Diamandis interview - detailed summary

Original involvement came from doing programme for past 16 years, former financial director Steve Jones invited Mike D to buy the shares left by McMahon.

Mike D decided to buy shares as he “built a programme business on the back of Swindon Town” and bought them through Mick Prescott(?) because Mike D didn’t want to appear on any sports register as his business was sport.

Mike D didn’t become involved in the club until he “discovered the club was in serious trouble”. Steve Jones asked him to find investors. This was the first time Mike D ever looked at the finances at the club.

This was roughly six/seven years ago. Mike D knew the Wills family had recently invested in the club as he designed the brochure for selling property which financed this investment. Mike D was shocked that after such recent investment the club needed a further £1.5m.

Rikki had left, Puffett was now chairman. Cliff invited Mike D to attend meetings, he declined. SSW requested Mike D attend, he accepted and at this meeting it was decided to bring in “specialist insolvency practitioners”. The debt was £1.5m; Mike D felt that the people in the room wouldn’t even raise £500,000. At this point SSW stated he wouldn’t “do anymore”.

Opportunity arose to meet other businessmen, persuaded Willie Carson, Cliff Puffett and James Wills to each put up £125,000 along with Mike D himself.

SSW then concluded a deal with Brady, SSW would get his money back and “the future was bright”.

Seven months later, Mike D attended a meeting where he and the other investors present were asked by Puffett if they could cover this month’s salary. Mike D was angry as “not only was the club not going anywhere but now it was facing failure again and my investment and my time was all going to be a waste”. Mike D refused to offer money but demanded to know why.

Mike D was then approached by Blatchley and Donegan and a deal whereby they would leave and the club would return to their hands of SSW was negotiated. However, they refused to sell the lease/County Ground and were only willing to part with the playing staff and liabilities. This went on for “quite a few months”.

Mike D created the consortium of himself, Bob Holt, Willie Carson, Cliff Puffett and James Wills – each put forward £125,000 again – and a long battle to regain control of the club began. The battle was to stop the club from going under; this lasted “about 10-11 months”.

The consortium took control of “no account departments, no cash flow, no input history at all” and administration was the first step. SSW re-motivated by willingness of people to stop the club from failing. He then decided to return as main benefactor, thus releasing Mike D, Cliff Puffett and Willie Carson from the “obligation” and “took the brunt of the restructure”.

Mike D “tracked around until [he] found St. Modwen”; they were given indications and promises from the council that they could redevelop Shaw Tip. This interest gave St Modwen the motivation to put up over £3m alongside SSW to “rescue the club from where it had arrived”.

Every subsequent year, Mike D has had to find nearly £750,000 to “keep the club going” either from St Modwen, SSW or Bill Power.

Bill presented himself as someone who “wanted to become involved in football” and came along “at a time when SSW wasn’t capable and didn’t want to and put up any money” and wanted to “manage” the club alongside the current board. Mike D was “desperate to get back to [his] day job”. Devlin returned as press felt communication was poor, Mike D agreed. Power’s interest in the club seemed “the perfect answer”.

Power met the board in January, but only attended CG two or three times in the course of the season and didn’t attend any board meetings. The deal was “one of the strangest deals I’ve ever done”.

Mike D talks about “character assassination” and without the Wills family the club wouldn’t exist. Refers to Fan’s Consortium as “our new friends” and insists that “no financial offer has been received from the Trust, from Mike Wilkes, from Bill Power, from Mark Devlin this evening […] we have not been formally approached”.

Hodgetts asks about Mike D’s history with SSW. They go back about six years. Mike D believes he’s spent all his life “learning how to rescue Swindon Town”. SSW does not want a stand named after him,

Consortium wants to talk with SSW without Mike D present, Mike D says this is untrue and has met with Paul Davis and listened “for hours” and believes housing on CG would prevent concerts et cetera from being held. Mike D is concerned about possibility of a ‘resident’s association’ alongside a football club.

Mike D claims Paul “asked and got” a full board meeting with SSW and Mike D where talks of redevelopment were discussed.

Meeting to create peace between “warring board” and “football trust”. SSW told Paul Davis he has “absolute faith in his team”. Trust statement subsequent to this meeting was a misinterpretation on Paul’s behalf.

Mike D was not allowed to be a director when original rescue occurred as DTI requested that he wasn’t. Trust reported Mike D, board members filled out paperwork which indicated Mike D was not running the club.

Mike D insists the football trust have “their own political agenda” and football club is being destroyed by people “totally focused” on his destruction, at the cost of the club. Mike D is “ready to be replaced”.

Mike D wants “proof they [investors] have substantial funds to replace the Wills family in every way”

The last five years not a failure, Mike D’s first involvement at the club was with a balance sheet of -£14,000,000. Today the balance is +£2,000,000.

