Motherwell board says loss of Rangers could put Well into administration

Motherwell FC has warned its fans of the financial consequences of a newco Rangers being voted out of the SPL© SNS Group

The vote on a newco Rangers entering the SPL could plunge Motherwell into administration whether they are admitted to the league or not, the club has told fans.

In guidance issued to supporters of the Lanarkshire club, posted on the Motherwell fans’ site Fir Park Corner, Motherwell estimated that it would lose more than £900,000 in income without Rangers in the league.

That sum will have to be balanced out with investment from the fans, otherwise it could be tipped into administration, says the club’s board.

Motherwell FC is in the process of moving to a fan ownership model, as majority shareholder John Boyle pledges his stake in the Fir Park club to a group of supporters in the form of the Well Society.

The society’s members are being polled on whether to allow a newco to enter the SPL after Rangers FC began the process of being liquidated.

The breakdown of costs that Motherwell foresee if the newco is voted out of the league are a loss of £600,000 from SPL revenues, made up of sponsorships and the television deal for the league.

The club expects to lose £275,000 in gate receipts from Rangers supporters and estimates a drop of £40,000 in matchday hospitality and sponsorship.

If the newco is allowed to enter the SPL, Motherwell still expects to make losses in gate receipts as it anticipates that fans will stay away for reasons of “sporting integrity”.

In conclusion, the guidance note states: “Whatever decision is made on the newco vote by the SPL clubs, the financial position of Motherwell Football Club will suffer. There are clear risks to the financial stability and very future of this club presented by the current situation.

“In the event of serious financial difficulty, the board will have to look to the members, shareholders and supporters to step up their support for the club and the Well Society. This is likely to be in the form of increased prices, higher attendances and further Society memberships and contributions.

“It is clear that if we are unable to replace significant amounts of income lost under either scenario, the club would be facing an insolvency event. This would lead to a 21 point reduction.”

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