Thursday, June 20, 2024

Well Society board recommends rejecting Erik Barmack investment

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The board of the Well Society is recommending members reject the offer of just under £2m in investment from Erik Barmack because it “drastically undervalues” Motherwell.

The group has a 71% stake in the Fir Park club and their board say the proposal from the former Netflix vice president and his wife Courtney would “end fan ownership”.

Heads of terms agreed with the club board outline the Los Angeles-based Barmacks putting in £300,000 for the first three years and £350,000 for the next three.

The arrangement would commit the Well Society to contributing £200,000, then £250,000 over the same period.

Barmack would become chairman with his Wild Sheep Sports company receiving an initial eight percent holding, which the Well Society board statement argues would give it a “disproportionate influence in the boardroom”.

Wild Sheep would eventually reach 49% ownership, with the Well Society paying £1.35m over six years for their stake to drop to 46%.

Included is a “buy back option” for the Well Society up to the end of year two, “if the arrangement isn’t working as envisaged”, while the club could not take on any external debt.

Barmack, who would become chairman under the proposal, said: “Our aim is to complement, not control, the Well Society’s shareholding and support its core mission.

“We are committed to a long-term partnership that focuses on sustainable growth without imposing financial burdens.”

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