An Extraordinary General Meeting of the shareholders of both the Brentford Football Club and Griffin Park Stadium companies was called for 25 June 2001 to approve the resolutions for the transfer of Griffin Park to Brentford FC.

Shareholders voted almost unanimously, on a show of hands, for the propositions with a maximum of only two votes being cast against any of the proposals.

Brentford FC now owe Griffin Park Stadium Limited (GPS) £1.3M which is due in 2006.

The main reason for the sale was to allow the club to benefit from tax relief on Capital Gains Tax which would have been payable by GPS if the ground was sold by them. In simple terms the current rules only allow for a seller to build a new stadium for their own use, which clearly would not be the case if GPS were the owners.

BIAS are delighted that the football club now owns its stadium again, although it does have some concerns that the conditions which apply to the sale do not necessarily provide the safeguards they were designed to (see BIAS press release below).

BIAS concerned over ground sale

Brentford Independent Association of Supporters (BIAS) is urging the small shareholders at Brentford Football Club and its associated company Griffin Park Stadium Limited to oppose the proposal for the football club to buy back its stadium.

Although BIAS supports the principle of the club owning the ground it does not believe that the conditions attached to the sale are in its best interests. BIAS will oppose the proposals for the following reasons:

• The "Special Share" issued to former Chairman Martin Lange is exclusive to him and cannot be transferred. It will be invalid on the death or bankruptcy of Martin Lange or if an objection to a proposed sale of Griffin Park is not received within a specified time. This means there is a real risk that despite everything the ground could be sold without being vetoed by Martin Lange.
• The board's decision to use interest received from the deposit of funds raised from the sale of Griffin Park for the general purposes of the Football Club. This will mean that the real value of those funds will reduce in value over time. The board may justify this by claiming that it will help to balance the books but in essence it's pretty much like selling off the ground bit by bit to pay the bills, an exercise we've been through before.
• Altonwood have been benefiting from "Group Tax Relief" and Marlborough House will enter into a similar arrangement meaning that both companies benefit from Brentford's trading losses. Although this is quite legal it has always seemed a little immoral in view of the fact that the Football Club receives no material benefit from it at all. We do not understand where the board's incentive to reduce the trading losses will come, particularly as all debts will be repaid from the sale of Griffin Park. If the two companies were to make donations to the Supporters' Trust equal to the tax relief, enabling the Trust to recycle the money through the club, or use it for the new stadium sometime in the future, perhaps the arrangement would be more acceptable.
• It is not clear what the future of Griffin Park Stadium Limited is, or what happens to the £1,300,000 it will ultimately receive from the sale of Griffin Park. We see no reason for the continued existence of Griffin Park Stadium Limited, and are concerned that this money too will be lost to the club.
• The relief from tax on capital gains applies if the club is successful in its quest for a new stadium, within three years of the sale of Griffin Park. Ron Noades has been at the club for three years already and has frequently stated that the club has spent many years trying to secure a new stadium. There is no guarantee whatsoever that Brentford will ever enjoy the benefits of this tax relief. There has been very little progress on a new stadium and it therefore seems foolish to transfer ownership of the ground at this present time on this basis, unless the plan is to dispose of it as soon as possible. The Chairman of Woking has stated that he has no intention of offering Brentford a long-term home and there is now a very real fear that we will end up like Brighton or Wimbledon.
• We believe that the gross proceeds of any sale should be used for the purchase of a new stadium and that any debts incurred by the club should be carried over. We know that the interest saved will be substantial if debts are repaid immediately but it is the duty of the board to protect the assets of both companies. The proposals for paying off the debts are probably being made with the best of intentions but we think it's more important to concentrate on reducing them to as close to zero as possible rather than consider using the ground as some kind of future endowment.