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Kenny Alexander Investment


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Found this from 2016

 

Scottish football has known divisive figures through the years. Few have been as resilient or embattled as Michael Johnston.

Currently in his 14th year on the Kilmarnock board the Ayr-based solicitor has been the subject of supporter protests and attacks from sponsors, legal battles and personal onslaughts.

Through it all, he remains one of the game’s dogged survivors.

Plenty have tried to press the issue.

But knocking at the front door of Rugby Park waving a bag of swag can feel like banging the head off a brick wall. Bloody, painful and an exercise in futility.

Chris McMail, Managing Director of the Microtech Group, first discovered this in 2013.

The Kilmarnock Futures Consortium was fronted by former Rugby Park Chief Executive Ian Welsh and featured fellow businessman McMail, Alan McLeish of QTS and Kenny Alexander. Business figures of means, all four had Kilmarnock credentials and spoke to Johnston – over a period of months – about buying the club. Eventually they gave up, ground down and exhausted.

‘Michael’s thing is to continue asking another question, another question, another question,’ says a frustrated McMail. ‘That’s why I won’t get into another protracted negotiation with Michael – because it simply becomes a six-month exercise.’

Nevertheless, over the last two weeks, the IT guru has been back at the table. Negotiating with Michael Johnston.

A conditional offer has been made to invest a sum in excess of £750,000 in the football club.

The condition? That Johnston leaves the club board with immediate effect.

It’s not a new demand. Others have tried – and failed – in the past.

A recent bid by a group of disaffected shareholders to force a vote of no confidence at an EGM was declared ‘invalid.’

Marie Macklin was the second largest shareholder and tried three times to gain control. By 2013 the businesswoman had given up and gifted her shares to supporters.

The Ayrshire Business Group, a group of like-minded souls headed up by John Gall of Brownings Bakers – now embroiled in a legal dispute over naming rights to the Killie Pie - asked Johnston to name his price.

After 10 years at the helm Johnston reduced his shareholding from 87 per cent to 40 per cent as part of a debt restructuring deal with Lloyds Bank.

The value of his stake is now pitched at £1.9million.

And, in the latest desperate quest to clear the decks and bring McMail’s cash to the table, they are willing to pay it.

For most, a chance to tuck a cheque for £2m into the hip pocket and sail into the sunset would be the fulfilment of a life’s dream.

Citing an agreement with Lloyds Banking Group to remain at Rugby Park until 2019, however, Johnston is once again playing hardball.

Seeking another three years on the board the road block to McMail’s investment shows no sign of shifting and the anger and frustration of supporters – echoed by the other three members of the board - is likely to spill over when Lee Clark’s team host Aberdeen at Rugby Park on October 1.

‘There is no other reason for delaying our investment beyond self preservation,’ McMail tells Sportsmail.

‘I can’t believe, considering the offer made by Billy Bowie and his fellow directors, he has not taken it.

‘He says he cannot leave the club until 2019 under terms set by the bank, but I don’t think that is the case.

‘I think we have had enough unofficial conversations with the bank to know that they would support any move which strengthens the club.

‘Michael is not daft. I think the bank is a good excuse for Michael to stay on, but I think the 2019 thing is a red herring.’

Johnston declines to say why he can’t leave Kilmarnock for a further three years. Yet the issue is now an obstacle to change.

‘We were interested in putting investment into the club,’ adds McMail.

‘We made an offer to the club, offering to put substantial sums in, on the proviso that Michael Johnston steps off the board.

‘He does not need to sell his shares – he only has to step down from the board.

‘The offer was made two weeks ago and we received a letter back from Michael asking us to name each of the investors and provide proof of funds.

‘What he didn’t say was whether he would step down from the board if we invested.

‘I have spoken to Billy Bowie, his fellow director, and Billy knows I have the funds.

‘But unless he agrees to step down we cannot move forward.

‘So I knew two weeks ago there would be a question and then another question. And on it would go.’

Johnston argues his 14 years at the club have been a success.

Kilmarnock have retained Premiership football, won the League Cup and cleared £13m of debt.

In response detractors point to a raft of sacked managers, disenfranchised sponsors and losses exceeding £700,000 in the last accounts. In April Jim Mann resigned as the most recent club chairman, claiming the losses were ‘unsustainable.’

After investing £1.1m and lending the club a further £800,000 director Billy Bowie is unwilling to write cheques on an indefinite basis.

