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THE BOARDROOM … A SURREAL NIGHTMARE

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As 2013 dawned it heralded 130 years since County first came into being. A proud history; largely spent in the lower regions of the Football League; the odd eye-catching cup triumph; skirmishes with financial penury and occasional brushes with administration which cast doubts on the future. But it is no exaggeration to say that 2013 in general, but especially the first 5 months of the year were the darkest of days. The names Snape; Fearn and McKnight will forever live in infamy for their culpable custody of the Club.

Fans had suffered over the period of administration and the exit from it promised better days. Little did anybody know that an organisation which had emerged from admin with a debt free position would spend the next two and a half years running up losses of £1.266m; falling out of the Football League after 106 years of continuous membership; seeing five managers; countless players and were in peril of descending into regional football. It had been mismanagement on a biblical scale, but the period from January to May 2013 uplifted the scale of mismanagement to aprocryphal.

My post on the Home Games in 2013 ends by stating “The previous 12 months had been heartache and humiliation all in the context of a Boardroom that resembled some surreal, out of this world nightmare”.

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THE CHRONOLOGY OF 2013

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Whilst there is a full account on the Home Games 2013 page it is worthwhile at this point laying out the chronology of the year; the key dates; the comings and goings; and some of the off the field activities which only came out when information was in the public domain.

January 15th: McKnight announced as CEO; Gannon sacked

January 24th: Darije Kalezic appointed as Manager with Stuart Watkiss as his assistant

March 12th: Watkiss leaves the Club by mutual consent after ‘health issues’

March 20th: Kalezic leaves the Club by ‘mutual consent’ and is immediately replaced by Ian Bogie

April 9th: A loss of £402k for the financial year 2011/12 is placed in the public domain at Companies House. (This made it £1.267m in two years)

April 20th: County relegated from the Blue Square Premier after a 4-0 defeat at Kidderminster

April 23rd: McKnight appointed as a Director of SCFC 2010 Ltd

April 26th: The Club announces it will be a part-time operation from the 2013/14 season

May 10th: Fearn resigns as a Director of SCFC 2010 Ltd

June 20th: Richard Park and Jon Keighren appointed as Directors of Stockport County 2010 Ltd

June 27th: Terry Mitchell appointed as Assistant Manager

July 30th: A charge registered on the “Assets, Property & Undertakings” of Stockport County 2010 Ltd in favour of Chris Bramall and E. Park & Sons indicating that loans had been made

August 31st: Bogie resigns immediately following a 3-1 defeat at Harrogate

September 3rd: Alan Lord appointed as Manager, with Mitchell remaining at the Club

November 6th: A charge registered on the “Assets, Property & Undertakings” of Stockport County 2010 Ltd in favour of E. Park & Sons indicating that loans had been made

November 7th: The decision of Stockport MBC, (made on 27th September), to designate Edgeley Park as an Asset of Community Value became effective

November 22nd: Snape resigns as a Director and Mitchell resigns as Assistant Manager

November 29th: A charge registered on the “Assets, Property & Undertakings” of Stockport County 2010 Ltd in favour of E. Park & Sons indicating that loans had been made

December 21st: The Sea of Blue March from the Nursery Inn to Edgeley Park

December 30th: A charge registered on the “Assets, Property & Undertakings” of Stockport County 2010 Ltd in favour of E. Park & Sons indicating that loans had been made

December 31st: A charge registered on the “Assets, Property & Undertakings” of Stockport County 2010 Ltd in favour of E. Park & Sons indicating that loans had been made

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A REFLECTION ON EFFECTIVE BUSINESS MANAGEMENT

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So, just taking a step back and reflecting on what happened, a little bit of context from my own working life is appropriate. I held reasonably important roles at the local Council for 25 years, and then for the last 16 years of my working life was Deputy Chief Executive of a large Housing Association, with specific responsibility for the finances. It wasn’t a small operation. There were 20,000 houses; an annual turnover of getting on for £200m, and I negotiated, and put in place, a funding structure of just shy of half a billion quid. My operational role had responsibility for maybe 200 staff, and I was a part of the Management Team which ran the organisation. It’s a fair basis for knowing what are the key factors which deliver a viable, successful business.

I found that one of the main challenges was ploughing the way through the bullshit that presented itself. The number of consultants; management gurus; organisational development prophets, and other associated shysters that crossed my path were manifold. A whole industry grew in the period from the mid-1990’s, and a profitable operation it was as well. There’s an adage that I found that “a consultant is someone who takes your watch; tells you the time and then charges you handsomely for the privilege”. And these conmen got away with it because they dressed up their offerings in ‘management speak’. All sorts of buzzwords and catch-phrases appeared, and the gullible fell for them.

