The following is a statement from our Chairman Derek Graham in response to recent requests to explain the club's structure and ownership following accusations towards Frome Town AFC Ltd.
"In the light of recent comments about ‘the football club’, I am setting out here how we operate and importantly what Frome Town AFC Ltd do and don’t do.
Whilst understandable, it is misleading to refer to ‘the football club’ as if it was one entity.
There were previously three limited companies (now two) which have separate and distinct responsibilities.
Frome Town Holdings
What is known as the 'top company' is Frome Town Holdings Ltd. That company owns Badgers Hill and all that stands on that land. This includes the Clubhouse which they let to independent tenants.
Frome Town AFC Ltd
However, Frome Town Holdings Ltd is not a trading company. This means that any income from clubhouse rent, gate money, club sponsorships etc... comes to the company of which I am proud to be Chairman, namely Frome Town AFC Ltd.
It also means that we have the burden of all expenditure relating to Badgers Hill.
But to be clear we ‘own’ nothing except loosely speaking the players!
Our company is one that is known as ‘limited by share’. There is only one share, and that is owned currently by Frome Town Holdings Ltd.
It is our wish that this ‘golden share’ will in due course be transferred to the newly formed Frome Town Community Benefit Society.
Frome Town Ltd
There was a third company, Frome Town Ltd, now in liquidation which previously ran the Clubhouse that closed during lockdown.
Directors
The Board of Directors of the two existing companies (Holdings and AFC) are different in their composition.
While two Frome Town AFC Ltd Directors (the Vice Chair and the Company Secretary) sit on the Board of Frome Town Holdings Ltd, they do so as representatives of Frome Town AFC Ltd in accordance with the Articles of Association of Frome Town Holdings Ltd.
Frome Town AFC debts & loans
When I became Chairman I sought assurances from the previous Board in respect of Frome Town AFC Ltd’s then level of debt. It turned out to be significantly more than the estimate I was given.
I am proud to say that through careful financial management Frome Town AFC Ltd has settled all the debts I inherited, with the one exception of a substantial liability to HMRC which had accumulated over a number of years prior to my arrival. We are paying off that debt!
Whilst not provided with the detail, I was also told that all existing loans had been transferred to Frome Town Holdings Ltd.
Moving forwards
It hurts me to think that in some way people want to withdraw support for Frome Town AFC Ltd for something they perceive we have done. I can assure you we run this company with the utmost probity, although it’s damn hard work making ends meet.
That’s why I ask you all for your continued support in whatever way you can."
Derek Graham
Chairman
Frome Town AFC
A clear statement on behalf of Frome Town AFC, maybe a similar statement from Frome Town Holdings or iits directors is needed to clarify the details of the recent social media claims of an outstanding £10k loan?
It is so refreshing these days to read a frank and clear statement from the Chairman of a football club. I also support a Championship club owned by Hong Kong directors and the Chairman is a mysterious figurehead. Well said Derek you certainly have my support and I will continue to attend Badgers Hill.