and Sport-6.

For the past few weeks we have been in a position to establish first hand the dire financial position the club finds itself in, whilst effectively running the club on a caretaker basis on behalf of the current owners.

As all of our supporters are aware, the owners have to all extent abandoned any contribution to the day to day running of the club. The chief executive resigned and Paul Baker resides in Chester. We have done our utmost to ensure that football continued to be staged at Dean Court, despite having to deal with winding up notices, judgements, and threats of legal action from creditors, We have between us have spent practically every day at the club supporting the staff, players and on match days showing a respect to visiting directors, to ensure the club continues to have the right profile, all this as ministers without portfolio, nobody can question our commitment to try and conclude a deal .


How can you (Paul Baker) demand money when you haven`t paid for the goods you are trying to sell?


As the truth of the clubs financial predicament became evident, we had no choice but to review any agreements made in principle with Paul Baker and make an offer that reflects the liability going forward and the huge amount of funding the club requires. In our opinion any money the Murry Group has at its disposal should go into the football club to ensure it has a reasonable chance of survival, and not to the current owners.

As Paul Baker has chosen to break a confidence in revealing the terms of our offer, perhaps it would be prudent to reveal the full extent of his demands together with the facts behind, what can only be described as a generous offer in all the circumstances.

Paul Baker initially wanted £250,000 from Murry for his shares in AFCB in addition to Jeff Mostyn tearing up his legal agreement.

The important thing to remember is, Paul Baker is trying to sell his shares in circumstances where he hasn`t paid Jeff Mostyn for the original agreement. How can you demand money when you haven`t paid for the goods you are trying to sell?

Prior to our current offer, Paul Baker agreed to reduce his demands, he said he would settle for £60,000 and dividends from any possible future sale of club assets. This was In addition to Jeff Mostyn and Murry writing off the entire debt in order to facilitate a swift deal. We agreed in principle to his new demands and awaited a draft agreement from his lawyers. Since that agreement was received , and prior to our final offer, the club is now faced with a new judgement for a significant amount of money that had apparently already been paid by the club last August, a further winding up petition plus costs from the failed cricket match at Dean Court, the immediate threat of HMRC issuing a winding up notice, and other previously unknown liabilities.

We are no longer interested in what may or may not have been offered in the past, any offer was made subject to contract and the completion of due diligence. We were only interested in receiving an answer to our final current offer.

A final offer was made on the 10th April 2009. This offer took into account the current state of the clubs finances. We have made it clear to all our supporters that we would still need your support to take the club forward.

As of this moment in time we have not had an answer to our offer. We are not interested in counter proposals, we expect our offer to be accepted or rejected, we can then all move on.

The offer made was as follows.

Jeff Mostyn would give up any entitlement to any monies owing to him under the agreements made between Jeff, Sport-6, Paul Baker and AFCB dated the 15th July 2008. Murry would give up any right to any refund of monies paid under his land lock out agreement. All Debentures lodged by any party must be cancelled prior to completion of any deal.


For Jeff Mostyn alone to give up his entitlement is a substantial payment in itself to Paul Baker, especially as he hasn`t paid for the shares in the club


When you take into account there is a huge current debt and funding shortfall of circa One Million Pounds, the above offer is substantial. For Jeff Mostyn alone to give up his entitlement is a substantial payment in itself to Paul Baker, especially as he hasn`t paid for the shares in the club. The money paid by Murry was supposed to be held in trust and put towards an Academy for Children and young adults!

We do not believe anyone associated with AFCB would support a payment of any kind to Paul Baker for his shares given the level of current liability and our precarious league position. If you add to the above, the recent winding up petition paid by ourselves, with the help of three VPs, which in itself saved the club from closure over a month ago, you begin to get a totally different picture from the one painted by Paul Baker yesterday.

The delay has been caused by our desire to find out the true position of the club and a desire on the part of Paul Baker to receive as much as he could for his shares. The offer that has been made to Paul Baker is in the interest of giving AFC Bournemouth a potential lifeline.

As stated earlier, we have not received an answer to our offer of the 10th April 2009, just a counter proposal, and found it very insulting to the Club, and the players to be talking about a deal based on relegation on the eve of our important game against Chester City. For the reasons stated above, we are obviously not prepared to accept it.

Having paid the recent winding up petition, together with our very fair offer to Paul Baker. I believe we have demonstrated our desire to give the club a lifeline and a chance of survival.

We would like to take this opportunity to thank everyone associated with the club for their fantastic support, our thanks to everyone who has pledged their financial support to help us take the club forward, and to Eddie and the lads we wish you every success in the remaining three games of the season.