In his book “ducks in a row: An A-Z of Offlish”, Carl Newbrook talks about Ricky Gervais’ classic “The Office” and then goes on to say:

“Something that was not developed in the series, however, was that The Office has spawned its own extraordinary, diverse comic language …. This is an unappetising stew of acronyms, adages, catchphrases, cliches, euphemisms, jargon, ugly neologisms, bogus phrases and slang .. It is language that is not designed for clear communication. It is the language of avoidance, of hoodwinking, of half-truths and outright lies. It is the language of bullshit.”

Spot on Mr Newbrook. It is the language of those who, by self promotion, have seen themselves exalted to a position for which they are totally unsuited; do not possess the required competence and not only offer little but, more accurately, provide a contribution which has a negative impact. The key phrase in the last sentence is ‘self promotion’ – it is the absolute certainty of their intellectual superiority which leads them to conning the gullible. I gave them short shrift. It is almost a crime that Messrs Snape and Fearn were entranced by a truly sector leading purveyor of this nonsense.

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RYAN MCKNIGHT – BLUE SKIES THINKER

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Tuesday 15th January was a day not to be marked by a stone but forever in the mid of all County fans as the moment that cast us into regional football. In mid afternoon that day the Club announced the appointment of Ryan McKnight as Chief Executive Officer. An interview with him left people aghast. I couldn’t believe my ears – all the nonsense that I had railed about in my worklife was crystallised into it. It was Management Psychobabble, (aka bullshit), from start to finish. I wrote the words above and then wondered if it was still available on You Tube. The original wasn’t but someone else was of the opinion that this was The Office reborn. Take a look here. Running through it we heard the new CEO come out with, (as Carl Newbrook says), an unappetising stew of acronyms, adages, catchphrases, cliches, euphemisms, jargon, ugly neologisms, bogus phrases and slang

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I was Editor in Chief of FC Business which of course is the pinnacle of talking about best practice in the business

I’ve been looking for a blank canvas

There’s a difference between having 10 years experience in the game like I have than having 1 years experience 10 times

From the very outset of working in the football industry I’ve naturally gravitated to those who are most revolutionary in their thinking

I think I’m a 360° person

Things are going to work out for the best as a by-product of the work that we do

We’re going to be managing the long term goals on a short term basis

The very sense of football is the art of managing the science

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So having heard that complete load of bollocks, and being well aware from my business life that anyone who comes out with that kind of stuff was, in all likelihood, a chancer at best and a liability to boot it was time for a little research. There wasn’t much time for that – we were due to play Mansfield that evening, so a quick surf around the web confirmed my suspicions.

My first port of call was to look at “FC Business”. McKnight had proclaimed it to be “…the pinnacle of best practice in the business”. Promising stuff you might think. His role as Editor in Chief, (which he left 5 months before arriving at EP), should have given him access to stuff that would be of use. But, playing in the 5th Tier of English football I felt uneasy about how much of this would be relevant. He was also CEO of the UK arm of the World Football Academy, founded by Raymond Verheijen, previously coach of Wales and at that time in charge of Armenia. Once again the relevance of that to an English non-league team was a moot point. As it turned out some might argue that this connection was pivotal to the debacle that unfolded.. But at risk of being accused ageist, I simply failed to see how somebody only 7 years out of university; aged 30, and with no practical experience of running a football club was the right selection. And in that assessment I wasn’t wrong.

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15TH JANUARY 2013 – THE DIE IS CAST

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McKnight was unveiled on Tuesday 15th January, albeit that he was not supposed to be in post formally until the start of February.

Five hours later we played Mansfield at EP. Danny Hattersley missed an early penalty; the Stags rifled in three before half-time and we went down 3-1. It left us 21st in the table, (in the relegation zone but with games in hand).

Within the hour news had broken that Gannon had been fired. My feeling that had been there since Snape’s infamous rant after the defeat at Woking in December had come to fruition. Tales had emerged that his budget was continually being cut as the season unfolded, and certainly the performances on the field left lots to be desired. Equally, it was no secret that McKnight had been hanging around in the background for a few weeks. In hindsight, I can only come to the conclusion that the appointment of McKnight emboldened the two man Board of Fearn and Snape, (Kevan Taylor seemingly had little influence or interest by this point. His role was solely as Kennedy’s eyes and ears). They must have been seduced, or entranced by this corporate bullshit speak that came from him, plus of course the promises that his contacts would turn things around.

It’s fair to say that Day One of the McKnight era set the scene for the surreal events of the next few months.

