York City Supporters Trust members are set to make a major decision regarding the club’s future on Thursday evening.
A special general meeting has been called where 910 members will vote on whether to hand over the Trust’s 25 per cent shareholding to JM Packaging, the business owned by York chairman Jason McGill, in return for him to continue funding the National League North club.
In doing so, JMP will hold 100 per cent of the club’s shares.
Entitlement
As part of the deal the Trust would still retain one share under a “Golden Share Proposal” and some of their existing special rights until the move to the Monks Cross Community Stadium, scheduled for June 2019, has been completed, ensuring the club has long-term security of operating from the new stadium.
Once at Monks Cross, the Trust will retain rights restricting transfer of ownership of the club to certain people and the option to acquire shares if Jason McGill/JMP wish to sell in future.
The golden share will gain new special rights protecting the club’s name, colours, badge and location of the home stadium.
As part of the proposal, McGill has agreed to use any funds gained from the sale of their current Bootham Crescent home for the benefit of the club. JM Packaging will receive no more from the sale of the ground than the aggregate amount that has been put into the club by his company.
Since 2006, JM Packaging have injected £4.3 million into the club and under the proposed arrangements the company will produce a further £500,000 of funding ahead of the move to the new stadium.
In the unlikely event York do not move to Monks Cross, the Trust’s 25 per cent share will be transferred back to them.
The proposal means the Trust would lose their current contractual rights to receive management accounts and authorise future additional borrowing, as well as surrendering their entitlement to representation on the club’s board, weakening the Trust’s position to influence any new owner.
More than 50 per cent of members must vote in favour of the proposal for it to be approved.
*This article originally featured in The @NonLeaguePaper which is available every Sunday and Monday
