From the AGM report
Accelerated payment clause
One other element of the deal briefly touched on at the AGM was around accelerated payments which could be triggered to the consortium over the next year.
Gordon paid his portion of the share purchase up front, and SMISA – having planned to get a loan to cover our share – had initially promised to do the same. When this didn’t go to plan, we had to negotiate a deal for monthly repayments to the consortium.
They agreed to this, but only if we and Gordon added a clause which said if the club came into any unbudgeted income, some of that money be used to get them what they are owed quicker.
So if St Mirren receive funds from the sale of an asset, the club will lend a portion of that money to SMISA to make the accelerated payment to the consortium, and SMISA will repay the club. This only applies up until the date we are due to make the final repayment in summer 2018.
There are three points members should be clear on here. One is that payments only apply up to the sum we still owe them at that time – they won’t get a penny more than they are due.
Second is the club will not lose out as a result – any money which comes out of the club to make the repayments will be repaid by SMISA in full as soon as we can.
Lastly, the power of the club board is in no way affected – they don’t have to sell anything unless they choose to.
A compromise was negotiated where this clause did not apply in January 2017 – so it wasn’t triggered by the transfers of Kyle McAllister or Jason Naismith. But it may kick in if a player is sold this summer.
Again, the clause was part of the share purchase agreement, which we had authority to conclude, and which was approved by our lawyers.
This was a clause we were reluctant to agree to. However, we were negotiating a million-pound share purchase and this was a highly complex situation in which none of the three parties (us, Gordon and the consortium) got everything they wanted – as with any deal, everybody made compromises.