About the Clubhouse

The Clubhouse Project could mark a real change in how MUST progresses, how we are perceived and how we perceive ourselves. The MUST Board and Committee proposed the project at the AGM, and members voted to pursue it in principle.

As things stand, we cannot give you the details of what is happening on this front, for commercial reasons. However, the information on this page explains the current status.

First is an explanation of why the Board and Committee feel projects like the clubhouse are the right step forward for our members and our organisation. That is followed by a discussion of why we believe the clubhouse itself is a sound idea. Following that are some questions and answers that have been raised by members in emails and on the forum. Finally, there's a survey we would ask members to take on the subject.

Why should we undertake projects like a clubhouse? What is the principle behind wanting to do this?

As members of MUST we all agree with the organisation's ultimate goal. We all believe that the Club should be owned by its loyal supporters. Where opinions vary is deciding how we best achieve this goal.

Just as in life, there are those who prefer to remain very conservative with their funds, while others are willing to take on different levels of risk in pursuit of higher rewards. The takeover has taught us a lesson in this regard though; while taking on too much is bad, taking on none at all is little better.

The MUST Board and Committee believe our best way of attaining our goal is to put our funds to work. For the Phoenix Fund to be truly viable in the long term it must grow from many sources, through projects such as the clubhouse. That is inherently going to involve a measure of risk, but through due diligence and solid planning we can understand and manage these risks. We're not talking about “get rich quick” projects. Don't forget that, as members, the Board and Committee have personal funds at stake, too. This is why we must consider each project carefully and judge it according to a set of practical criteria, such as the ones laid out below. It's also why the Committee has sought input from members, both informally and through formal means (such as the AGM vote in August).

Why is a clubhouse a good way forward for MUST?

Right now, we are a virtual organisation. We have a small office in central Manchester, but no other physical presence anywhere. Almost all communication is electronic. Supporters trusts all over the country have their clubhouses and premises where events & meetings can be held, and members can get together to exchange views and enjoy a friendly and supportive atmosphere. As the largest supporters trust in the UK, MUST should be no different.

But this is not just a social club. This is a business proposition, following a detailed business plan, which has to at minimum pay its way and if we are right in our projections, actually contribute significantly to the MUST funds and provide other benefits.

The clubhouse will act as a centre and a platform for all our activities – we believe it has real potential to enhance:

our public profile
our relationship with the Reds fanbase
our ability to promote our aims & objectives
our prospects of growing other fundraising initiatives like the shop, the mobile phone deal and other projects we have planned
our membership numbers and the ability to sustaining that growth

Importantly, we think it will prove to people that a business can be run by a democratic, mutual society like MUST, both profitably and with our members’ interests at the heart of the operation – just like we want our club to be run. It will encapsulate the principle that members/fans will be happy to spend their money at the club/house, knowing it all goes to the fund/club.

And finally, this should not be a competition or race with any other similar clubhouse project - there is plenty of room for more than one supporter-owned clubhouse (Liverpool apparently has 6 supporters clubs around Anfield!) and we should support each other.

These are the core reasons for wanting to go ahead with this project.

What are the key objectives and criteria MUST will seek to satisfy in going ahead with a clubhouse?

While the list that follows is phrased in the context of the clubhouse project, you can see that many of the points would be applicable for other projects we might undertake. We plan to use criteria like the ones below as broad prescriptions for all projects.

It has to be currently profitable, so that it can provide immediate income for the Phoenix Fund
It has to be within walking distance of OT, with a reasonable amount of matchday custom.
While its focus will be primarily on MUST members and activities, it will be open to ALL Reds and the public.
It should not be too expensive to acquire as a percentage of the members' total funds in the Phoenix Fund as it would be unwise to put all our eggs in one basket.
It will be owned by all members who put their capital into it – a reason for members to be proud of MUST and its achievements and its future as a supporters trust.
It should provide members who invest their capital with a decent return, with remaining profits paid to the MUST Core Account (the account that holds all the profits and proceeds of our fundraising endeavours).
It should be big enough to provide facilities for meetings, events and fundraising activities
It should have good quality food and drink at reasonable prices
A percentage of every pint drawn or meal sold should go to the Phoenix Fund.
It should be professionally managed, with help from industry experts, and overseen by experienced financial and legal experts. Indeed we have already been receiving advice and direction from these expert counsel in our initial discussions.
It should provide members with incentives to enjoy its facilities, like reward points for every pint or meal bought.
It should be a focal point for members and fans to support their team, with live match feeds and replayed games shown regularly.

Answers to some questions and issues raised

“It’s too risky”. First, the law as well as MUST rules forbid us from taking undue risks with our funds. Additionally, the MUST Board and Committee all have Phoenix Fund accounts too, so it’s our money as well as yours! We envisage the upfront investment (to secure the premises) to be around 15% of members’ capital, the remaining 85% or so stays in secure deposit accounts. We think this is an acceptable level of risk, given the other benefits and returns we expect to make.
“It’s a diversion”. We think the opposite. It provides an essential platform for us to grow our membership, our revenues, our profile, our commercial projects and (last but not least) the unity and affiliation of our members with MUST as an organisation to be proud of. The clubhouse will be professionally run and should not be a drain on our capital, human or financial. MUST is changing from purely a campaigning organisation, to a long term supporters trust with roots and depth. The clubhouse undoubtedly helps achieve that. We want to show that we can run a business as a mutual society, so that members known all profits from their expenditure go to the fund and, ultimately, to the club and the team!
“It will tie up our money, making it impossible (or difficult) to have the money available when the time comes”. First off, the amount we are talking about will not have a material impact on MUST and the supporters’ ability to buy our club (or a stake in it) when the time comes. We know we will need external funds and support for this – we have never claimed that we can raise the full amount of the cost of the buyback on our own. Second, until the buyback opportunity arises, the clubhouse will be leveraged to bring in much more income from its profits and from our other commercial activities than would be available from that capital being left in a deposit account. But at the last, if the need arises we can sell the premises to recoup (and even increase ) the amount of the initial investment.
“It’s just a social club for members”. As we make clear in the objectives, this is certainly not the case. Of course we want members to come regularly and enjoy themselves, but this is a serious business proposition with realistic plans to grow our funds & fundraising capabilities on the back of it. There are some good business brains in MUST and we need to exploit them for the benefit of all members & the club.
“It’s only going to benefit individuals”. Not at all. We fully intend to provide member investors with a return on their capital – this is only fair as they are taking on more risk and foregoing earning interest on their funds. Member investors will also have the opportunity to earn further ‘reward points’ depending on how much they spend at the clubhouse (more details on this to come). But the assumption is that the clubhouse will not only make money for MUST , it will also provide the platform for other fundraising activities. This is in addition to the other benefits it will bring – both tangible and intangible.
“I don’t want to invest my money in the clubhouse”. While we would hope you see the benefits of the clubhouse, if you prefer not to invest your money in it then that’s totally fine – you can withdraw your funds. It's your money.

We'd now like to get your opinions on the Clubhouse Project. As part of our own 'due diligence' efforts we would like to understand how likely members might be to use a Clubhouse if we were to go ahead. To this end we have developed a survey to determine the level of interest.

To go to this survey, please click here.

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