Huw Jenkins set for key vote on Newport County takeover

THURSDAY evening is decision day for Newport County AFC when a vote will be held for a proposed takeover by former Swansea City chairman Huw Jenkins.

The Exiles have been owned by a Supporters Trust since 2015 but fans will head to Rodney Parade to potentially start the process of handing over control of their club.

If the green light is given then a Jenkins takeover could be complete by December, here are the key points ahead of the meeting…

The rise and fall of Huw Jenkins at Swansea City - Wales Online

WHY CHANGE?

It is driven by finances.

County posted a posted a loss of £1.2million for the year ending June, 2022 with accounts revealing liabilities of £393,634.

With the League Two club operating with structural losses of around £300,000 a year, the board have made it clear they feel that a change of ownership model is required to survive in the Football League.

County have no assets – they don’t own Rodney Parade or their Spytty Park training base – and have previously relied on lucrative cup runs under Michael Flynn, while they haven’t generated funds through player sales.

WHAT IS PROPOSED?

The Trust is the majority shareholder in the club with 78.8 per cent of the 269,000 shares. The remaining 21 per cent are owned by around 600 supporters, most going back to the formation of the Exiles in 1989.

If Jenkins gets the go-ahead, he will be transferred 52 per cent of shares for an initial investment of £500,000. The Trust will have 27 per cent of shares

HOW DID JENKINS GET PICKED?

County’s board appointed former director Colin Everett to assess the credibility of offers and he worked as a conduit.

Advanced talks took place with two bidders – Jenkins and a US-based partnership of Jon Pratt, Newport-born and a co-opted director of the club, and Dan Donoghue, who works in the finance sector and who has developed a keen interest in County.

The bidders were given access to the club’s finances, leases and contracts.

The board, whose process was agreed with the Football Supporters Association, will outline why Jenkins got the nod at Thursday’s meeting but a rundown of his plan for the club is: HERE.

WHAT WILL HAPPEN AT THE MEETING?

The meeting will be held at Rodney Parade and with around 350 members and proxy voters expected while others had the chance to appoint the chair to vote on their behalf with an instruction for or against.

The board will outline why they chose Jenkins and the ex-Swansea chairman will then outline his plans to supporters and answer any questions.

There will then be a vote – on ballot papers rather than a show of hands – and the proposal needs the green light from 75 per cent after County deemed to be “a set of extraordinary resolutions”.

Under the current rules of the Trust, they could have been presented as ‘normal’, which would have just needed a majority, but the club feel such an issue needs a large majority.

The meeting starts at 7pm and it is hoped to have a decision by 10pm.

WHAT HAPPENS AFTER THE VOTE?

If it’s a yes then Jenkins will need to go through the EFL process for taking over a club; his time at Swansea should ensure that goes smoothly but it could take around eight weeks.

That period will be spent with the current board and Jenkins working on the acquisition of the shares.

When that process is complete, the current board will stand down but will offer support to help the new owner get their feet under the table.

Jenkins has also stated that the new board of directors would feature two places for the Trust.

If it’s a no then the Trust will need to either renegotiate with Jenkins, talk to the other bidders or invite new offers. It would have to raise funds if retaining ownership.

The board have made it clear that such a scenario will present some immediate, and daunting, financial challenges for the club.

WHAT HAPPENS TO THE TRUST?

Jenkins’ proposal stresses that the Trust will still have an important role to play, although there will no doubt be challenges in terms of membership if no longer having control.

The Trust currently raises around £100,000 and it has been suggested that future financial contributions could be ring-fenced for the playing budget or academy rather than contribute to the running of the club.

Note: The Trust have advised members who have pre-registered to attend the SGM to arrive by 6.30pm to get registered and admitted.

The doors will be open from 6pm with a prompt start at 7pm. The deadline for appointing proxy voters has passed.