Where's My Share?

Bill: don't go it alone

I’ve noticed lately talk again of the possibility of buying shares in Everton Football Club.  Well, all I can say is, if there is a chance and a willingness to let this happen, then I’m all for it. 

I recently dug up a brief history of shares and our club.  This dates back to the formation of our great club back in 1878.  It was just after we left Anfield and bought our new ground on Mere field – now Goodison Park.  

Two local businessmen and committee members were responsible for this deed, Dr James Baxter and Mr George Mahon.  Together they made 2,500 shares available at £1 each.  In the early 1990's these shares were valued at £9,000 each.  

The total number of shares did not change for over 100 years until Peter Johnson came onto the scene and did a 2:1 split, doubling the total to 5,000 so that extra monies could be brought into the club.  The share price was over £4,000.  The shareholders voted that the stock of shares could be allowed to double for the benefit of the club 

During Johnson's takeover, there was another consortium led by our present owner, Bill Kenwright; others in this consortium where Tony Tighe, Professor Tom Cannon, and Arthur Abercrombie.  Bill Kenwright understood that he had an agreement with the Moores family – the majority shareholders – to have first option of their shares.  

Now, it is alleged that Sir John Moores Snr's wishes were that the club was to be sold only to true Evertonians as their intentions would be more honourable.  Unfortunately, after he died and left the shares in trust to his two sons and two daughters, Sir John's wishes were not followed to the letter as it was common knowledge that PJ was a ex-season ticket holder at Liverpool.  Bill and his consortium knew that they could not compete with PJ’s financial muscle at the time (it was reputed that he was worth over £150M and was widely perceived as our Jack Walker; time showed a very different picture from the one we wished for...).  Despite a fight, Kenwright conceded that PJ's deal would better for the club financially...(Doh!!!).  So PJ bought 50% of the Sir John Moores Jnr shares, making him the new owner.  

The 5,000 shares from the initial takeover deal then were further diluted to 35,000.  Six new shares issued for every one then held.  Each new share cost £500.  £15M was then generated for the club in new monies but it was not fully subscribed by others so PJ ended up buying some of them.  This is how PJ ended up owning approximately 27,000 shares – representing 68% of the company.  In effect he owned our club lock, stock and barrel.  Towards the end of his tenure, it showed with his treatment of the fans, managers and everyone else... 

On the subject of PJ, I think his original intentions were honourable and business-like; his ultimate downfall was the precipitated by failings of his own private business (Park Foods) – and this was not helped by him not talking and listening to the spiritual owners of the Club – the fans.  I bet now he wished he’d never crossed the Mersey to take over our Club – apart from that little blip called the FA Cup Final of 1995! 

When I met him at his Park Foods headquarters just before he sold out, it was blatantly obvious he wanted rid of us as much as we wanted rid of him.  Too many football clubs conveniently forget it these days, but the fundamental thing about a football club is its fans.  Without them, simply there is no club. 

Sure fans can’t be told everything but respect should always be there for these foundation stones of the business that is football these days.  I think communication with fans is essential when a club is in transition or on harder times.  Unless the team is winning – then no one cares about the business on or off the field... well, to a degree.  That is why I have some respect for Manchester United Independent Supporters Association (MUISA), who led a fight against one of the richest men in the world, Rupert Murdoch, to prevent him from taking over their very successful club, fearing that the true fan would come off worse, and they won that battle.  

Getting back to our own club, there were only around 150 shareholders until relatively late on in the club's history.  Presently there are over 950 shareholders – some with many shares, others with just one.  True Blue Holdings, the club's current owners, own the largest number of shares with Bill Kenwright and Paul Gregg the biggest shareholders, followed by John Woods and Arthur Abercrombie.  The value of a single share is currently around £1,700.  

Up till the 1960’s there was a one-man one-vote system with the decisions of our club.  Even the shares where not truly £1 in value but 15 shillings in old money so, to tidy up the numbers, the late Sir John paid in himself the extra 5/- (25p).  

It is only recently that Professor Tom Cannon and Kevin Nolan of the Everton Shareholders Association, along with the Everton lawyers, have re-written the company rules.  For one instance, if Everton FC Co Ltd went bust then any assets left would go to the local sports on Merseyside.  

In 1935, a shareholder could get two match tickets for 7s 6d  – one for himself and one for his good lady; this resulted in a number of masculine looking females coming to the match back then!  Shareholders also got a 5% discount off season tickets and further 5% depending on how long they had had their shares.  This occurred during the 1970s and 1980s; now all they get is a voucher for £20 in the Megastore each year.  The Shareholders also had a section of the Bullens Road stand set aside.  Newcastle United under Sir John Hall also has had to re-write their company rules lately for the same outdated reasons.  Oh, and our original share certificates?  They were salmon pink in colour!

