Thursday 29 September 2016 12:55, UK
A Kilmarnock Supporters' Trust board member has warned the club could run out of money if former chairman Michael Johnston continues in his position at Rugby Park.
Gary Torbett, a business adviser, claims Kilmarnock's current model is "unsustainable" with directors' loans being taken out to prop up club finances.
Pressure has grown on Johnston - currently the company secretary - to cut all ties with the club in recent times and his presence is understood to be a block to investment.
Last week Kilmarnock board members are believed to have offered Johnston in excess of £1 million for his shareholding of the club, with local businessman Chris McMail also understood to be willing to invest a seven-figure sum.
Gary Torbett, board member at the Killie Trust, said: "We know from both supporters and local businesses that he (Johnston) is blocking investment in the club and revenue in the club because there are a large swell of supporters who will not buy season tickets until he goes."
"He is a block to revenues through season ticket sales and sponsorship and local business deals." Torbett continued, "I think you have to look and say that cash flow is a serious issue and you can't continue to cut your overheads, as it has probably got to as far as it can possibly go.
"The logical thing that's going to happen is that the cash is going to run out. I don't know when that may be but from the outside looking in it's just not a sustainable business model as it stands.
"Our understanding is that the other directors apart from Michael have been putting director's loans in from time-to-time to prop up the cash flow, which is unsustainable."
"The frustrating thing is that Michael talks about his fiduciary duties as a director of the business. And clearly he is a block to this revenue so his duty must be to come off the board."
"The logical thing that's going to happen is that the cash is going to run out. I don't know when that may be but from the outside looking in it's just not a sustainable business model as it stands."
The Killie Trust and Kilmarnock FC Supporters Association (KFCSA) have released statements this week reiterating their demands for Michael Johnston to leave the Ayrshire club.
A KFCSA spokesperson said: "In light of the articles in the press over the past few days, where it was alleged that former chairman Michael Johnston has turned down an offer of £ 1.9 million for his shareholding on condition that he leaves Kilmarnock FC, the Committee of KFCSA urge Mr Johnston to do the right thing for Scotland's oldest professional club."
"It is the opinion of the vast majority of supporters that Mr Johnston's continued presence at the club is a severe handicap to our club's future progress. The football club needs to move forward and it now appears that Mr Johnston remaining at the club is a major stumbling block to this happening."
The club were on the precipice of relegation last season, with Lee Clark's side overturning a first-leg deficit in the Premiership play-off against Falkirk to remain in the division. Any such demotion would surely be another blow to a club that has suffered significant boardroom unrest in the last few years.
Despite Kilmarnock being on a precarious financial footing, Torbett believes there is hope for the club in the future without Johnston on the board.
He said: "I am a business adviser and I'm of the belief that between half a million and three quarters of a million pounds a year could put the club into a break even position."
"So if you think the season ticket holders have literally halved over the last few years at, let's say, £300 a season ticket. If you can get 2,000 more season tickets, then you are there without even tapping in to too much sponsorship."
At the club's AGM in June a shareholder wanted to hold a vote of no confidence in the club secretary but was told that without a vote on the agenda, an Extraordinary General Meeting (EGM) would have to be called. This has since been put in action but we understand the EGM is being delayed due to a technicality despite there being a "sufficient" number of shareholders in favour of holding the meeting.
However, Sky Sports News HQ has been told the EGM may not even take place due and that any attempt to remove Johnston with a vote would likely be unsuccessful.
"Because of the structure and the shareholding of the club, it's almost impossible to get a vote to remove him," Torbett added.
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