Yet a senior source tells Sportmail Killie expect to reduce losses to £400,000 in this year’s draft accounts and, with two home games against Rangers this season, turn a modest profit in 2017.

‘Michael is not going to do all this work for the benefit of Kilmarnock FC then just walk away with no care or concern for what happens going forward.

‘The net asset value of the company on the balance sheet is £8m.

‘Kilmarnock own the land and buildings at Rugby Park.

‘The club owns the Kilmarnock fitness centre and has no bank debt or secured creditor.

‘There is £8m of assets and no borrowings, apart from Billy Bowie’s £800,000 loan.

‘Anyone who understands that can only have an ulterior motive for arguing the finances are anything other than sound.’

Reluctant to give up the ghost, however, McMail argues the health and welfare of a football club cannot be measured via a balance sheet alone.

‘I was involved around the club when Ian Welsh was Chief Executive and there was a very good atmosphere.

‘Rugby Park was a good place to work. No one can say that’s the case at the moment.’ 

https://www.dailymail.co.uk/sport/football/article-3803243/Potential-Kilmarnock-investors-express-confusion-750-000-deal-embattled-Michael-Johnston-clings-power.html

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On 5/26/2021 at 8:27 PM, MarkyMark said:

He was at a smaller predecessor company to GVC at the time. Perhaps he thought he would be allowed to get involved and was fishing. Perhaps he didn’t check. Perhaps he asked and they said he couldn’t get involved. Who knows. He is retired now so nothing stopping him getting involved if he can agree terms with Bowie. He seems more interested in racehorses than Killie now though.

No company would prevent him investing his own money in a football club - they would only forbid him investing in a rival or a company that could affect their business. Stock exchange rules would also prevent him from doing that.

Taking non-Exec director’s roles is also common practice amongst senior directors of public companies.

He would either have decided the terms of investment weren’t for him or BB blanked him.

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9 hours ago, Mogwai said:

I agree that a lot of the same issues are still here, but I think the fans have been robbed of the impetus to gather and demand change because even after relegation, there seems less of an imminent threat of us going out of business.

Relegation under Johnston appeared to be much more disastrous than the actuality under Bowie (hopefully).

I am concerned that BB seems happy with the size of the board. I'd like to see more substantial investment and certainly more football experience on there. But soundbites like the playing budget staying the same again make us all feel a bit more secure, less willing to rock the boat. 

I was always more interested in the community and school connections, and growing the fanbase than the business side of things. To be honest, I have no idea if that side of things has improved. I haven't heard anything bad, though.

I'd like to think the plastic pitch helps out with getting young teams and school teams to play in the stadium, but I have no info on that. I'd imagine the Trust might?

Relevant experience and knowledge of the game would be more important than financial investment. Both would be great!

Edited by Jimmy Superscot
Fat finger...
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15 minutes ago, Jimmy Superscot said:

No company would prevent him investing his own money in a football club - they would only forbid him investing in a rival or a company that could affect their business. Stock exchange rules would also prevent him from doing that.

Taking non-Exec director’s roles is also common practice amongst senior directors of public companies.

He would either have decided the terms of investment weren’t for him or BB blanked him.

It would depend what his role was going to be and whether his employer would allow it. Given that the company he was at was growing rapidly through acquisition they may not have wanted his attention diverted. He'd have had to have his employers clearance to take a directors role elsewhere unless he was simply going to be a shareholder and not take an active role but that was never suggested.  I don't think he's taken directorships outside the companies he's worked for or his own vehicles. As you say perhaps he couldn't reach agreement with BB if there were discussions because the terms weren't acceptable to both of them or Bowie didn't entertain an approach. Looks like that ship has sailed and time will tell whether we'd be better off having more investors and a larger board.  

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1 hour ago, MarkyMark said:

Looks like that ship has sailed and time will tell whether we'd be better off having more investors and a larger board.  

How much longer than going from 3rd to relegation in 24 months do you need? What more data would suggest we are have the wrong balance in the boardroom? Let’s wait until we’re in league 2 and then many may drop fir some. Duh.

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6 minutes ago, Thebigguy68 said:

How much longer than going from 3rd to relegation in 24 months do you need? What more data would suggest we are have the wrong balance in the boardroom? Let’s wait until we’re in league 2 and then many may drop fir some. Duh.

28 years in the Premier League gone its blatantly obvious there is has to be change at Board level we have been let done badly Bowie does not have a clue or the other 2 how to run a football club we need change to get some one who has the skills and football knowledge to get us straight back up to the premiership where we belong and should never been relegated with their shoddy amateurish ways they have run   our club.