When talking about having shares in Everton, I cannot forget the admirable task the Investors in Everton set about – especially that memorable day out at the Waldorf Hotel.  The Waldorf Hotel in London was the venue where these great Evertonians let up a big balloon to say that Everton were worth investing in and possibly buying in full.  It cost these lads around £5,000 of their own money to make this enterprise happen.  It was at a time when Bill Kenwright’s knuckles where bleeding from knocking on bankers' doors and getting the carpet pulled from underneath him by the HSBC when trying to secure money to get the club back.  

It was very worrying then in that we knew the vacuum under PJ could last not much longer; PJ had vacated the club and spoke to no one, leaving Michael Dunford to put his finger in the dyke to stop the dam busting.  That was Everton state of chaos and confusion – only a couple of years ago.  We were looking into the abyss, and the fear was that players such as Ball and Jeffers would have had to be sold at a fraction to ease the panicking bank manager – just as Duncan was.  A strong rumour was that if Duncan was not sold that week in November 1998 then there would be no wages for anyone at Everton from the tea lady upwards!!!

The Investors in Everton held a meeting in which the national and local media where invited with existing shareholders and many potential investors.  I think that at the time the Investors in Everton group believed there was at least £10M in the offering to buy into Everton but not at the clubs current state back then and certainly not when the owner wanted upwards of £40M.  Over forty million with a rising debt of £15M, a mistrusting hurt fan base, and a poor squad perennially battling against relegation. It was enough to drive even Bernie Eccelstone around the bend!

The presentation was very slick and professional in its approach – just like the hotel in which it was held.  After the meeting, the EISA secretary Barry Murray gave an interview with the Daily Post where he flippantly mentioned that he had to go soon so as not to disappoint the lads back home for the order of towels with the Waldorf logo on; they printed that, of course.  Scouse humour, eh?  Don’t the media just love it to bits! 

Peter Johnson eventually got just over half of the money he desired for the club he had battered both financially and image-wise; the Investors in Everton group melted away into the background.  But take a bow Neil Wolstenholme, Tony Lloyd, Mike Owen and Neil Cropper – the fans who made this exercise happen: you deserve an Evertonian medal for your endeavours. 

The Fans Trust was also another enterprising way forward and this scheme had many interested and active fans.  Steve Allinson and Frank Hargreaves were prominent leaders of this idea for the fans to have a greater say in their club by ‘buying in’.  I remember them hiring the Sandon pub where Everton first started holding meetings back in the 1880's, and doing a live internet link for questions and answers on their proposals.  I’ve not heard anything since and I don't know the present outcome.  I wonder if that ten million the Investors in Everton identified could be attracted to us now, along with the Fans Trust’s money???

But what would make an investor come to us?  Loyalty and passion perhaps, there is no better type of investor for they would not expect a dividend – not that any shareholder in Everton has had any!  Just that piece of paper on a prime location of their home would be enough reward.  A topic of conversation to the visitor to the home; a kind of van Gogh for the football connoisseur in a frame over the mantelpiece.  

The feeling of owning a piece of your club would be sufficient payback to this particular type of investor; I’ll bet many a fan would sleep with that share under his pillow, safe and smug in the knowledge of having it.  

How about the investor looking for a good financial return?  I don’t think so.  Marconi shares would be more attractive than those of  a football club with our recent history.  But, there again, if the Kings Waterfront bears fruition, why not speculate a bit long term....? 

A lot of damage was done during Johnson's tenure – especially towards the end.  The average Everton fan felt that the club was a stranger to them; we felt at once both insulted and taken for granted.  As I said at the time, "When does blind faith become stupidity?” 

Some fan's soul-searched and sadly walked away from the club they loved, for it was too painful to be there anymore; insulting to their intelligence and a waste of their hard-earned money.  Great Evertonians turned to me and said "I’ve had enough of this; they (the board) are just laughing at me."  And once you lose that fan, it's very hard to get him or her back.  

Even Bill and his new board have not been enough to bring some fans back. Our average gate shows we have lost nearly 3,000 fans in the last couple of years, and is now down below 34,000 – a reverse of the trend in Premiership attendances.  I do feel that fans have a hangover from the Johnson tenure; something special in which they can trust again will have to be shown for them to entrust their money.  

