Dyer sets September target after summer of graft
greater rights and protection in company law, but were unable to do so. Beneath that percentage means their actual voting influence is the same at 21.2% as it would be at 10.5%.
With the recent greater communication, consultation and an ongoing watchdog role on the board (being able to see regular updates on accounts, for example) there is a thought that they would be no weaker.
Plus, there has long been an awareness of the need to protect the financial value of the Trust’s shareholding, something accentuated by last summer’s deal.
Selling the shares at the price agreed last summer – which is thought to have valued the club at around £110m – will bring in money that can protect the Trust’s standing in the event of the club losing value (e.g relegation from the Premier League) or dilution of shares.
Plus, there is also the appeal of maintaining a ‘rainy-day fund’ that would be able to support the club in the unwanted event of financial problems in the future. WHAT IS DILUTION? Dilution is what happens when extra shares are created and made available to purchase. resulting in direct investment into the club, but simultaneously resulting in shares dropping in value.
For a basic example, say a company was worth £10m and you had 10% of shares worth £1m. If someone wanted to invest £10m into the same company, double the shares could be created. It means you would either have to inject money yourself to retain the same shareholding (in this case an extra £1m to keep 10%) or accept your shareholding dropping to 5%
It is a standard vehicle for investment and opens up the possibility for more funds to be injected into the club’s finances in return for a stake, rather than buying shares from existing shareholders, as was the case in the summer.
It is something that could well happen at Swansea amid the talk of stadium expansion. Without this deal, the Trust could have to accept a lower shareholding regardless, unless they could raise further capital. Having money in the bank allows the Trust the option to keep up its presence. WHAT IS THE LEGAL CLAIM? Having sought expert legal advice, the Trust believe they could have a case for ‘unfair prejudice’ over last summer’s share sale, namely in the claim they were kept out of discussions.
However, accepting this deal would HIS team-mates may have been away sunning themselves, but this summer has been more about hard graft than holidays for Swansea City winger Nathan Dyer.
The 29-year-old has not played since he ruptured his Achilles in the seventh minute of the victory over Leicester at the start of February.
The injury required surgery, ending his 2016-17 campaign and leaving Dyer facing a long rehabilitation process ahead.
Dyer, who secured a Premier League winners’ medal on loan at Leicester in 2016, has been targeting a September return to first-team action.
But to make that possible the former Southampton man knew his off-season would involve plenty of graft at the Swans’ Fairwood training base.
And he hopes to be out on the grass when everyone reports for duty next week. “I am optimistic about next season,” Dyer said. “It’s pleasing for me to know the manager and the coaching staff like me. My aim is to come back and try to break into the team. It will be hard because the other lads will be ahead of me, but I am confident I can get back to my best.
“The timescale to get back was about nine months maximum. I want to make sure I am right, so the only thing to do was to keep working throughout the summer and make sure I am getting the right rehab. Things have been going well. Touch wood there have been no setbacks so far so I can keep pushing towards getting back soon.
“I will be doing some running on the pitch in the next couple of weeks hopefully and then we will see. Hopefully, by the end of September I will be back in contention.” mean they would have to give up any plans to press ahead with it.
It has been described in the past as ‘the nuclear option’ as it would see the Trust battle with the club, potentially in the courts, and effectively end all hopes of working relationships.
In theory, nothing would change if the Trust lost any case, although it would be extremely unlikely they would be able to have any influence, even with a man on the board.
If they won the case, it would not invalidate the takeover, but it would likely see them able to force through an immediate sale of all their shares at the same price. That would, however, end any say in the running of the club with their entire stake gone.
The Trust revealed their legal advice recommended this should be a last resort if all negotiations broke down given the costs and unpredictability of court cases. However, it remains an option for members. WHAT HAPPENS NEXT? The final decision is down to the supporters.
Trust members – who have been e-mailed the full address made by chairman Phil Sumbler – will be now asked to vote with a postal ballot to be held within the next month. It has not been confirmed what will be on the ballot paper, but it is believed that members will be presented with three options: to accept the share sale deal, to reject the deal and continue as is now, or to reject the deal and pursue legal action.
The Trust board have made a recommendation to accept the deal, but it is thought feel they have a duty to members to present the legal option. WHAT WILL IT MEAN IF THE DEAL IS ACCEPTED? It should mean light at the end of the tunnel after a tense period and the continuation of positive steps forward in relations between the two parties in recent months. Sumbler’s address acknowledged an increased working relationship with the US owners and the hope will be that the club can move forward in a stronger position.
And Sumbler subsequently said: “A lot of hard work has gone in to get to this point. It would be nice to get this over the line as quick as we can so we can get back to concentrating on watching football.
“There are details to be clarified and this meeting is the first step of the process, but we hope the focus can go back to on-field matters and the club can move forward into the new Premier League season.”