Dee4Life Trust Board Statement - Friday 30th March 2007
The Board of the Dee4Life Trust are delighted to finally confirm to our members that, following the Club Board's acquisition of the 92% Shareholding previously held by P&J Taverns, the Trust will soon be in a position to complete the long-awaited 21% shareholding transaction which will increase the Trust shareholding in the Club to 26%. This will see the Ure Dundee shareholding fund of £152,000 transferred to the Club's working capital, at the same share price which will apply to other investors. We anticipate that this transaction will be completed before the end of the season, subject to formal completion of the Club's bank-approved Financial Restructuring.
The Trust Board appreciates that the last few weeks have been frustrating for our members, with very little concrete information able to be published. This was essential, in order to keep the development of the Club Board's offer to the receivers and details of the Restructuring confidential. Throughout this period, we have been in regular dialogue with the Club Board, both directly and via our own Club Board representative, and have been fully supportive of the club Board in both of these developments.
We wish to congratulate the Club Board, and in particular chairman Bob Brannan, for the sustained level of hard work over a lengthy period, which has now secured the Financial Restructuring agreement with the bank, and safeguarded the 92% shareholding in "Ure Club". Together, these milestone events represent major progress towards the rebuilding of the Club's financial position, and offer the opportunity for financial stability for many years to come. This in turn offers the means with which the Management Team can strengthen the squad, and prepare for next season and a sustained push for promotion and a return to the SPL, within 3 seasons of relegation, and almost 5 years from Administration.
We welcome the announcements made by the Club Board during and after Sunday's press conference, and share in the optimism expressed by the Club Chairman. His frequent references to the need for continued financial stability are critical in the Trust Board's view, but also his references to a co-operative future in which the Trust will be a significant ally is entirely consistent with the Trust's aims.
With specific regard to the role of the Trust, we wish to take this opportunity to highlight to our members that, within just over 3 years from its formation:
- The Trust will have a 26% shareholding in a Club with no major debt (& limited assets)
- The Trust will have one of the four Club Board positions, on all 3 long-term companies (the Club, and the two companies which will account for the transferred stadium and debt)
- The Trust will have one of the four Board position in the Shareholding Company, in which all four directors' approval is required for all shareholding applications
- The Trust has an equal opportunity to invest further in the club, and to acquire an increased shareholding, should the Trust members so desire
This is as strong a position as we could have anticipated when the Trust was formed shortly after the Club going into Administration in November 2003, and we are eternally grateful to all our members for their continued support throughout what has been three very trying years for all fans of Dundee FC.
We hope that these recent developments, and the announcement that the Management Team's budget for next season is to be increased, provides some optimistic news for all fans of Dundee FC, whether current, exiled, or lapsed.
The club is now in a positive position regarding potential new investment, and we hope that these combined changes provide encouragement for lapsed fans to return, and in so doing, to assist in the rebuilding and re-emergence of "Ure Dundee" as a permanent and strong member of the SPL.