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4 hours ago, Thebigguy68 said:

How much longer than going from 3rd to relegation in 24 months do you need? What more data would suggest we are have the wrong balance in the boardroom? Let’s wait until we’re in league 2 and then many may drop fir some. Duh.

I’m not disagreeing with you. If you look at the replies on the various threads a number of posters either don’t believe we need change or they don’t think now is the right time for change. 

I suggest that the only vehicle that the fans have to request an expansion of the board or introduction of experience of running a club or football knowledge at board level is via the Trust given their investment in the club. I’d suggest that given relegation and the likely importance of the Trust funds to the club next season that the Trust has more leverage now than it has ever had before. 

If you are a member of the Trust start the ball rolling for them to put a motion to the members for what you want.

I find the suggestion by others that the current board is gaining experience from making mistakes a rather odd way to ensure success. Surely it would be better to avoid the mistakes in the first place as look at where poor decision making has got us and the jobs it may cost. 

An expanded board with some sector experience and more football knowledge seems to have more benefits than drawbacks. 

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4 hours ago, Thebigguy68 said:

How much longer than going from 3rd to relegation in 24 months do you need? What more data would suggest we are have the wrong balance in the boardroom? Let’s wait until we’re in league 2 and then many may drop fir some. Duh.

Remember that time BB got pulled out of position and it allowed the opposition striker a free run on goal? Remember that time CJ got caught dithering on the edge of the box and it resulted in a goal? Remember that time PM stepped back into her own net with the ball in her hands? Nah, me neither. Our problems were all on the pitch. I think you could go  back through our season and easily pick out 10-15 individual errors which not only cost us our premier league place but possibly even European football. 
 

Our problem wasn’t governance, it was s**t players past their prime. 

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25 minutes ago, Zorro said:

 

Our problem wasn’t governance, it was s**t players past their prime. 

Exactly, already ageing players when Steve Clarke was there so fast forward 2 years and they are still there, and apart from Lafferty has there been any good signings over the last 2 years?  Kiltie coming back was good but I’ve always thought he was good enough to not be loaned out before that. Topped off with 2 of the worst keepers I’ve seen at killie when we’ve regularly had solid keepers at the back, then selling our best defender half way through a struggling season(funds helped Laffertys wages yes) but when an old Kirk Broadfoot is your main defender then how could we thought about staying up.

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Change needs to happen in the boardroom. We need more experienced voices (not necessarily investors).

I do think Mr Bowie is getting a relatively easy time of it. Imagine if Michael Johnston did the following...

Removed the hotel from ownership by the club.

Renamed the stadium.

Got us relegated.

Employed dyer as manager and kept him on for so long

Replaced grass pitch with plastic.

 

... He would get absolutely crucified on these boards.

 

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19 minutes ago, gjkillie007 said:

Change needs to happen in the boardroom. We need more experienced voices (not necessarily investors).

I do think Mr Bowie is getting a relatively easy time of it. Imagine if Michael Johnston did the following...

Removed the hotel from ownership by the club.

Renamed the stadium.

Got us relegated.

Employed dyer as manager and kept him on for so long

Replaced grass pitch with plastic.

 

... He would get absolutely crucified on these boards.

 

When did Bowie remove the hotel from club ownership....  that was part of the debt deal wity the bank.

As for renaming the stadium....  its sponsorship and ways he can restructure directors loans into cash we dont need to pay him back.

Dyer, yep massive error then compounded by not removing him.

And btw hes been getting it tight, BUT we also see how much he has put in ti make sure the club is still here.  Thats the difference between him and MJ, Billy HAS put his cash where his mouth is.  But he isnt a football man he is a business man and he needs HELP with slmeonw running the football side who can work with him.

Edited by Beaker71
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9 minutes ago, gjkillie007 said:

Change needs to happen in the boardroom. We need more experienced voices (not necessarily investors).

I do think Mr Bowie is getting a relatively easy time of it. Imagine if Michael Johnston did the following...

Removed the hotel from ownership by the club.

Renamed the stadium.

Got us relegated.

Employed dyer as manager and kept him on for so long

Replaced grass pitch with plastic.

 

... He would get absolutely crucified on these boards.

 

My thoughts too, MJ was very unpopular with a loud, vocal minority of the support. He got rid of the crippling debt which meant difficult decisions at the time.

i think that he was perceived to be a posh, eloquent, well spoken, perhaps aloof lawyer, not a man who grew up being into football and also was from Ayr. These were contributing factors to his unpopularity.

