Update 06: EGM cancelled… a “crisis” that really, really wasn’t!

In reaction to receiving unexpected (who knew?), “shocking news” — a projected increase in electricity costs for the coming financial year:

ROC said that unfortunately, there is really no way that the club can remain open, unless members accept and fund the extra expense, collectively, for a period of at least one year.

Richard O’Connor (Finance Director) – NSRC Committee meeting
(3 March 2022)

And with that emphatic but fundamentally flawed, breathtakingly reckless statement a crisis was conceived resulting in the unnecessary and inappropriate calling of an Extraordinary General Meeting — members must either pay up or the club closes.

The reality, contrary to the statement’s assertion, is that the minutes of the preceding Committee meeting of 3 March confirm the directors’ failure, perhaps refusal, to do what any struggling business should in such circumstances — give proper consideration to reducing their largest fixed overheads. For example permanent staff costs which, as we understand it, are currently draining the club of approximately £4500 per month.

We’ve already stated our view in respect of permanent staff costs in our previous post, EGM to be convened – Potential club closure… really?, but it’s worth repeating:

“Of course, reducing permanent staff costs should have happened some time ago as for many years, even prior to Covid, membership numbers have been insufficiently high to justify or sustain paying the salaries of two full time managers.”

It might well be the case that the directors’ views are contrary to ours — that they believe the club must retain the services of the two managers at any price, including closing the club, as is clearly stated in their Notice for an EGM.

If so they must surely make absolutely clear to members that if they wish to continue supporting such a luxury they will have to pay much more for it.

So, this manufactured “crisis” appears to have been rather easily averted following the directors’ apparent acceptance of the viability of “sensible, achievable solutions” proposed by a handful of concerned members.

Though the “Cancellation of the EGM” notice will be welcomed by most, even some who might have justifiable reason to celebrate the club’s demise, it’s patently been deliberately drafted in an absurd attempt to save face. The opposite has been achieved as it’s actually so much more embarrassing than it would have been had the directors been open and honest.

Click here to view/download the “Cancellation of EGM” notice incorporating website commentary:

To summarise the commentary:

• Contrary to the director’s absurd portrayal, of members’ misinterpretation, the “Notice for an EGM” was categorical in stating that the closure of the club was the only outcome if members didn’t accept additional payment — mirroring the flawed statement of the finance director upon which the calling of the EGM was based.

• Given that the directors portrayed the matter as being a crisis why have they avoided listing those “sensible, achiveable solutions”, suggested by members, which were so influential in forcing the EGM cancellation?

• Having avoided, for whatever reason, listing those “sensible, achiveable solutions” the directors, absurdly, now instruct members to carefully consider them. Are members to guess?

• Having stated that the one‐year rate would result in an annual cost increase of £36,000 the EGM notice then stated that the three‐year rate was “slightly” better. The directors now confirm the rate difference to have been nearly 25%. That’s only “slightly” better, really?

Given the above we’d be surprised if there remains any more than a handfull of members who have yet to ask themselves whether or not anything these directors say can be taken at face value.