Ex-Netflix chief's Motherwell investment takes major step forward

Motherwell have agreed Head of Terms with ex-Netflix vice-president Erik Barmack and his wife Courtney, and will ballot Well Society members and club shareholders next month.

Chairman Jim McMahon suggests fans accept the proposals, saying the club would be a “locked box” for six years.

Motherwell have entered a 21-day period of consultation with Well Society members and shareholders, during which they can email any questions to the club.

The ballot will then open on Monday, July 1, with this closing on Sunday, July 14.

McMahon says that fan ownership would be embedded in the deal, there would be significant new avenues to explore, and dual safety nets of ‘buy back’ and no value leaving the club for at least six years.

Motherwell need 75 per cent of the vote for the transaction to go through. The Well Society owns 71 per cent of the shares, so if more than 50 per cent are in favour, that translates to a 71 per cent acceptance. If more than 50 per cent of votes are against, the transaction can’t take place.

In a statement issued by the club, McMahon said both Mr and Mrs Barmack and fans and the Well Society would invest on a yearly basis for six years, with the Barmacks putting in £300,000 for the first three years and £350,000 for the next three.

Well Society commitment is £200k for the first three years and £250k for the next three.

Erik and his wife would own eight per cent of the shares in the club in the first year, going up by around eight per cent per year until they reach 49 per cent in year six.

This money would go in as share capital not debt, strengthening the club’s balance sheet and the buy-back option for the Well Society would exist until the end of year two.

Other safeguards would be that the club cannot take on any external debt, no value can move to the Barmacks other than normal expenses, and no assets (ground, etc) can be sold.

During the six-year period there can be no change to the club name, colours or home ground without agreement of 75 per cent of the shareholders.

The existing loan from the Well Society to the club remains in place until the final payment is made in six years’ time, and at that point half of the loan is forgiven.

Motherwell’s executive board would be eight in total, with the existing CEO and FD remaining in post. An additional three directors would be nominated by the Well Society and the Barmacks, and if tied at 4-4 on any matter, Erik Barmack would have the deciding vote.

New investment would underpin Motherwell’s budget, allowing additional income from cup runs and player sales to be invested on a longer-term basis.

In a statement issued by the club this afternoon, Erik Barmack said: “My wife, Courtney and I deeply respect Motherwell FC’s culture and identity, especially its fan ownership, which is a vital part of the club’s DNA. Our aim is to complement, not control, the Well Society’s shareholding and support its core mission.

“We are incredibly excited about the possibility of joining forces with all of you to enrich this foundation with new resources and innovative ideas, propelling the Steelmen forward while preserving its cherished traditions. We are committed to a long-term partnership that focuses on sustainable growth without imposing financial burdens.”

Shareholders should email: shares@motherwellfc.co.uk. Well Society members should email: members@thewellsociety.uk

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