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3 hours ago, Zorro said:

Remember that time BB got pulled out of position and it allowed the opposition striker a free run on goal? Remember that time CJ got caught dithering on the edge of the box and it resulted in a goal? Remember that time PM stepped back into her own net with the ball in her hands? Nah, me neither. Our problems were all on the pitch. I think you could go  back through our season and easily pick out 10-15 individual errors which not only cost us our premier league place but possibly even European football. 
 

Our problem wasn’t governance, it was s**t players past their prime. 

absolutely, this and ten times this. 

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I can understand peoples frustrations with the current board especially with some of the football related decisions, however some of the criticism of BB is way over the top.  where would the club be if he were to leave as seems to be the option people on this forum would like him to take. 

BB has stated at a fans forum and AGM he would welcome investment, and in fact approached people to invested with no joy so if he goes who funds the rebuild urgently required, who dips into their own pocket to fund the next Lafferty when needed. we need to be careful what we wish for or further relegation's may just be on the cards

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51 minutes ago, Zorro said:

I can’t speak for anyone else but I didn’t perceive him in the way you portray him. I thought he was a money grubbing, two-bit lawyer, who got lucky when his posh mate got fed-up running football club and gave it to him. I thought he was guilty of criminal mismanagement, nepotism, and sold every asset he could to retain his place. I felt he got lucky for a second time when the bank offered a deal to offload our long standing debt, which he’d never made significant inroads into reducing, then got even luckier when he found an investor to finance the deal. Finally, I think once he’d squeezed every perk and freebie he could, he rode of into the sunset, but not before extracting his final pound of flesh for his shares. 
 

His smug face, lack of interest in football or that he was from Ayr were insignificant factors in my disdain for him. What he did to the club and it’s reputation was more than enough for me. 

The reality is he talked Jamie into not taking the Club into administration,  Lloyds trusted him implicitly, BB holds him in very high regard and all books stood up to meticulous analysis by BB, Lloyds and JRD. It's all in black and white over the years.

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22 minutes ago, Confidio said:

The reality is he talked Jamie into not taking the Club into administration,  Lloyds trusted him implicitly, BB holds him in very high regard and all books stood up to meticulous analysis by BB, Lloyds and JRD. It's all in black and white over the years.

What a hero eh.

The guy couldn't give a f**k about the club as long as he could use it as an income.

In fact, wonder where his biggest income source stlll is to this day? 

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2 hours ago, Guard Lane said:

My thoughts too, MJ was very unpopular with a loud, vocal minority of the support. He got rid of the crippling debt which meant difficult decisions at the time.

i think that he was perceived to be a posh, eloquent, well spoken, perhaps aloof lawyer, not a man who grew up being into football and also was from Ayr. These were contributing factors to his unpopularity.

Yes, a very vocal minority (prob 300 just), many of whom were politically motivated. MJ's (outstanding, maybe technically the best ever) record over 17 years will be a hard one to beat. At the moment, any major investment prob requires interdependent hotel detail.

 

9 minutes ago, Squirrelhumper said:

Funny that, I was at the AGM when MJ was the one giving it the hard sell to shareholders. 

Me too but I think BB was particularly keen and put up the cash. MJ would see the benefits but the project moved very quickly and caused issues with Privilege Seat holders behind the dugouts I recall. Not me, but I know the people affected.

Edited by Confidio
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Jeezo, reinventing MJ as a hero. Remember the fans vote on allowing Sevco back into the league where he manipulated the vote to abstain from voting ? If he was personally involved in appointing Kenny Sheils as manager and us winning the League Cup he was also responsible for sacking Kenny Sheils and the following succession of duds.

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On 5/26/2021 at 12:42 PM, Guard Lane said:

It’s pretty clear Bowie and his fellow directors have no idea how to run the club.

If Kenny Alexander is serious about getting involved, now would be the perfect time to make an offer to buy Bowie’s shares and become chairman and run the club,

Bowie and the 2 others would leave the Board. If Bowie acts like Lauchlan did 32 years ago when Bobby Fleeting made his move and refuses to accept, then like then the pressure will become intolerable.

its over to you Kenny, perfect opportunity to make a move.....

Derek Pierce (similar wealth to BB) would be another fab addition to the Board. Lives 2 miles away and a big Ayrshire employer.

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