In summary we saw a Bosnian manager with no experience of English football, (never mind the non-league variety), come and go; countless players sourced from McKnight’s contact book arrive; ludicrous decisions to let reasonable if not earth shattering players go; the arrival of another manager, (one who had turned down the opportunity to be Kalezic’s assistant); and then relegation into the 6th Tier on a day of infamy at Kidderminster. All the events of that period are catalogued in the Home Games in 2013 post. Even fans of other clubs who may happen on this site who may consider themselves hard done by events at their Club must surely be open mouthed at this shameful episode in County’s history.

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A DAY OF INFAMY – APRIL 20TH

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We travelled to Kidderminster on April 20th, knowing that a win was crucial and depending on results elsewhere. There will be plenty more about this day when I come to craft a post on Aggborough. The history books record it as a 4-0 defeat and relegation to the 6th Tier. But it wasn’t only the outcome that marked it down as a day of infamy but the events surrounding it.

With so much riding on the game, (not only from our perspective but also Kidderminster who were well in with a shout of promotion), Kidderminster’s preparation was pitiful. No police in attendance in the ground for reasons of cost; no barrier between the stand and the pitch; and what was always going to be a huge County following shoehorned into half of the stand behind the goal, and a couple of hundred seats on the side. Fearn; Snape; McKnight et al were advised not to attend the game for their own safety.

Throughout the first half it was self evident that things were going to ‘go off’. And as County conceded goals so it surely did. With pitch invasions and an opposition player being attacked the referee suspended the game whilst police had to be called in. Frankly it was disgraceful

Even to this day there are apologists for the behaviour, and some of those apologists should know better. I find it inconceivable that it can be defended. The perpetrators, loudly proclaimed by some to be long term County diehards, have been defended by saying that it was the frustration of seeing the Club decline into regional football and that it was perfectly excusable. Absolute bollocks. What I found interesting is that the characters I saw involved hadn’t been particularly present at places like Dartford and Ebbsfleet a few weeks previously … nor have I seen too many of them too regularly since. I was ashamed of what I witnessed and equally ashamed of those who chose to defend them.

We lost 4-0 by the way. Not that I saw it to the end. I was so appalled by what was going on I left with 20 minutes to go. Perhaps the lowest point in my 57 years and 1,957 games.

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PLANNING FOR DECLINE – GOING PART-TIME – APRIL 24TH

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The decision to go part-time was one, as I said at the time, to be so short-sighted as to verge on negligent.

Fearn said at the time of the decision, (handily only a fortnight or so before he resigned from the board and walked away from the responsibility):

“This decision has not been taken lightly, but it is the most appropriate way to take the club forward and keep Stockport County sustainable in non-league football. This is very much a temporary measure, which we will review when we win promotion”.

My view about the short-sightedness was framed on on a fairly good knowledge of the game at the 6th Tier, regional football. I knew, (unlike many who thought that it would see an instant return to the Conference), that it would be a hard task, and to succeed would require a degree of speculation. The old adage, (speculate to accumulate), came into play. I’m well aware that it was very easy for me who wasn’t putting the money up to say that.

The only sane decision was to stay full time, and put every effort into an instant return. The numbers back this up. In the 2012/13 season we averaged 3,480 for Conference games; in 2013/14, (Conference North), it had fallen to 2,593, a reduction of 25%. Based on an arbitrary average admission charge of £10, (which won’t be too far away from the actual), this equated to an annual fall of £186,000. Added to which a successful team would have pulled in the crowds. The experience of 2018/19 is ample evidence of this. The average that season was 4,001. That would have generated another £110k. The decision to go part time arguably reduced the Club’s income by nearly £300k, and with no other meaningful revenue stream it was cataclysmic, especially when it became fairly common knowledge that the playing budget had been reduced to something in the order of £250k.

With the benefit of hindsight the decision to go part time led to a six year stay in regional football. Had the Board in April 2013 understood the challenge ahead and put the resources in place to make a meaningful attempt at an immediate return, (the old speculate to accumulate philosophy), then not only would the crowds build back up, but those who were left to pick up the pieces, (Bramall and Park most notably), would not have had to dig so deep into their pockets.

I would argue that not having done that in 2013 when the competition was not so great was a huge opportunity missed. Within 2 years the advent of the monied clubs, (Fylde; Salford; Harrogate etc), made the task almost impossible when operating on a part-time basis.

Those who made that decision had all gone within 12 months. Fearn went within 16 days of it being made; Snape went in November, and McKnight and Taylor vacated the premises the following April. A complete dereliction of duty and abrogation of responsibility, and it is them I hold totally and utterly responsible for 6 years in regional football. Frankly, I wouldn’t put them in charge of a corner shop given their record at EP.