Mike D has heard Bill Power say on the radio “he hasn’t got a lot of money”. In the club’s opinion he is a minority shareholder of the holding company.

One of the two interested parties withdrew last week – will happily provide evidence of interest and withdrawal – he withdrew after seeing the finances. Negotiations with the other investor will start again in the New Year. The investor is a “new entrepreneur” of a “successful business which is now in the top 1,000” and is looking at two or three football clubs.

New investor has not yet provided the proof which Mike D requested from the Consortium but have started “discussing the parameters”.

Shaun asks what they would want to leave and if there is a “ballpark figure”. Mike D replies that we are making assumptions that they want to leave. Mike D does not want “to be involved forever”.

Mike D doesn’t know what Paul Davis’ or Andy Ratcliffe’s day jobs are. Are they used to negotiating business deals? Mike D thinks their agenda is “wonderful” but remains concerned about their lack of experience/knowledge. Mike Wilkes claims to be “an experienced businessman of longstanding” but Mike D doesn’t know what his business is.

CVA agreement says “it is envisaged [...] by 2007/2008 a new stadium complex will be agreed, designed, built or partly built”. Mike D says “[he] had to unfortunately sell Fallon”. The CVA payment hopes to be renegotiated to delay the “bullet payment probably at the rate of £100,000 a year […] until a new stadium is agreed”.

Mike D does not believe the Trust have a copy of the CVA and “it appeared under one of these psuedonames (sic) on a website”. £100,000 is 2% of the turnover of the football club. The challenge is raising £800,000 and SSW has agreed to underwrite this obligation.

Shaun asks why there is a “projected overspend” after extra income this year. Bryan Adams made £19,000. Bonus scheme one of the best outside Premiership, was not agreed by the board. Things agreed without board approval are “a big problem”. Expenditure is outside last year’s parameters. Promotion and increased gates could balance the books. New funds must be found to balance the books in the summer.

In recent years overspend has been £750,000, this year’s forecast “dramatically over” that figure. Club will receive “a couple of hundred grand” from Wise & Poyet’s departure, “about £170,000” for Sean O’Hanlon. Mike D expects the books to balance this year.

Mike D’s brain sees everything as having financial implication on the football club but is not involved in day-to-day operation. Mike D has presented to 30 development companies, 7 or 8 investors and will continue to do so. Reference to Reading’s redevelopment and increased turnover.

Provided people ‘don’t tear the football club apart’, a new council have committed to help the football club. “If we could stop, just for a short while, pulling each other apart, I think that the future could be orange”.

Hope to redevelop the County Ground “to a modern complex not dissimilar to the Reading complex”. Plans/designs submitted over 18 months ago. Club have been approached to move to J17 but would prefer to stay at the CG. Recent conversations with council show willingness to discuss future plans. Bowden’s specific job is stadium development. Talks are ongoing with other party. Club are not trying to pressure the council.

Mike D claims evidence of funds from Consortium is a “photocopy of somebody unknown in a high net worth account who’s not prepared to say who they are and they say this is proof of funds and that we are to take them seriously”. Mike D understands SSW met with Mike Wilkes and asked SSW if he would like to sell the club and make a small profit, the answer was positive – no questions were asked as to how much. This is the only meeting there has been.

Mike D unaware of what Bill Power is worth, doesn’t believe he has sold his business so therefore may not have the funds. Any figure to buy the club is one which the Wills family would need to agree to but depends who investors are. SSW willing to show lenience towards the “new entrepreneur” rather than someone they are uncomfortable with. Mike D does not know what the Trust have to offer. Considers the playing squad a sellable asset. Mike D represents SSW and St Modwen on a daily basis.

Mike D does not believe there is negotiation ongoing with the Trust “in a way that means anything”. Clarke Wilmott are “the leading firm in sports management and negotiation”. Trevor Watkins has been waiting a call for months. Mike D understands Paul Davis and his board think that the STFC board are “doing a terrible job”. The club belongs to the fans.

Mike D is a shareholder, though holds his shares through a nominee. Has the power to vote with SSW’s shares. Believes Martyn Starmes and his team are doing a good job. Defines his role as “manager of the football club” and was appointed around 2000.

Mike D does not want to be in the public domain as he is a shy person, lacks charisma of Rikki Hunt and Cliff Puffett. Club is a private business and Mike D is doing his job as a shareholder.

Mike D is not a shadowy figure, everyone at the club knows him as do most of the journalists. Declines interviews as it “takes a lot of thinking and research”. Mike D wishes to leave the public domain if no takeover is forthcoming.

Number of programmes sold makes about £15,000 per year gross profit which goes back into his business. The football club owes him about £136,000 for supplies and hopes to get the money back in better days. No contract between DSM and STFC exists. Salary agreed with the Wills family and sometimes draws expenses. Does not believe there is a conflict of interests.

END.