Erik Barmack withdraws Motherwell investment proposal
Last updated 16th Jul 2024
Erik Barmack has withdrawn his investment proposal to Motherwell midway through a supporter ballot.
The Motherwell board had recommended shareholders accept a £1.95million offer for a 47 per cent stake, which would have made American TV executive Barmack chairman and left the Well Society, the fan-run majority shareholder, without any influence over strategy.
A club statement read: "Erik's intention from the outset has been to play a part in moving the club forward. That can only be achieved with a unified fanbase.
"However, it has become increasingly clear that the discussions around his proposal are creating significant divisions within the fanbase. Such divisions cannot be in the best interests of the club.
"The club board have informed the Well Society board of Erik's decision, and both parties are fully committed to working together for a positive future for Motherwell FC."
Although the ballot of Well Society members is a secret vote overseen by an independent electoral firm, and would ultimately decide the outcome, club officials have been receiving votes from individual shareholders who make up 29 per cent of the ownership base.
It is understood the club have been preparing for life without Barmack based on the judgments of those fans, many of whom were also entitled to vote in the Well Society ballot.
The development is set to spark boardroom change at Fir Park with chairman Jim McMahon, who drove the investment quest, about to retire and the positions of Well Society representatives Tom Feely and Douglas Dickie in major doubt after they backed the plans. The latter resigned from the Well Society board after a majority of his colleagues opposed the proposal.
The vast majority of public support for the plans dwindled following the publication of Barmack's business plan three days before the ballot opened, although the Motherwell board quickly reiterated its recommendation.
The plan, which followed the release of the Well Society's own document, contained inaccurate details about Motherwell's finances and much-criticised spending plans.
Barmack outlined about £4m of spending on projects inside three years despite committing £900,000 to the club during that period. Plans over a six-year period included spending £600,000 on pre-match and post-match entertainment, more than £1m on "predictive AI for marketing", and £175,000 on a mobile app targeting 50,000 downloads.
The Well Society board, which would have been committed to almost matching Barmack's investment, welcomed the news.
"We are, however, disappointed that the decision to withdraw has come in the midst of a members' ballot, which will now be suspended," a statement added.
"In addition to significant financial cost to the Well Society, this period has required significant focus from our members and caused unwelcome uncertainty for supporters.
"As the majority shareholder in Motherwell Football Club, we have been clear that we're committed to growth and sustainable investment, including working collaboratively with a range of new partners. We've also been clear that partnership means just that, not investment at any cost."
The group added: "The democratic process in recent weeks has been fan-ownership in action, boosting Society member numbers, increasing membership engagement, and empowering fans to have an input in the direction of their football club, no matter their views. That increased engagement and empowerment is a positive platform to build upon.
"We believe that the Well Society's recently published prospectus for growth, 'Our Club, Our Future', gives us a fresh opportunity to work together, in true partnership, with the club's chief executive, finance director and new chair leading a new club board."
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