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AN ASSET OF COMMUNITY VALUE – NOVEMBER 7TH

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Whilst the post administration period from 2010-13 is a litany of mismanagement, with on the field performances being a direct reflection and consequence of appalling ineptitude in the Boardroom, there is little doubt that the true catalyst for this situation was the separation of the Club and Ground when Elwood sold out to Kennedy. From that moment onwards, despite the good intentions of the Trust, the Club was simply financially unsustainable. All revenue generating sources had also been stripped out. The exit from administration gave a clean slate, and the custodianship left huge amounts to be desired, but without the opportunity to generate revenue it was going to be a hard slog. Regaining control of the ground was the single most important objective. But there was always a spectre in the background. The location of Edgeley Park had always commended itself to football fans. Ideal for rail, and other transport connections, and part of the town, unlike many of these new staid that had popped up which were miles from anywhere, (The New Meadow and the Colchester Community Stadium readily spring to mind). But that location was always going to be attractive for other interests. Prime development land and ideal for commuter housing. Over the years tales had emerged about the site being sold and County moving to a flat-pack, breeze block, soulless location. There was little appetite for that amongst the fan base, and from that concern came the idea of having it registered as an Asset of Community Value under the provisions of the Localism Act. Mike Davies wrote a piece about it which was published on ‘All Things Stockport County‘. It’s reproduced in full below. It was one of the few pieces of good news in the middle of the maelstrom of despair that encircled SK3 in 2013.

A league table of important football grounds gaining Asset of Community Value status would no doubt see Old Trafford and Anfield on top, followed by Ewood Park and Portman Road – each, in their time, home to the champions of England.

But for the supporters of Stockport County, getting Edgeley Park declared an Asset of Community Value (ACV) feels like a table-topping achievement after the disappointments of the last few years.
After much hard work, the Supporters’ Co-operative, backed by Supporters Direct, were delighted to hear that Stockport Council agreed with them that the stadium is a valuable community resource. As a result, under the Localism Act, any intended sale by owner, Brian Kennedy, would have to be put on hold for six months to give the Co-op a chance of raising the cash for a bid of its own. *

Inevitably, the fans have emotional attachment to the stadium. You don’t have to be very old to have memories of wonderful nights and days at Edgeley Park: Danny Bergara’s supercharged lot of the 1990s bearing down on the opposition’s penalty area and Kevin Francis petrifying his markers; Dave Jones’s rather cooler team beating a series of top clubs on merit in a League Cup run that ended unluckily in the Semi Final; and Jim Gannon’s youngsters doing a creditable version of basement league tiki-taka.

But the ACV has more than emotional significance. The fans of this well-respected Club have watched it slip into the second tier of non-league football, operating on a part-time regional basis. Only a dozen years ago County were in the equivalent of today’s Championship. Loyal beyond belief, the supporters have found it difficult to translate their commitment into a collective response to this decline.

Scarred by the then fan-owned Club’s collapse into Administration in 2009, they have viewed the Co-op, the reformed Supporters’ Trust, with a mixture of scepticism, indifference, and, on occasions, open hostility. But sheer disbelief at the present plight of the Club has finally galvanised the fan base. They realise that if they want to influence a revival in County’s fortune they need to get organised; and the Co-op has the legal and financial structures for doing just that.

This is why the ACV is so important. It is an early landmark in the Co-op’s revival, a tangible achievement of working together.

There are also practical benefits. For a number of years the Council’s policy intentions with regard to Edgeley Park have been subject to an enormous amount of rumour and speculation, hardly any facts, and even less action.

The granting of the ACV application has put Edgeley Park into the spotlight. The Co-op has done some useful networking with the officers in the Town Hall. The Board now hopes to open up a dialogue with the Council about the stadium’s potential as a community asset, and, importantly, its use by the football club.

Stockport County Supporters’ Co-op are holding their AGM on December 3rd, and for the first time in several years a contested election for seats on the Board is expected. This is seen as a sign that the fans are taking seriously the need to get organised to give the Club and themselves the future they deserve.

* In 2003 Brian Kennedy bought the football club and at the same time found a home for another of his possessions, Sale Sharks. When he sold County to the supporters for £1 two years later, the stadium wasn’t part of the deal, except by way of an option to pay off a £4 million debt on it.

Mike Davies

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SEA OF BLUE MARCH – DECEMBER 21ST

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The groundswell of dissent from County fans had built throughout the year. Not only expressed in a totally unacceptable, (IMHO), manner at Kidderminster, but also more constructively at a series of meetings at the Blossoms. The loss of the ground to Kennedy had clearly been a key factor in the Club’s descent into regional football, and the corresponding loss of income streams from the facilities at Edgeley Park.