Finally, we would like to wish Paul Baker every success in his negotiations with his other interested parties. We will continue to monitor the developments with interest.

PAUL BAKER STATEMENT

“I had hoped to be making a joint statement today in conjunction with new owners but despite my best endeavours in accepting three previous offers from the Murry Group, only for them to renege on the agreed deals, I was still prepared to try and reach an amicable agreement with them to take control of the club.

“There has been a lot of debate within the supporter base over claims that Sport-6 were holding up negotiations to suit their own aims and, unbelievably, claims that I was holding the club to ransom.

“However, now is the time to give you the facts regarding my dealings with the Murry Group to update the fans and media.

“As previously stated, I reached a decision back in December 2008 to sell my shares in AFC Bournemouth. The reason I wanted to sell was because I could no longer fund the club going forward due to the recession biting deep into my business portfolio.

“An agreement was reached with Adam Murry for him to purchase my 50 per cent shareholding on New Year’s Eve. However, he reneged on the agreement due to the fact he could not raise the finance. The door was left open to the Murry Group and a further approach was made from them in late February but this time to purchase 100 per cent of the share capital. “Agreement was reached in early March and at this point Alastair Saverimutto left the club so that the way was left clear for the Murry Group to act as shadow directors in running the club with my permission and also to let them complete their due diligence.

“Then, on March 24, 2009, they withdrew their second offer and lodged a third offer for the club. This was accepted on March 25, 2009. We then forwarded them a draft of the Share Purchase Agreement for them to kick around so that the final version could be drawn up.

“A further two weeks passed and again they did not respond to any of my communications or my lawyer’s emails. At this point I want everyone to be aware that the guaranteed money they had offered was £60,000 spread over 12 months at £5,000 per month.

“I had been urging them to make a statement to the fans as, effectively, I’d been gagged as part of the agreement. I continued to receive no communication from them so on Wednesday, April 8 2009 I sent them an email saying if they did not respond by midday on Thursday April 9, then I would assume they no longer wanted to proceed with the agreed deal. They missed the deadline. But at 9pm on Thursday evening Adam Murry sent me a text confirming I would receive an email the following morning, Good Friday, April 10 2009.

“It duly arrived but this time it was to offer me £0 for the purchase of the club. At this point negotiations became more difficult and comments attributed to members of the Murry Group on a fans’ message board did nothing to help resolve matters. Despite this, I offered the Murry Group a counter proposal which was if the club secured its League Two status, then they should honour their offer made on March 24 2009.

“But if the club were relegated then I would be prepared to accept their offer of Friday, April 10 2009.

“My counter offer was made in the hope that an agreement could be reached very quickly, they could take over the club immediately and the agreement could be drawn up to reflect the two potential financial outcomes.

“I have stated, on many occasions, to people I have grown to know around the club that I would not harm this club, but the one thing I could not do was walk away with nothing. That said, I was prepared to risk just that in order to conclude a deal. My thoughts were that if the club stayed up then it was my money that paid the wages and brought in the players to overcome the points deficit.

“If the club failed and was relegated then I was prepared to walk with nothing despite having a young family to support and this whole involvement costing me personally and financially more than you will ever know. But I was confident and still am that AFC Bournemouth will survive.

“I had asked the Murry Group to give me their answer by 9am this morning. I received a text from Adam Murry at 10am saying he would call by 11.30am. It is now 4pm and despite calls and texts to him he is not responding.

“I have informed him I will make a statement today to update supporters so that they are aware of the stage we are at. The ball is now very firmly in the Murry Group’s court and I really hope they have not been wasting mine and the club’s time over the past four months.

“I can also confirm that wage payments for the month of March for all staff and players have been paid, except for Jimmy Quinn and Ted Sutton who will be paid at the earliest opportunity, which could be next week.

“I have stated previously that while I remain a Director, I will only do what is fit and proper and in the best interests of the football club. The club’s welfare is paramount to me and I would like to reassure the supporters of the club of my best intentions. I have been in dialogue with respected members of the club’s fan base to update them on the current situation and should the Murry Group fail to agree terms then I will explore other expressions of interest that have been shown by other parties.

“In the interim, I hope to appoint new Directors to the Board of AFC Bournemouth to oversee the running of the club until new owners who can bring stability to AFC Bournemouth can be secured.”

 

Tales From The South End
Tales From The South End

An Unofficial AFC Bournemouth website with news, video archive, match reports, form guide, football league news, fixtures and results, blog and Cherries shrine

Leave a Reply