lost that loving feeling - Nottingham Forest Extrodinary General Meeting

I woke up this morning with the fresh, excited feeling you get from knowing you don't have to go to school and a feeling of anticipation as I was to attend the much hyped and very important EGM. The meeting was to take place at the Royal Moat House Hotel on Wollaton Street, in the centre of Nottingham. As I approached the hotel it became apparant there was to be a large turnout as there were many people making their way towards the same venue. The media were out in full force, as local news cameras filmed shareholders entering the conference room.

The first announcement came from Mark Arthur who told us that the meeting was to be delayed by 15 minutes as there were many people still trying to get into the room where the meeting was to take place. There was only room for 400 people due to fire regulations so many people were forced to stand in the foyer area and the meeting was to be broadcast to those unable to get in. The second announcement, again by Arthur, asked if there was anyone willing to give up there seats so elderly shareholder could come in and sit down. Although I did sympathise with those who were forced to stand outside, I declined.

Finaly the meeting got underway. Sat on the front table were Chairman Eric Barnes, Finance Director John Pelling, Chief Executive Mark Arthur and Company Solicitor Anthony Grossman. Barnes adressed the problems we were having and spoke of steps which were to be taken to adress the situation. Here are some hardcore facts and figures. Barnes announced Forest's net liabilities were £6 million and borrowing totalled £20 million. Forest's squad was valued at £8 million, although Barnes did say the figure was more like £14 million.

Barnes offered two solutions to Forest's financial crisis. The first was to take a rights issue, this would invole the current shareholders buying additional shares which would hopefully raise the sum of £5 million. The second was for Nigel Doughty to up his stake in the Football Club to 85% as aposed to the 40% he currently owns. This would mean the PLC, e.g. the shareholders which includes myself and the 400+ people who attended, would have their stake in the football club reduced from 60% to 15%.

After the chairman had finished his presentation he proceded to ask for questions. Imediately someone asked if Nigel Doughty himself would stand up and give his version of events. After some consideration from Barnes and Doughty, he decided he would. Doughty was a lot taller than I had imagined and he spoke confidently and honestly about what he intended to do. He made it clear that he disliked PLC's in football calling them a "cancer" and said Manchester United were the only team who should be a PLC.

The questioning went on for about an hour and some good points were raised. One shareholder commented on how he had bought his shares whith the intention to have involvement with the team he supported, not to make money. Another questioned Doughty's motives, implying he was out to buy the club on the cheap by offering 2.3p a share, a comment I totally disagree with as there can be no doubting Doughty has Forest's best interests at heart and he has every right to want to buy his additional stake at the best price possible.

Eric Barnes commented on a previous conversation between himself and Doughty, where Doughty implyed he would "have" to become the chairman for 20 years and that Barnes was only in line to do the job for 2 years and he was now in his third year.

A shareholder then asked whether the impending court appeal from Irving Scholar and Julian Markham would affect the takeover from Doughty. After a while the conclusion was reached that the court case was against the board and not the club or Doughty so it shouldn't affect the takeover in anyway.

Barnes raised the point that 25 of the academys players had represented their country at their respective age group which was sign that the £1.25 million improvement of the academy was money well spent

Manager Paul Hart then took to the lecturn. He answered football related questions instead of financial ones, one of which was why is Bart-Williams not playing. The answer was "because he is at Charlton" and he was dropped because of his performances and nothing else. People generally praised Hart and it was obvious shareholders acknowledged the work he is doing as he recieved a warm round of applause as he stepped up and again when he finished his piece.

All-in-all, the meeting didn't tell me an awful lot that I didn't already know or had heard, but it was an excellent chance to hear Paul Hart speak of his plans for the future and his optimism and faith in his players and staff cannot be denied. The highlight for me was to hear first-hand the plans of Nigel Doughty and to get an idea of what the man was like, who has for a long time tried to remain anonymous so he could still attend the games as a supporter. One point Doughty did outline was he wasn't going to fear making big decisions and indicated that he was ready to take a more hands on role at the club.