Motherwell must pick ‘least worst option’

Motherwell say they will be forced to opt for “the least worst option” when asked to vote on whether a newco Rangers should be granted entry to the Scottish Premier League.

The SPL clubs will decide on July 4 whether or not Charles Green’s new Rangers will be allowed to play in the top flight, with Well claiming they face a complex and difficult decision.

A Motherwell statement read: “The newco issue is often portrayed as a straight choice between preserving sporting integrity and clubs accepting a reduction in gate money together with potentially a significant amount of commercial revenue. In reality it is far more complex than that. We are fully aware that an overwhelming majority of our fans and most others, who have so far expressed an opinion, are totally opposed to newco being allowed immediately back into the SPL. The club has been flooded with correspondence from supporters of many clubs which ranges from fully-reasoned arguments to direct threats concerning the consequences of a vote either way.

“In any event it would appear a ‘yes’ vote may not even guarantee that newco will play in the SPL next season as the club is still subject to SFA sanctions and there is an ongoing investigation into the use of EBTs (Employee Benefit Trusts) to make payments to players.”

Motherwell were very aware that voting to exclude the Rangers newco could have a major financial impact. “The consequences of five or more clubs voting no to newco do also need to be understood and fully taken into account,” the statement continued. “In addition to lower gate receipts, we are likely to lose an as yet unquantified amount of commercial revenue with a specific risk around TV payments.

“The clubs’ income from SPL distribution of commercial revenue was approximately 36 per cent of the total amount generated last season, although this does vary year on year. A significant proportion of SPL income is obtained from TV and other broadcasting rights. The lack of clarity on what the actual impact of newco not playing in the SPL will have on these revenues is a major problem for the board.

“Despite some reports, it is our understanding that Sky/ESPN have made no official statement on how they will react to a no vote and we believe that a number of other contracts could be re-negotiated if newco was refused entry to the SPL. We very much hope that sponsors and partners will continue to provide their backing whatever the outcome of the various ongoing processes. We are in the healthy position of having no debt but have set our cost base in the expectation that income will be at a certain minimum level.

“In the event of a shortfall we do not have a bank or benefactor able to fund the gap. We clearly do not wish anyone associated with Motherwell, or any other club, to suffer as a result of events in which they played no part. Having been though a painful administration process many years ago, we are also better placed than most to have sympathy with both the employees and ordinary fans of Rangers who are in no way responsible for the uncertainty they are facing. The directors of any business have a duty to act in the best interests of the company or, in this case, the club. In this situation a decision either way is likely to have a significant impact on at least one of our key income streams.

“It is inevitable that there will be consequences if a business suffers a sudden drop in income. Instead of the usual process of deciding what is best for the club, we are currently faced with trying to decide on which is the least worst option. The stakes here are high.”