The Swansea City Supporters’ Trust today confirms that we have approved and signed-off the official paperwork associated with the transfer of ownership of the football club’s majority holding to Andy Coleman, Brett Cravatt, Nigel Morris, and Jason Cohen.
This change in ownership is happening through the transfer of ownership of the previous majority owners’ investment vehicle (Swansea Football LLC) to Andy, Brett, Nigel, and Jason. As part of this transition, Jason Levien, Jake Silverstein, and Bobby Heinreich will all leave the club’s Board of Directors.
Members of the new Board of Directors will be Andy Coleman, Brett Cravatt, Nigel Morris, Jason Cohen, Todd Marcelle, Martin Morgan, Tyler Morse, George Popstefanov, and Chris Sznewajs, along with Trust Supporter Director Paul Meller. The Trust will now also have another permanent Director position on the Club Board and we will announce that as soon as EFL approval for the nominated officer is confirmed.
Trust Officers have been directly engaging with Andy Coleman for a number of months at an increased rate, and we were approached by the majority ownership group last month to discuss in detail the pending changes in the ownership of the club. In recent weeks, we have been working with the majority ownership group, the club’s CFO and our legal representatives to review and assess the implications for the Trust.
We have sought legal advice to ensure that our shareholding in the club and the rights enshrined in the Articles of Association and Shareholders’ Agreement signed in early 2022 during the resolution of our legal dispute would not intentionally or unintentionally be affected by this change. We are pleased to confirm that the new arrangement will not affect our rights or our protected shareholding in the football club and will in fact strengthen the Trust’s position going forward.
We are encouraged by the efforts of the new majority ownership group to proactively engage us and invite us to provide further suggestions to solidify our status as a critical member of the club’s ownership. The acceptance of these provisions will strengthen the voice of the Trust within the boardroom and provide greater club support for important heritage events/projects that the Trust has been leading over the last 18-24 months.
Explaining the investment
Today’s announcement coincides with a further significant investment in the club by Andy, Brett, Nigel, and Jason. This investment will be in exchange for additional equity in the club and will dilute all shareholders who do not match the investment, which the Trust will not.
This money will support the ongoing operational costs of the club and continue to support investment in the infrastructure and playing squad.
It should not be underestimated that the new owners are inheriting a challenging financial position – the club, like many in the tiers of football below the Premier League, is struggling to create a sustainable financial model whereby income and outgoings are even or where losses are limited.
There is more work required to create greater equity between the Premier League and the lower divisions that rely so heavily on shared revenue, as well as work locally to improve the sustainability of the club. We know from our discussions with Andy Coleman that this is a major priority for the new Board going forward.
As the club is subject to the league’s Profit and Sustainability Rules (PSR), which limit losses to £39 million over three years, the reality is that while funds are available for transfers it is unlikely a significant portion of this money will be used on the playing squad in the short-term. Any outlay of money must be matched with generated income for the club, and unfortunately investment by ownership does not count in this calculation.
A new direction
This is a significant moment for the club and its supporters, and we share the optimism of many supporters about what fresh faces can bring to the football club and the community.
We believe it is critical that there is true local ownership and decision-making ability for the club going forward, something that has not been in place in the past 7-8 years. These years have been difficult for the club, Trust, and supporters – from the way the club was purchased and the failed promises thereafter, through relegation from the Premier League, and the past few years adjusting to the harsh financial realities of the Championship. The Trust has been at the forefront of these challenges, and we are hopeful that today marks the start of an exciting new chapter for all of those associated with Swansea City.
We hope to see quicker and more effective decisions that take into greater consideration the supporters and the community. With club Chairman Andy Coleman continuing to be based in Swansea and with greater ownership control, we are now hopeful that the positive trends we have seen in recruitment and investments in club assets in the last 12 months will only grow. This will ultimately benefit all parties, especially our supporters.
We have seen first-hand the difference Andrew has made and his focus on amplifying the supporters’ voice in club operations, and we look forward to continuing to work with him, Nigel, Brett, Jason, and other Board members as custodians of our great club.
We have encouraged the club to host a Fan’s Forum as soon as possible to answer questions directly from supporters about this transition, and the longer-term plans for the football club.
We have also invited our Trust members to a Zoom call to explain the implications of all this a little further.
In the meantime, we hope to see a raucous atmosphere as we welcome Leeds United to the Swansea.com stadium tomorrow afternoon.
Swansea City Supporters’ Trust
23rd November 2024