Trust is a word that makes people part with money; respect is another. you will have to ask yourself has the club shown these attributes enough to part with your savings.  In my opinion, you can trust Bill Kenwright: he wants what we want.  His mother told me if he had millions he would spend it all on our club – he’s that passionate.  

It’s harder for our club than for most to get a good press locally – why, I don’t know.  Maybe we disappointed them because we never fell down that abyss, and bad news sells more papers,  apparently.  But I think the opposite is happening now on the Blue half of Merseyside.  Evertonians have had enough of the spoon-fed negativity given to them week in week out and are seeing through what amounts to almost a vendetta against the original and oldest football club on Merseyside.  

The local rags are selective in their journalism, preferring to give a negative view of this club we love.  Sure, we know how bad it is... but we don’t want it rammed down our throats all the time!  There was no quick fix when Bill Kenwright took over but they conveniently don’t remember that.  I can’t get to the bottom of the local press – you’d think they would want to help, not jump on our heads!  But that’s the loyalty you get from the press to a club that has given so much over the years to the local community.  It would not happen in a one-horse town, I’ll bet.

Currently, many fans are thinking the higher paid players are just greedy – the lack of backing and sympathy from the ordinary fan during the current PFA dispute over TV appearance money showed this.  Damage, though limited, has been done again to the soul-searching fan.  

How about a specific share issue for a part of our club?  What do you think would be an attraction – something that would pull at the heartstrings?  There is only one area that meets this criteria and that is the Youth Academy.  

I think if a fans' share issue was negotiated with the Board for this sole purpose, with elected board members and an open book, there would be enough investors for it to take off.  It would also mean the Everton Board could concentrate on other matters.  This could be like a  mini Barcelona / Bayern Munich type of share scheme, with fans owning the part of the club in which tomorrow's players could develop in top-class facilities.  

We all know the hurt we have when we see other clubs' sparkling new academies.  Even Ipswich have a new one – the 35th such new academy countrywide.  Well, we could be the next owners of an ultra modern Academy.  We have the staff, which is just as important; now we need the money. 

Shares could start from say £200 enabling lower income fans to ‘buy in’.  If fans took up 15,000 of these shares, we would generate £3M – enough to make a decent start on the academy or a whole new training ground including facilities for the first team.  Sell Bellfield as well for a few million and, hey presto, we can hold our heads high again regarding this part of our club.  These new Academy buildings do not take long to construct.  Everton have identified a site now and, more importantly, the local authority are at pains to see this site taken by Everton – so it could be ‘fast tracked’.  

We cannot let this part of the club fall behind the rest of the Premiership any longer.  Prospective players' parents cannot be too impressed with our present facilities compared to those of other clubs.  First impressions still mean a lot.  I know this investment is long term but we're all in this for the long haul, although the sooner we get some relative success the better.  I think Professor Tom Cannon and Kevin Nolan will make a proposal along these lines to the board at the next AGM – in a more refined way than I can!  But you can only ask, can’t you?  

It will be a long time until we are back to being known as the ‘Mersey Millionaires’–  when we constantly broke transfer records.  The reality of that privately hurts us and, in the cold light of day, this is as good as it gets for a while.  We are only now addressing our debt and must be even met with envious eyes of other clubs in a far more serious financial state.  

Have you noticed we are no longer used as the standard-bearer of financial crisis in football anymore?  Look at Chelsea – reputed to be £98M pounds in debt – £75 million of which has to be paid back in five years!  But honestly did Chelsea's performance the other day show how much more money they have spent in transfer’s than us?  So it’s not all about money, is it?  But I think if the fans are sat down and have it explained to them how their investment could make things change for the better, they would consider all things – the ‘big picture’, so to speak – and they would help. 

No Evertonian is happy to see how the club is now, especially the older fans amongst us who have seen better times.  We have made a difference in the past on the terraces, dragging our club over the last hurdles of a relegation battle.  We never deserted our club in times of trouble, unlike the Sheffield Wednesdays and Coventrys of this world.  Treat to the fan like the valued customer he / she is; we know what the score is – let us help.

It would be great PR and a re-affirming of the bond between the club and its loyal fans.  I never want a ‘them and us’ situation again – and that could easily happen.  Who know this time next year we could really be at an AGM with over 12,000 members, like Walter was at Rangers.  And a brand new Academy we could be proud of.  Let’s share in the fortunes of our club; let’s stick together. 

Oh, before I forget: Did you know the late Bill Shankly (or his family now) has had Everton shares?

Ian MacDonald
Everton Independent Supporters Association

©2001 ToffeeWeb, 27 November 2001