The issue of the ground being sold for other purposes had, with the granting of ACV status, provided a limited degree of assurance and a breathing space which would mean that any disposal would, in the first instance, leave the Supporters Co-op with the opportunity to explore, and hopefully put in place, funding to effect a purchase.

However, it was an open secret that finances were still parlous. In the two years since administration had ended losses of £1.267m had accrued. Absolutely staggering for a business that had started with a clean slate. The Club was being underpinned with shareholder funds, and as had become evident from information at Companies House, loans from Directors which were increasingly being tied by way of a charge on the Clubs Assets; Property and Undertakings.

There was an increasing backlash against McKnight with no seeming meaningful and directed action from a Chief Executive Officer in terms of addressing the key issues related to the financial infrastructure and governance of the Club. There had been a continued stream of management-speak, and an austerity regime introduced which had seen a move to part-time football and ludicrously things like the cost of bins. One of McKnight’s opening salvoes back in January had been “We’re going to be managing the long term goals on a short term basis“. What had transpired gave little doubt that the short term actions were going to consign the Club to a long term future in regional football.

Equally, there were a number of “silent” shareholders who had invested in the Club subsequent to administration but who now played no role. Their shareholding, (and lack of any apparent move to dispose of it), was acting as a drag on the other shareholders. There had been many calls for them to ‘put up or shut up’.

Things crystallised 4 days before Christmas. Steve Gibbons had been particularly vociferous on Yellow Board and came up with the idea of a march from the Nursery Inn, (which had been the changing facility when the then Heaton Norris Rovers played at Green Lane), to Edgeley Park. It was designed to bring to the attention not only of the Directors, but also the media generally, four things.

1. To end the culture of ‘Blue Sky Thinking’ which was unquestionably instrumental in the fall into regional football

2. To persuade the non-active shareholders to donate their equity to the active shareholders

3. To support the active shareholders in engaging with possible sources of investment

4. To improve communications between the Club and supporters and in doing so to work towards a greater say for supporters in Club affairs.

The March certainly made a visual impact. Around 500 fans turned up – from young to old – and it made for quite a sight as it snaked down and up Wellington Road. passing Mersey Square and turning onto Greek Street, before the traffic was held up on the Armoury roundabout as the marchers were allowed to cross ‘as one’.

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The most excellent “All Things Stockport County” site has a full report, and a multitude of photos of the event. View it here.

It also had a wider impact and generated a fair amount of publicity bringing the sorry situation to a wider audience. It is arguable that each of the objectives was achieved, albeit perhaps in a longer time scale than originally hoped for. McKnight lasted 4 more months and there was certainly an improved communication platform between Club and supporters.

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2013 IN SUMMARY

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The 365 days of 2013 were a shambles of huge proportions – on and off the field, with the inadequacies of the latter effectively framing the former.

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OFF THE FIELD

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The Boardroom: A board constituted of three people saw two of them disappear. Fortunately the two who did go, (Fearn and Snape), were the primary architects of the debacle that unfolded. Coming in was McKnight, who frankly made the Club a laughing stock in eyes of the public not only for the ‘management speak’ but also bringing in people totally unsuited to regional football. Also added later were Richard Park and Jon Keighren – and once the opportunity for some form of stability arose, after McKnight left in April 2014, with Park and Keighren there were at least ‘County people’ in charge, and even writing this in the summer of 2020, I for one am grateful for the work they did in the ensuing years.

The Finances: The published accounts showed a parlous position, and despite McKnight’s austerity drive, (which concentrated on minutiae), there was no suggestion that things were improving. The information which became publically available showed that two Directors of the holding company, (Chris Bramall and Richard Park), were pumping money in, and taking charges on the Club assets as security..

The Fan Base: The year was truly dispiriting for the fans. A relegation into regional football, and for those. like myself who travelled away, it was an introduction to places like Vauxhall Motors and Histon. Not in any way to disparage these Clubs, (as a constant theme of my writings on this site I have found the regional football spectating experience refreshing at times), but when away trips had only just over a decade previously been to places like the Stadium of Light and Maine Road it was a stark demonstration of the extent of our fall. The encouragement as the year came to an end, initially through the approval of Asset of Community Value status, and then the impact of the Sea of Blue March did at least give some hope for the future.

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ON THE FIELD

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There were 47 games delivering 13 wins; 10 draws; and 24 defeats. They were overseen by 4 managers who used 52 players. Relegation into regional football. The bald statistics tell all, and no more needs to be said.

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Previously: Beyond Administration – 2011/12